Expanding our reach with continued product innovation

We’re all about continuous innovation and expanding what we offer so that more people can experience Carmoola.

That’s why I'm excited to introduce our latest product initiative, designed to broaden our customer base and make car financing more accessible to a wider range of people.
By implementing mandatory minimum deposits and specific car criteria, we can offer financing to customers who were previously ineligible for a standard Carmoola loan.

Let's delve into how this new initiative will drive growth, enhance our market appeal, and underline our commitment to bringing simplicity, control and value to car buyers.

Bringing Carmoola to more people

We will be targeting an underserved segment of the market, including consumers with sufficient cash for a deposit, but not enough to buy a car outright, those wishing to trade in an existing vehicle to upgrade, and those who can afford a car but prefer partial financing to purchase a better vehicle. This initiative taps into a latent demand, as evidenced by the fact that one in five Carmoola loans written to date had an LTV (loan-to-value) at origination of less than 75%. This indicates a strong market appetite for plans requiring mandatory minimum deposits. By catering to these consumers, we can significantly increase our customer base.

Enhancing credit performance and reducing risk

As a responsible lender we always consider our customers’ needs, first and foremost. As such, this new access plan is structured to mitigate risks effectively; and by requiring minimum deposits and limiting lending to specific ‘sensible cars’, we can ensure that people get the car they want on terms that truly work for them.

Deposits mean that the customer can take ownership of a larger proportion of the car to begin with, and can help reduce their monthly repayments. And by focusing our lending on ‘sensible cars’—such as mileage limits and specific car makes—we can be sure that we lend against high-quality vehicles with stronger depreciation curves, which is better for us, and importantly, the customer.

Increasing approval rates

The new initiative is expected to result in a significant increase in the number of people who are eligible for a Carmoola loan. But it’s not just about increasing loan volumes; it's about making prudent, data-driven decisions to maintain our credit standards while serving a broader audience.

In sum: a confident move, with more to come

The new launch marks a significant milestone in Carmoola's journey. By broadening our customer base through innovative, data-driven financing, we are prepared to meet the evolving needs of the market. This not only demonstrates our confidence in managing credit risk effectively, but also showcases our commitment to leveraging our tech and data capabilities to pursue growth in a considered and diligent manner. 
We’re excited about the positive impact this will have on our business and the value it will provide to our customers.

As a fintech company, we are committed to product development that will keep Carmoola at the forefront of the car financing industry, delivering exceptional value and service to our growing (and very happy!) customer base.