Driven to innovate: brings cutting-edge tech to ‘archaic’ world of car financing

Previous motor vehicle salesman-turned-startup founder Andrew Lemoine says he’s kickstarting a technological revolution in an sector that’s been trapped in neutral for significantly much too very long.

Lemoine is the co-founder and CEO of, a 3-year-old enterprise that is aiming to upend the way cars are financed in North America. The firm’s subscription-primarily based computer software faucets into credit bureau Equifax’s database to provide genuine-time entry to a buyer’s credit background, allowing for dealerships to promptly evaluate no matter whether a financial loan is possible to be accepted and what the terms will be prior to a buyer signs on the dotted line.

That could possibly feel like common sense, but Lemoine claims it’s just about anything but widespread in the motor vehicle funding company. Though the merchandise that roll off the assembly line now characteristic all manner of slicing-edge technological know-how – with vehicles virtually capable of parking themselves – the way they’re acquired and compensated for has remained fundamentally unchanged considering that seat belts had been still a novelty and tail fins ended up all the rage. 

“Our business, for regardless of what explanation, has generally been absolutely backwards when it arrives to funding,” the 34-calendar year-outdated says. “Financing is typically the extremely very last matter you do when you invest in a car.”

Lemoine notes that the regular vehicle purchaser in Canada spends virtually 20 several hours researching the car or truck they want to invest in and pricing out many types in advance of heading to a retail store. As soon as they get there, they normally commit yet another a few and a fifty percent several hours to consulting with gross sales personnel and administrators as they zero in on specifically which car or truck they want.

Only then, he suggests – just after almost a comprehensive day’s work – does the subject of how to pay out for their new wheels get broached. 

As a outcome, a consumer who thought he was obtaining a wonderful offer may well discover himself suddenly shifting gears when, for illustration, he finds out he does not qualify for zero per cent funding just after all. 

‘Huge disconnect’

Which is in which arrives in. The startup desires to make it brief and straightforward to assess a buyer’s creditworthiness right before he or she sets foot in the showroom, conserving equally sides time and prospective disappointment down the line.

“There was this enormous disconnect in between people who had been procuring for cars and trucks online and then when they’d basically wander into a physical locale,” Lemoine claims. “That practical experience was extremely damaged.”

The Ottawa indigenous grew up in the business, landing his initially occupation washing automobiles at a neighborhood Volkswagen dealership when he was 16. In 6 months, he was providing them, and before extended he was the dealer’s top rated salesperson. By his mid-twenties, Lemoine had been promoted to common manager and director of operations at Ottawa’s March Auto Group.

He could have just stayed on that street and steered his way to a comfortable pension. But, pissed off by what he calls the industry’s “archaic” technique to funding, Lemoine made the decision to abandon the protection of a job in car retail for the uncertainty of entrepreneurship. 

In 2019, he teamed up with companions Josh Elias and Jason Groulx to start his new venture. Elias was a proficient program designer. Groulx, in the meantime, was executive chef at the Shore Club and impressed Lemoine with his potential to calmly handle dozens of persons amid the chaos of a fast paced kitchen area – a talent that produced him the great fit for the purpose of VP of operations.

A 12 months afterwards, Toronto-dependent Kole Hicks, the former VP of marketing at car or truck company computer software system AutoServe1, came on board as chief revenue officer.  

The founders invested two and a 50 % a long time honing the system and cultivating their partnership with Equifax, a key partnership that sees the companies collaborate on “soft-pull” technologies that makes it possible for sellers to perform credit rating checks devoid of negatively affecting buyers’ credit rating scores.

To seal that deal, Autocorp experienced to show it could meet the international credit reporting agency’s demanding lawful, safety and compliance requirements. Lemoine says it was no imply feat.

“We were performing a little something that had by no means been completed right before in our place,” he points out.

“There is so quite a few moments wherever you request oneself, ‘Is this even truly worth it?’ You’ve acquired to just wake up every working day and reaffirm your mission.”

“There’s so lots of times wherever you ask your self, ‘Is this even value it?’ You have bought to just wake up just about every working day and reaffirm your mission. It’s received to be that excitement that pulls you out of mattress or you are likely to give up.”

In January 2021, the software program was finally ready to strike the industry. By then, the pandemic had compelled the vehicle industry to strike the gas pedal on its changeover to e-commerce as dealers throughout North The usa had been forced to shut their showroom doorways.

Far more than 300 dealers throughout Canada have due to the fact signed on to Autocorp’s system, and the firm cracked the $1-million mark in yearly recurring revenues in its 1st 12 months.

But Lemoine states the business is even now at the setting up line. 

He expects the software to be a fixture in extra than 1,000 dealerships nationwide by the end of 2022. Autocorp is eyeing a transfer into the U.S. marketplace this summer season, and Lemoine suggests the organization is on pace for a 5- to sevenfold improve in revenues in its next year.

The enterprise helped car or truck potential buyers land more than $100 million in loans very last yr, a figure Lemoine expects will balloon to $1 billion in the not-way too-distant upcoming.

Eyeing VC traders

“We’re really just at that hockey-adhere-progress stage,” he says.

Now at 31 workers, the venture was originally fuelled by less than $1 million in seed funds from friends, spouse and children and the founders them selves. Lemoine suggests Autocorp is close to finalizing a larger sized round funded by investors that consist of Canadian and U.S. enterprise cash companies as well as distinguished community angels. 

Meanwhile, the enterprise keeps high-quality-tuning its merchandise. It’s now establishing an app that will permit buyers verify their revenue, driver’s licence and other information and facts on their smartphone, and it is also performing on integrating important banks into the system so financial loans can be accredited speedier and a lot more effectively.

The program has caught the eye of connected suppliers these kinds of as snowmobile and boat dealerships, Lemoine provides. But even while he says the platform could conveniently be tailored for this sort of prospects, for now he and his companions are content to keep in their current lane.

“We have a very intense target suitable now on the automotive sector,” Lemoine suggests. “It’s the sector we know the most and that we’re looking at the most progress for.

“This model 100 per cent is likely to develop into the default design. We hope that definitely we can get as much industry share (as doable) mainly because we really truly feel like we pioneered a good deal of this.”