Automotive classifieds and data business, Carsales.com.au has signed a binding agreement under which it will acquire a 50.1% of the nation’s leading vehicle finance providers, Stratton Finance Pty Ltd.
Stratton managing director, Rob Chaloner says the acquisition is a natural fit with significant potential and opportunities for growth within the business.
“The main thing is focussing on private seller, it’s really about facilitating a better consumer experience with a focus on the private sector, which is an ever growing part of new and used vehicle sales at the moment,” Chaloner told Autotalk.
“We facilitate transactions for dealers in a very quick, clean and incremental volume for the car dealers, so we see this partnership as an enhanced car dealer partnership in many ways.”
“We have a national network of dealers that we source cars for. Last month there were more than 1200 loans, a lot of them have come from dealers, we help them move stock and we help the consumer, which generates leads for a new or used vehicle.”
The plan is to integrate more vertically into the car sales network and not just in cars, we want exposure in commercial vehicles, trucks, and equipment, all these are areas which we plan to grow.
“We intend to grow into the private to private sector, if we can assist that sector ultimately it will benefit all of the car dealers in the country.”
Over the coming months Stratton and carsales.com.au will work closely to leverage networks, develop new products and help change the way Australians finance cars.
“This exciting new partnership means we can help more Australians purchase the vehicle of their choice, by offering best-fit solutions; not just the cheapest repayment, but the most suitable product and lowest overall cost,” says Chaloner .
“We have a franchise network that we are expanding nationally, particularly in regional areas, so we see that as a great opportunity for dealerships to have a franchise as a profit centre, and gives them a conduit to funding for their customers, which again improves the consumer experience.”
Another positive for dealerships will be that Rick Collins, who is a major car dealer in South Australia, will be joining stratton’s new board and will represent car dealerships interests on the new board.
Carsales chief executive officer, Greg Roebuck – who will also be on the new board – says Stratton has been an important customer of carsales for many years and they are confident that this transaction brings together two businesses with very similar DNA and operating styles.
“Stratton is a technology and online business and its core focus is helping consumers with their vehicle purchase,” he says.
“We see great opportunity to introduce stratton across our range of verticals in addition to the presence it currently has in automotive. There is also significant potential in the provision of quality affordable finance and insurance products to our ever growing private-to-private-customer car marketplace.”
Chaloner also points out that they are considering an entry into the New Zealand market, but as a longer term proposition.
For more information on stratton visit the website by clicking here.
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