Ally Financial, seeking new sources of customers, will finance used cars sold through Beepi, an 18- month-old website that lets people buy vehicles with a few clicks and no test drive.
An Ally financing option for almost all makes and models will be available to qualified shoppers "across the credit spectrum" as the lender taps into Americans' interest in skipping traditional car lots, the companies said Wednesday in a statement. They also are exploring ways to expand their relationship.
"The way consumers are shopping for and purchasing vehicles is evolving, and we're able to leverage our inherent digital capabilities to support this shift," Tim Russi, president of auto finance at Ally, said in the statement. "Ally is well- positioned to provide a range of financial products to auto consumers, whether they purchase a vehicle at a traditional auto dealership, or through an online marketplace like Beepi."
Beepi is among Internet startups looking to break into automotive sales. Based in Los Altos, Calif., the venture has been expanding this year beyond its home state and says it's now fully operational in 15 major metropolitan areas. It serves as a matchmaker between buyers and sellers, ensuring vehicles are inspected and delivered to buyers.
Ally has been seeking to boost revenue by taking on new clients after General Motors said it would use its own financing unit. Earlier this year, Ally said it would become the preferred lender in the U.S. for Mitsubishi Motors and luxury sports-car maker Aston Martin Lagonda. Ally's products and services include leasing, insurance, remarketing and used-vehicle inventory.
