CarGurus (Nasdaq: CARG), a leading global automotive marketplace, today announced a partnership with Capital One Auto Finance that will benefit both consumers and dealers.
The partnership will enable eligible shoppers on CarGurus.com to pre-qualify for financing before visiting the dealership, creating a more transparent and efficient process for buying a car.
"CarGurus' partnership with Capital One Auto Finance allows car shoppers to expedite their purchase from their mobile device or computer, before they walk into the dealership," said Tom Caputo, Chief Product Officer at CarGurus. "As a trusted automotive shopping leader to both shoppers and dealers, CarGurus believes that providing visibility into financing not only gives consumers the information they need to make a purchase decision, but also creates a more seamless, efficient experience at the dealership. We understand that financing is critical to dealerships and we believe that this partnership will bring qualified shoppers while still enabling dealerships to offer additional financing options."
The "View Financing Options" button allows eligible CarGurus shoppers to see if they pre-qualify, with no impact to their credit score, on cars from dealerships that already offer Capital One financing. Pre-qualified car shoppers will see their rate and monthly payment on any eligible vehicle listed on CarGurus, then complete a credit application at the dealership to finalize the financing terms for that vehicle in-store.
CarGurus shoppers who are pre-qualified for financing through this partnership will now know more about purchasing their vehicle before they go to the dealership. Dealerships will also benefit with better prepared customers who have more data about financing options and are ultimately closer to their decision on buying a vehicle.
"Our customers prefer transparency and efficiency when shopping for a car, and we understand that more of the car shopping process is occurring before they visit one of our locations," said Adam Moore, Director of Pre-Owned Vehicle Operations at McDonald Automotive Group. "Our sales and finance teams believe that combining CarGurus, one of our most powerful used car lead sources, with the ability to market Capital One, one of our approved financing lenders, will not only create a better customer experience, but will also help us grow our business.
"Capital One has long been a leader in auto financing as well as digital banking, and we understand the challenges faced by both consumers and dealers," said Jeffrey Rabinowitz, Head of Consumer Auto Finance at Capital One. "This capability helps bring transparency to the car buying process, and we're excited to offer it to CarGurus shoppers."
The program will roll out nationwide in the coming weeks to the more than 10,000 dealerships that work with both CarGurus.com and Capital One. For these dealerships, financing through this partnership will be currently available for most new and used vehicles on CarGurus.com.