What problem does DriverUP solve?
DriverUp is the first mechanism for investors to participate directly in auto lending and leverages technology and the Internet to improve how loans are secured and serviced. Through the use of the DriverUp website, investors can invest and see the performance of their portfolio directly.
Why is the auto sector a good business in which to invest?
The auto finance business is an approximate $400 billion dollar per year business.
The state of automobile lending in the United States is strong. Total outstanding U.S. auto loans recently hit all-time highs of over $900 billion.
At the same time, delinquencies are stable. Serious delinquencies of 60-plus days are around 1%.
(sources: credit reporting agency Equifax, Federal Reserve Bank of New York)
Why does DriverUp only permit accredited investors?
Federal securities laws restrict investment opportunities like this to accredited investors unless the offering is registered with the Securities and Exchange Commission (SEC). At the present time, filing of the necessary forms to allow all investors to participate is cost prohibitive, but DriverUp may explore a registered offering at a future date.
What is DriverUP?
DriverUp is a lending platform and online marketplace for investing in auto loans directly. DriverUp is the first platform that enables investors to easily and directly participate in auto lending, previously not available to most investors. DriverUp also improves the auto financing process for car dealers and buyers by offering a direct, streamlined application portal.
Is there a minimum investment?
Yes. The minimum investment level is $100,000.
How can I see performance information on my investment?
DriverUp reports daily information about the performance of the auto loans underlying your portfolio of investments. As an investor, you have password protected access to your private dashboard to see a monthly return snapshot, as well as loan level performance detail of all underlying contracts that you have invested in. The loan detail screen has customizable views and screening features to allow you to slice and dice all the performance information as you would like to see it. DriverUp also provides the ability to download performance data for offline analysis.
When are payments made?
Investors will receive monthly payments based on the performance of the auto loans underlying their investments, net of applicable servicing fees. Payments will be made on or before the 15thof the following month.
Can I rollover investment proceeds?
Automatically? No. But you can review new inventory and reinvest your funds anytime you receive a distribution.
What happens if I need to get out of my investment prior to it being fully paid off?
An investor in DriverUp auto loans should expect to hold them to maturity for the investor s own account. Transfer rights are limited by federal and other securities laws. Sierra will not maintain a secondary market for buying and selling any auto loan investment.
Can I hold my investment at my brokerage account?
Not at the present time.