The next time you are looking to acquire a new vehicle, how will you go about it after this pandemic subsides? Would you head to the nearest dealership to compare their models on offer or would you rather shop online?
Americans have already answered that question. Due to the COVID-19 pandemic, new car sales in the United States declined by 29% as of mid-March, relative to the same period last year (http://ibn.fm/QeKuM). Sales are dropping sharply as the COVID-19 pandemic forces dealership closures and shelter-at-home orders confines potential buyers to their homes. And that is putting a new consumer trend into stark relief: a recent survey carried out by Cars.com showed that 48% of potential car buyers are now willing to consider negotiating for, and purchasing, a vehicle online (http://ibn.fm/Gxu6j) with the figure rising to 62% when only millennials are taken into account.
PowerBand Solutions Inc. (TSX.V: PBX) (OTCQB: PWWBF) (FRA: 1ZVA), a fintech pioneer, is on the cutting edge of this trend. It is revolutionizing how vehicles are sold online and helping disrupt the automotive industry’s antiquated business model by offering customers a simple way to buy, sell, trade and lease their car on their smart phone or from home. PowerBand makes acquiring a vehicle as easy as purchasing a product on Amazon (http://ibn.fm/4rRig).
“It is clear that the automotive industry needs to embrace a better way to buy, sell, trade and lease cars,” PowerBand CEO Kelly Jennings stated in a news release. “People want to be able to shop for cars online, using their smartphones or laptops. PowerBand can help consumers do that, meeting their obvious desire for a fast, cloud-based platform to buy, lease, sell or trade their cars and trucks.”
Powerband also allows instant, online and highly customized virtual auctions which simultaneously markets a vehicle to a vast network of the industry’s top used car buyers. These 20-minute virtual auctions eliminate the need for dealerships to hold physical auctions, reducing the high costs and lengthy timeframe associated with that more traditional sales format. Moreover, the ability to auction used vehicles in a quick and efficient manner has allowed dealerships to save on the expense of auctions – in turn lowering the cost for potential customers looking to lease or buy a new car.
Powerband is also making it as easy to lease a car on-line as buying a product on Amazon, primarily thanks to its July 2019 acquisition of a majority stake in MUSA Holdings LLC, an advanced technology platform that has transformed the new and used vehicle leasing industry in the United States. MUSA will allow a customer to choose a vehicle and then proceeds to calculate a lease, auto-decisions the application, provides an approval back to the dealership, and prefills a lease contract accurately. As a result, PowerBand and MUSA’s revolutionary online marketplace allows customers to bypass unnecessary middlemen, receive transparent pricing information and complete the lease approval in as little as eight seconds. This industry-leading performance compelled Tesla (NASDAQ: TSLA) two years ago to designate MUSA as its only independent leasing partner in the U.S.
Simply put, PowerBand finds itself on the cutting edge of a new trend in the automotive retail sector. As customers increasingly choose to stay away from crowded car dealerships and migrate to online sales channels, especially in light of coronavirus concerns, PowerBand offers the go-to platform for car and truck sales, leases and auctions. The company has the unique ability to use MUSA’s lease origination platform to allow online customers to choose and lease vehicles within seconds, sell pre-owned vehicles through D2D Auto Auctions, LLC’s proprietary online auction platform, a 50/50 joint venture between PowerBand and Bryan Hunt, Director of J.B Hunt Transport, and help dealerships sell their off-lease vehicle inventory to their widespread network in a rapid and efficient manner. With the car dealership industry’s online transformation rapidly afoot, PowerBand is well-placed to lead the way.
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
QualityStocks is committed to connecting subscribers with companies that have huge potential to succeed in the short and long-term future. It is part of our mission statement to help the investment community discover emerging companies that offer excellent growth potential. We offer several ways for investors to learn more about investing in these companies as well as find and evaluate them.