eCarCredit.com Offers Auto Dealer Industry's First Online Sub-Prime Sales and Finance Service
18 September 2000
eCarCredit.com Offers Auto Dealer Industry's First Online Sub-Prime Sales and Finance Service
'Virtual Sub-Prime Department' Powered by eCarCredit.com Allows
Traditional Dealers to Service New Customer Segments
WESTMINSTER, Colo., Sept. 18 eCarCredit.com now offers
automobile dealers the industry's first "virtual sub-prime finance
department," allowing traditional "brick and mortar" auto dealers to offer
sales and financing to customers with sub-prime credit ratings through the
company's Web site, http://www.dealer.eCarCredit.com.
"The new virtual sub-prime finance department feature offered by
eCarCredit.com represents an exciting new opportunity for traditional auto
dealers," said Steve Maxey, CEO of eCarCredit.com. "Sub-prime borrowers
account for approximately 30 percent of auto purchases, but roughly 75 percent
of auto dealerships currently do not offer financing to them. This new
turn-key sales and financing option will allow these dealers to gain
additional, higher margin sales each month."
Based in Westminster, Colo., eCarCredit.com has established partnerships
with the industry's leading sub-prime lenders. Additionally, eCarCredit.com's
experienced staff understands the unique needs of the sub-prime lending
market, and works closely with lenders to approve, process and close loans
quickly.
Through its new online sales and financing option -- eventually available
in 46 states -- eCarCredit.com arranges financing terms, structures auto sales
to fit bank rules, maximizes dealer profits, assists in completion of auto
sales and trains dealership personnel on financing options. In addition,
eCarCredit.com partners with dealers to direct consumers to dealers through
joint marketing and promotional activities. Several auto dealers have already
signed up with eCarCredit.com.
"What makes this such an outstanding program for dealers looking to serve
their sub-prime customers is its simplicity. All our dealers need to do to
access an experienced sub-prime lending team is log onto their computer and
enter their customer's data. We take care of everything else," Maxey said.
"Many dealers have avoided the sub-prime market because of its complexity and
unique needs. Our new turn-key service allows them to serve a whole new
customer segment without expanding their finance department."
Other online auto services such as CarsDirect, Greenlight, DriveOff,
Autoweb and Autobytel do not focus on the sub-prime market. Sub-prime auto
lenders do not manage the entire financing process for dealers like
eCarCredit.com.
eCarCredit.com leads the industry in serving the sub-prime credit market
on the Internet. Through partnerships with some of the nation's largest and
most respected lending institutions, and with inventory offered from over
6,200 auto dealers, eCarCredit.com delivers new automobiles to consumers at
competitive prices with favorable financing options.
eCarCredit.com is a portfolio company of iBelay, a Boulder, Colo.-based
Internet holding company. eCarCredit.com currently is located within
FastIdeas, Inc., the Internet business accelerator owned and operated by
iBelay.
"The growth potential for providing dealer financing for sub-prime
consumers is very large," said Pete Estler, CEO of FastIdeas, Inc. "Sub-prime
sales are effectively more profitable for our dealer partners than traditional
prime sales. This new financing capability of eCarCredit.com represents a
tremendous opportunity for the company to expand in a new, untapped business
direction."
About eCarCredit.com
eCarCredit.com is the first Internet auto sales and financing enabler
focused on the underserved sub-prime marketplace. As a B2B e-commerce and
financing provider, eCarCredit.com is the first online service that provides
traditional and Internet-based auto dealers with a complete, outsourced
"virtual sub-prime finance department," allowing dealers to sell cars to the
approximately 30 percent of car buyers classified as sub-prime, which 75
percent of dealers cannot currently service. As a B2C e-dealer for sub-prime
consumers, eCarCredit.com is the easiest and most confidential way to buy and
finance a new or late model vehicle. eCarCredit.com does not provide the sub-
prime loans itself and has no lending risk. eCarCredit.com has assembled a
team of professionals with expertise from companies such as GE Capital, GMAC,
Nuvell, and Bank One, who possess a unique combination of automotive
experience and knowledge of lending practices. eCarCredit.com received its
first round of funding from iBelay (http://www.ibelay.com), a $100 million early
stage venture capital firm, and is currently located in the FastIdeas
accelerator in Westminster, Colorado.
About iBelay Venture Fund
iBelay is a $100 million Internet holding company investing in Colorado
Internet companies providing solutions within the wireless, broadband, online
direct marketing and business-to-business infrastructure markets. iBelay is a
new form of enterprise that creates, builds and operates Internet companies
through its Internet business accelerator FastIdeas. As early stage seed
investors, iBelay manages its portfolio companies as a collaborative network
that leverages its collective business expertise, scalable technology and
engineering resources to maximize its investors' return on investment.
Investors include Excite@Home, Shaw Communications and Tango Partners.