{"id":31824,"date":"2017-06-08T06:26:05","date_gmt":"2017-06-08T06:26:05","guid":{"rendered":"http:\/\/www.biphoo.com\/bipnews\/?p=31824"},"modified":"2017-06-08T06:26:05","modified_gmt":"2017-06-08T06:26:05","slug":"ford-offering-short-term-consumer-auto-leases-canvas","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/ford-offering-short-term-consumer-auto-leases-canvas.html","title":{"rendered":"Ford offering short-term consumer auto leases through Canvas"},"content":{"rendered":"

\n\tFord offering short-term consumer auto leases through Canvas<\/span><\/span><\/strong><\/span>
\n<\/h2>\n

\n\tSilicon Valley's latest mobility startup, a short-term vehicle leasing company called Canvas, is backed by old-school muscle: Ford Motor Credit Co, the dealer and consumer financing arm of U.S. automaker Ford Motor Co (F.N).<\/span><\/span><\/span>\n<\/p>\n

\n\tFrom its San Francisco base, Canvas started offering variable-term leases with flexible payment options to Bay area customers in early May, with plans to eventually roll out the service to other cities.<\/span><\/span><\/span>\n<\/p>\n

\n\tCanvas's roots date back to an earlier startup called Breeze.<\/span><\/span><\/span>\n<\/p>\n

\n\t"Our mission is to identify, test and launch financial products that meet the changing needs of consumers," said Ned Ryan, co-founder of Breeze and chief executive officer of Canvas, in an interview.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe focus on consumers, including those who might not qualify for conventional auto leases or don't want to make long-term financial commitments, is a pivot from Breeze's original mission, which was to provide short-term vehicle leases to ride-sharing drivers who worked mainly for Uber and Lyft.<\/span><\/span><\/span>\n<\/p>\n

\n\tWhen both ride-sharing firms began offering lease plans of their own, including short-term financing deals through General Motors Co's (GM.N) Maven subsidiary, the potential market for Breeze thinned markedly and the company ceased operations in July 2016.<\/span><\/span><\/span>\n<\/p>\n

\n\tSeeing a related opportunity and a broader audience, Ford Credit acquired the assets of Breeze, along with many of its executives and employees, in November 2016 and rebranded the company as Canvas.<\/span><\/span><\/span>\n<\/p>\n

\n\tFord Credit recognized "the need for financial services and technology to facilitate our future vision of mobile," said David McClelland, executive vice president of marketing and sales.<\/span><\/span><\/span>\n<\/p>\n

\n\tThe Breeze acquisition gave Ford Credit access to a web-based platform and month-to-month vehicle "subscriptions" that bundle maintenance, insurance and roadside assistance, aimed at younger, non-traditional drivers.<\/span><\/span><\/span>\n<\/p>\n

\n\tBecause Canvas buys used Ford vehicles coming off lease, it also gives the automaker a new source of revenue and another way to manage used-car values, which have plummeted in recent months.<\/span><\/span><\/span>\n<\/p>\n

\n\tUnlike Breeze, Canvas does not compete head-to-head with Maven, which offers ride-sharing drivers short-term leases on new Chevrolet Bolt EV electric vehicles and used GM vehicles, through such programs as Maven Gig and Lyft Express Drive.<\/span><\/span><\/span>\n<\/p>\n

\n\tCanvas is aiming at consumers who want "a simpler, more flexible alternative to car ownership," said Ryan. "We're addressing the void in the consumer space between daily rentals and long-term (financial) commitments."<\/span><\/span><\/span>\n<\/p>\n

\n\tThe pitch, Ryan added, could not be more simple: "You just add the gas."<\/span><\/span><\/span>\n<\/p>\n

\n\tSource:- http:\/\/www.reuters.com\/article\/us-autos-fordcredit-idUSKBN18Y2VH<\/span><\/span><\/span><\/p>\n

\n\t\t\t
\n\t\t\t <\/div><\/div>\n\t\t