- Online automotive marketplace for buying, selling, financing, insuring new and used vehicles
- 87% of Americans would rather avoid going to car dealer
- 61% feel they are taken advantage of by dealers
- PowerBand Auto Platform offers access to 18,000 Dealers, 1,500 finance sources
- Sitting in comfort at home with no hard-sell sales rep provides satisfying platform experience
Now that PowerBand Solutions (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA) has launched its online vehicle marketplace, buying a vehicle has become a whole lot easier. Instead of a visit, filled with trepidation, to the local dealer, consumers can stay safely and comfortably at home and, in only a few moments, have the model they want. PowerBand’s marketplace is a digital, one-stop-shop that takes the hassle out of buying, selling, leasing and trading-in — and that’s not all.
The insurance and financing solutions available on the platform mean transactions take less time than with a brick-and-mortar dealer. The virtual marketplace also gives consumers easier access to inventory. And dealers benefit too; the platform provides a fast, cost-effective way to move product. The PowerBand Auto Platform is a comprehensive solution for manufacturers, dealers, lenders and consumers alike to engage in automotive transactions online. PowerBand is another instance of how digital technologies are disrupting established business models across the board.
Buying a vehicle the customary way is often fraught with peril. Sometimes the obstacle to getting a good deal are the buyers themselves, who may, for example, be focused on a single model. But oftentimes, the pitfalls occur in the dealership experience. Auto merchants are notorious for coming up with “deals” that lump together vehicle price, trade-in value, financing terms, etc., making it difficult to ascertain the real costs of a transaction. The result? Consumers end up buying a deal when all they wanted was to buy a car.
No wonder then that shopping for a vehicle is not a pleasant experience. An estimated 87% of Americans dislike the car dealership experience, with around 52% being anxious or uncomfortable while visiting a dealer. Moreover, some 61% believe a dealership will take advantage of them, and almost half, 49%, think they will be tricked into purchasing unnecessary add-ons.
In the automotive market, information asymmetry, where the dealer knows a lot more than the consumer, is the order of the day. Indeed, insights into how asymmetric information distorts markets of all kinds began in 1970 with a study of the automotive market, when Nobel Laureate George Akerlof published his seminal paper, “The Market for Lemons.”
The PowerBand Auto Platform takes a different approach, offering access to information, thus providing transparency as well as ease of use. And PowerBand is gearing up to do even more. In August 2018, PowerBand began integrating its online auction and used-vehicle marketplace with the technical services offered by TÜV NORD Mobility (http://nnw.fm/kQz6G). TÜV NORD is a German company whose main activities include independent vehicle inspections for private consumers, dealerships and OEMs. Almost year later, in July 2019, PowerBand acquired a 60% stake in MUSA Holdings, a fintech auto leasing company that is a Tesla Motors leasing partner (http://nnw.fm/rFZ79). The deal will expand PowerBand’s capabilities in vehicle acquisition, leasing, lending and auction services.
And in February 2020, PowerBand announced an agreement with RouteOne (http://nnw.fm/Xf70K). RouteOne is a joint venture between Ally Financial, Ford Motor Credit Company, TD Auto Finance and Toyota Financial Services, which specializes in providing financing and insurance solutions for automobile dealers and their customers. The alliance with RouteOne will give PowerBand users access to more than 18,000 automotive dealers and 1,500 finance sources. Now PowerBand users will have even a better chance of finding the right car at the right price.
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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