GO Financial, the Phoenix based subprime auto finance company, completed the sale of a substantial equity interest in GO Financial to Manheim. GO Financial is now majority owned by DriveTime Chairman Ernie Garcia and DriveTime President/CEO Ray Fidel and minority owned by Manheim. NextGear Capital is wholly owned by Manheim.
Manheim’s investment in GO Financial is intended to allow NextGear Capital and GO Financial to provide their dealers with fast and easy inventory financing and sales financing for subprime buyers. Combining extensive industry experience, dealer relationships, access to capital and technology resources allows GO Financial and NextGear Capital to be the inventory and sales financing sources of choice for independent dealers.
By the end of 2014, NextGear Capital and GO Financial will complete the roll-out of the GO Financial subprime financing program to NextGear Capital’s dealers across the country. Participating dealers will benefit from the faster funding and sharing of cash flows in the GO Financial program and benefit from increases in availability of inventory financing with NextGear Capital. Technology innovations already being developed will make the financing provided by NextGear Capital and GO Financial seamless and convenient for participating dealers.
“With strong partners in Manheim and NextGear Capital, GO Financial will deliver superior financing products and services to more dealers, allowing GO Financial to grow rapidly,” said owner Ernie Garcia. “Inventory financing and sales financing are very competitive today so dealers expect speed, convenience, innovation and value from their financing sources. GO Financial and NextGear Capital will team up to exceed dealers’ expectations.”
Manheim’s agreement to purchase an interest in GO Financial was announced in February, 2014. The transaction closed March 31, 2014. Terms of the transaction were not disclosed.