A decade ago, car financing would have required a loan from a bank.
Now, it can be done with a smartphone app.
The latest is Capital Auto Finance, a startup founded by a few graduates of Harvard’s Sloan School of Management.
“We are seeing more and more people using apps to pay their car loans,” says the company’s CEO, Adam Sussman.
“There are hundreds of thousands of apps out there, but this is the first app to take the concept and apply it to the real world.”
The app lets users apply for loans from credit unions, car loan companies and other financial institutions.
The app works by scanning your credit card information and displaying the details of the loan.
Once you’re approved, the app will send you an email with instructions on how to pay.
“You are essentially just sending a message,” says Sussmen.
“A lot of people would never think about it, but it’s the biggest way we can pay for car loans.”
Sussmans team has been working on the app for a few months.
The team has a handful of founders, but they’re all graduates of Sloan.
The group has been making the app since late January.
They started working on it with MIT graduate student Adam Vaknin.
“The app is a bit like a credit union,” says Vaknan.
“If you’re borrowing $500, $600 or $700 a month, you might have a $300 monthly credit card balance.
But if you’re buying a new car or taking a new job, your monthly balance would be like $5,000.”
The company is targeting the millennial generation, with its app being the first to use smartphones for payments.
It will also make payments in the near future.
“It’s like having a bank in your pocket,” says Scott Kress, who co-founded Capital Auto Financing with his brother and recently left the Harvard Business School to work on the startup.
“I’m really excited about it.”
With the app, users can select the loan type and payment method.
If they have a credit card, they can make a payment in that card using their smartphone.
If not, they need to log into their credit card app to make the payment.
The user can then print the card to send it to a bank, and send the card online to pay the loan, using a credit or debit card.
The company also plans to offer other payment options such as mobile banking and other mobile payment services.
The goal is to bring the app to every major bank in the country.
For the moment, the startup has only a handful users, but is looking to expand to other banks.
“Once we get more customers, we’ll get to where we can launch with all the major banks,” says Kress.
The startup’s app was launched with funding from Google, Microsoft and Yahoo, but Sussmas plan to use the money to continue the company.
He says he is working with some of the best business minds in the industry, including Peter Thiel and Tim Cook.
“When you are in the business of making money, you are a self-made man,” says Henni Gebremariam, who is now a partner at venture capital firm Draper Fisher Jurvetson.
“People can take this idea and run with it.
You don’t need the world to take this concept seriously.
I think that the future is going to be dominated by this technology.”
For more information about the startup, you can check out the Capital Auto finance website.
Capital Auto Finance is a startup that focuses on helping millennials pay their loans.
For more about the founders, check out this article from The Verge.