Upstart Launches First Automotive Retail Software With AI-Based Funding
SAN MATEO, Calif .– (COMMERCIAL THREAD) – Upstart (NASDAQ: UPST), a leading artificial intelligence (AI) lending platform, today announced the launch of Upstart Auto Retail software, including AI-based financing. The cloud-based solution enables a superior car buying experience for consumers and dealers. For the first time, this new software will also provide access to auto loans powered by Upstart.
Upstart Auto Retail is the evolution of Prodigy Software, acquired by Upstart in April 2021. Since the start of 2021, the number of dealers, also called rooftops, who have subscribed to the software has almost tripled. With the addition of Upstart-financed loans, dealers will be able to instantly offer affordable financing to more of their customers.
“Buying a car is an iconic and memorable experience for most Americans, but the financing stage is often where things come to an end, âsaid Dave Girouard, CEO and co-founder of Upstart. “Upstart Auto Retail will provide millions of consumers with a 2021-worthy car buying experience, including this very important funding milestone. ”
Every year, about $ 1,000 billion worth of cars are sold in the United States, and most of them are financed.1 Yet buying a car consistently ranks among the worst consumer experiences, with less than 1% of buyers satisfied with the current process. Upstart Auto Retail with AI Enabled Loans will enable dealers to deliver the online and in-store shopping experience consumers demand, from vehicle purchase and selection to finance and payment.
Upstart Auto Retail is an end-to-end retail platform that has helped top franchise dealers from 33 major brands such as Toyota, Honda, Subaru and Ford sell billions of dollars in new and used cars and grow the satisfaction of their customers. Over $ 1 billion in vehicles were sold through the Upstart Auto Retail platform in the second quarter of 2021.
DGDG, the largest family-owned dealer group in the San Francisco Bay Area, has been using what is now Upstart Auto Retail as the sole retail solution for the entire dealer group since early 2020. DGDG adds auto loans funded by Upstart as part of its retail process.
“The automotive sales solution we used from Upstart allowed our salespeople to make the buying process more transparent and helped sell more vehicles at a higher profit, âsaid Tony Corini, vice president of finances, of DGDG. “Now, by adding funding powered by Upstart, we look forward to approving more borrowers and continuing to grow our No Brainer payment experience.
Upstart is currently rolling out AI-powered loans to a limited number of dealerships. It will be available in early 2022 for all resellers using the platform.
Upstart (NASDAQ: UPST) is a leading AI lending platform that partners with banks and credit unions to expand access to affordable credit. By leveraging Upstart’s AI platform, Upstart-powered banks and credit unions can have higher approval rates and lower loss rates, while simultaneously delivering the experience of exceptional digital loan demanded by their clients. Over two-thirds of Upstart loans are approved instantly and are fully automated. Upstart was founded by former Googlers in 2012 and is based in San Mateo, California and Columbus, Ohio.
This press release contains forward-looking statements, including, but not limited to, statements regarding access to auto loans powered by Upstart or AI through Upstart Auto Retail, DGDG and other dealer offerings of instant approvals. affordable financing, DGDG approving more borrowers by adding Upstart financing, Upstart Auto Retail enabling dealers to deliver the shopping experience consumers demand and the availability of Upstart auto loans to all dealerships. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as “anticipate”, “estimate”, “expect”, “plan”, “plan”, “plan”, “intend”, “target”, “aim”, “believe”, “may”, “will”, “should”, “could”, “may have”, “probable” and other words and terms of similar meaning in any discussion of when or what future operational or financial performance or other events. Forward-looking statements give our current expectations and projections regarding our plans; Goals; hypotheses; risks; future performance; and business. Neither we nor any other person assumes responsibility for the accuracy and completeness of these forward-looking statements. The forward-looking statements included in this press release relate only to events as of the date hereof. Upstart assumes no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
All forward-looking statements are subject to risks and uncertainties which may cause actual results to differ materially from what we expected. More information about the factors that could affect our results of operations and the risks and uncertainties is provided in our public filings with the Securities and Exchange Commission, copies of which can be obtained by visiting our Investor Relations website at www.upstart.com or the SEC website. at www.sec.gov.
1 – In 2019, total sales of light vehicle dealers exceeded $ 1.02 trillion according to the 2019 Annual Financial Profile of the National Automobile Dealers Association.