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ReprintsSantander joins list of lenders with iPhone apps
Subprime auto loan specialist Santander Consumer USA has created an iPhone app to generate financing leads, adding to the list of insurance and finance companies connecting with consumers via smart phones.
Santander's iPhone Car Loan Calculator allows users to calculate monthly payments and to inquire about credit using an iPhone. The new app is part of Santander's online trade channel, RoadLoans.com.
The Dallas-based company announced the app Jan. 10 and is inviting dealerships to sign up. The program will be available only through franchised dealers.The RoadLoans.com app is more squarely aimed at getting an auto loan than many other apps. The closest comparison might be to apps created by Zag.com of Santa Monica, Calif. Zag.com refers customers to a network of dealers that offer pre-negotiated prices.
Some insurance companies, including Nationwide, also have apps that invite customers to get rate quotes on auto loans, as well as auto insurance.
Meanwhile, several big banks, including Bank of America, have apps that allow customers to use their smart phones to make monthly payments online, for auto loans or any other loan. Captive finance companies Mercedes-Benz Financial and Mini Financial Services have similar apps, which customers can use to make payments and check account information.
Automakers are also introducing apps, but they're aimed more at vehicle information and driving showroom traffic, not the auto-loan process.
More than a calculator
Santander does business with more than 10,000 franchised U.S. dealerships, primarily in used-car financing.
A loan calculator is the RoadLoans.com app's key customer-facing feature. It allows customers to figure out what their monthly payment would be at a given interest rate, down payment, term and loan amount.
Customers also can use the app to ask for credit, submitting their job and income information. If the customer is approved, the system e-mails the customer a pre-approval plus a password and log-in. That allows the customer to download and print out a loan packet.
The packet includes a “voucher” for a certain minimum and maximum amount, including specific conditions. For example, it could be that the car must be a 2003 model or newer, with fewer than 60,000 miles, according to a sample Santander provides dealers on the company Web site. The pre-approval refers the customer to a participating dealer in the Santander network. That packet also says that to get the best deal, the customer should act within five days, according to the sample provided by the company. In short, from the dealer's point of view, the app creates a pre-qualified lead.
Santander says in its marketing materials for the program that the dealership can send the customer's credit application to other lenders in search of a better deal or use Santander to complete the deal.
Santander Consumer USA is a subsidiary of Spain-based Banco Santander, a leading international bank in Europe. You can reach Jim Henry at autonews@crain.com.
