Click to Enlarge.
Outside Financial, an independent auto loan marketplace, launched its so-called consumer-first platform that it claims brings transparency to auto finance. The company is the first to offer full auto loan packages outside of the dealership, which can save customers $1,000 to $3,000. Outside Financial also arranges refinances for existing borrowers. Outside Financial is launching with three lender partners, along with two vehicle service contracts (VSC) and GAP waiver providers. The company plans to add additional partners.
In 2017, Americans spent $568.6 billion in auto loans1, yet 60 percent of buyers don’t know they can bring their own financing to the dealership. The company’s new Outside Financial (OF) Markup Index* reveals that, on average, new car buyers are charged $1,717 in hidden markups when arranging their loans through a dealer. About 44% of American adults are relying on an auto loan to pay for a vehicle. Worse, 4.1% of active accounts were delinquent 90 days or more at the end of 2017.
“Auto loans are far less transparent than other loans like mortgages, to the detriment of consumers, and it’s reached a breaking point,” said Jon Friedland, co-founder and CEO of Outside Financial. “Consumers deserve a simple, fair, and transparent auto loan experience.”
“Cars are the second biggest purchase most Americans ever make, but it’s more difficult to shop for financing than for price, make, model, or color,” said Sonia Steinway, co-founder and president.
Outside Financial was founded by Friedland, a 20-year institutional investor who specialized in the auto retail, consumer finance, and e-commerce industries, and Steinway, an attorney focused on consumer finance regulation. Both claim to be consumer advocates trying to bring transparency to the auto loan industry. The company has raised a $1.5 million seed round to develop its innovative marketplace and fill out its executive team with financial, legal, and tech expertise.
*OF Auto Loan Markup Index
The OF Auto Loan Markup Index analyzes public data from the Securities and Exchange Commission, the Federal Reserve and the Consumer Financial Protection Bureau, and industry sources, including the National Automobile Dealers Association, DealerStrong, and Auto Finance News. Coupled with qualitative interviews of current and former automobile finance executives, the Index details consumer costs from 2010 to 2017 on auto loans arranged by dealerships. The index is updated monthly and is available at www.OutsideFinancial.com/MarkupIndex.
1 Accenture, https://www.finder.com/car-loan-statistics
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
Consumers Can Save up to $3,000 on Auto Loan Packages?
Click to Enlarge.
Outside Financial, an independent auto loan marketplace, launched its so-called consumer-first platform that it claims brings transparency to auto finance. The company is the first to offer full auto loan packages outside of the dealership, which can save customers $1,000 to $3,000. Outside Financial also arranges refinances for existing borrowers. Outside Financial is launching with three lender partners, along with two vehicle service contracts (VSC) and GAP waiver providers. The company plans to add additional partners.
In 2017, Americans spent $568.6 billion in auto loans1, yet 60 percent of buyers don’t know they can bring their own financing to the dealership. The company’s new Outside Financial (OF) Markup Index* reveals that, on average, new car buyers are charged $1,717 in hidden markups when arranging their loans through a dealer. About 44% of American adults are relying on an auto loan to pay for a vehicle. Worse, 4.1% of active accounts were delinquent 90 days or more at the end of 2017.
“Auto loans are far less transparent than other loans like mortgages, to the detriment of consumers, and it’s reached a breaking point,” said Jon Friedland, co-founder and CEO of Outside Financial. “Consumers deserve a simple, fair, and transparent auto loan experience.”
“Cars are the second biggest purchase most Americans ever make, but it’s more difficult to shop for financing than for price, make, model, or color,” said Sonia Steinway, co-founder and president.
Outside Financial was founded by Friedland, a 20-year institutional investor who specialized in the auto retail, consumer finance, and e-commerce industries, and Steinway, an attorney focused on consumer finance regulation. Both claim to be consumer advocates trying to bring transparency to the auto loan industry. The company has raised a $1.5 million seed round to develop its innovative marketplace and fill out its executive team with financial, legal, and tech expertise.
*OF Auto Loan Markup Index
The OF Auto Loan Markup Index analyzes public data from the Securities and Exchange Commission, the Federal Reserve and the Consumer Financial Protection Bureau, and industry sources, including the National Automobile Dealers Association, DealerStrong, and Auto Finance News. Coupled with qualitative interviews of current and former automobile finance executives, the Index details consumer costs from 2010 to 2017 on auto loans arranged by dealerships. The index is updated monthly and is available at www.OutsideFinancial.com/MarkupIndex.
1 Accenture, https://www.finder.com/car-loan-statistics
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.