The current industry model for selling your auto loans has become stale. Actually, it's been that way for years. When every other industry has evolved to better transaction models, yet ours (consumer auto) hasn't budged in decades, you know it's time for a change. Enter AGORA Data!
When we began designing AGORA, we sought to, at the very least, address a few of the major pain and friction points when transacting or selling your loans. We wanted to create a platform that made buying and selling auto paper easy and intuitive, didn't eat enormous chunks of profits just on the trade, and helped match buyer to seller in a competitive environment, all underneath an umbrella of security and data expertise. We wanted to create an open exchange.
When selling loans today, many dealers will often turn to a loan broker's services, which command fees of up to 1-3%. Whether or not these fees are earned and justifiable is for another article, another day. A broker's value is typically held in the industry contacts they hold, namely auto paper buyers, whom they rely upon to bid on and purchase your paper. For the majority of deals today, that's about it. Contact a broker and express your interest in selling, they match you with some buyers, and maybe one of those buyers' bids will satisfy your selling criteria.
The problem with all of this is fourfold: you pay a steep premium right off the top, your deal's visibility will always be limited by a broker's buyer network, many brokers do not properly understand your data and your system, and most of this is all done in a shockingly insecure manner.
Here's a quick glimpse into how things work today if you employ a broker's services:
The problems with this model aren't always obvious:
- A broker may not understand your dealer management system (DMS), and might not be able to help you through problems such as pulling an extract file to send to potential buyers, capturing each data field a buyer requests, or simply ensuring the data is pristine and proper. AGORA specifically understands each DMS, and more so understands data as a true expert. We make it simple to get your data out of your DMS and into our platform, and if there's a struggle along the way, we're standing by ready to help in any capacity.
- Brokers' buyer networks, however large, are always limited to who they know. If you want the most out of your deal, it needs to exposed to a competitive market. AGORA Data isn't a closed-loop network of buyers; it's an open marketplace where ALL buyers can hop in and find your deal.
- Considering today's regulatory environment, it's quite scary that many brokers still rely upon simple, un-encrypted email to transmit your data files (with customer info included). Sadly, this is often the case. A broker might take your data file and "shotgun" it out to 10 different buyers, all through plain text email. Maybe this hasn't affected you yet, but it surely isn't something you should be risking. AGORA ensures security through its encrypted data import process, and all actions within our app are secured using industry-best practices.
- Because a broker usually doesn't work with the underlying data behind your deal and loans, they usually step aside and let the buyer take over when there's an issue. More so, buyers have to spend precious amounts of time mapping to your data so they can understand it and translate it into terms they understand. This time comes at your expense as it slows down the bidding process and ultimately a closing. AGORA Data standardizes all data coming into our system, allowing buyers to easily understand what they're viewing, thus speeding up this entire process. We make it simple for buyers to jump in, review, and then bid on your deal.
At the end of the day, you probably want as high a price as possible, a quick selling process, and comfort in knowing your data is secured from start to finish. A traditional sale through a broker model just can't offer all of those things. AGORA Data can, and it's our mission to match the right buyer with the right seller to complete your transaction in a timely and profitable manner.