SpringboardAuto.com, a marketplace lender for auto finance, launched its pilot phase in California and Florida, and completed its first deal on Tuesday, Founder and Chief Executive Jim Landy, told Auto Finance News.
“We started off from private party financing that does not involve the dealer,” he said. “There is a significant number of cars sold each year through private party, and we saw an opportunity to derisk those transactions, as well as provide a great experience for the customers.”
Private party lending is a “great first step,” Landy said, and is expected to be followed up by two other products: refinancing in early May, and dealer purchase product in June. “Although we are licensed in every state, we are planning to expand our offerings in the 17 states that make up 70% of the market by the end of June,” he said.
The startup is now looking to partner with banks and credit unions, said Stuart Holmes, chief marketing officer at SpringboardAuto.
“We are really looking to bring our platform and tech, and partner with financial institutions, because they have the customers and the balance sheets,” he said.
Currently, Springboard’s platform is “mainstream,” with plans to add alternative data components in the underwriting process soon, Holmes said. “The platform is highly compliant, and transparent for customers, the CFPB will love it,” he said. “We do soft inquiries on customers’ credit, and 75% of the time don’t even require a social security number.” All that is to provide a “safe and secure” space for car buyers and sellers, he added.
AFN got a sneak-peak of the refinance platform, set to launch in a few weeks. Watch Holmes going through the first couple of steps of refinance application.
