The auto loan space was ripe for innovation, says Atlanta-based entrepreneur Joshua Tatum.
“Consumers currently have to apply for an auto loan each and every time they wish to purchase, refinance, or buy out their current leases. On top of that, consumers are given different rates based on the car they wish to have. Finally, the entire financing stage of the car buying process is time consuming, frustrating, and expensive for consumers,” he explained.
But that won’t cut in a post-COVID, online-focused consumer world. That’s where Carputty comes in.
“The shift to digital is one that will remain in a post-COVID landscape as consumers are continually doing more online and looking for the ease-of-use benefits that come with it. Carputty’s technology and business model not only allows consumers a quick and easy online experience but also helps our business partners to fast-track their own capabilities to meet this growing demand for digital ecosystems,” Tatum added.
Tatum, co-founder and CPO of Carputty, describes the startup as a “technology platform in which consumers can manage their vehicles much like they would manage their stock portfolio.”
The platform brings “transparency to the automotive world,” he added. That is important, given that the US Census Bureau finds that the average American household has 2.5 cars. The majority of car loans originate at a dealership, which adds to the lack of transparency.
How Carputty Drives Innovation
Carputty has two key tools to help consumers, V3 Valuation™ and Flexline™.
V3 brings together data from auctions, dealerships, and private sales to get the most accurate representation of a car’s value. Flexline works as an “evergreen line of credit” members use to finance their vehicles. Flexline accounts have a maximum of $250,000 and can be used to purchase new or used vehicles, buyout leases, or refinance existing auto loans.
Carputty’s “stickiness” in the market has attracted customers and investors alike.
The team just closed a $12.3 million Series A, from Atlanta-based TTV Capital, Michigan-based Fontinalis Partners, Michigan-based Grand Ventures, Utah-based Kickstart, and Germany’s Porsche Ventures.
Carputty is connecting two business areas where the Atlanta business community thrives – fintech and automotive.
The Metro Atlanta area is home to giants and startups alike in the lending space, and it is also headquarters for Cox Automotive and the US HQ for Mercedes Benz.
That’s been good for Carputty’s talent acquisition. The team currently has 48 employees, 22 of whom are based in Atlanta.