CarGurus, the most-visited automotive classifieds site in the U.S., has partnered with one of the country’s top lenders Capital One Auto Finance, in a bid it says will benefit both consumers and dealers. The deal will enable eligible online shoppers to pre-qualify for loans before heading to a car lot.
Under the deal, Capital One’s logo appears on listings from dealerships that offer Capital One finance. More than 10,000 dealerships across the country work with both CarGurus and Capital One.
On relevant listings, shoppers are invited to “pre-qualify for financing with no impact to your credit score.” The shopper fills in employment, residential and social security details, presses “send” and gets an answer in seconds.
If they pre-qualify, they’ll see interest rates and monthly payments for any listing offering Capital One loans. However, the loan application — along with other purchase paperwork — must be completed in person at the dealership.
Although vehicle manufacturers have the biggest share of the car finance market in the US, Capitol One runs neck-and-neck with Ally Finance for the largest market share among financing companies. Ally, rebranded in 2010 from General Motors Acceptance Corporation, has made a big push in car loans by partnering with seven marketplace/classifieds sites in recent years. They include online used car retailer Carvana, peer-to-peer classifieds site Tred, and upstart car subscription service Fair.com.
Read the whole partnership announcement here.