- PowerBand has completed its two-year mission to offer a cloud-based platform transforming the way consumers buy, sell, lease, and finance vehicles
- D&P Holdings has invested a $6 million in PowerBand’s platform to date
- The latest investment will also help launch the Driveway app to offer consumers access to a wider vehicle auction audience
- PowerBand Solutions’ cloud-based platform offers users transparency and complete control over the purchasing process by streamlining the interactions among all participants and eliminating unnecessary middlemen
The wholly-owned subsidiary of PowerBand Solutions Inc.’s (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA), PowerBand Solutions US Inc., has accepted an additional $2.7-million investment from Texas-based D&P Holdings as it prepares for the first vehicle lease originations in the United States, according to a company press release (http://ibn.fm/Hz3UI). PowerBand has thus completed its more than two-year mission to make available a cloud-based platform that is transforming the ways in which consumers carry out vehicle transactions.
The latest investment from D&P will assist PowerBand’s U.S. leasing platform, MUSA Auto Finance LLC, to start offering leases in June 2020. This will allow platform users to access extensive funding opportunities from national financial institutions. Upon completion of these financial arrangements, consumers and auto dealers will be able to view details about the financing arrangements on smart phones and other digital devices, making the entire process of buying and leasing a car with PowerBand as easy as ordering a product on Amazon, according to PowerBand CEO Kelly Jennings.
The additional D&P Holdings investment will also help launch Driveaway, PowerBand’s consumer app enabling Americans to access virtual auctions to purchase and sell used cars directly between consumers or from dealers. The app will offer commercial partners and consumers a wider auction audience, eliminate the cost of transporting vehicles to physical auction lots and ensure the value of their vehicles is reached. Fees are only charged on successful transactions.
Developed by a team of experienced automotive, technology and finance experts, PowerBand Solutions’ platform empowers the consumer to self-direct a transaction, by streamlining the interactions among all participants and eliminating unnecessary middlemen. The platform fully caters to a growing need and demand for online auto trading alternatives as e-commerce is spreading in the automotive sector and an ever-growing number of people are looking for an enhanced and more personalized customer experience.
Additionally, social distancing rules imposed by the ongoing pandemic have increased this already significant demand for online alternatives. According to the ‘Digital Commerce 360 Online Vehicle Shopper 2019’ survey, conducted among 1,089 buyers, 49% are willing to purchase a new vehicle entirely online (http://ibn.fm/bAaJ9). According to Frost & Sullivan, consumers may purchase as many as 1.3 million vehicles annually online as soon as 2035 (http://ibn.fm/My8oz). And nearly 90% of Americans report they dislike the car dealership experience, noting they feel anxious or uncomfortable in dealership settings.
PowerBand is positioned to capitalize on these trends by disrupting the antiquated business model of the automotive industry, replacing distrust and confusion with transparency, access to information and ease of use. “This is the digital innovation solution the automotive industry desperately needs, particularly as it emerges from the retail challenges of the COVID-19 pandemic,” Jennings added.
D&P Holdings has invested $6 million in PowerBand US to date, and remains committed to invest up to $10 million as a whole, as it strongly believes that PowerBand’s cloud-based platform will transform the way Americans buy, sell, lease, trade and finance vehicles, said John Armstrong, CEO of D&P Holdings. As one of the largest administrators of automotive warranty and insurance products in the U.S., D&P works directly with more than 850 dealerships across the country. The company will also leverage PowerBand’s platform to offer consumers automotive insurance products, Armstrong added.
PowerBand’s innovative platform will additionally be made available by MUSA to thousands of dealerships in the United States and Canada that work with RouteOne, LLC and its footprint of more than 16,000 automotive dealers and 1,500 finance sources. PowerBand will also continue other ongoing negotiations to promote the availability of credit facilities on the PowerBand platform as it strives to become a global leader in providing online transactions for the industry.
For more information, visit the company’s website at www.PowerBandSolutions.com.
NOTE TO INVESTORS: The latest news and updates relating to PWWBF are available in the company’s newsroom at http://ibn.fm/PWWBF