Powersports Auction, a consumer-facing online auction platform, is scouting for strategic lender partners for its current online and soon-to-launch onsite auctions, Founder James Scaggs told Powersports Finance.
“We are working on an Experian API integration where we can do instant pre-qualification for customers,” he said. “Based on that criteria, we would like to suggest a specific lender to match up with buyer based on credit-worthiness. We would do all that with a soft credit pull.”
Experian API provides companies the ability to embed credit functionality on their websites and mobile apps, which allows the company “to create products and services for previously unreachable markets,” according to Experian’s website.
While many lenders qualify borrowers based on the vehicle segment and risk associated, Powersports Auction’s goal is to qualify buyers based on the dollar amount of the unit.
As such, the company’s goal is to get the lender as much information as necessary in order to limit the lender’s risk and approve a deal without putting burden on the buyer to complete an entire finance application up front, Scaggs said.
The auction process should be simplified to put the customer first, Scaggs said, because auction bidders typically don’t know what vehicle they are going to buy prior to the auction.
Powersports Auction was founded in August 2016 and conducted its first online auction in November that same year. The platform operated in “stealth” for a while as it built out new integrations and figured out its desired business model, which until now has been consumer-facing.
However, as more dealers have been inquiring, Powersports Auction made a shift to include online dealer auctions, and will add physical on-site auctions in the near future.