SpringboardAuto.com, a direct-to-consumer auto lending platform, is set to launch in early 2016.
The Irvine, Calif.-based company plans to offer subprime borrowers the ability to get an auto loan online or through a smartphone, according to a Dec. 9 press release.
"The market for auto loans has changed dramatically over the past few years, yet auto lenders have not kept up with today's consumer demands," Jim Landy, who will serve as the firm's chief executive officer, said in the news release.
Landy and Stuart Holmes, who previously worked together at CarFinance Capital, founded the company.
SpringboardAuto.com will originate and service loans for institutional investors, according to the press release.
Consumers will be able to borrow in order to refinance existing loans or to finance the purchase of a new or used car, the company stated. The platform will work for both private-party transactions and purchases made at auto dealers.
The firm said that its digital processes will offer greater efficiency for auto dealers, even after accounting for the lost interest rate mark-up that dealers typically receive on loans arranged inside the dealership.
SpringboardAuto.com enters the scene at a time when subprime auto lending continues to grow, and as other nonbank auto lenders are expanding into direct-to-consumer financing.
In September, subprime specialist Prestige Financial Services rolled out an online, direct-to-consumer platform. And Lending Club CEO Renaud Laplanche hinted in August that his firm was considering the possibility of introducing financing for private-party car sales.