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Carputty Corporate Member
Two Piedmont Center, 3565 Piedmont Rd. NE Atlanta GA 30305 UNITED STATES
2021 25 to 100
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    Carputty, shared an update
    PostedMonday, April 1, 2024 at 12:46 PM
About

Carputty is a direct auto lender that has created the first line of credit strictly for automobiles:  Flexline.  Carputty prioritizes data over documentation, and customer’s are fully underwritten online in minutes according to their ability to repay – credit and income are verified using open source banking tools via Plaid and Experian.  Lines of credit up to $250,000 are granted upon credit approval; subsequently, each financing transaction is structured as a traditional fixed rate, fully amortizing auto loan, secured by the vehicle.   Carputty is currently focused on prime/super prime customers with a typical customer having a 745 FICO and 23% DTI.

Carputty is striving to change the rules in existing auto finance.  We don't see why someone should have to pay higher rates on a 4 year old vehicle versus a new one – a fully underwritten prime credit borrower’s likelihood of timely payment is no different no matter what vehicle is financed.  

Furthermore, 80% of all auto financing happens at a dealership, where there are numerous ways a consumer can be put into a bad situation.  Did you know dealerships can mark up rates up to 5pts without disclosing to the customer?  Lack of in dealership oversight also risks both manipulation of stated income and accuracy of vehicle valuations. Customers usually get backed into the highest monthly payment they can afford for the longest period of time, which results in the customer being in a bad situation from the very beginning.   Carputty promotes transparency by showing customers their rate before the process even begins.  

Lastly, Carputty provides customers its proprietary valuation tool, so our borrowers can track the value of their vehicle and treat it like the asset that it is.  We use predictive analytics to show vehicles values in the future, empowering the borrower to make an informed decision of when to hold or sell.

Since Carputty has built a proprietary  POS and LOS, the platform is  "Auto Lending In a Box", able to provide auto financing for banks that don't offer that product to their customers.  This is a  low cost way to offer auto lending to bank customers and with the additional  Business product offering, those with fleets of vehicles can finance all their vehicles on a single line.

 

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Solutions Snapshot

Carputty offers a unique approach to auto financing that distinguishes it from traditional auto loans or leases through financial products tailored to the modern driver's needs. Here's how Carputty aims to solve common issues in auto financing:

1. Flexibility in Financing: Carputty provides a more flexible financing model compared to traditional auto loans. Their platform allows customers to adjust their financing as their needs change, potentially offering more personalized repayment plans.

2. Lines of Credit: One of Carputty's innovative solutions is offering a line of credit specifically for automotive needs. This means consumers can have pre-approved financing for their vehicle purchases, but also for refinancing existing vehicles, making repairs, or upgrading cars, under a single credit line. This flexibility can be particularly appealing for those who want to manage their automotive expenses more dynamically.  Carputty is selling the individual loans, not the lines, so banks don't have to hold risk based capital against a fully drawn line.

3. Digital-First Approach: Carputty operates with a strong emphasis on technology, offering a seamless online application process. This digital-first approach caters to consumers who prefer online transactions and want to avoid the traditional, often cumbersome, loan approval processes found at banks or in dealerships.

4. Transparency: The platform aims to offer clear terms, easy-to-understand repayment plans, and upfront information about rates and fees. This transparency helps consumers make informed decisions without the pressure often associated with dealership financing options.

5. Customer-Centric Products: Beyond just purchasing vehicles, Carputty recognizes that car ownership involves a variety of financial considerations. Their products are designed to address a broader range of automotive financial needs, from maintenance to unexpected repairs, providing a more holistic solution to auto financing.

By addressing flexibility, offering a line of credit, employing a digital-first strategy, ensuring transparency, and focusing on the broader needs of car owners, Carputty aims to provide a more adaptable and user-friendly solution to auto financing, challenging the conventional auto loan and lease options on the market.

Functional Area
Lending: Commercial
Asset-Based Lending
Lending: Consumer
Auto
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Service Area Nationwide
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