SAN FRANCISCO -

Peer-to-peer car sales marketplace Shift Technologies has launched an in-house auto lending business known as Shift Finance that is offering direct-to-consumer loans.

Customers of Shift will be able to get loans directly from Shift Finance, which is starting out as a pilot program in Virginia with plans to expand throughout all of the Shift’s territory.

It will be based out of northern Virginia and is available today. Shift said consumers will be able to use the program to shop based on  monthly payment plans. Should the consumer get behind on the loan, he or she could potentially sell their car through Shift and purchase one with a lower payment.

“At Shift, we believe that people deserve better than the status quo, and that is why we are excited to offer a better, smarter way to finance a car,” Toby Russell, Shift’s head of business and product, said in a news release. “Our goal from the beginning has been to transform a broken, antiquated system by empowering consumers.

“Buying a car is one of the biggest financial decisions people make, yet for years consumers have been presented with confusing and unattractive loan options, led by old world retail models. By focusing on technology and transparency, Shift Finance will have accurate, transparent information and excellent rates.”

Shift Finance co-founder and product manager Peck Yang said in the news release: "We're transforming a traditionally manual and complex process into something that is digital and mobile first. We integrate ancillary data sources to streamline the application process and to improve underwriting decisions. This new platform is a win-win for consumers.”

Raj Date, who formerly was the acting chief of the U.S. Consumer Financial Protection Bureau and is currently the managing director of Fenway Summer Ventures, said in Shift's release: “Technological innovation, like what Shift is executing in auto finance, has the potential to finally make good on the promise of consumer finance:  to make the financial lives of American families better.”

Editor's Note: Auto Remarketing interviewed Shift's Toby Russell earlier this week about Shift Finance. AR and its sister publication, SubPrime Auto Finance News, will have a more in-depth feature explaining all of the intricacies of the new auto loan business.