Local Auto Fintech Car Capital Launches Operations With $8.8M Series A

Grapevine-based Car Capital, a technology-based company that enables dealers to make auto loan decisions, has closed on an $8.8 million Series A funding round led by FM Capital.

With the investment, Car Capital plans to expand operations, grow its network of dealers, and broaden its geographic footprint. Recently, the team launched operations with a selective batch of beta dealer partners, and expects to roll out more in the coming weeks.

Currently, Car Capital is licensed to operate in Florida, Georgia, Indiana, Ohio, Oklahoma, Tennessee, and Texas, its home state.

In addition to FM Capital, an automotive-focused investment firm based in Colorado, more than 50 individual and institutional investors participated in the deal. That includes Automotive Ventures, which invests in automotive technology companies, and Medalist Partners, a private institutional investment management firm.

“We’re excited to be an investor in Car Capital,” Chase Fraser, a managing partner at FM Capital, said in a statement. “The company possesses the technology to make vehicle financing accessible to all consumers, and dealers will benefit by increasing their monthly unit sales.”

Car Capital, a wholly owned subsidiary of Car Capital Technologies Inc, aims to use advanced technology to help consumers buy the cars they need. The new company—run by an executive leadership team with decades of experience in the industry—was created to offer a better car buying experience for everyone.

Car Capital does so by providing dealer partners with capital and a program that allows for real-time changes to deal terms based on the economics of a car and consumer. The team works directly with its dealer partners to align the interests of all parties—making it so “everyone wins.”

“We saw a need in the market for a technology solution that helps franchise and independent dealers sell more cars to underserved consumers,” Justin Tisler, co-founder and CEO of Car Capital, said in a statement. “We want our dealer partners’ customers to feel confident when shopping for a car at the dealership that approvals can be available to all. Anyone, no matter their credit situation, should be able to buy a car for personal transportation, particularly during these trying times.”

Dealers are able to make 24/7 instant auto loan decisions using the company’s proprietary web-based platform called Dealer Electronic Auto Loan System (DEALSSM). The tech gives dealers the power to approve 100 percent of consumers that enter dealerships, no matter their credit history.

That way, the dealer, not a lender, can optimize their profit on each car in their inventory.

“We felt it was important to give each Car Capital dealer partner back-end profit based on performance, instead of requiring a minimum pool size,” Chairman Brian Reed said in a statement. “Through our unparalleled business model and DEALS platform, we provide more profit opportunities for our dealer partners and more financing options for car buyers.”