JPMorgan Chase is getting into the car-buying business, gearing up to launch a digital offering that enables customers to shop for a car and get financing for their purchase using a computer or smartphone.
According to a report by The Wall Street Journal, the new service, dubbed Chase Auto Direct, will be powered by TrueCar, which is an online car-buying site. The idea behind the partnership is to speed up the car-buying process, and it is the latest example of a financial services company getting into bed with a financial technology firm.
In 2015, JPMorgan inked a partnership with OnDeck to develop an online small business loan portal for the bank’s customers. With the OnDeck partnership, the online lender’s name was featured on the product, but with this car-buying initiative, TrueCar will remain behind the scenes.
Auto finance customers will start at Chase.com, navigate to a TrueCar site and then end up back at Chase’s site to apply for the secure financing. With the service, customers will be able to find and look at financing options for new and used cars and get approved for their loan. They can compare prices that other consumers pay and see options among different dealerships that are part of the bank’s network. The service will be available to existing customers in 30 states in the U.S., with it being rolled out further in phases at the beginning of next year.