DriverUp launched its new program this week that company officials are calling an “industry first” marketplace to give accredited investors an opportunity to enter the auto finance industry directly and provide dealers with an expedited, streamlined credit process. 

DriverUp is the exclusive brand of Sierra Auto Finance, an auto finance company launched with $50 million Series A financing, led by Emerald Development Managers and RRE Ventures.

Officials explained the DriverUp platform uses technology to fundamentally improve how loans are secured and serviced by creating a direct-to-investor option that they contend until now has not existed within the industry.

Through DriverUp's proprietary software and advanced data analytics, the platform can enable efficient processing and direct investment in auto loans, with full transparency and reporting. 

“Auto lending historically has been riddled with inefficiencies and lack of innovation; it's ripe for fundamental transformation, and we are leading that change with a technology-driven approach,” DriverUp president and chief executive officer Sam Ellis said.

“DriverUp democratizes the auto lending industry and brings incredible efficiency and transparency to the process. Consumers, investors, and dealers all benefit,” Ellis continued.

Ellis went on to mention DriverUp is the first mechanism that can allow accredited investors such as hedge funds, family offices and high net-worth individuals an opportunity to participate directly in high yield auto financing. Previously, DriverUp acknowledged that investing in this sector was limited to a handful of large institutions.

“DriverUp is the first of its kind auto-lending marketplace, and a critical solution to radically improve all stages of the auto-lending pipeline," said Stuart Ellman, co-founder and managing partner of RRE Ventures, a venture capital firm with more than $1.5 billion in total capital commitments.

“This is a highly attractive investment vehicle for the 99 percent of investors who previously could not access this asset class, a turnkey credit process for dealers and delivers increased financing for consumers,” Ellman continued.

Through DriverUp, the company insisted more money is put to work, dealers can increase vehicle sales and consumers can benefit from greater access to credit.

Even in times of economic stress, such as the 2008 recession, DriverUp pointed out auto loans as an asset class performed well, providing desirable diversification for investors. Through DriverUp, the copmany added that investors can expect attractive risk-adjusted annual yields relative to comparable alternatives.

“Demand for auto loans is driven by a series of favorable macro-factors, including search for higher yield in 0-percent interest rate environment, tepid growth in credit cards and improved access to credit by borrowers. There is also strong post-recession industry growth, consumer credit stability and healthy employment levels,” DriverUp said.

 “The company is built upon decades of combined auto industry, consumer finance and technology expertise,” management added.

To learn more about DriverUp, visit www.driverup.com.