Auto1 FT, a finance partner to the automotive industry, is the first European company to finance the purchase of vehicles with smart contracts based on the Ethereum blockchain.
Like from one Press release shows, the company wants to abolish all manual input and paper processes in its core business, car financing, and replace them with solutions based on smart contracts.
Auto1 FT is the first car financer to offer Europe his entire ecosystem to use this method. Every vehicle financed by Auto1 FT now receives a smart contract based on the Ethereum blockchain.
“Our digital solution brings enormous efficiency advantages for car dealerships and sets new standards in the mobility industry”, says Auto1 FT managing director Taimur André Rashid.
The use of smart contracts reduces the overall effort and documentation of a car financing to a minimum. The increased data security as well as faster and cheaper applications ensure a high level of efficiency, the report goes on to say. In addition, errors or mix-ups are now ruled out, as the blockchain is a forgery-proof database. The transactions can be viewed transparently, so that all activities on the blockchain can also be traced retrospectively.
Nuno Vaz, Head of Information Technology, adds: “Smart contracts are based on the outstanding properties of the blockchain: They are tamper-proof, unchangeable and transparent and are verified by the community. That is what makes them so valuable for our purposes. “
In principle, smart contracts could be used in almost every area in which contracts are drawn up in the future. Auto1 FT also makes use of this.
With smart contracts, Auto1 FT provides all vehicle-related contract details in a single agreement. These smart contracts contain all information and processes relating to the vehicle. This includes the checkbook as well as the vehicle history including payments and previous ownership.
In the future, smart contracts could also be used, for example, for cell phone contracts or even for buying and selling real estate.
The introduction of smart contracts is just the beginning for Auto1 FT to expand the digital value chain. Rashid comments: “In addition to new business areas that we can develop more easily with our digital processes, we plan to work with innovative platforms that have established themselves through their use.”
The Auto1 Group only went public in February. This represented the largest IPO since 2019 and made the two founders Hakan Koç and Christian Bertermann billionaires.