Most people will agree that the process of buying a car can be a tedious one. You have to visit the dealership, examine several options, and spend a whole lot of time trying to determine your insurance costs and finances. On top of this, you may have to visit more than one dealership. Most likely there is more than one manufacturer of the car you are trying to purchase, right?
All of that is about to change with the new technology introduced by San Francisco start-up AutoFi. The company plans to test run their technology at a Ford dealership in the state of Ohio. Ohio has lower taxes than California, so perhaps that is why that state was chosen.
The Idea
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Speaking about the new idea, Director of Ford Credit Lee Jelenic said that their intention is to combine their fast credit decision process with AutoFi’s online capability, which will result in a faster, smoother, and better transaction for all their customers. Due to AutoFi's years of experience in handling used vehicles and the benefits of a well-developed online platform, they expect their services to meet new challenges in customer expectations.
It's always exciting to walk around the dealership, interact with people, and negotiate with the salesperson on the kind of car you want to buy. That would only end well if you have money in your hand. If not, you would obviously need financing that, as we all know, can take all the time in the world. On top of this, negotiating for a car to settle on a price can be aggravating. Negotiations do not always work out like they did for Frank Catton (Bernie Mac) in Ocean’s 11! How many people have that strong grip?!
They want to create an environment where the lenders will be the ones competing for your business. Your only responsibility is to choose the business that benefits you the most, said Kevin Singerman, CEO of AutoFi. In the auto business speed is a critical factor. One of their customers bought a car in less than seven minutes. Also, dealerships get customers in and out within only an hour.
Financing and Delivery
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One of the best advantages of using the AutoFi platform is its availability on the dealership website. This process means you can even buy a car and get the finances done for you without stepping outside your door.
Once you are done the dealership can then arrange all the papers you need to sign, deliver it to your home, and you are done. You can even ask for a test drive. All this can be done very easily. Wow! If only the ACA worked this well it would not be on the road to getting scrapped.
AutoFi was established in the year 2015. According to TechCrunch, the company received about $20 million funding, including $17 million last year. Before joining the Ford team, AutoFit’s focus was on selling used cars. This is the first time they will be venturing into new car purchases with financing and leases, which is something Ford’s credit arm specializes in.
Ford's Role
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An announcement by Ford reveals that they have made an equity investment in AutoFi, although the amount was not disclosed. Ford said that the AutoFi platform is now available for full operation at Ricart Ford in Groveport, Ohio, with operations expected to extend to more Lincoln and Ford dealerships across the length and breadth of the United States.
However, Ford has not yet decided to eliminate the traditional means of buying a vehicle which is not surprising.
They decided to introduce the platform because 83 percent of the American people agreed that it is of salient interest for them to reduce the time they spend at a dealership. This is the result of a poll conducted by Harris, for Ford, which involved about 1,000 adult citizens in America.
However, the poll also shows that many people who participated said they still want to have a physical contact with their vehicle before they sign the papers. No one wants to buy a lemon.