Softbank-Backed Auto-Leaser Fair Hits a Bumpy Road and Shifts to Long-Term Leases

Ben Bergman

Ben Bergman is the newsroom's senior finance reporter. Previously he was a senior business reporter and host at KPCC, a senior producer at Gimlet Media, a producer at NPR's Morning Edition, and produced two investigative documentaries for KCET. He has been a frequent on-air contributor to business coverage on NPR and Marketplace and has written for The New York Times and Columbia Journalism Review. Ben was a 2017-2018 Knight-Bagehot Fellow in Economic and Business Journalism at Columbia Business School. In his free time, he enjoys skiing, playing poker, and cheering on The Seattle Seahawks.

Softbank-Backed Auto-Leaser Fair Hits a Bumpy Road and Shifts to Long-Term Leases

Fair, the Santa Monica-based, Softbank-backed used car marketplace, has been on a bumpy road of late. It raised more than $2 billion at a $1.2 billion valuation before having to hit reverse last year when it abruptly shed 40% of its staff, including its CFO Tyler Painter and his brother, founder and CEO Scott Painter. (He remains chairman.)

"The company has gone through a very difficult 12 months," said Fair CEO Brad Stewart, an ex-private equity banker who joined the company in May. "Mistakes were made and investors and managers have realized that."

Since taking over in the middle of the pandemic, Stewart has embarked on a series of what he calls "strategy pivots" large and small to turn the company around.

"I have tackled easier leadership challenges in the past but this is what I was built to do and thrive on," Stewart said. "We're a lot more focused than we were 12 months ago."

In the latest shift, announced Thursday, Fair will now offer longer leases more common for the new car industry to consumers who wish to have lower monthly payments than the month-to-month option the company previously offered. Customers will save an average of $40 per month on a 2-year lease and $70 per month if they sign for three years.

As new cars have become increasingly expensive, Stewart hopes the leases will appeal to consumers who lack the 700+ FICO scores many new leases require. Since new cars lose thousands of dollars in depreciation as soon as they are driven off the lot, he says vehicles that are a few years old offer a good value proposition and not everyone wants to purchase one.

"It's really perfect for people who don't need something for more than three years." Stewart said.

www.fair.com

Painter, who previously started TrueCar, founded Fair in 2016 to disrupt the stodgy $120 billion used car industry, which is still dominated by dealers of varying degrees of repute. With Fair, consumers can lease a car using their smartphone for a set cost that includes tax, registration, limited warranty, routine maintenance and roadside assistance. But the company had trouble growing fast enough to justify its lofty valuation.

Because he started as CEO during the pandemic in May, Stewart says he has only been able to meet a handful of employees face-to-face. "It's tough to get to know people when you're only engaging them digitally," he said.

Stewart speaks weekly to investors including Softbank, which has a $500 million equity stake, and says he is trying to refocus Fair to provide more affordable vehicles than some of the "fancy" models it previously offered. "I think we need to be more focused on assets that fit more deeply into value," he said.

Stewart says he thinks Fair also needs to be better at selling to dealers and improve its digital merchandising. "There's a lot of backend stuff we have to be better on," he said.

Used car sales have soared during the pandemic as production of new cars dwindled and consumers decided riding in their own car was safer than public transit and ride sharing. Prices jumped by as much as 40% last month, but Stewart does not expect the trend to continue long-term.

"It's a fading trend," he said. "It will normalize. It is stabilizing already."

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LA Tech Week 2025: Sunday’s Event Lineup

Here's the Sunday, October 19th lineup for LA Tech Week 2025, organized by location so you can easily explore events that fit your goals and schedule. Dive in and see what’s happening near you!

ARTS DISTRICT

3:00 PM

BEL AIR

3:00 PM – 7:00 PM

BURBANK

6:30 PM – 9:30 PM

CULVER CITY

9:00 AM – 5:00 PM

4:30 PM – 7:30 PM

INGLEWOOD

10:00 AM – 2:00 PM

  • Spinovation: The Future Is Femme, The Future is Frequency: See Details Here
    Sonder Impact, Black Women Spin, Sip & Sonder

KOREATOWN

12:00 PM – 3:00 PM

MARINA DEL REY

12:00 PM

  • Sunday Tech Brunch
    Sawubona

MID CITY

9:00 AM – 11:00 AM

  • Women in Cleantech Hike and Network: See Details Here
    Women in Cleantech and Sustainability

SANTA MONICA

9:00 AM

10:00 AM

3:45 PM

4:00 PM – 7:30 PM

  • OFF THE HOOK Santa Monica Seafood Festival: See Details Here
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6:00 PM

7:00 PM

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    American South Asian Network

7:00 PM

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    Workflow Builder

7:00 PM

8:00 PM

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TOPANGA CANYON

3:00 PM

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10:00 AM – 12:00 PM

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VIRTUAL (LA)

10:00 AM

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10:00 AM

WEST ADAMS

1:00 PM – 3:00 PM

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BEVERLY HILLS

2:00 PM

CENTURY CITY

7:00 PM – 10:00 PM

CULVER CITY

9:00 AM – 5:00 PM

10:00 AM – 11:30 AM

1:00 PM

DTLA

7:00 PM

  • {MiniMax x Nakid x SkyPortalx}: TECH/MOTION/MUSIC/ART: See Details Here
    MiniMax (Hailuo AI)

10:00 PM – 2:00 AM

EL SEGUNDO

10:00 AM

  • Venture on the Green: *Invite Only*
    BLCK VC

4:00 PM

INGLEWOOD

7:00 PM

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    Valar Atomics, Durin, Discipulus Ventures

MARINA DEL REY

8:30 AM

12:00 PM – 3:00 PM

5:00 PM

  • LOST iN Sunset Sail: Navigating the Tides of the Creator Economy & Media: See Details Here
    LOST iN

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9:00 AM

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SANTA MONICA

7:00 AM

9:00 AM

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9:30 AM

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    NEW MOON Impact Productions

10:30 AM – 11:30 AM

11:00 AM – 2:15 PM

12:00 PM – 5:00 PM

1:00 PM – 5:00 PM

1:30 PM

  • Self-Defense in Court and the Streets: See Details Here
    Santa Monica Striking, Luri Inc.

2:00 PM

  • SMARTUP 500: THE FIRST AT TECH WEEK LA - Launching the world’s first Startup Ranking: See Details Here
    Smart Times

2:00 PM

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    Startup Village, Sanctuary

3:00 PM – 4:00 PM

4:00 PM – 6:30 PM

  • Just Do It?: Helping Founders Perform Like Olympians: See Details Here
    Elite Psychology Group

5:00 PM

6:00 PM

6:00 PM – 9:00 PM

6:00 PM

6:00 PM – 9:00 PM

  • The Future of Hospitality: Poetry, Provenance & Passports: See Details Here
    Villa Kitchen, Airble, We Speak Dance, Techstars San Francisco

7:00 PM

  • 🚀 Investor x Founder Open Mic Pitches: See Details Here
    Feathr, Los Angeles Fun Events

7:00 PM

  • Life is a Pitch - LA Edition: *Invite Only*
    DeepMyst

TOPANGA CANYON

5:00 PM – 8:30 PM

  • Walk&Jam: Use AI to make art while hiking Topanga Canyon: See Details Here
    Formhaus llc, Wonderland Immersive Design

TORRANCE

1:00 PM – 4:00 PM

  • Crunches & Conversations Presented by The Differentials and KIS Training Studios: See Details Here
    The Differentials, KIS Training Studios

VENICE

1:00 PM – 4:30 PM

  • Beyond the Language Barrier: Exploring AI's Next Frontier: See Details Here
    Medusa AI

VENICE BEACH

8:00 AM – 12:00 PM

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WEST ADAMS

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9:30 PM

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6:00 PM

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2:00 PM – 3:00 PM

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4:00 PM

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8:00 PM

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CARSON

11:45 AM

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11:00 AM

1:00 PM

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EL SEGUNDO

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5:00 PM – 8:00 PM

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9:00 PM

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9:00 AM

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4:00 PM – 6:00 PM

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PLAYA VISTA

9:00 AM

12:00 PM – 2:00 PM

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    Google

SANTA MONICA

7:00 AM – 8:30 AM

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7:30 AM

8:45 AM – 10:45 AM

9:00 AM – 11:00 AM

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    Arizona Commerce Authority (ACA)

9:00 AM

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    The PORT GLOBAL, GLOBAL PORTAL INSTITUTE

9:30 AM – 11:30 AM

10:00 AM – 1:00 PM

  • The Enduring Value of Inclusive Capital: See Details Here
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10:00 AM – 12:00 PM

10:30 AM

11:30 AM – 1:00 PM

  • Advisors to Investors Lunch: Venture Capital for enterprise leaders: See Details Here
    Collinear Capital, Worlds

12:00 PM

  • Powerhouse Capital & a16z speedrun Investor Lunch Mixer: See Details Here
    Powerhouse Capital, a16z, speedrun

2:00 PM

  • Where Robotics Meets Heart - Embedding Family Values in a Future with AI: See Details Here
    Trove, Puerto Rico Blockchain Association, MindfulBytes

2:00 PM

3:00 PM

3:00 PM

3:00 PM

  • Workshop: Create An Enterprise Chatbot and Unlock the 70% of Data Data You’re Not Using: See Details Here
    Aparavi

4:00 PM

5:00 PM – 10:00 PM

5:30 PM

5:30 PM – 9:30 PM

6:00 PM – 8:30 PM

  • USC Alumni Founders & Investors: See Details Here
    USC Alumni Entrepreneurship Network, Techstars

6:00 PM

  • Social Currency Series/Greenlit presents PitchPop: See Details Here
    Social Currency Series, Greenlit

6:00 PM – 9:00 PM

6:30 PM

6:30 PM – 10:00 PM

6:30 PM

  • Lets get the LA Bioeconomy brewing: See Details Here
    Founders, Friends & Fermentation, Saku Biosciences

7:00 PM – 11:30 PM

7:00 PM – 10:00 PM

7:00 PM – 10:00 PM

7:00 PM

7:00 PM

  • Liquid Equity 2: The Premiere Gathering for Founders, Creator
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7:00 PM

7:00 PM

  • For the Love of Tech | Speed Dating for Tech Professionals: See Details Here
    Feathr, Los Angeles Fun Events

7:00 PM

SOUTH LA

3:00 PM

TORRANCE

9:00 AM – 11:00 AM

  • The Future of Space & Security Panel: See Details Here
    Northwood Space, Anduril Industries, Impulse Space, Astranis

VENICE

9:00 AM – 10:45 AM

9:00 AM – 11:30 AM

11:00 AM

11:30 AM – 2:30 PM

12:30 PM

  • Creative Partners: Human + AI Storytelling: See Details Here
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2:00 PM – 3:45 PM

5:00 PM

  • EarthHouse: Critical Minerals, Mobility & Modern Power: See Details Here
    The Strategye Group, Alpha Sierra One

6:00 PM – 9:00 PM

6:00 PM

  • Pizza+Soda: *Invite Only*
    Schmoozd , The KINN

7:00 PM

VENICE BEACH

2:00 PM – 6:30 PM

5:00 PM

8:30 PM – 2:00 AM

VIRTUAL (LA)

2:30 PM – 4:00 PM

3:00 PM

  • Government of Alberta: ProcurementAsCode // Done in 60 Seconds: See Details Here
    Government of Alberta

4:00 PM

  • Stop Hitting Yourself 🥊: See Details Here
    Stop Hitting Yourself, HOWDY, Company Policy, Snowbird Global

WEST HOLLYWOOD

3:00 PM – 6:00 PM

6:00 PM

WESTSIDE

5:00 PM

5:30 PM – 8:30 PM


For updates or more event information, visit the official Tech Week calendar.

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