Ryan Davis says his company built its inventory finance business line Float by BacklotCars to be “a more transparent and flexible way to pay for inventory.”
“The ability to give dealers a more personalized experience will help us further our mission to make wholesale easy,” Davis, who is BacklotCars’ co-founder, said in a news release.
On Monday, BacklotCars announced what it describes as “dealer-driven improvements” to Float.
The company says it is following current users’ feedback and using upgraded technology to now tailor plans on a more individualized basis.
Now, when a BacklotCars user applies for Float, the company will look at an applicant’s credit quality and financing needs to personalize a flat-fee structure.
Approved dealers pay one flat fee on purchases every 45 days or daily.
Float says that with no interest or surprise fees, along with “fewer curtailments,” it focuses on a transparent fee structure.
Since it started its financing unit in 2016, BacklotCars has financed thousands of purchases on the marketplace. The company says that after recent rounds of funding, it has aggressively expanded Float.
Float by BacklotCars says its penetration rate has doubled within the marketplace, with monthly originations multiplying by five year-over-year.
In 2019, BacklotCars has seen rapid expansion, with operation now in more than 30 states. Float by BacklotCars works with users in many of those markets.
Auto dealers, auto finance companies, and rental car companies can transact through BacklotCars without having to go to physical auctions, according to the company. It says its end-to-end service provides vehicle inspections, transportation and inventory finance services for dealers.
“Building Float in the early stages of the marketplace has been an advantage to both BacklotCars and our dealers,” Davis said. “The feedback and data we have gathered the last three years informed the improvements we have made and plan to make throughout the rest of the year.”