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Understanding the Used-Car Leasing Gap
AmeriTrust Financial is stepping into the automotive finance arena with a groundbreaking move to launch its new fintech platform aimed specifically at the used-car leasing market. This initiative is essential as it addresses a significant gap where leasing comprises only around 3% of used vehicles compared to 25% in the new vehicle sector. For dealers and consumers alike, this means a renewed opportunity for more accessible financing options in a marketplace that has long favored traditional lending models.
The Challenge of Financing Used Vehicles
Historically, leasing has been a route less traveled in the used vehicle area, primarily limited to Certified Pre-Owned (CPO) programs by manufacturers. As Jeff Morgan, CEO of AmeriTrust, notes, extending loan terms may reduce monthly payments but often leads to greater risks like negative equity and potential defaults. This makes a compelling case for the viability of used-car leasing as a safer alternative. By leveraging a technology-driven approach, AmeriTrust seeks to redefine how consumers view used vehicle financing.
Innovative Technology for a Modern Market
At the core of AmeriTrust’s platform is a sophisticated technology that allows dealers to process a single application while comparing leasing and loan options side-by-side. This innovative feature assists dealers in providing customers with immediate clarity on their financing choices, effectively highlighting the advantages of leasing. As the platform generates real-time, accurate payment estimates based on actual inventory, it transforms the customer experience into a more transparent and informed process.
Meeting the Needs of Today’s Consumers
With rising grocery bills and high used-car prices, consumers are looking for flexible financing options. AmeriTrust's comprehensive approach meets these needs. By offering leases with fewer penalties and options catered as low as subprime credit, they are expanding access to automotive leasing significantly. This strategy not only addresses affordability challenges but also prioritizes customer satisfaction in a competitive market.
The Road Ahead for AmeriTrust
AmeriTrust Financial is on the fast track to expand its operations across the continental U.S., currently servicing 28 states. Their unique combination of technology, flexibility, and commitment to affordability stands to reshape the financing landscape for used cars. As more dealers adopt this platform, it will be interesting to watch how it influences customer behavior and dealer profitability in the coming years.
The launch of AmeriTrust's fintech platform is more than just a service innovation; it's a signal of a shift in the auto leasing market and a response to the pressing needs of consumers and dealers alike. By providing highly adaptable leasing options, AmeriTrust is poised to make significant inroads into a previously neglected sector.
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