Aiming to draw in customers accustomed to a traditional financing process, used-vehicle subscription company Fair is partnering with credit application platform provider RouteOne to connect customers to its offerings inside the dealership F&I office.
Fair said Wednesday that a new division of the company, Fair Indirect, will be available via RouteOne as an alternative to traditional financing sources for dealership customers interested in obtaining a vehicle subscription.
Many potential customers want to learn about various vehicle ownership models and financing options from inside the dealership, Craig Nehamen, co-founder and chief strategy officer at Fair, told Automotive News.
"Most customers start the process at the dealership, and they look at the car before they look at how they're going to get the car," Nehamen said. "It's really important for us to integrate ourselves ... into the traditional indirect financing flow and give the dealership the opportunity to allow customers to get Fair right there."
With the integration, F&I managers can submit customer applications to Fair alongside traditional indirect financing sources simultaneously through RouteOne, Nehamen said. If a customer is approved through Fair, the dealership will receive a link it can send the customer to direct them to Fair's app and to find the exact vehicle they had decided upon. From there, customers can finalize the subscription process on Fair's site.
The integration, according to Nehamen, gives dealerships options to offer their customers — to finance their selected car through a loan or obtain the vehicle through a Fair subscription.
Fair Indirect won't charge dealerships fees for arranging the subscription deals, even for customers with bad credit.
Nearly 4,000 independent and franchised dealerships work with Fair today. Fair sources its vehicle inventory from manufacturers and dealerships.
The latest collaboration comes weeks after Fair acquired one of its competitors and secured a new credit line.
In September, Fair agreed to buy Ford Motor Co.'s vehicle subscription company, Canvas. It also in recent weeks has landed $650 million in new credit from three separate lenders — Ally Financial, Mizuho Bank and Silicon Valley Bank.
Ally Financial also agreed to invest in the company and become a minority shareholder of an undisclosed amount.