Regions Bank customers will have a simpler way to shop for their vehicle on Carvana’s platform through a partnership that will redirect direct loan applicants to a website co-branded by the Tempe, Ariz.-based e-commerce platform and the Birmingham, Al.-based bank.
The move is the next step in the evolution of its partnership with Regions, a Carvana spokesperson told Auto Finance News. “When we were a much smaller company, we partnered with more regional banks and credit unions that had similar footprints to our own,” the spokesperson said, adding that Carvana’s relationship with Regions “goes way back.”
“Regions’ customers have been buying cars from us, and we’ve been accepting their financing for years now,” the spokesperson said. “What this partnership does is really facilitate that process.”
Read more: Regions Bank to Exit Indirect Lending Space
“Carvana is committed to delivering exceptional customer experiences, and that includes providing our customers with the flexibility to choose the financing that’s best for them,” Christina Keiser, Carvana’s vice president of strategy, told Auto Finance News in an email. “Most of our customers choose Carvana financing, and a smaller portion choose another lender or pay in cash. We have several partner lenders, like Regions, who believe in the Carvana experience and choose to refer their customers to us to shop and purchase once they’ve been approved for an auto loan,” she said.
As such, Carvana is not concerned about the offering affecting its own loan originations, which hit $1.23 billion in 2018. “We understand that all customers don’t start their car shopping journey in the same way, and certain customers will start their journey with their existing bank or credit union,” the spokesperson said. “So, we see that population as incremental to the customers who we would acquire to our core marketing and advertising and even referral businesses. This is a way to capture that incremental audience more effectively.”
Regions Bank exited the indirect auto business in February, but the bank maintains its direct loan platform. The bank had $3.1 billion in outstanding loans at year-end 2018, according to Big Wheels Data.
“The ways people search for and purchase a vehicle continue to change,” said Tom Lazenby, auto lending manager for Regions Bank, in a statement. “Carvana, like Regions, is a company that is on the leading edge in terms of simplifying the purchasing process and doing it with reliability, transparency and a focus on putting the customer first,” he added.
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