Web-Based Platform connects independent dealers and lenders.
Press Release Summary:
Designed for US automotive retail industry, DealerTrack Independent Network(TM) connects independent (non-franchised) dealers and financing sources. Integral risk-mitigation capabilities enable dealers to provide additional financing options to their customers, while ongoing dealer monitoring as well as vehicle title processing and title insurance capabilities are available via alliances with VINtek, Inc. and Vehicle Title Agency, LLC, respectively.
Original Press Release:
DealerTrack Launches Independent Network
New Platform to Connect Independent Dealers and Lenders
LAKE SUCCESS, N.Y., March 3 -- DealerTrack Holdings, Inc. (NASDAQ:TRAK), a leading provider of on-demand software and data solutions for the U.S. automotive retail industry, today announced the launch of the DealerTrack Independent Network(TM), a new web-based platform connecting independent (non-franchised) dealers and financing sources. The platform will include robust risk-mitigation capabilities enabling dealers to provide additional financing options to their customers.
"The DealerTrack Independent Network is a natural extension of our market- leading solution for submitting credit application data," said Mark O'Neil, chairman and chief executive officer of DealerTrack. "By providing a comprehensive package of risk-mitigation capabilities, we believe our new Independent Network will enable many more lenders and independent dealers to be comfortable doing business with each other."
Over 90% of U.S.-based franchised dealerships and several thousand of the largest independent auto dealers are active DealerTrack users connected with multiple lenders. However, the majority of the nation's estimated 42,800 independent dealers, which sold over 13 million used vehicles in 2007, have some level of difficulty developing relationships with financing sources.
Among other high value features, the DealerTrack Independent Network will include ongoing dealer monitoring, as well as vehicle title processing and title insurance. DealerTrack has formed alliances with VINtek, Inc. and Vehicle Title Agency, LLC, respectively, to offer these services.
Richard McLeer, senior vice president, strategy and development, DealerTrack, said, "The inability of many independent dealerships to offer financing options to their customers limits their potential revenue opportunities and puts them at risk for losing deals. By partnering with VINtek and Vehicle Title Agency, LLC, we are minimizing the risks lenders sometimes face, benefiting lenders, dealers and consumers alike."
The first five financing sources that have agreed to connect to the DealerTrack Independent Network are ACC Consumer Finance, AmeriCredit Financial Services, Fireside Bank, Turner Acceptance Corporation and Universal Special Auto Finance.
O'Neil concluded, "We believe the Independent Network is a key strategic solution for DealerTrack. It has the potential to leverage our existing credit application network not only in connecting more dealers and lenders, but also by creating new growth opportunities for DealerTrack. Subscription and transaction products such as the DealerTrack Arkona DMS, our InventoryPro inventory management solution, the DealerTrack Aftermarket Network, online used car valuation tools and our compliance solutions can help independent dealers better manage their business."
About DealerTrack (www.dealertrack.com)
DealerTrack Holdings, Inc. (NASDAQ:TRAK) is a leading provider of on- demand software and data solutions for the U.S. automotive and related industries. The company's solutions enable dealers to receive consumer leads, submit credit applications and receive responses, compare financing and leasing options, sell insurance, accessories and other aftermarket products, document compliance, and execute financing contracts electronically. In addition, the DealerTrack Arkona DMS (dealer management system) is used by dealerships nationwide. Over 22,000 dealers, including more than 90% of all franchised dealers; over 500 financing sources; and other service and information providers are active in the DealerTrack network.
About VINtek, Inc. (www.vintek.com)
Founded in 1990, Philadelphia-based VINtek provides automotive collateral management services and business process outsourcing for banks, credit unions and other auto finance institutions using paper or electronic titles. A provider of Electronic Lien Transform (ELT) technology, VINtek helps lenders increase efficiency, decrease costs associated with account management and reduce errors and exceptions on titles and liens through automation. For more information, visit www.vintek.com.
About Vehicle Title Agency, LLC (autotitleguard.com)
Vehicle Title Agency, LLC is a joint venture between The First American Corporation (NYSE:FAF), a FORTUNE 500(R) company that traces its history to 1889, and Experian Automotive, the automotive industry's premier information and vehicle history data supplier. By combining the strengths and expertise of these two companies, Vehicle Title Agency, LLC maximizes its efficiencies to deliver TitleGuard Vehicle Title Insurance to the used car buying and selling public. TitleGuard is the first and only product that insures used car buyers, sellers and lenders against the actual losses that can result from unreported DMV title defects for up to 100 percent of the vehicle's fair market retail value, or $50,000. To learn more about Vehicle Title's TitleGuard, visit www.AutoTitleGuard.com.
Contacts:
Raphael Carty
DealerTrack
(516) 734-3777
raphael.carty@dealertrack.com
Stephanie Lowenthal
RF|Binder Partners
(212) 994-7619
stephanie.lowenthal@rfbinder.com
