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Key Auto Finance and CarDay Join Forces

24 April 2000

Key Auto Finance and CarDay Join Forces to Offer Auto Financing and Refinancing on the Web

    NEW YORK and CLEVELAND, Ohio--April 24, 2000--Key Auto Finance, a division of Key Bank USA, and CarDay, Inc., a new Internet auction site for used cars, have entered into an exclusive partnership to provide financing to CarDay customers seeking auto financing or refinancing.

    Terms of the agreement were not disclosed.

    CarDay, launching May 1, 2000 is the first Internet auction site for certified, warranteed used cars to utilize an off-line network of automotive retail franchisees. CarDay AutoExperts facilitate private buyers and sellers' transactions off-line to ensure that their online exchanges are safe and value-added.
    "The majority of used-car buyers require some form of financing, and through CarDay, they get value, protection and financing all under one roof," says Richard Vonk, president of Key Auto Finance. "CarDay has a unique approach by combining the open market forces of the Internet with the knowledge and expertise of automotive retailers, and we are eager to participate in this promising new way of selling used cars."
    Joe Shaker, founder and CEO of CarDay, says, "With our focus on the used-car market, we wanted to partner with a financial institution such as Key that is retailer-centric and has the infrastructure in place to serve our growing transaction network. Key Auto Finance represents a deep and broad relationship for CarDay through which we can serve people with all tiers of credit."
    Shaker notes that many Internet automotive sites only approve loans for a small portion of their potential customers. CarDay expects to have financing packages available to people with a wide variety of credit histories.
    In addition to providing loans for used cars to CarDay customers, Key Auto Finance's refinancing program will be promoted through CarDay.

    CarDay is the first "brick and click" auction site for used cars. It connects buyers and sellers in an online marketplace and provides them with vehicle certifications and warranties. The CarDay marketplace includes 100 percent mechanically certified vehicles from private sellers, institutional sellers and participating CarDay-franchised dealerships. CarDay currently has 40 franchised dealers in New England, and expects to have 1,000 franchisees nationwide by mid-2001.