NextGear Capital customers who want easier and faster sales financing for subprime customers will have it, as a result of Manheim signing an agreement to purchase an equity stake in Go Financial, a subprime auto finance company. This deal creates a unique opportunity for Manheim to invest in a growing subprime auto finance segment – independent dealers who want to take greater control over the financing options they offer their retail customers. Go Financial is owned by DriveTime Chairman Ernie Garcia and DriveTime President and CEO Ray Fidel. Go Financial will operate independently from Manheim and DriveTime. Headquartered in Phoenix, Go Financial employs a staff of 175.
“Our stake in Go Financial supports our goals of delivering the types of products and services that dealers need to grow and compete,” said Patrick Brennan, group vice president of Manheim Financial Services. “Together, Go Financial and NextGear Capital will provide an easier and more convenient way for independent dealers to finance their subprime customers.”
Today, subprime sales financing can be time consuming and restrictive on a dealer’s cash flow. This partnership creates a one-stop approach and a more efficient transaction that will allow NextGear Capital dealers to have faster access to cash. In addition, Go Financial will leverage NextGear Capital’s strong dealer relationships and state-of-the-art technology that includes more efficient title management and processing. The transaction is expected to close by the end of June.
“We’ve been a long-time Manheim customer and this new arrangement with Manheim is a result of our close collaboration and identifying what our mutual customers need and want to succeed,” said DriveTime Chairman Ernie Garcia. “Manheim’s success with wholesale auto auctions and our deep knowledge of the subprime vehicle market and independent dealers is a perfect match.”