Ally Financial Inc. has introduced auto loans and F&I products to online used-vehicle buyers through a partnership with TRED, in an effort to boost its digital presence.
TRED is an online portal that connects car buyers and sellers. For now, Ally is the sole indirect lender and F&I product provider on the platform. TRED has dealership licenses in the states where it operates: Washington, Oregon and soon California.
Much like a traditional dealership, TRED sells the retail installment contracts to Ally. Other dealerships can participate as buyers, but not sellers. TRED also has a direct lending relationship with Autopay.
Ally began accepting financing applications through TRED in April. It will start offering Ally Premier Protection vehicle service contracts and GAP policies within the next two months.
“Ally’s new relationship with TRED expands our digital presence and brings trusted financing and insurance products to its customers at the point of purchase,” said Doug Timmerman, president of Ally Insurance. “As a leader in the industry, our goal is to add value for auto consumers by offering products and services that fit their needs and shopping preferences — whether they choose to purchase at a dealership, or through an online marketplace like TRED.”
The partnership will generate an incremental increase in Ally’s insurance business, Timmerman told Automotive News. “TRED is an area of our business that we would call a whole new segment, whether you describe it as a digital dealer, as TRED is, or the third parties that are getting into this space to help consumers buy and sell their vehicles via the Internet,” he said. “It starts as a small piece, but if you think about consumers’ buying habits and how they’ve evolved in other aspects of shopping, we think it will become a bigger and bigger piece over time.”
Read more
