EVOS is a fin-tech company with patent-pending technology that enables consumers to conduct financial transactions on mobile devices.
Our first product application allows consumers to find, finance and buy used cars — all on a mobile device.
Currently, used car shopping is unpleasant, inefficient and in need of a consumer-friendly overhaul. EVOS brings consumer focused ‘disruptive innovation’ to the $400 billion U.S. used car industry.
The majority of used car sales are financed by car loans, and dealer-arranged loans are marked up by $21 billion per year. These dealer markups are generally not disclosed to consumers who end up paying between $835 and $1500 in hidden dealer fees on each loan.
EVOS changes all this; now consumers can use mobile devices to source loan offers from banks and alternative lenders. We stream the consumer’s borrowing needs to multiple lenders and those lenders submit ‘bids’ for the consumer’s business. Once a consumer’s loan is in place, they can shop online car sites and select a car. We allow the consumer to quickly make their purchase by electronically paying the used car seller.
Most consumers need a car loan to buy a used car and car dealers arrange most of these loans. The problem with this is that dealers are up-charging these loans by $21 BILLION each year. Consumers are generally unaware that their loan is marked up by $835 to $1,500.
EVOS changes all this! We allow consumers to use their mobile devices to source loan offers from banks and alternative lenders. We stream the consumer’s borrowing needs to multiple lenders, and those lenders submit ‘bids’ for the consumer’s business. Consumers can then pick the loan offer that suits them – with no dealer markups.
Consumers are already shopping for cars online. Now, EVOS allows them to use a smartphone to apply to many lenders and get a fair loan, find the car they want, buy it, and drive it home.
EVOS eliminates the hassle of getting a dealer loan, and eliminates hidden markups.
Our revenue is generated from charging a flat fee to lenders for each loan that they place over the EVOS network. This fee is based on the value that EVOS brings to lenders - a new source of ‘e‑customers’ that are pre-screened to meet the lender’s own lending profile, without incurring any capital or advertising costs.
Since the 2008 banking meltdown, the ‘alternative’ banking industry has thrived. This industry is particularly active in the autoloan business. In fact, they have developed streamlined lending programs and lending analytics that surpass many banks.
Our $199 flat fee compares favorably to the finance industry’s average customer acquisition cost of $303, and flat fees are consistent with the future regulatory environment.
Our immediate markets include Canada and the United States.
The U.S. used car market accounts for approximately $400 billion annually, with 41.2 million used cars sold in 2014. This market is expected to grow by 6.95% annually through to 2019.
The majority of used cars sold are financed though consumer loans, with 79% of these loans originating from ‘alternative lenders’. Alternative lenders account for 17 million car loans annually and this yields a market segment of $155 billion — our ‘sweet spot’.
Use of Proceeds
Based on our ‘maximum offering amount’ of $300,000:
We have identified possible options for an ‘exit strategy’ including: (a) merger / acquisition; (b) management buyout; or (c) initial public offering. The most likely of these options is a merger / acquisition with an acquiring company. It is not unusual for early-stage technology companies to become takeover targets once they demonstrate a robust product, a degree of customer acceptance and significant opportunities to grow.
Q: How big is the used car market?
A: In 2014, the U.S. used car market accounted for $400 billion in sales, with 41.3 million vehicles sold. (source: CNW Market Research)
Q: How many of these required financing?
A: 52% of used cars are financed with consumer loans, and 79% of these originate from alternative lenders. (source: Edmonds.com)
Q: What is an alternative lender?
A: Alternative lenders are non-bank lenders that primarily do consumer lending. In 2015, they did 17 million used car loans totaling $155 billion. (source: Edmonds, Used Vehicle Market Report, Q1 2015)
The Problem — Hidden Loan Markups:
Q: How big an issue are hidden loan markups?
A: Lenders are allowing used car dealers to mark-up consumer loans — consumers generally do not know this. In 2009, this ‘dealer markup’ amounted to a whopping $21.7 billion, or 2.91% per loan. (source: Center for Responsible Lending)
Q: How much does each consumer get hit with on this mark-up?
A: The average consumer overpays by $835 for these ‘dealer-arranged’ car loans. But for sub-prime borrowers it’s even worse, they end up paying $1,497 more than they should. (source: Center for Responsible Lending)
Q: How do I use the EVOS service?
A: You use your mobile phone to fill out an application. We stream your application to multiple lenders, and they submit ‘bids’ for your financing needs. After reviewing and evaluating all the loan offers you receive, you select the one that best suits your need. Once your pre-approved loan is in place, you shop the used car online or offline sites. We then allow you to quickly close your used car purchase by electronically paying the used car seller.
Q: Why is EVOS a better way to buy used cars?
A: Fast — We provide a quick turnaround of finding a used car, securing a loan and sending payment to the dealer. Drive your new ride off the lot with no extra time and effort spent.
A: Easy — We provide simple steps for an online car purchasing experience.
A: Saves money — There is no dealer markup, you save a ton of money.
Q: What are the benefits that EVOS provides to the parties involved?
A: For Consumers — Multiple loan offers, lower borrowing costs, convenience, appeal of using mobile shopping.
A: For Lenders — New mobile-commerce deal flow, low cost leads, no capital or distribution costs, no advertising costs.
A: For Dealers — Increased deal flow, qualified buyers, zero costs, increased inventory turnover.
EVOS Technology Corp.
November 22, 2016
EVOS Technology Corp
December 1, 2016
November 22, 2016