- PowerBand Solutions Cloud-based App will let consumers and dealers buy, sell, lease and trade vehicles on smart phones and computers, from anywhere
- Dealership closures due to Covid-19 may benefit PowerBand Solution’s online sales channels
PowerBand Solutions Inc. (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA) recently announced it has reached an agreement with RouteOne LLC (“RouteOne”) to grant up to 18,000 automotive dealerships in RouteOne’s network access to PowerBand’s unique cloud-based sales and leasing platform. It means millions of consumers will have access to PowerBand’s online platform that will “revolutionize how the world buys, sells, leases and auctions cars by making it as easy to buy a car as you now order a product on Amazon,” as PowerBand CEO Kelly Jennings stated in a news release.
PowerBand’s cloud-based platform performs a dual function – allowing retail customers to choose a vehicle from a wide variety of dealership partners and obtain a lease, with lease approvals in as little as eight seconds. The PowerBand platform also enables automobile dealerships to manage their used vehicle inventory by launching instantaneous online auctions which markets their vehicles to a vast network of the industry’s top used vehicle buyers.
American customers purchased 17.1 million new vehicles in 2019 while over 41 million used vehicles were anticipated to have changed hands last year (http://nnw.fm/Z9DzN), a staggering number largely attributable to the rising popularity of leasing. Leasing has accounted for nearly 30% of new-vehicle volumes in recent years (with an even greater 37% of Canadian vehicle buyers opting for this method of purchase), resulting in 4.1 million vehicle leases maturing in 2019 (http://nnw.fm/c1tTk).
Powerband Solutions’ cloud-based platform has eliminated the need for dealerships to hold physical auctions for their used and traded-in vehicle inventory, thereby reducing the high costs and lengthy timeframe associated with such sales. Rather, the ability to sell their used vehicles in an efficient and cost-effective manner will allow dealerships to save on the expenses associated with managing their inventory – and lower the cost for potential customers looking to lease a new car.
With RouteOne set to actively leverage their own salesforce to market PowerBand’s leasing and vehicle sales platform, the company is anticipating a marked increase in its transaction volumes. As CEO Kelly Jennings affirmed, “not only will PowerBand generate revenue from new and used vehicle leases, there will also be revenue generated through PowerBand’s online auction platforms as a result of consumers trading in their vehicles for new leased vehicles.”
The auto industry has been sharply affected in recent weeks as prospective buyers have shied away from vehicle purchases due to dealership closures and shelter-at-home orders. With CarMax (NYSE: KMX), the United States’ largest used-vehicle retailer, announcing recently that over half of their stores had been temporarily closed or were being operated on a limited basis due to the ongoing viral outbreak (http://nnw.fm/6aXUs), it is clear that the nation’s $350-billion used-vehicle market will rapidly have to adopt new and additional sales channels going forward. PowerBand Solutions has the transaction platform to that, and it will be widely available thanks to the RouteOne deal.
For more information, visit the company’s website at www.PowerBandSolutions.com
NOTE TO INVESTORS: The latest news and updates relating to PWWBF are available in the company’s newsroom at http://nnw.fm/PWWBF
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