Springboard’s sweet spot is two- to three-year-old cars with 55,000 miles and an average of between $15,000 and $18,000 financed, a “pretty close match” to the types of vehicles and consumer base Carvana targets, said Jim Landy, Springboard’s founder and chief executive.
“The data [shows] that nonprime customers are drawn to the attractive pricing of a certified pre-owned vehicle,” he added. More than two-thirds of Carvana’s customers finance directly on the website, the company told Auto Finance News.
Springboard is joining Carvana’s network of at least 11 credit unions, while Ally Financial Inc. has committed to fund as much as $2 billion worth of Carvana’s retail installment contracts. Phoenix-based Carvana, which went public last year, sold 44,000 vehicles in 2017 — up from 19,000 in 2016 — and generated $859 million in revenue. It had 9,500 vehicles in inventory at yearend 2017.
Despite the focus on Carvana’s nonprime segment, Springboard is “looking to provide the full spectrum of credit” to consumers, starting in July or August, Landy said. Specifically, SpringboardAuto will finance vehicles at higher price points, and may see customers extend loan terms or put more money down, depending on preference, Landy said. To start, Springboard will originate prime and super-prime loans on behalf of four bank and credit union partners; the partners will then purchase the loans from Springboard.Like This Post