MIDLOTHIAN, Va., Oct. 16, 2018 /PRNewswire/ -- Outside Financial, an independent auto loan marketplace, launched its consumer-first platform today to bring 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, along with time and hassle. Outside Financial also arranges refinances for existing borrowers.
In 2017, Americans racked up $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.
"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."
Outside Financial is launching with three lender partners, along with two vehicle service contracts (VSC) and GAP waiver providers. The company plans to add select additional partners who share their consumer-first values.
The seamless and easy application process through OutsideFinancial.com provides car shoppers and refinancing owners with up to three loan offers, which can be customized by term, APR, and monthly payment, without any impact to their credit score. The OF calculator shows them their savings, based on an average for new loans and actual savings for refinances.
"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. "We want to empower consumers to make smart decisions and find the right loan package for themselves."
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 are passionate consumer advocates who are determined 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.
About Outside Financial
Outside Financial is a consumer-first, independent auto loan marketplace designed to provide car shoppers with affordable, transparent auto loan packages before they step into a dealership. Outside Financial brings education and choice to car buyers and refinancers, arming them with information and options to make the financing experience easier, while bringing pre-qualified and motivated consumers to dealers and lenders. The company partners with leading financial institutions and VSC and GAP providers that have similar consumer-first values to ensure a quality experience for car buyers for the life of the loan. For more information, visit www.OutsideFinancial.com.
1 Accenture, https://www.finder.com/car-loan-statistics
SOURCE Outside Financial, LLC