MotoRefi, an automotive refinance startup, is eyeing geographic and partnership growth after securing $4.7 million in seed funding last month, Chief Executive Kevin Bennett told Auto Finance News.
Founded in 2017, MotoRefi is a technology platform that connects consumers looking to refinance vehicles with a handful of national and regional lenders that personalize offerings online “within minutes,” Bennett said. The company is on track to double its lender network to “about a dozen,” Bennett said, declining to disclose existing partners but noting that community banks and credit unions are “a perfect fit” given their chartered member and community obligations. “If we were just taking on all lenders, we would have many more at this point, but we’re focusing on lenders who we think are going to be the best partners for our customers and putting their needs first,” Bennett said.
MotoRefi customers save an average of $100 on their monthly auto loan payments, according to the company’s website, either from lower interest rates, longer terms, or a combination of the two. “A lot of consumers have auto financing that is not the best financing for them,” Bennett said. “We work with those consumers to help put them in the best auto financing that they can qualify for.”
MotoRefi operates in more than 40 states, with Washington, D.C., and the remaining “low-population states like North Dakota and Maine” in the pipeline for expansion by yearend, Bennett said. MotoRefi will use some of the new funds to grow the team and offer full-spectrum lending in more states. Funding was led by venture capital firm Accomplice, with participation from QED Investors and Motley Fool Ventures.
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