The millennial generation is quickly moving into economic prowess, disrupting the way the auto market does business. And online car-buying platform Carvoy, in response, will offer a new solution to attract the younger demographic, called Carvoy Ignite, Mobility Buzz has learned.
Carvoy facilitates the entire car-buying process by allowing consumers to either customize or choose the kind of car they want via the website, and Carvoy takes care of the rest — from arranging financing to delivering the vehicle to the consumer. Currently, the startup sends a customer’s vehicle request to over 300 participating dealerships in New York, New Jersey, and Connecticut, who compete to offer the customer the best leasing agreement offered through the dealer’s finance partner; the best three are shown to the customer.
The goal of Carvoy is to provide transparency to the leasing process, and the company’s new product Carvoy Ignite, which launches May 1, continues that endeavor by giving the customer even more control. “A lot of our customers are fed up with the [dealership] nonsense and they thank us,” Daniel Yuabov, co-founder and chief executive, told Mobility Buzz.
Carvoy Ignite provides customers with access to thousands of vehicle listings — from traditional combustion engines to electric vehicles. And in the long term, Carvoy even plans to make autonomous cars available on its website when the cars come to market, as those vehicles will still require financing, Yuabov said.
Carvoy Ignite offers adjustable, live pricing in a what-you-see-is-what-you-get format. “For example, a customer can search for a Subaru and adjust [lease duration, out of pocket costs, etc.] in real time, without any dealer or person pushing you in any direction,” Yuabov said. During the process, the customer is shown everything about leasing a vehicle, including MSRP, dealer invoice, discount, rebates, residuals, money factor, out of pocket costs, and more.
Transparency is something Yuabov found missing from the car leasing experience when the company was founded in 2015. Initially, it began as a lease assumption website — helping people transfer their lease to another person to avoid penalties for breaking a lease.
“We saw it as a core problem of leasing … especially with millennials,” Yuabov said, because millennials often want shorter leases. The company launched its current online marketplace about a year ago in beta, and has since facilitated 500 leases, and found that 60% of its customers — on average — are millennials, Yuabov said.
For the most popular models, financing is typically done through the OEM’s captive arm, Yuabov previously said. But sometimes with the less popular models, other finance partners are more advantageous, and Carvoy can pull from around 50 banks.
Those interested in learning more about the evolution of the transportation industry should join us at the second annual Auto Finance Innovation 2017 conference, May 17-18 at the Hilton Bayfront in San Diego. Visit www.autofinanceinnovation.com and to learn more.3 - Readers Like This Post