Upgrade, a neobank founded by renowned Fintech entrepreneur Renaud Laplanche, has introduced auto loans as part of its credit offerings. The company aims to cater to consumers with FICO scores ranging from 580 to 850, providing a comprehensive auto lending product.
In recent times, the automotive market has witnessed a significant increase in prices due to inflation. While in 2022, there were more than ten cars available for under $20,000, this number has now dwindled to just one. As a consequence, both car buyers and manufacturers have been impacted by these soaring prices.
Moreover, in the past year, several auto lenders have exited the market, including prominent financial service firms like Citizens, Keybank, and Mechanic. This has created a void in the industry, which Upgrade aims to fill with its new offering.
Upgrade attributes its ability to cater to a wide range of consumers to its unique “marketplace” model. This model enables Upgrade to access multiple sources of funding, such as credit unions, banks, and asset managers, each with their own risk appetite. Consequently, Upgrade is now able to provide dealers with a one-stop solution, offering competitive rates and quick approvals for all their customers.
A visit to Upgrade’s website reveals various auto loan options, including personal auto loans, auto refinancing, and auto financing for dealers. The company emphasizes its “automated” and fast funding process, which allows for swift loan approvals.
Since its inception, Upgrade has lent a total of $24 billion, predominantly in the form of personal loans and credit card services. With a customer base exceeding 2.5 million, the neobank continues to expand its offerings by adding new features and functionalities. Recently, Upgrade acquired Uplift, a Fintech company specializing in providing credit for travel-related expenses.
Upgrade’s foray into auto loans demonstrates its commitment to becoming a comprehensive neobank, catering to a diverse range of financial needs for its customers. As the company expands its portfolio, it aims to simplify and streamline the lending process, offering competitive rates and efficient services.
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