PALO ALTO, Calif., March 8, 2022 /PRNewswire/ -- Car ownership super app Jerry is finding more ways to save American drivers money with the launch of its auto refinancing service. Available exclusively in the Jerry app, the previously tedious data gathering, approval, and documentation requirements of loan applications are now reduced to less than 10 minutes, and with no unwanted phone calls.
For most Americans, cars are the second-largest household expense. An estimated 26 million Americans are in a position to be highly motivated to refinance their auto loans according to a recent study conducted by TransUnion. In Q4 2021, average used car loans hit a record-high of $29,913. With average auto refinance loans hovering around $20,000 and likely to rise with car prices, the total addressable market opportunity is as large as $520 billion. Yet, only about $40 billion in auto loans are refinanced each year. This leaves tremendous opportunity to help drivers cut expenses when the total cost of vehicle ownership is at an all-time high.
"While most people shop for cars, few shop for financing," said Jerry co-founder and CEO Art Agrawal. "This results in unfavorable financing terms and high APRs for many drivers. The Jerry auto refinancing service makes it quick and easy to see if you are overpaying and, if savings are available, the loan takes minutes to approve."
Jerry already reimagined the car insurance shopping and buying experience and turned stacks of papers and hours of calls into an automated process, with quotes in 45 seconds and no phone calls required. Now Jerry applies the same automation, speed and simplicity to automotive refinancing.
The company developed an automated, proprietary process for evaluating more than 2 million Jerry customers for the ability to benefit from reduced monthly payments and/or a significantly lower Annual Percentage Rate (APR). When savings or lower payment opportunities are found, Jerry proactively presents refinancing offers to customers for consideration. During the soft launch period, customers who refinanced their car loan through Jerry were, on average, able to reduce their monthly payment by $118.
"We're transforming the loan application and approval process, stripping friction points, and using AI to understand which Jerry customers could potentially save money on their car loan by refinancing," added Agrawal. "This is another way we're making it faster, easier and less expensive to be a car owner."
For Jerry, offering refinancing opportunities only to existing customers who would benefit practically eliminates customer acquisition expenses. Jerry auto refinance lending partners also benefit from this pool of highly qualified applicants who are twice as likely to pass the rigorous standards of top lenders' approval processes, significantly reducing underwriting and processing costs.
"The industry averages 19 days from auto refinancing application to funding, and we've done that in less than 48 hours," added Agrawal. "We'll continue to shrink that timeline until it's nearly instantaneous."
As with the company's successful car insurance compare-and-buy service, Jerry does not sell customer data, does not call customers (unless asked to) and does not send marketing emails. Further, Jerry does not employ an auto refinance sales team nor does it pay its auto refinance customer service team commission, further ensuring a customer-centric service offering.
Drivers with the Jerry app can take advantage of refinancing services even if they do not buy auto insurance through Jerry. Since Jerry auto insurance customers save an average of $887 a year on their insurance, many customers will want to take advantage of both services and multiply their savings.
For more information about refinancing auto loans with Jerry or to see how much money you could save refinancing your auto loan, visit getjerry.com.
Jerry saves you time and money on your car expenses. Jerry first launched its AI- and machine-learning-based car insurance comparison service in 2019 and today serves more than 2 million customers as a licensed insurance broker and an authorized auto refinance provider. For more information, to save money on car insurance or reduce monthly auto loan payments by refinancing, visit getjerry.com or download the Jerry app in the App Store or Google Play.