Two events this month have shown that online car sales are growing not only in volume, but in ways that credit unions might note.
First, Hyundai announced new features in Korean automaker Evolve’s showroom on Amazon’s website that allow buyers to select new cars available, choose options, and contact participating dealers. who sell them.
Second, online used car seller Vroom said on Wednesday that it plans to buy United Auto Credit Corporation of California for $ 300 million, in a deal expected to close early in the year. next year. UACC specializes in subprime borrowers, which it says will complement the existing loan providers used by Vroom. But Vroom also said he plans to integrate UACC’s technology platform to expand Vroom’s captive finance operation.
A press release from Vroom said that “the transformational acquisition accelerates Vroom’s strategic objective of establishing captive finance capabilities to support sales growth, improve unit economics and create long-term value for the shareholders of Vroom “.
âCompetitive financing is a fundamental part of Vroom’s value proposition and the addition of exclusive lending capabilities unlocks significant value for our business and our customers,â said Vroom CEO Paul Hennessy.
Vroom’s website said it allows buyers to finance through its captive affiliate, a dozen selling lenders, or the buyer’s own lender.
Carvana, a leader in online used car sales, has also developed its own in-house lending capacity.
During this time, Hyundai Evolve showroom, launched in 2018, now allows buyers to configure and price their desired Hyundai vehicle, locate inventory in real time, and contact dealers to close the sale.
JosÃ© MuÃ±oz, President / CEO of Hyundai Motor North America, said his mission is âto be the leader in a smooth, digital and seamless retail experience in partnership with our dealer network.
âThe events of the past 18 months have made it clear that many consumers want a car buying process that aligns with how they buy most of the rest of their lives,â MuÃ±oz said. âAmazon is a leading retailer and we’re excited to continue working with them on digital retail experiences. “
A CU time Testing the system led him to a dealership in Connecticut, where financing through the captive Hyundai was recommended, but online shoppers were also allowed to buy through its lineup of indirect lenders, which included at least the Navy Federal Credit Union of Vienna, Virginia ($ 147.9 billion in assets, 10.6 million members).
The site itself provides a tool that allows buyers to estimate their monthly payments based on the cost of the vehicle being searched, interest rates by credit rating ranges, and various terms.
Alan Moss, vice president of global ad sales for Amazon Ads, said the company looks forward to “deeper collaboration on new features that enhance the showroom and make it even more useful for customers when they discover and research Hyundai vehicles “.