VirtualBank Announces Person-to-Person Auto LoansNORTH PALM BEACH, Fla.--Jan. 30, 2001--
In a move that further strengthens its suite of lending services, VirtualBank(TM) (http://www.virtualbank.com), a technology-based financial services company focused on innovative technology and customer service, today announced the availability of online person-to-person (P-to-P) auto loans.
VirtualBank is the first bank to offer P-to-P loans online, providing financing options to an individual purchasing a car from another individual instead of from a dealer. The used car market offers the biggest opportunity for online auto lending: Over one-third (34%) of used car buyers log onto the Internet to help them shop for a vehicle, according to a recent survey by J.D. Power and Associates. "Most used-vehicle buyers who go online are looking for specific vehicles for sale," notes Chris Denove, partner at J.D. Power and Associates and director of the study. "As a result, used-vehicle Internet shoppers are more likely to use online services to facilitate the actual sales process."
VirtualBank saw the potential of this market, designing its P-to-P option to increase convenience and value for customers. "Our measurement data indicates that VirtualBank generates more online auto applications than any other bank in the nation, making us one of the largest online auto lenders," explains Michael Nixon, Auto Financing Product Manager for VirtualBank.
VirtualBank's auto lending success is largely due to the value and convenience the company offers. For example, VirtualBank's used car loan rates are often lower than the national average, which can amount to significant savings for consumers. A difference of just 1.5% translates into a savings of $400 over the lifetime of a $15,000 loan. In addition, the loan can be approved in just a few minutes and the buyer can have a check in hand the next day.
"We believe that used car auto loans are a natural fit for online financing," said Courtney McCashland, Executive Vice President of Marketing for VirtualBank. "When you go online and find the car you've been searching for, you are ready to buy. At that moment, we can provide convenient, competitive-rate financing with 15-minute credit decisions."
VirtualBank, a technology-based financial institution based in North Palm Beach, Florida, was founded in April 1999 to leverage the Internet to fundamentally change the way people bank. Utilizing the Internet, Windows 2000 and its core proprietary technology, VirtualBank provides consumers highly personalized online banking services through a single point-of-contact for all financial transactions. More information about the company can be obtained by visiting its Web site at http://www.virtualbank.com or by calling 877.998.2265 .