The U.S. division of auto loan platform Canada Drives launched in the states as USA Drives in March following a six-month pilot program by leveraging dealer relationships, Cody Green, founder and co-chief executive, told Auto Finance News.
The platform, which launched in Vancouver in 2010, helps consumers gain access to auto financing, personal loans, and credit-building solutions through the company’s online application — regardless of credit score. Canada Drives will collect the consumer’s financial information and pass it along to partnering dealerships so that the consumer can save time on the show floor.
Within 24 hours of applying, customers are contacted by a dealership that Canada Drives identifies as the best fit for the consumer’s credit profile to discuss finance options and vehicle preferences. The company works with a network of more than 350 dealers.
However, the Vancouver-based platform will face some competition with well-established U.S. fintech companies. AutoGravity, for example, is an online platform that already partners with Infiniti Financial Services, Nissan Motor Acceptance Corp., Santander Consumer USA, and TD Bank.
Carvana is another established digital car marketplace that streamlines the car buying process entirely — allowing consumers to shop, finance, and purchase vehicles online. However, the goal of USA Drives is not to eliminate the dealer from the process.
“Dealers have wonderful footprints across the U.S., and we want to augment what they are doing well,” Green said. Since dealers have adapted to the digital age, USA Drives does not want to “disrupt the dealer process,” he added.
Instead, USA Drives leverages working with the dealer, which Green said is the aspect of the online platform that differentiates it from other fintech companies. “The competitive landscape can be crowded,” Green said. According to Green, the fintech is on track to reach its revenue goal of $100 million for the full-year 2018.
