Ally Financial Inc. began funding private-party auto loans and offering vehicle service contracts through TRED — an online used-car marketplace — the companies announced in May. The startup is now hoping consumers that apply for financing will be drawn in by convenience, as opposed to lower rates offered by competitors, said Grant Feek, chief executive and founder of TRED.
“We’ve already had a number of buyers who say, ‘Well, I think I can get a really great rate with my local credit union,’” Feek told Auto Finance News. “We’ll say, ‘You can, but if you do it our way, it’s just funded, and you don’t have to go anywhere.’ There’s a lot of power to that.”
Ally’s suite of vehicle service contracts, such as GAP insurance, are offered through TRED’s platform as well, Doug Timmerman, president of Ally Insurance, told AFN. The insurance products are particularly valuable in a private-party context, because consumers feel “there is always some level of uncertainty,” Timmerman said. “Purchasing a service contract takes that totally out of the equation, so I think service contracts — there is always customer value — but in this venue, the contribution is definitely so.”
