Manheim Signs Agreement to Purchase Stake in Go Financial
Supports Efforts to Give Dealers Easier Access to More Financing Options via NextGear Capital
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.”
About Manheim (www.manheim.com)
Manheim is the leading global provider of vehicle remarketing services, connecting buyers and sellers of used vehicles to the largest wholesale used-vehicle marketplace. The company helps dealer and commercial customers achieve results by providing physical and digital auction channels, data analysis, financing, transportation and mobile products and solutions.
Manheim pioneered in-lane vehicle auctions and has been an innovator in both digital and mobile auction platforms. Manheim registers nearly 8 million used vehicles annually, facilitating transactions representing more than $50 billion in value. Manheim’s research and consulting arm, Manheim Consulting, provides industry-leading market intelligence and publishes the widely recognized annual Used Car Market Report. The company offers dealer financing though NextGear Capital, Inc., and transportation services through Ready Auto Transport.
Headquartered in Atlanta, Manheim has more than 20,000 employees in 107 worldwide sites and generates annual revenues of more than $2.5 billion. A subsidiary of Cox Enterprises, Manheim participates in “Go Green with Manheim,” the company’s sustainability program.
About Go Financial (www.gofinancial.com)
Go Financial provides subprime financing options for independent and franchise dealers throughout the United States. With its roots as an independent dealer focused on the subprime market for over 20 years, Go Financial offers a perspective different than any other indirect lender in the industry. GO Financial is licensed in 44 states with plans to complete licensing in all 50 states throughout 2014.
About DriveTime (www.drivetime.com)
DriveTime is the nation’s largest dealer helping people with credit issues find and finance their perfect vehicle. Headquartered in Phoenix, Arizona, DriveTime currently operates 110 stores in 48 markets, with more than 75 used cars available at each dealership. The company has sold more than 600,000 used cars to consumers of all credit types since 2002. For more information about DriveTime Automotive Group or our used car dealerships, please visit www.drivetime.com or call our customer service line at 1-888-418-1212.
For further information: Lois Rossi, 678-645-2028
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