DETROIT, April 10, 2018 -- Ally Financial Inc. and Fair today announced a strategic relationship in which Fair will use Ally's SmartAuction as a remarketing solution for its returned cars, and offer consumers flexible car financing powered by Ally's Clearlane program.
Under the agreement, vehicles returned to Fair as a result of a customer exiting a Fair agreement will be listed on Ally's digital wholesale auto auction, SmartAuction, as a remarketing option. Additionally, Southern California dealers using Ally's Clearlane—a multi-lender, digital financing platform—will be able to use Fair's mobile application to help consumers who don't qualify for traditional financing or want more flexibility.
The companies are also exploring options to expand the agreement nationwide later this year, which would further enable Fair's mission to provide flexible access to mobility for all consumers—even if they have less-than-perfect or non-existent credit.
"Fair is a leader in the evolution of used vehicle financing and we're thrilled to work with such a trailblazer to support a flexible solution for the benefit of both consumers and dealers,'' said Tim Russi, president of auto finance for Ally. "We see this as a starting point for our companies to work together and are engaged in exploratory discussions on several other fronts to expand our relationship."
Fair is an app that lets customers locate and select a pre-owned car entirely on their phone, with the ability to turn it in any time. Customers can shop from a wide variety of Fair's dealer partners right in the app and scan their license to see if they are pre-qualified for a range of monthly payments. If approved, they can sign for their car with their finger, pick up their keys, and keep the car for as long as they want.
When a vehicle is returned by a customer, Fair gives the dealer that originated the transaction the first right to buy it back. If the dealer doesn't purchase the car, Fair will make it available to other dealers on SmartAuction, beginning this month.
Through the new agreement, Fair will also provide dealers with a flexible financing alternative for consumers leveraging Ally's Clearlane platform. Ally launched Clearlane in April 2017 to help connect consumers with leading auto finance providers online. "Our vision for the program is to complement our dealer business by helping them close deals and provide consumers with access to a vehicle they might not have been able to get otherwise," Russi said.
This is the latest strategic alliance for Fair. In January, it began a partnership with Uber that provides its ride-share drivers in the U.S. with flexible access to vehicles through Fair via the Uber app. Fair also acquired the active lease portfolio of Uber's subsidiary, Xchange Leasing, which includes existing lease contracts and vehicles. In February, Fair acquired certain assets of vehicle-delivery app, Skurt, as part of its plan to quickly scale a cost-effective platform for vehicle delivery, pick-up and fleet management.
"As Fair scales nationwide after our successful launch throughout California, it's important that we continue to find efficient ways to automate our processes, ideally through mutually beneficial alliances with proven industry leaders like Ally," said Scott Painter, Fair's founder and CEO. "SmartAuction will be an important remarketing channel for Fair, while Clearlane will serve as the ultimate win-win for dealers and customers alike. Combined, these two programs are just the beginning of what we can accomplish with Ally as we broaden our relationship going forward."
With over 25,000 vehicles available daily, SmartAuction is an industry-leading online auction that offers access to a virtual inventory of wholesale vehicles for eligible dealers of all brands. All purchases on the SmartAuction site are backed by a comprehensive arbitration policy.
About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading digital financial services company with assets of $167.1 billion as of December 31, 2017. As a client-centric company with passionate customer service and innovative financial solutions, Ally is relentlessly focused on "Doing it Right" and being a trusted financial partner for its consumer, commercial, and corporate customers. Ally's award-winning online bank (Ally Bank, Member FDIC and Equal Housing Lender) offers mortgage-lending services and a variety of deposit and other banking products, including CDs, online savings, money market and checking accounts, and IRA products. Ally also promotes the Ally CashBack Credit Card. Additionally, Ally offers securities brokerage and investment advisory services through Ally Invest. Ally remains one of the largest full-service auto finance operations in the country with a complementary auto-focused insurance business, which together serve more than 18,000 dealer customers and millions of auto consumers. Ally's robust corporate finance business offers capital for equity sponsors and middle-market companies.
For more information and disclosures about Ally, visit https://www.ally.com/#disclosures.
Fair offers a forward-thinking model of flexible car ownership that responds to consumer demand for more freedom. Fair gives customers the flexibility to drive the car they want for as long as they want, and lets them walk away any time, eliminating the long-term commitment of traditional financing or leasing. Fair allows you to select your car, miles, and view your payments—all in a mobile and paperless end-to-end experience that's simple, transparent and affordable. Fair is headquartered in Santa Monica, Calif. For more information, please visit www.fair.com.
Ally Financial Inc.