Ally Financial Inc. rolled out financing for peer to peer auto contracts through the TRED platform, and will add vehicle service contracts and guaranteed asset protection (GAP) directly to the online service, the companies announced in a joint press release today.
The lender began offering financing in April, and plans to add the insurance products this summer.
“Ally’s new relationship with TRED expands our digital presence and brings trusted financing and insurance products to its customers at the point of purchase,” said Doug Timmerman, president of Ally Insurance. “Our goal is to add value for auto consumers by offering products and services that fit their needs and shopping preferences – whether they choose to purchase at a dealership, or through an online marketplace like TRED.”
The move is part of Ally’s overall strategy to appeal more to millennial borrowers, the release stated. A survey, conducted by The Center for Generational Kinetics, on behalf of Ally, found that 21% of younger millennials are likely to shop for and purchase their next vehicle online.
Because TRED is a private party online used-car platform, Ally believes its ancillary products will be a good fit for consumers concerned about expensive repairs.
“Bringing the complete financing process to TRED gives buyers increased power and flexibility to purchase the vehicle they want, and gives sellers access to a larger pool of qualified buyers for a faster, more convenient transaction,” said Grant Feek, chief executive at TRED. “The addition of Ally’s auto finance and vehicle protection products is part of providing a trusted, end-to-end experience to our customers.”
