JPMorgan Chase has teamed up with AutoFi to offer an online auto loan option for car buyers, according to a January 11 press release. With this partnership, AutoFi, a FinTech company in the auto loan sector, will give car buyers the chance to select automobiles and finance them through loans obtained on its website.
This agreement with Chase marks the first national bank to team up with AutoFi.
Why Chase Went This Route
In today’s online world, customers are frequently quick to appreciate ways that streamline a typical task and make it faster and easier. That’s where this process comes in.
Chase realized there was a market for this. According to market research, the idea of buying and financing a vehicle online appealed to almost half of car buyers.
And for Chase, pleasing its customers is its end goal.
“We want to provide them with the best financial experience, whether they are in a dealership or online,” Mark O’Donovan, CEO of Chase Auto Finance, said in the press release.
The car industry isn’t the only sector in which Chase has been lining up partnerships with FinTech companies. It has also announced partnerships with FinTechs for mortgage loans, B2B and mobile payments, and lending targeted at small businesses.
AutoFi, based in San Francisco, is glad to be teaming up with a prestigious company like Chase.
“Our partnership brings tremendous value to the dealer community, leveraging the breadth of Chase’s full-spectrum lending and automated capabilities to deliver a comprehensive digital retailing solution to dealers across the nation,” AutoFi CEO Kevin Singerman said.
How AutoFi Works
Customers who visit AutoFi’s website will easily be able to figure out how to navigate the website and how to apply for a loan.
The first step is choosing which vehicle they want to buy online from the available dealerships that are linked to AutoFi. For the second step, they’ll file an application on the website and quickly find out whether they qualify for financing. In most cases, the decision reaches the consumer in less than a minute.
The third step involves the customers picking the financial and insurance products that will best serve them. The final step is signing the papers online and setting up a time and place where they can pick up the vehicle they’ve bought.
The end result is a car buying and financing experience that may only take minutes.
AutoFi is continuing to build steam as a force to be reckoned with. In addition to this big partnership, it also has ties to Ford Motor Company. In February of 2017, Ford Motor Company joined forces with AutoFi when it acquired an equity stake.
That move should help Ford reach the segment of the car buying population that would rather purchase a car from the confines of their own home rather than going to a dealership, haggling with a salesman, and looking at the vehicles in person.