SEATTLE, August 4, 2021 /PRNewswire/ -- DigniFi, an automotive financing platform, today announced results from a study to measure the return on investment (ROI) from ExpressWay, a revolving credit line for auto purchases. The five auto and powersports dealerships in the study saw an average profit ROI of 18.64x over a two-month period. The dealers reported that ExpressWay simplified financing for their customers, enabling them to make vehicle purchases and repairs they otherwise would have postponed.
ExpressWay is a revolving credit line that helps consumers afford vehicles, auto repairs, upgrades, accessories, and trade-ins with flexible payment terms. Customers can apply for ExpressWay on their personal smartphone and receive a decision in minutes from the lender. Dealerships pay a flat, monthly fee to offer access to ExpressWay. To study the ROI of ExpressWay, DigniFi recruited five dealerships.
"These dealerships are top performers in their class and models of how best to utilize ExpressWay," said Richard Counihan, CEO of DigniFi. "When we discuss how ExpressWay can transform sales, profitability, and customer loyalty, we point to these five dealerships and the incredible work they do."
For each dealership, DigniFi's researchers recorded the gross merchandise value (GMV) generated through ExpressWay loans during September and October 2020. They classified whether the loan went towards a down payment on a new vehicle, a down payment on a used vehicle, or parts and service. Total value estimates and average multipliers for parts and service were used to measure the revenue generated on these loans. The researchers calculated a 150.51x revenue ROI and 18.64x profit ROI on the subscription cost for two months of ExpressWay.
"Our customers are happy to have the option to use ExpressWay and pay back the loan over the course of a few months instead of having to come up with the cash right away," said a New Car Sales Director at one of the study dealerships. "I think having the ability to help customers in ways that other dealerships can't help us with customer loyalty. Having ExpressWay available is an extra option that gives us an edge over some other dealerships."
"What I really like about ExpressWay is the fact that we have the ability to offer an immediate solution to customers who come into our store, even if they do not have the money right now to make a purchase," said the General Manager of a motorcycle dealership that participated in the study. "Without ExpressWay, we would be doing less business. We do have other financing options, but they don't always accept the credit. DigniFi does better as far as credit worthiness goes."
To learn more about DigniFi ExpressWay, visit this website.
DigniFi is a platform company that connects consumers with lenders for car repairs, tires, accessories, and other auto-related needs. The automated, contactless process serves up financial products through the point of sale at car dealerships and independent repair shops. DigniFi provides consumers with access to fixed payment plans. The loans are originated through WebBank, Member FDIC. To date, DigniFi has provided access to over USD $120 million in loans in partnership with more than 5,000 auto service centers. For more information, please visit www.dignifi.com.
CONTACT: Addie Glazzard, [email protected]