Ally to offer auto finance and insurance products for peer-to-peer marketplace, TRED
Seamless financing and vehicle protection products to add value for consumers purchasing used vehicles online
May 18, 2017
DETROIT, May 18, 2017 -- Ally, a leading digital financial services company, today announced that it will offer auto finance and insurance products for vehicles purchased through TRED, an online used vehicle marketplace. TRED, which launched in 2012, connects buyers and sellers on its trusted platform in order to facilitate simple, safe and efficient vehicle sales. Ally began accepting financing applications through TRED in April, and will begin offering vehicle service contracts and Guaranteed Asset Protection (GAP) coverage this summer.
"Ally's new relationship with TRED expands our digital presence and brings trusted financing and insurance products to its customers at the point of purchase," said Doug Timmerman, president of Ally Insurance. "As a leader in the industry, our goal is to add value for auto consumers by offering products and services that fit their needs and shopping preferences – whether they choose to purchase at a dealership, or through an online marketplace like TRED."
Ally Insurance's products offered on TRED aim to protect consumers from the expense of vehicle repairs; an important consideration when buying a used vehicle. Ally Premier Protection vehicle service contracts offer a cost-effective solution for mechanical breakdown coverage after the expiration of a manufacturer's warranty. Vehicle service contracts cover the cost of repairs, and offer additional benefits, like towing, roadside assistance, rental cars, and trip interruption reimbursement. Repair coverages and terms vary based upon the plan of coverage chosen by the consumer at the time of the contract purchase. Ally's GAP coverage product protects consumers in the event their vehicle is a total loss due to accident or theft. Often, a consumer is left with a remaining balance owed to the lienholder after the primary insurer payout. In most instances, GAP coverage provides for payment of the entire outstanding balance to the lienholder.
"Bringing the complete financing process to TRED gives buyers increased power and flexibility to purchase the vehicle they want, and gives sellers access to a larger pool of qualified buyers for a faster, more convenient transaction," said Grant Feek, chief executive officer at TRED. "The addition of Ally's auto finance and vehicle protection products is part of providing a trusted, end-to-end experience to our customers."
Trust, value, and experience are all important components to the TRED platform. For buyers, TRED ensures the quality of all vehicles listed with a CarFax vehicle history report, and a comprehensive, 150-point, inspection completed by an independent, ASE certified mechanic.
The move to offer Ally's auto finance and insurance products through TRED comes as younger consumers express more interest in shopping for vehicles online. In a recent survey conducted by The Center for Generational Kinetics, on behalf of Ally, 21 percent of younger millennials are likely to shop for and purchase their next vehicle online.
TRED is currently available in Washington and Oregon, with plans to expand the service to California this summer. To learn more about TRED, please visit www.tred.com.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company and a top 25 U.S. financial holding company offering financial products for consumers, businesses, automotive dealers and corporate clients. Ally's legacy dates back to 1919, and the company was redesigned in 2009 with a distinctive brand, innovative approach and relentless focus on its customers. Ally has an award-winning online bank (Ally Bank Member FDIC and Equal Housing Lender), one of the largest full service auto finance operations in the country, a complementary auto-focused insurance business, a growing digital wealth management and online brokerage platform, and a trusted corporate finance business offering capital for equity sponsors and middle-market companies.
The company had approximately $162.1 billion in assets as of Mar. 31, 2017. For more information, visit the Ally press room at https://media.ally.com or follow Ally on Twitter: @AllyFinancial.
TRED is a used car marketplace and licensed dealership that is designed to save car buyers and sellers money by connecting them directly to their counter party. Sellers control the selling price while TRED takes care of marketing and transacting their car (and facilitating loan repayment if they have one). Buyers are offered assurances of quality such as a CarFax vehicle history, a 150-point buyer's inspection, a first in class online financing platform, vehicle service contracts and GAP coverage.
Founded in 2012, TRED is seed funded by Chris Sacca, Rick Wagoner and Great Oaks Venture Capital.