Santander Consumer USA has expanded its online financing via a freshly inked multiyear agreement with Vroom, the companies announced today.
The partnership with SCUSA, one of the largest subprime players in auto finance, allows Vroom to offer its consumers more competitive lending rates which, in turn, expands Vroom’s consumer profile and bolsters online used–vehicle sales. SCUSA originations hit $31.3 billion for yearend 2019.
Moreover, the new partnership offers co-marketing intended to scale vehicle sales and acquisitions. SCUSA and Vroom did not disclose how long the multiyear contract will last, but did note that they have started collaborating operations and will continue to refine product offerings throughout the year.
Vroom adds SCUSA to its growing list of partnerships with large-scale auto financiers including Ally Financial, Capital One Auto Finance, and Truist, among others. Last week, Vroom and JPMorgan Chase Bank launched its co-branded finance arm, Vroom Financial Services.
In a separate announcement last week, Ally Financial doubled Vroom’s floorplan line of credit to $450 million and will serve as Vroom’s exclusive floorplan financier.
Vroom’s e-commerce platform ropes in all phases of the vehicle buying and selling process. The retailer offers used vehicles to consumers with at-home pickup and delivery. It also arranges financing through various lenders and offers warranty, insurance and add-on products.
Vroom has $721.3 million in funding over eight rounds, according to CrunchBase. The 6-year-old company has an online inventory of more than 3,000 used vehicles.
