Amid the flood of information that comes through our inboxes, once in a while something really stands out. At a time when so much is expected to change in the automotive customer experience and the tools that support the retail automotive purchase path, we occasionally get a glimpse of something that really seems like a game changer.
We had just such an experience recently with a new software company that is bringing deep resources in artificial intelligence (AI) and a successful track record in Silicon Valley and is taking aim at the world of automotive finance. And they’re doing it from Edmonton.
Carbeeza (Carbeeza.com) bills itself as the first end-to-end automotive marketplace that matches the customer to the ideal vehicle, while fully integrating financial discovery directly into the process.
Consumers submit non-specific information and Carbeeza’s algorithm will match them with the best financing offers available from lending partners. All offers are visible to both parties, and dealers price the product based on the financing options the consumer has available.
The magic, they tell us, is in the power of their AI. Their billing model reflects their confidence that their AI-powered marketplace will bring a transformative level of efficiency and transparency to the process.
Carbeeza doesn’t charge the consumer; dealers showcase their inventory at no charge. If a deal is fully completed, Carbeeza charges the dealer a commission. No closed deal, no cost.
It’s not a business model based on selling leads to dealers or OEMs. From a customer perspective, no personally identifying data is collected until they commit to a purchase. Talking with the Carbeeza team, they bring an almost evangelical passion to the idea of bringing transparency and removing steps and barriers in the automotive finance process.
There were a few things that struck me about their offering.
First, the reason they are starting with automotive finance at the heart of their business is very simple: they looked around and decided to aim their AI-powered marketplace at the industry most in need of disruption. Given their history and past accomplishments, I’m betting they’ll make a dent.
Second, they seem equally committed to serving the customer and the dealer. There is no question in their minds that the dealer is firmly rooted in the future of automotive retail and a new customer purchase experience.
There are already AI products that are bringing sophisticated algorithms to automotive, and to automotive finance. For example, Aclaro has aimed at a more specific role, in their case using AI to quickly (and highly accurately) predict where the risk is in a financing portfolio.
Carbeeza’s goal is broader. They believe their AI will become the foundation of the marketplace where consumers, dealers, and financing partners meet to the better of all concerned.
Let’s see how they do, and to what extent they and other AI and machine learning tools remove risk, uncertainty, steps, and clicks from the process of selling a car.
