Social Site Helps Consumers Save Up for a New Vehicle
I’m done putting money away in a piggy bank. Why? Well, first off, my friends and family never contribute to it no matter how much I ask and, secondly, no one seems to ever want to match my savings.
The idea of saving for a new vehicle just got social. Motozuma.com, a free social savings website, allows customers to set up a profile and share it with friends through sites like Facebook and Twitter in order to save up for a down payment on a new vehicle. On top of that, if you purchase your vehicle through a partnering manufacturer like Hyundai, the automaker will match the funds, up to $500. Not too shabby.
Though launched in 2009, Motozuma is really gaining momentum now as the industry continues to recover, Founder and CEO John Morgan told AutoFinanceNews.net. The site currently has “tens of thousands of users” and has been growing steadily over the past year, he said.
As the startup works toward more manufacturer and even lender partnerships, Hyundai is so far the only manufacturer that offers Motozuma users the $500 match. Consumers using the site can, however, save up for any vehicle they want and still use the service for free; they just won’t get the match.
On average, a Motozuma saver racks up $830 toward a down payment and 64% of users are of the Gen-Y population (ages 18-34), Morgan noted. Users must have the account set up for 30 days before redeeming the cash, but the money can be combined with any offers that a dealer may have at the time of purchase.
When consumers are ready to buy, they can log onto their profile, hit the “ready to buy” button, and receive a code and certificate they bring to the dealership to begin the car-buying process. Motozuma will transfer the funds from the online account to the dealer.
It sounds to me that the site could be ideal for subprime customers looking for lower monthly payments on their new-car loan. The shopper could share the Motozuma profile with friends and family around a birthday or holiday and save up the amount of their choosing, ultimately reducing the total loan amount. Motozuma only gains revenue from its automotive partners through advertising and subscription fees.
The site already has a partnership with U.S. Bank, which helps users attach a recurring transfer to their Motozuma account from their checking account in order to build down payment savings.
Morgan said the company is currently looking towards working with lenders in the space to expand the product and potentially move into the used-car business.
As you can see, I set my account up to save for a new Hyundai Sonata Hybrid. Donations welcomed.
