Chase Auto has inked a private label partnership with electric vehicle manufacturer Rivian called Rivian Financial Services.
The program is set to launch in early 2021 ahead of planned June deliveries of Rivian’s R1T pickup, the lender announced this morning.
Consumer financing will have a digital-first focus, with credit applications being submitted through rivian.com, and the ability for customers to structure their financing and receive decisions in minutes, according to the company release. Signatures will be completed electronically, and digital servicing will allow car buyers to make payments and obtain customer support.
“As customers increasingly look to do more online, we’ve activated our deep digital expertise across Chase to enhance the car buying experience,” said Jagdeep Dayal, head of Partnerships for Chase Auto, in a statement. “The ability to seamlessly integrate financing into the purchase process helps our customers more simply secure a vehicle they will enjoy and can afford.”
Private label partnerships have long been at the core of Chase Auto’s business model. In October 2020, Chase Auto extended its private-label arrangement with Subaru Motors, a partnership that has lasted more than 19 years. Chase Auto also provides private-label financing for Jaguar Land Rover, Maserati and Aston Martin.
Chase Auto has been looking to further supplement its private-label financing options since Mazda Motors decided to move their captive financing business to Toyota Financial Services in August 2019, former Chief Executive Mark O’Donovan said at the Auto Finance Summit in October 2019. Chase Auto had provided financing for Mazda since 2010.
Chase Auto had been working on “five or ten” strategic partnerships at the time, O’Donovan previously said. In September of that same year, the lender announced it was expanding its partnership with online retailer Vroom by launching the preferred-lender financing arrangement Vroom Financial Services Powered by Chase.
Plymouth, Mich.-based Rivian has been developing an all-electric SUV and truck since its founding in 2009, and has previously garnered investor interest from Amazon and Ford Motors. In March 2019, Amazon announced a $700 million investment in the OEM as a potential way to supplement its delivery platform. Ford Motors, too, invested $500 million in Rivian in April 2019 to develop an all-electric Lincoln model based on Rivian’s skateboard platform, but canceled those plans in April 2020, according to published reports.
Chase Auto recorded $62.3 billion in outstandings, according to the lender’s 3Q20 earnings.
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