After revealing its plans to “introduce limited direct originations in 2016” as part of its strategy to expand bank products, Ally Financial Inc. ALLY is now looking forward to offer consumer auto financing products for vehicles purchased on Beepi, an 18-month-old Internet-based used car retailer that delivers vehicles to buyers' homes without a test drive.
With an aim to broaden the customer base, Ally auto financing products will be available to Beepi customers on nearly all makes and models. Through the new service, Ally Financial plans to capitalize on the shifting consumer trend towards online vehicle purchases. Ally and Beepi are also exploring other opportunities to expand their relationship.
Through Beepi, qualified customers across the credit spectrum are presented a finance option from Ally. Upon acceptance, the consumer finalizes the transaction with Beepi and completes their purchase.
"At Ally, we realize the way consumers are shopping for and purchasing vehicles is evolving and we're able to leverage our inherent digital capabilities to support this shift," said Tim Russi, president of auto finance at Ally. "As a leader in the industry, Ally is well-positioned to provide a range of financial products to auto consumers, whether they purchase a vehicle at a traditional auto dealership, or through an online marketplace like Beepi."
As more and more customers are getting used to the idea of buying a used car online, Beepi plans to grow its presence in every major city. The Silicon Valley start-up is changing the way people buy and sell preowned vehicles by eliminating the hassles of visiting auto dealers to negotiate or take a test drive.
Ally Financial, which provides a full spectrum of financial products and services, such as leasing, insurance, remarketing, and used vehicle inventory, has been trying to expand its client base. The Detroit-based major auto lender, which is the former lending unit of General Motors Company GM, became the preferred financing source in the U.S. for Mitsubishi Motors Corp. as well as luxury sports-car maker Aston Martin Lagonda Ltd. early this year to help expand sales.
Currently, Ally Financial carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the same space are Credit Acceptance Corp. CACC and Cash America International, Inc. CSH. While Credit Acceptance sports a Zacks Rank #1 (Strong Buy), Cash America International holds a Zacks Rank #2 (Buy).
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