CarGurus Partners with Chase to Expand Consumer Financing Options
CarGurus (CARG) announced the addition of Chase to its multi-lender financing platform, expanding options for consumers looking to pre-qualify for auto financing from the comfort of home. Pre-qualified leads through CarGurus are 41% more likely to close compared to leads that aren’t pre-qualified or financed. The partnership with Chase aims to equip shoppers with the tools needed to make an informed purchase with confidence and ease, while also helping dealers deliver on their goals for a seamless and efficient customer experience.
The integration of Chase into CarGurus' multi-lender financing platform represents a strategic move that can potentially influence the auto-financing market. The collaboration aligns with the increasing consumer preference for digital transactions, as evidenced by the research indicating over 70% of car shoppers' desire to manage more of the car buying process online. This partnership could enhance CarGurus' competitive edge by offering a broader range of financing options, which may lead to increased user engagement and conversion rates on their platform.
From a financial perspective, the addition of a major bank like Chase could attract more dealers and consumers to CarGurus' platform, potentially boosting the company's revenue through higher lead generation and sales commission. The fact that pre-qualified leads through CarGurus are 41% more likely to close could translate into a significant revenue increase for both CarGurus and participating dealerships. Furthermore, the seamless integration of financing options may lead to higher customer satisfaction and retention rates, contributing to the long-term financial health of the company.
CarGurus' partnership with Chase taps into a vital trend in consumer behavior: the demand for a more efficient and transparent car buying process. The ability to pre-qualify for auto financing online without impacting credit scores addresses a significant pain point for consumers, potentially improving the overall customer experience. This move is likely to resonate with tech-savvy shoppers and could set a new standard in the digital auto marketplace, prompting competitors to seek similar enhancements to their platforms.
It's crucial to monitor how this partnership affects CarGurus' market share and brand positioning. If successful, CarGurus could solidify its reputation as a leader in digital auto sales, influencing stock market perception and investor confidence. The data-driven approach to match customers with personalized financing options could also provide valuable insights into consumer preferences, enabling CarGurus and its partners to refine their marketing strategies and product offerings.
The collaboration between CarGurus and Chase reflects broader economic trends, such as the digitization of financial services and the growing importance of fintech solutions. As consumers increasingly seek convenience and personalization, partnerships that integrate financing into digital platforms could stimulate economic activity within the auto industry. By simplifying the financing process, CarGurus and Chase may encourage more consumers to enter the market, potentially leading to an uptick in auto sales.
However, it's important to consider the potential economic impact of such partnerships on traditional brick-and-mortar dealerships. While they stand to benefit from increased online lead generation, they may also face pressure to adapt to a more digital-centric business model. The long-term economic implications could include shifts in employment patterns within the auto industry and changes in how dealerships allocate resources towards online marketing and sales capabilities.
01/29/2024 - 09:00 AM
Chase has joined CarGurus’ multi-lender financing platform, enabling consumers to access personalized rates online for a better-informed car shopping experience
CAMBRIDGE, Mass., Jan. 29, 2024 (GLOBE NEWSWIRE) -- CarGurus 1 , today announced the addition of Chase to its multi-lender financing platform, expanding options for consumers looking to pre-qualify for auto financing from the comfort of home.
Available nationwide, Chase joins CarGurus’ network of participating lenders — which also includes Capital One, Global Lending Services, and Westlake Financial — to empower consumers with personalized vehicle financing information while enabling dealers to better serve the growing number of shoppers who prefer to arrange financing online. According to CarGurus consumer research 70% of car shoppers want to handle more of the process from home, with the majority (56% ) citing financing as their top desired online activity. Data also shows that those who pre-qualify for financing are more likely to successfully complete a purchase, with pre-qualified leads through CarGurus being 41% more likely to close compared to leads that aren’t pre-qualified or financed2 .
“CarGurus’ partnership with Chase demonstrates our shared vision to equip shoppers with the tools needed to make an informed purchase with confidence and ease, while also helping dealers deliver on their goals for a seamless and efficient customer experience,” said Gerard Murphy, Vice President of Product, Digital Retail, at CarGurus. “We believe this expansion answers a rising need for finance-based shopping tools that allow consumers to better understand how much they can afford earlier in the shopping journey, ultimately helping connect more informed, high-intent car buyers with dealers.”
Customers can pre-qualify for financing directly on the CarGurus website, gaining access to personalized rates and monthly payment scenarios within minutes with no impact to their credit scores. Pre-qualified shoppers can then review vehicles through a more customized lens, seeing their rates and monthly payments on listings available through dealerships that offer Chase financing. Once a vehicle is selected, buyers submit a credit application at the dealership to finalize the financing terms and complete the purchase.
About CarGurus, Inc.
CarGurus (Nasdaq: CARG) is a multinational, online automotive platform for buying and selling vehicles that is building upon its industry-leading listings marketplace with both digital retail solutions and the CarOffer online wholesale platform. The CarGurus platform gives consumers the confidence to purchase and/or sell a vehicle either online or in-person, and it gives dealerships the power to accurately price, effectively market, instantly acquire, and quickly sell vehicles, all with a nationwide reach. The company uses proprietary technology, search algorithms, and data analytics to bring trust, transparency, and competitive pricing to the automotive shopping experience. CarGurus is the most visited automotive shopping site in the U.S. 1
CarGurus also operates online marketplaces under the CarGurus brand in Canada and the U.K. In the U.S. and the U.K., CarGurus also operates the Autolist and PistonHeads online marketplaces, respectively, as independent brands.
To learn more about CarGurus, visit www.cargurus.com www.caroffer.com
CarGurus® is a registered trademark of CarGurus, Inc., and CarOffer® is a registered trademark of CarOffer, LLC. All other product names, trademarks and registered trademarks are the property of their respective owners.
1 Similarweb 2 Source: S&P Global Mobility – Polk Signals, based on all CarGurus leads between Q1 2022 through Q3 2022
About Chase
Chase is the U.S. consumer and commercial banking business of JPMorgan Chase & Co. (NYSE: JPM), a leading financial services firm based in the United States with assets of $3.9 trillion and operations worldwide. Chase serves nearly 80 million consumers and nearly 6 million small businesses, with a broad range of financial services, including personal banking, credit cards, mortgages, auto financing, investment advice, small business loans and payment processing. Customers can choose how and where they want to bank: More than 4,700 branches in 48 states and the District of Columbia, more than 15,000 ATMs, mobile, online and by phone. For more information, go to chase.com.
Media Contact: pr@cargurus.com
Investor Contact: investors@cargurus.com
What is the purpose of the partnership between CarGurus and Chase?
The purpose of the partnership is to expand options for consumers looking to pre-qualify for auto financing from home and to help dealers deliver a seamless and efficient customer experience.
What percentage of car shoppers want to handle more of the process from home?
According to CarGurus consumer research, over 70% of car shoppers want to handle more of the process from home.
How much more likely are pre-qualified leads through CarGurus to close compared to leads that aren’t pre-qualified or financed?
Pre-qualified leads through CarGurus are 41% more likely to close compared to leads that aren’t pre-qualified or financed.
How can customers pre-qualify for financing through CarGurus?
Customers can pre-qualify for financing directly on the CarGurus website, gaining access to personalized rates and monthly payment scenarios within minutes with no impact to their credit scores.
How many dealerships work with both CarGurus and Chase?
The program is available nationwide through the more than 9,000 dealerships that work with both CarGurus and Chase.
