As the online used-vehicle retailer shared some preliminary estimates of its first-quarter performance, Carvana announced another partnership on Tuesday; this time with SpringboardAuto.
Carvana and SpringboardAuto have teamed up to offer SpringboardAuto customers a seamless, end-to-end vehicle finance, purchase and delivery experience for Carvana’s national vehicle inventory of more than 11,000 units.
Officials indicated the partnership means that SpringboardAuto customers can now easily apply their online finance approval to Carvana vehicles, so they can buy from home and have their vehicle delivered as soon as the next day.
“We are pleased with the Carvana partnership, which puts our customers not only in control of their auto financing, but also of the purchase process,” said Jim Landy, chief executive officer and founder of SpringboardAuto.
“The combination of Carvana’s easy-to-use car buying platform and certified inventory and our auto finance technology solution means that SpringboardAuto customers can not only finance a car in the way they choose, at the speed they want, but they can also complete the purchase the way they want,” Landy continued.
“From selecting the car to completing their financing to delivery of the car, everything can be done online from the customers’ home, office or wherever they choose,” he added.
Landy is part of the contingent of experts set to be a part of new event hosted by Cherokee Media Group: the Automotive Intelligence Summit, which will be held on July 24-26 in Raleigh, N.C. He also sat down with us at AFSA's Vehicle Finance Conference for an epsisode of the Auto Remarketing Podcast, which can be found below.
As an auto fintech innovator benefiting consumers with a mobile-friendly, auto finance solution that simplifies secure online transactions, SpringboardAuto aligns with Carvana’s mission to change the way people buy cars.
“Carvana is the new way to buy a car, putting consumers back in control of the purchase process,” said Christina Keiser, Carvana’s senior director of strategic partnerships. “SpringboardAuto shares that goal, and we look forward to working together to create exceptional customer experiences.”
Customers are responding enthusiastically, as evidenced by a recent Google review from Melissa: “This was the easiest, simplest process in purchasing a vehicle known to man. SpringboardAuto’s easy to use software gives the buyer the ability to privately set the rate, term and down payment by letting you punch in different vehicles at various price-points … I could just look at cars online, punch in the specs and have the time to think out the purchase decision without being pressured. The team I worked with were helpful, knowledgeable and friendly. I can’t say enough about how excellent this company has been across the board and would HIGHLY RECOMMEND.”
Landy went on to say, “Our mission is to make auto financing and purchasing faster, easier, and more pleasant for consumers and, working with Carvana, we are able to do just that.”
Carvana shares preliminary Q1 estimates
In other company news, Carvana revealed certain preliminary estimates of its operating results for the three months that ended March 31. A few of the metrics shared by the company included:
— Carvana expects retail vehicles sold to be approximately 18,450 units, as compared to 8,334 retail units sold in Q1 2017.
— Carvana expects gross profit to be approximately $34 million, as compared to gross profit of $9.7 million in Q1 2017.
— Carvana expects total gross profit per unit to be approximately $1,850, as compared to total gross profit per unit of $1,169 in Q1 2017.
— Carvana expects selling, general and administrative expenses to be approximately $83 million, including $4.6 million of depreciation and amortization expense, as compared to selling, general and administrative expenses of $45.9 million, including $2.1 million of depreciation and amortization expense, in Q1 2017.
— Carvana expects net loss to be approximately $53 million and net loss margin to be 14.7 percent as compared to net loss of $38.4 million and net loss margin of 24.2 percent in Q1 2017.
The company said the increase in net loss is primarily due to an increase in selling, general and administrative expenses partially offset by an increase in gross profit.