Upgrade, a neobank founded by noted Fintech entrepreneur Renaud Laplanche, has launched auto loans as a new credit offering.
In an email from a company representative, Upgrade explained that the “full spectrum” auto lending product will serve all types of consumers from 580 to 850 FICO scores.
Upgrade noted that in 2022, there were more than ten cars that were on the market being sold for less than $20,000. Today, just a single car is being sold for less than that amount as inflation has punished car buyers and manufacturers.
The company added that multiple auto lenders have exited the market in the past year, including financial service firms like Citizens, Keybank and Mechanic.
Upgrade said its ability to approve a broad spectrum of consumers stems from its “marketplace” model that gives Upgrade access to multiple sources of funding (credit unions, banks, asset managers) that all have a different risk appetite. As a result, Upgrade is offering dealers a one-stop shop to approve and offer competitive rates to all their customers.
A quick visit to the Upgrade website shows personal auto loans, auto refinancing, as well as auto financing for dealers. Upgrade highlights its “automated” and fast funding process to approve the loans.
Upgrade reports having lent $24 billion since its launch, mostly for personal loans and cards. The company reports over 2.5 million customers.
Upgrade continues to add new features and functionality as it builds out its vision of a neobank. Most recently, Upgrade acquired Uplift, a Fintech providing credit for travel-related expenses.
