Jerry Jumps Into The Car Loan Refi Space
The costs of owning and operating a vehicle continue to rise, as evidenced by high vignettes and the recent spike in gas prices. Those looking to cut costs now have a new option – his name is Jerry – an app joining the list of those offering options to refinance car loans with more favorable terms.
Jerry is not new. It has been operating since 2019 as an app for motorists to search for insurance coverage at a lower cost. But CEO and founder Art Agrawal told Forbes.com that in times of rising vehicle ownership costs, it’s time to give consumers a little break.
“Our mission is to save people time and money on car expenses,” Agrawal said. “We’re already saving people nearly $850 a year on their car insurance. If you look at the refi space, 26 million people can potentially refi their car loan and save money.
During a soft launch period that began in the fourth quarter of 2021, Agrawal said customers who refinance their loans on Jerry were able to save an average of $118 per month.
“We work with some of the best known lenders in the country. The network of lenders is growing, so we cover the full credit spectrum, from prime to subprime,” Agrawal explained.
The process is quick. Compared to the traditional time to get a refi of about 19 days, Agrawal says that after a customer spends about 10 minutes filling out an online application, it takes about 48 hours to get the loan.
Those who have downloaded the Jerry app and created an account do not need to request a refi offer. Using a proprietary automated process, more than 2 million Jerry customers are assessed for their ability to qualify for reduced monthly payments or a lower annual percentage rate (APR). If so, Jerry proactively presents the offer for consideration.
“A lot of people give up just because the process is so cumbersome and outdated,” Agrawal said. “Who wants to wait 19 days to refi, like when’s the last time you waited 19 days for something you ordered on Amazon?”
Indeed, the timing of Jerry’s entry into the refi segment appears to be favourable. According to a December 2021 report from Transunion, 26 million of 73 million consumers “are able to be highly motivated to refinance their loans. With inventory shortages, there is also a strong opportunity to support lease buyouts – with over 4 million leases set to expire over the next two years.
Jerry embarks on a game that has become even more competitive. Caribou, formerly MotoRefi, took a reverse route, first offering auto loan refinance only, then announcing last October that when customers came to the site looking for a refi, they would be offered the option of be connected with an insurance company that may also offer lower coverage costs. .
According to Caribou’s website, consumers could save “$100+ per month” on their auto loan payments by refinancing through the site.
Jerry’s Agrawal says the speed of the process, proactive offering of lower terms, and the absence of salespeople pushing to close deals are key industry differentiators for his company.
It’s an idea that has evolved since Agrawal moved from India to the United States, explaining that it started with what he called “frustrations” over buying a car. opportunity upon arrival.
“If you’ve bought a used car, you know how painful that experience is when it comes to insurance, loans and parking tickets,” he said. “I wanted to simplify the experience of owning a car for many, many years.”
He started by creating YourMechanic, which Agrawal said was the first on-demand vehicle repair service in the United States. In 2019, Jerry was born by the same team offering insurance contracts.
All of this paved the way for Jerry to enter the auto loan refinance market as Agrawal and his team seek to reduce both the time and money it takes to own a vehicle, concluding, “The moment could not not be better for us to enter space.”