LAS VEGAS — Chase Auto is looking to supplement its private-label financing venture with a “new business” focused on strategic partnerships that will leverage the private-label infrastructure, Chief Executive Mark O’Donovan said at the Auto Finance Summit.
“We had some unfortunate news that Mazda had let us know a little while ago they’re going to be moving their captive finance business to Toyota Financial, so that’s going to be a bit of a headwind,” O’Donovan said. “Our goal is to see how we help mitigate some of that.” Toyota Financial Services took over as Mazda’s private-label finance provider in August. Chase Auto had served as Mazda’s financial arm since 2010.
Already, O’Donovan said Chase is working on “five or ten” strategic partnerships, similar to Chase’s relationship with Vroom, that will complement the partnership business.
“The idea [with the Vroom partnership] is how do we bring branding, marketing, and our consumers to work with them to create a better customer experience that’s not pure retail but a more preferred framework overall,” O’Donovan said. “The reason we can do that reasonably efficiently because of the [private-label] business that we have.”
Chase Auto and Vroom announced in September the two companies would be expanding their partnership with the 2020 launch of a preferred-lender financing arrangement called Vroom Financial Services Powered by Chase.
Chase Auto provides private-label financing to OEMs Subaru, Jaguar, Land Rover, Maserati and Aston Martin. Chase Auto’s outstandings were $82.4 billion at yearend 2018 according to Auto Finance Big Wheels.