Koslo, a yet-to-be-launched online buy-sell platform recently inked an agreement to use Dealertrack’s consumer loan application process, Devon Koskan, the startup’s founder and chief executive, told AFN.
“What we’re trying to do is allow the consumer to do the whole process online,” he said. “When the customer selects a vehicle, it automatically gives them their finance options.”
The startup, set to launch Sept. 23, allows consumers to request specific vehicles online, and Koslo will send the request to any dealer in the U.S. that carries that brand. Dealers can then “bid” on the request, Koslo negotiates shipping charges, and returns the top five offers to the consumer. Dealers pay Koslo a $50 fee for each sale that’s funneled through the startup; dealers will continue to recieve any other lender compensation.
Koslo wants to maintain a financially beneficial relationship for its dealer partners, but would establish direct relationships with lenders, provided the dealer still received the monetary gain from originating the loan.
“It’s on our radar,” he said. “That was our initial plan when we started to build the company, to have a direct relationship with a finance provider.”
Koslo has had 60 dealers pilot the company’s system as part of a soft launch, and anticipates dealer interest to increase, thanks to the Dealertrack agreement, Koskan said.
“The dealers we’ve talked to have said it’s a no-brainer, and 94% of dealerships across the U.S. use Dealertrack, so for us it’s a huge partnership,” he added.
