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The vehicle finance fintech has established a business arrangement with Carbar, marking a new development for auto lending and its growing popularity.
Established in March 2020, CarClairty is a finance platform that connects car buyers with more than 30 different lenders, including Pepper Money, Macquarie and Plenti, said to be able to provide loan matches within 60 seconds.
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The fintech is also said to employ in-house brokers and has previously partnered with RateCity and Money.com.au.
Founded in 2016, Carbar is a platform that allows users to pay a monthly premium as a means to access a range of available vehicles.
The subscription cost is said to include all of the costs associated with owning a vehicle excluding fuel.
Under this arrangement, CarClarity will provide Carbar with a “unique quote tailored to a subscription” from its associated lenders.
This would in turn allow Carbar users to transition from their subscription to a loan arrangement with one of CarClarity’s lenders, allowing them to purchase their subscription car.
The impetus of the arrangement is said to be aimed at complementing Carbar’s existing subscription offering.
Carbar chief executive Des Hang elaborated on this position, commenting that by launching this new service Carbar is “meeting a request from subscribers that usually happens when they fall in love with their car or have a change in life circumstances”.
He added that despite a desire to purchase a car, “many don’t have the upfront cash to do so” or would prefer to spend that capital on other expenses.
“All of these factors underscore the need for this partnership which will offer more options to our customers,” Mr Hang said.
“CarClarity is as focused on the customer experience as we are. We look forward to working with them.”
CarClarity CEO and founder Zaheer Jappie said: “We are excited to be partnering with Carbar as like CarClarity they are an innovator in helping Australian’s secure access to a vehicle that meets their needs.”
Mr Jappie added that when a Carbar customer wants to take the next step of permanently acquiring the vehicle they have sourced off Carbar, the fintech will be “able to help find them a financing solution that’s affordable for the customer and takes into consideration their personal circumstances”.
“This unique financing solution works towards what the customer is already paying and gives Carbar customers more choices,” Mr Jappie added.
The partnership comes as auto lending is perpetually becoming more and more popular with lenders and borrowers.
Earlier this week, Wisr confirmed that its loan book and total originations more than doubled over the 2022 financial year, with vehicle lending pinpointed as a key driver for this upwards momentum.
In June, Money3 confirmed that since it purchased Automotive Financial Services in January 2021, its vehicle lender’s loan book had doubled to around $107 million.
One catalyst for this change in popularity is electric vehicles. In May, Westpac unveiled its first hybrid or electric vehicle loan in its history, offering reduced vehicle rates for sustainable vehicles.
During the first half of FY21, Pepper Money’s originations surged by almost 66 per cent year-on-year – a figure the non-bank said was driven in part by electric vehicle loans.
[Related: Good Assets]
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