Driveoff.Com Secures $1 Billion Funding

Newly-minted DriveOff.com, Inc., a subsidiary of Navidec, Inc.(Nasdaq: NVDC) announced Friday that it has signed an agreement with Westar Financial Services — and a letter of intent with First Union Capital Markets Group — that will provide up to $1 billion (US$) in funding annually for auto sales that originate on DriveOff.com and its affiliated sites.

“As the next evolution for Internet automotive transactions, DriveOff.com will empower consumers and provide them with binding prices and monthly payments that include financing,” said Westar CEO, R.W Christensen.

The company says it expects its new Web site to be unveiled sometime this summer. When it does, Navidec claims, it will alter the traditional system for online auto purchasing.

Navidec, a Denver-based e-commerce provider, currently operates an online automotive division that includes USWheels.com, LeaseSource.com and CarWizard.com.

The company announced in April that revenues for the first quarter increased to $700,000 for its automotive division, up 94% from the previous corresponding quarter. It sold some 38,000 new and used auto purchase requests to dealers nationwide.

Kicking The Tires

Like its rival sites, Navidec operated on the traditional Internet model of referring consumer inquiries to dealers and generating revenues from dealer fees, licensing agreements and advertising on its Web site.

DriveOff.com will enable consumers to complete 100% of their auto purchase on the site. The company says it has finely-tuned the technology on its Web site, LeaseSource.com, since November 1997.

The technology will enable consumers to log onto the DriveOff.com site, kick the tires, choose the colors, complete the financing and even receive a credit decision in less than one minute after filling out an application.

Once a deal has been agreed upon and the buyer pays a deposit, the company says, it orders the vehicle from a nationwide database on dealer’s inventory and then delivers a complete closing kit via overnight mail. Buyers then meet with their brick-and-mortar dealer to pick up the vehicle and arrange for service agreements.

DriveOff.com says it has entered into a long-term agreement with the Internet Automotive Dealers Marketing Alliance (IADMA) that provides the organization exclusive rights to sales originating from DriveOff.com and its affiliated sites. In exchange, the organization will provide the company’s customers with “aggressive” pricing on new automobiles.