Octane Launches Captive-as-a-Service Solution for Automotive Dealer Groups

Empowering Dealerships with Captive-as-a-Service

Octane, a prominent name in fintech, has recently made a significant move into the automotive sector by introducing its Captive-as-a-Service solution aimed at automotive dealer groups. This innovative offering allows dealerships to reap the benefits of having their own captive finance company without the burdensome costs and time traditionally associated with such ventures.

What is Captive-as-a-Service?

In essence, Octane's Captive-as-a-Service is a comprehensive, turnkey solution that integrates essential components for automotive financing. These include credit underwriting, loan processing, servicing, compliance, and capital markets execution, all available under a dealership's chosen brand. This means that dealers can offer financing solutions directly to their customers, enhancing their revenue streams and boosting overall enterprise value.

Dealerships are able to directly participate in loan originations through their captive brand, thereby diversifying their income. The Captive-as-a-Service offering also plays a significant role in improving customer loyalty by delivering a fully branded experience that opens new avenues for customer engagement.

A Tech-Forward Approach

With a keen focus on technology, Octane's solution drastically streamlines the financing process for both dealers and consumers. It includes features like digital tools for customer lead qualification, such as the Octane Prequal and Prequal Flex, which drive high-quality leads directly to the dealer. Furthermore, tailored lending platforms can be designed to support ongoing dealership promotions, ensuring that marketing efforts are relevant and effective.

Jason Guss, Octane’s Co-Founder and CEO, stated, “We are adamant about finding methods to help our partners enhance their businesses. Our Captive-as-a-Service grants dealer groups the versatility to craft programs that fit their specific needs, promoting customer connection and driving profitability.”

Proven Success and Future Growth

Octane has a strong track record, having facilitated over $7 billion in loan originations since its establishment in 2014. The effectiveness of their underwriting capabilities is backed by substantial credit performance, as exemplified by their AAA ratings. This solid foundation allows dealerships to benefit from Octane’s in-house loan processing support available seven days a week, as well as its award-winning loan servicing team that handles payment collections and recovery efficiently.

Moreover, with over $4.7 billion in asset-backed securities issued since late 2019, Octane has established robust relationships within the capital markets that further empower dealer partners.

Real-World Impact

The real-world impact of Octane’s Captive-as-a-Service can be best illustrated through testimonials from early partners. Roger W. Holler III, President and CEO of Holler-Classic Family of Dealerships, remarked on the strategic alignment with Octane, stating, “We’ve been incredibly impressed with Octane’s seamless financing experience that stands to benefit our customers immensely.” He emphasized that this partnership not only enhances the dealership's efficiency but also offers more control over their operations.

Closing Remarks

Octane is not just facilitating financing; it is reshaping the automotive purchasing landscape by delivering a seamless, tech-driven buying experience. The Captive-as-a-Service offering is set to become a transformative tool for automotive dealers seeking to improve profitability while ensuring their customers receive a top-tier financing journey. As the auto market continues to evolve, Octane is clearly positioning itself at the forefront of this revolution. To learn more about Octane and their offerings, visit Octane Co..