Carbar has partnered with fintech CarClarity so users can convert their subscription vehicle into a loan to purchase the car they’ve been using as a subscriber.
The deal will see CarClarity compare options from more than 30 lenders to offer a loan tailored to the driver’s subscription.
Carbar CEO Des Hang said they were launching the purchase loan option in response to requests from subscribers who decided they wanted to own the vehicle.
“Many who want to purchase the car off us don’t have the upfront cash to do so. Or, as our recent survey with YouGov found, they’d prefer to spend those extra funds on other things such as holidays, celebrations, or their home,” he said.
“All of these factors underscore the need for this partnership which will offer more options to our customers. CarClarity is as focused on the customer experience as we are. We look forward to working with them.”
CarClarity CEO and founder Zaheer Jappie said the partnership was a natural next step for the two startups.
“When a Carbar customer wants to take the next step of permanently acquiring the vehicle they have sourced off Carbar, we’re able to help find them a financing solution that’s affordable for the customer and takes into consideration their personal circumstances,” he said.
“This unique financing solution works towards what the customer is already paying and gives Carbar customers more choices.”
Carbar launched in Melbourne in 2016 and in February this year, raised $28.9 million in a round led by insurer IAG and billionaire Kerry Stokes’ Seven West Media. The capital was earmarked towards broadening Carbar’s marketing, partnership and technology capabilities, and to capitalise on the growing interest in electric vehicles.
IAG, Australia’s biggest insurer, has a majority stake in Carbar having backed a $16.8 million raise in 2019.
CarClarity launched in March 2020, with its tech connecting car buyers with more than 30 different lenders and over a thousand loan options.
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