Avito.ru, the leading horizontal in Russia, has joined forces with Tinkoff Bank, a major online lender, to provide car loans, marking Avito’s first foray into on-site auto financing.
The move comes as financing is becoming a key battleground among the leading auto marketplaces in Russia. Auto.ru, the Yandex-owned auto marketplace, and SberAuto, the vertical owned by SberBank, already offer direct car financing. Avito is aiming to ensure that its categories are able to match the verticals across key transaction-led segments like financing.
The new service for Avito’s automotive category lets users calculate loan conditions and fill out a loan form directly on the Avito website or mobile app. Previously, the horizontal did offer auto financing deals, but only via a link to a third-party website.
If a user doesn’t have a Tinkoff card, a bank representative will deliver one to their home. Users who are already Tinkoff customers will receive a bank transfer the same day the loan is approved. The loan is valid for 60 days, so if a buyer changes their mind about purchasing the selected car, they will have time to choose another option.
Car loans will be charged at an annual rate of 6.9%. After purchasing the vehicle, users are signed up for a comprehensive insurance policy from Tinkoff Insurance.
“The new service will allow Avito Auto users to quickly get a loan to buy a car and not miss out on the option they like. We strive to make the car purchasing process easier for our users, and we are constantly developing online tools to facilitate the selection and transaction process. The launch of the lending service was the first step towards providing users with a seamless experience of buying a car on a classified basis,” said Nikolay Manaikin, head of new business areas at Avito Auto.