Vancouver-based fintech startup econommi is charting a new course in the auto-leasing business as it heads into its fifth year of operation.
With over $1 million in total active leases and a tech-enabled business model, the company is challengeing traditional notions of vehicle financing and ownership.
Leasing a car through econommi provides individuals with a flexible and accessible solution. Documents can be found and submitted from a phone. Lease rate structures allow clients to build equity in their vehicles, and they have the option to buy out the car at any point during the lease contract.
The model’s core is a concept named LeaseTokens. When an individual leases a car, the cost of the car is split into LeaseTokens, which can be invested in by econommi’s clients. These LeaseTokens are securities that represent shares in a lease contract, providing the owner with rights to monthly payments from the lease and are backed by the value of the vehicle.
Econommi partners with car dealerships to accelerate their sales, promising a 30-minute contract processing time. Thanks to proprietary technology, back-office paperwork and regulatory reporting are simplified, allowing dealerships to enjoy lower administrative fees and an improved customer approval rate.
But the BC company’s mission goes beyond creating operational efficiency.
By sidestepping interest-bearing loans, econommi offers clients more equitable and cash flow-friendly solutions. The goal? Transition the world away from endless borrowing and pioneer a post-credit economic system that reduces society’s reliance on debt for liquidity needs.
Not only is this approach beneficial to lease customers, who can access services regardless of citizenship status or credit score, but also to investing clients. Econommi cultivates double-digit returns through an investment system focused on sustainable growth.
While econommi’s unique model presents an enticing opportunity for individuals and investors, it’s not without its risks. The company outlines possible risk areas of potential concern for investors on its website. But as econommi continues to drive towards its mission of a post-credit economic system, its approach to auto-leasing and investing sets it apart in a crowded market.
The Vancouver fintech is heading to Toronto this month for Collision.