AutoGravity, a new and used car finance offer aggregator which has attracted the backing of Daimler in its native US, is looking at entering the UK market.
The web-based motor finance company confirmed that the UK is on the consideration list as part of its international expansion plans.
The digital platform aggregates finance offers and displays four loans or lease deals for customers to choose from on their chosen model.
The aim is for customers to be able to easily access finance for a vehicle of their choosing on their smartphone in under 10 minutes.
AutoGravity partners with dealers’ existing lenders and captive lenders and when customers have chosen their vehicle, they still visit a dealer showroom to pick up the car. AutoGravity does not charge customers for using the app.
The company received seed funding from the Daimler Group. Mercedes-Benz Financial Services USA, a subsidiary of Daimler Group, became AutoGravity's first vehicle finance company to start offering loans, in October 2016.
AutoGravity is now operating in 49 US states and is looking to expand internationally.
Andy Hinrichs, AutoGravity chief executive and former chief financial officer for Daimler Financial Services Africa, Asia Pacific, said: “The business case boils down to the fact that life takes place on your smartphone.
“But if you go inside the car dealership, the smartphone doesn’t really help you at all in the car buying process.
“Why isn’t buying and financing a car as simple as ordering an Uber? We broke the process down to under 10 minutes.”
Serge Vartanov, chief marketing officer, told AM Auto Gravity makes its money with a “modest origination fee” from the lender providing the finance and the dealer for the transaction.
Vartanov said there is currently no charge for dealers to sign up with AutoGravity.
Vartanov said: “Thousands of dealerships have partnered with us because AutoGravity sends them qualified car buyers who are ready to drive off the forecourt with a new car.
“We work with the leading indirect and captive lenders, as well as CRM and dealership systems. In addition to bringing new customers to the showroom, AutoGravity also offers a web plugin that empowers dealers to present indirect financing offers for inventory on their website.”
Vartanov said there hasn’t been a push back from the The National Automobile Dealers Association (NADA) on its launch in the US.
Vartanov said: “AutoGravity has been embraced by the largest dealer groups in America.
“This is because AutoGravity is the ‘digital glue’ that brings buyers, dealers and finance providers together through one smartphone app. AutoGravity is enhancing the way consumers find and finance a vehicle.”