With Fair, consumers can shop for used-vehicle leases with no term through a mobile app. They scan their licenses to get prequalified for a range of monthly payments that cover maintenance, a warranty, insurance and roadside assistance. Customers can also return their vehicles whenever they want.
Ally, one of the largest auto lenders in the U.S., is the most recent company to invest in Fair’s credit line for vehicle procurement. Credit Suisse, Goldman Sachs and Silicon Valley Bank provide the remaining $900 million in credit to Fair.
Fair’s used-vehicle inventory tends to fluctuate at or below 100,000 vehicles, Bauer said. Inventory comes from manufacturers and the nearly 4,000 independent and franchised dealerships that work with Fair, he said. The Santa Monica, Calif., company employs more than 600 people.
Fair has used two of Ally’s digital tools since forging a partnership in 2018. It’s using Clearlane, the bank’s digital financing platform, in a pilot program in Southern California and South Florida, and the digital wholesale auto auction tool SmartAuction to acquire and remarket vehicles.
Bauer said the company plans to continue scaling up, but will focus on creating a sustainable business.
“We might take a look at additional markets but nothing is decided yet. We are expanding into more states throughout the U.S., building more dealer partners,” Bauer said.
Fair operates in 21 states and has served 45,000 customers.