Car Apps Add Vehicle Financing to Acquire, Retain Customers

It’s been a turbulent 18 months for car owners. Since March 2020, there have been huge swings in the number of miles driven, rapid inflation in the cost of fuel and other commodities, and shortages of both new and used cars.

The prices of used cars are between 20% and 30% higher than they were before the pandemic, and new cars are going for the manufacturer’s suggested retail price (MSRP) or more.

“There are no deals to be found; it’s MSRP or higher,” Alex Chew, senior director and head of partnerships at Jerry, told PYMNTS. “That’s the way it is now.”

Saving Money by Comparison Shopping

There are savings to be had in other areas, though. Jerry has been helping consumers reduce the cost of car ownership since 2019 by providing a compare-and-buy car insurance app that is powered by artificial intelligence (AI) and machine learning. The company shops the offerings of more than 50 insurance carrier partners.

Jerry will soon expand its services by adding a similar service around vehicle financing, Chew told PYMNTS, adding that this is another huge market with opportunities to reduce the cost to consumers. “If we can help them out on vehicle financing and save them hundreds if not thousands of dollars a year, that’s another huge win,” Chew said.

Building a Car Ownership Super App

This is the next step in the company’s plan to build out its “car ownership super app,” as the company said it would do in August after completing a $75 million Series C funding round that brought its total funding to $132 million.

Read more: Car Insurance Platform Jerry Wants to Be Super App for All Auto-Related Costs

Future expansions into other areas may include auto repair and parking.

“Since car ownership is the consumer’s second largest expense, we want to cover all the costs and provide a delightful customer experience that keeps customers coming back to Jerry,” Chew said.

As part of this buildout of the range of services it offers, Jerry is also providing content on its website that focuses on tips, advice and news around the car ownership experience.  “That’s one of our team goals — providing useful information to help consumers make educated decisions,” Chew said.

Promoting Services Through Partnerships

At the same time, Jerry is continuing to expand and promote its car insurance shopping service. The company now has 1.5 million customers and is always looking for additional ways to get in front of drivers, Chew said.

Jerry recently announced partnerships with Lyft and eDriving, creator of the Mentor app, that will enable users to access Jerry and its shopping service from within those apps. With this integration, the users will be able to click through to the Jerry app to shop for personal auto insurance without having to re-enter their information.

Chew noted that for these and other drivers, “buying car insurance right now is painful.” It requires gathering information about the vehicle and drivers, submitting it to insurance carriers, talking with an agent and then waiting to get a quote. For that reason, many drivers stick with their current insurance carrier for years, don’t comparison shop and therefore end up spending more than they have to for car insurance.

Reducing the Cost of Car Ownership

“When you change that paradigm, it’s a complete revelation,” Chew said. He added that the Jerry app brings its customers an average savings of $850 a year.

The rapid rise in the cost of vehicles since the beginning of the pandemic has caused consumers to keep their current cars longer to try to save money for a new one. By comparison shopping their car insurance, they can get meaningful savings that will help them reach that goal.

Although the pandemic may have heightened the need to save money to put toward a new car, Chew said, “It’s always a good time to save $850 a year. And if you can do this in 15 minutes, why wouldn’t you?”