PayDownHero — Paying Down Your Auto Loan Quickly
An intuitive app to manage high-cost auto loans and expensive car ownership, truly saving time and money.
America’s auto debt problem is massive, today holding a record $1.36 trillion in loan balances. These vehicle loans make up 9% of all household debt and have staggering average interest rates over 7% even in this low-rate environment. People are increasingly saddled with inappropriately expensive auto loans. Because of this, drivers will continue to lose money during ownership. The industry is designed to lock in drivers to a litany of ongoing expenses including insurance, servicing, repairs, parts, add-ons, media and communication services.
What The Company Does
PayDownHero is a fintech platform that rounds up your normal daily transactions and puts the money toward paying off your car loan. For instance, if you purchase a cup of coffee for $3.50, PayDownHero will round up your transaction to $4 and put the extra $0.50 toward your car loan. The app also allows users to make additional payments on their principal to help get the loan down quicker, while providing real-time feedback on how much sooner you’ll pay down the loan and how much you’ll save.
A record high $168 billion in new auto loans were originated in the U.S. over the past year. Competitors are Acorns and ChangED with their different focus on micro-investments and student loans, respectively. PayDownHero stands out due to its core focus on the automobile, streamlined payment tech, first-mover advantage, scalability, and a unbeatable foundation to enjoy multiple revenue streams by managing time and money for “all things car.”
PayDownHero charges $0.99 cents per month and 2.5% of total payments, which on average is $2 per month. The company’s proprietary technology handles the payment process with a nominal fee that pays for itself as users save. Additional “top secret” hero plans include the rollout of a marketplace for your vehicle, continuing the mission to save users money by providing access to proactive trustworthy solutions.
PayDownHere averaged more than 1,000 downloads per month following its launch on the Apple Store, with only a minimal marketing spend. Last year, the company presented to investors at the Newchip Startup Accelerator Program and received strong interest. Then the pandemic hit. The team is fortunate that market support remained high. Seed Round Capital is leading the company’s active seed round with Wefunder.
Founding Team Background
CEO Kenneth Sargavakian spent his career in every facet of the auto world. He built multi-million dollar brokerages within the industry and is now shifting focus to making a true social impact. Chief Commercial Office Erik Rueda spent the last decade bootstrapping a design business from zero to more than $20 million in revenue.
The company is looking for introductions to automotive lending and insurance dealers with a vision, services building loyalty, and employers who care. The team would love to sync with social media influencers, industry writers, and investor heroes as well. PayDownHero also has an active seed round on WeFunder going. Connect With The PayDownHero Team.
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