Chase Auto has expanded its relationship with online used-car retailer Vroom, in anticipation of an expected 2020 launch of Vroom Financial Services Powered by Chase, a new financing arrangement between the two companies, Mark Roszkowski, Vroom’s chief revenue officer, told Auto Finance News.
“The goal is to eventually make the entire financing process completely digital,” Roszkowski said. The partnership with Chase — which entails naming Chase as a “preferred lender” — will “support [Vroom] on a national scale” as the company continues to grow, he noted without being more specific. A timeline for the 2020 rollout was not provided.
“We expect that Chase will be our primary lender,” Roszkowski said, “but we expect to continue to have substantial relationships with other lenders on our platform.” Vroom works with 12 lending partners, including Ally Financial, Capital One, Santander Consumer USA, and SunTrust Banks, among others.
Chase will provide Vroom with a more streamlined lending process through an aligned team of underwriters, marketers, and servicing representatives, which will open up pricing options, enhance operational processes, and make it easier for the company to process loans, said Roszkowski.
Vroom lists used vehicles on its online platform that are, on average, less than 3 years old with fewer than 50,000 miles, Roszkowski said.
“We’re excited that Vroom chose Chase Auto to deliver our suite of financial capabilities to their growing customer base. Knowing that consumers shop for vehicles in a variety of ways, Vroom’s end-to-end online experience complements programs we currently offer through dealerships and select manufacturers,” said Jim Manelis, head of strategic alliances for Chase Auto in an email.