MoneyMe Ltd (ASX:MME) has launched Autopay, a secured vehicle finance solution for dealers with an objective to transform the $12 billion automotive finance industry.
Autopay is a same-day, drive away finance solution for dealers (B2B), brokers and consumers (B2C) with a one-hour approval and settlement process.
The solution uses market-leading speed and capability to disrupt current vehicle finance processes and will leverage MoneyMe’s existing Horizon technology platform.
Distinct sales advantage
MoneyMe MD and CEO Clayton Howes said: “We believe dealers who have access to finance that is settled in minutes and is a same-day drive away product will have a distinct sales advantage.
“In the same way that people look to Afterpay for where they shop, we expect consumers will look to Autopay when they purchase their vehicles.
“This latest innovation leverages our Horizon technology platform, with high automation, dynamic pricing and best-in-class speed to give dealers and customers an unparalleled experience.
“With an addressable market of circa A$ 12 billion, a strong customer use case and our ability to quickly assess and price credit-worthiness, we expect Autopay to be a key driver of MoneyMe’s growth.”
$12 billion market opportunity
The company is making Autopay available to use direct in dealerships, with already more than five dealerships setup in the system to use this immediately.
Adding Autopay to the stable of products will enable MoneyMe to accelerate revenue, build its loan book and further diversify returns with access to a new $12 billion market opportunity.
Built on one platform, it creates seamless advantages to cross-sell to MoneyMe’s Freestlye, Personal Loans and other products which further increases its operating leverage.
With this solution, the company expect its cost of funds to drop with additional security to the loan assets in the book.
More than 3 million vehicles are financed per year across Australia, with approximately 30% of loans for new cars and 70% for used cars sales, and the average value of the car is $32,000.