SANTA MONICA, Calif. — After months of speculation, former TrueCar CEO Scott Painter unveiled his latest venture: Fair, a new mobile app that allows customers to shop, get approved for financing, and pay for a car right on the phone. The app is now available in the Apple App Store.
Fair is a collaboration between Painter and auto finance legend Georg Bauer, who built the financial services business for Tesla Europe and is credited with creating the first leasing program back in the ‘80s. The two executives today launched Fair in the greater Los Angeles area. The app will be rolling out to the rest of California by the end of the year before expanding into other select markets in 2018.
Fair’s technology allows a customer to get a pre-owned car with just a driver’s license and a bank account, according to the startup. The apps fully digital transaction process eliminates the need for customers to physically sign numerous documents when they get a car, which can save hours at the dealership.
Fair was also designed to free consumers from the long-term commitment of a loan or lease while providing benefits of car ownership that are missing from existing ride- and car-sharing options, the company said. Fair customers can drive their cars for as long as they wish, and return them with just five days’ notice. A limited warranty, routine maintenance, and roadside assistance come standard with every Fair car.
“Even with these added benefits, Fair guarantees that a customer can’t get a better payment with a comparable loan or lease,” the company said, adding that it plans to offer insurance options in the future.
Fair’s digital sales process also provides multiple benefits for participating dealers, the company noted. It offers access to new, in-market customers on top of a dealer’s existing client base. Unlike lead-generation websites or apps, Fair charges no fees to the dealer for the transactions it generates. By eliminating the time minimum customers must keep their cars, Fair also creates the potential for increased transactions for dealers.
Fair is able to offer these benefits because of the app’s ability to use available pricing and depreciation data to determine which cars make economic sense in the model. Combined with digital consumer information and mobile technology, Fair is able to leverage this data to accurately predict the financial implications of pairing a given consumer with a specific car.
Painter is a serial entrepreneur and investor who has started dozens of disruptive companies to improve the car buying experience, including TrueCar and CarsDirect.com. Scott started this new venture to bring fairness to the process of getting a car, the company said.
Bauer has more than 30 years of experience shaping financial services for leading car companies on a global scale and is widely recognized as an innovative leader in auto finance. Aside from his work at Tesla, he served as CEO of Global Financial Services for BMW Group as well as CEO of Mercedes-Benz Credit in the U.S.
Painter and Bauer founded Fair in 2016 to put all aspects of the car-buying process in an end-to end digital consumer experience. With a few quick taps in the Fair app, customers can get instantly prequalified and select from a range of cars tailored to their budget. They can pay for the car they want directly in the app and drive away — or even get it delivered to their home.
Originally posted on F&I and Showroom