Carmoola secures £300m to back UK car finance growth

Online car finance start-up Carmoola is looking to target more customers with its direct-to-consumer model in the UK after securing £300 million in private asset-backed securities, in partnership with NatWest and Chenavari Investment Managers.

Carmoola said its direct-to-consumer approach eliminates the need for traditional intermediaries like used car finance within the dealership through traditional lending partners.

This new £300m facility allows Carmoola to deliver better value to consumers, while expanding access to wider segments of the market.

Aidan Rushby, founder and chief executive of Carmoola, said: “This partnership is transformative and marks a major milestone for us.

“Not only does it triple our previous debt capacity, but it also provides the scale and efficiency needed to rapidly deploy our car finance for the benefit of UK consumers.

“By providing a clear, simple and affordable way for people to arrange their car finance before they even set foot on a forecourt, and by removing the need for them to go through an intermediary, we have been able to empower consumers with better deals and more control over the car buying process.

“This is the power of our ‘finance-first’ proposition, and now we have the capital to do this for even more car buyers, while maintaining our focus on delivering an industry-leading experience for our customers.”