SAN FRANCISCO, CA--(Marketwired - Mar 17, 2016) - Shift Technologies, Inc. "Shift" (shift.com), a leading peer-to-peer marketplace revolutionizing the process of buying and selling cars, today announced the launch of Shift Finance, an in-house auto lending business. Shift Finance will offer car loans to Shift customers, providing a seamless, high quality experience throughout the entire car buying process. The company's financing arm will start as a pilot program in Virginia and expand to all of Shift's markets.
Shift is the first peer-to-peer car marketplace to offer direct to consumer auto loans. Shift helps customers find a fair price for a reliable vehicle they can afford, and Shift Finance uses proprietary data and algorithms to offer the very best financing options.
"At Shift, we believe that people deserve better than the status quo, and that is why we are excited to offer a better, smarter way to finance a car," said Toby Russell, Shift's Head of Business and Product. "Our goal from the beginning has been to transform a broken, antiquated system by empowering consumers. Buying a car is one of the biggest financial decisions people make, yet for years consumers have been presented with confusing and unattractive loan options, led by old-world retail models. By focusing on technology and transparency, Shift Finance will have accurate, transparent information and excellent rates."
Shift Finance will offer competitive auto loans and customers will be able to shop for cars based on their desired monthly payment plan. If for some reason a customer is unable to keep up the payments on their vehicle, they may be able to resell through Shift and find another car with a lower monthly cost.
"We're transforming a traditionally manual and complex process into something that is digital and mobile first," said Peck Yang, Shift Finance Co-founder and Product Manager. "We integrate ancillary data sources to streamline the application process and to improve underwriting decisions. This new platform is a win-win for consumers."
Raj Date, the former acting chief of the U.S. Consumer Financial Protection Bureau and the managing director of Fenway Summer Ventures, noted his enthusiasm for the move. "Technological innovation, like what Shift is executing in auto finance, has the potential to finally make good on the promise of consumer finance: to make the financial lives of American families better."
Shift offers an end-to-end car concierge service that provides customers with a better experience and value than other used car retail options. The company delivers free on-demand test drives and appraisals on-site at a location of the buyer's or seller's choosing. Sellers are guaranteed a minimum sale price for their vehicle, and earn, on average, thousands more through Shift than if they sell to a car dealer. Buyers pay, on average, thousands less than a dealership retail price.
Shift Finance will be based in northern Virginia and loans will be available starting Thursday, March 17. Last month, Shift launched a Washington, D.C. area hub and earlier this year the company announced a $20 million investment in its East Coast engineering workforce, based in Virginia. Shift has raised more than $73.8 million in total funding, with $23.8M in its Series A round, led by DFJ Venture and Highland Capital Partners, and $50M in Series B financing, led by Goldman Sachs Investment Partners.
About Shift
Shift Technologies, Inc. is a San Francisco-based company rethinking the experience of car ownership. The company, which was named one of Business Insider's "The 25 hottest San Francisco startups to watch in 2016," has created a new peer-to-peer marketplace that takes the hassle and guesswork out of buying or selling a car. Shift saves sellers time while helping them secure the best price for their car. Buyers benefit from Shift's convenient online marketplace and low, peer-to-peer vehicle pricing. For more information please visit shift.com and follow us on Twitter at @driveshift.