eCommerce platform Vroom announced Tuesday (Feb. 1) that it has completed the acquisition of United Auto Credit Corporation (UACC), which works in automotive financing.
According to the news release, Vroom wants to boost its ability to access more sales growth, and the acquisition will accelerate this goal.
Vroom CEO Paul Hennessy said the buy would be “integral” because it’s building out “a captive finance business that allows us to service customers across the credit spectrum.” This will also help it access more commerce solutions.
“By integrating an automotive lender like UACC, with rich expertise in the non-prime space, Vroom will be able to serve a broader portion of the customer base,” Hennessy continued. “We believe this will translate to greater efficiency on our marketing efforts and allow us to scale the business faster.”
The deal will welcome more than 500 UACC employees, including its CEO Jim Vagim and chief financial officer Ravi Gandhi. Per the release, Vagim will continue operating UACC’s third-party finance business, while Gandhi will “play a leading role” in growing Vroom’s captive finance arm.
The release notes that the integration will also help customers looking to buy their vehicle in a digital manner.
Vroom recently debuted a new Houston hub which will help the company inspect, detail and put temporary tags on every vehicle delivered or picked up in the state.
It’s called the ‘Last Mile Hub’ and will serve around 7.1 million drivers in the Stafford area, within a 75 mile radius. The PYMNTS report notes that the change is driven by the surge in new remote car buying and selling, which was spurred by the pandemic.
The car purchases from Houston Vroom drivers was up 144.6% for the first half of 2020 through the first half of 2021. Additionally, vehicles sold by Vroom were up 624.4% during that time.
With the new Last Mile Hub, Vroom will be offering personalized deliveries, in which employees can transport vehicles to the driveways of buyers in the areas — and even show them how to use the cars.
The company has been delivering vehicles in Houston since 2012.