Author Archives: Carguy

Westlake taps CarFinance to grow refi business


Westlake Financial Services has inked a deal to start purchasing auto refinance loans originated through CarFinance, the companies announced this week.

The goal of the partnership is to “complement” Westlake’s direct lending platform, LoanCenter, with auto loan refinancing, Ralph Ontiveros, vice president of Westlake services and lending solutions, said in a press release. The Los Angeles-based lender boasts a $5.5 billion auto loan portfolio, according to Big Wheels data. 

CarFinance will handle sales, marketing and originations, while Westlake will hold the loans on its balance sheet and manage servicing from title administration to collections and customer service. Westlake’s MyAccount Portal will be available for customers to make payments online or via smartphone app, the company noted. 

Working with CarFinance is a part a strategic plan to grow the company’s direct lending business, Westlake’s Group President Ian Anderson said in a press release. “Westlake’s push toward direct lending refinancing is a big part of moving our business forward,” he said. Westlake started its direct lending platform in 2018 with subsidiary Westlake Direct, which offers customers preapprovals for loans through LoanCenter.

The partnership comes on the heels of Westlake’s deal with Axis Auto Finance that will have Westlake originating loans in Canada by the first quarter of 2020.

Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.



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Startup Fair raises $2b in funding with new credit facility 


Used-car leasing app Fair closed a $500 million revolving credit facility financed by Mizuho Bank, the companies announced today. With Mizuho’s investment, the vehicle subscription company has raised nearly $2 billion in funding over four outside equity rounds.  The new credit facility is a move for Fair to increase its supply of rideshare vehicles for […]

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Ford Credit finance volume drops 14% year over year


Ford Motor Credit’s total volume of units financed has declined 13.7% year over year to 70,793 units financed in July, according to AutoCount data from Experian. In a couple emblematic states, the captive’s volume decreased more than 30%. In Texas, Ford Credit’s number of loans and leases financed dropped 31.3% to 5,979 units in June. […]

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DriveItAway expands rideshare offering to consumers, small fleets


DriveItAway is expanding its product offering to non-rideshare drivers, said Chief Executive John Possumato. The Haddonfield, N.J.-based company, which connects rideshare drivers with dealerships’ idle stock, will now connect individuals and small businesses with fleets to partnering dealerships for long-term rentals.

“The whole idea is to be this functional mobility platform,” Possumato said, noting that dealers had requested that DriveItAway make its subscription product available to non-rideshare drivers. The proposal was brought up by one of DriveItAway’s “bigger clients” in February, and the company tested the product over the past two months before rolling it out this week.

While the new offering still fits under the umbrella of “long-term rental,” the logistics required a revamp of the company’s app, Possumato said. The app is now divided into two sections: one for individual and small business subscriptions and one for rideshare drivers.

By extending the subscription service to small businesses, Possumato said he hopes to tap a “growing market,” such as small business owners that lack a fleet manager or whose business operates on a seasonal basis. A potential customer would be someone “who wants the extra convenience to give back the vehicle or keep the vehicle but doesn’t want to lock into a long-term contract,” he noted. “There’s a bit of demand from the dealers we deal with when maybe there wasn’t a year ago.”

Still, Possumato said he believes the ridesharing part of the business will continue to dominate, as subscription models have yet to break into the mainstream. “In the trade, if you say ‘subscription,’ the industry knows what you’re talking about, but the average consumer and small business owner doesn’t know what you’re talking about,” he said, adding that the idea should take hold as “the option becomes available on the showroom floor.”

Don’t miss your chance to save on registration to the 19th Annual Auto Finance Summit returning to Las Vegas, October 28-30. Early registration ends Friday, September 13th. Register now at www.autofinancesummit.com.



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More dealers use CarGurus, TrueCar than other digital platforms


When it comes to dealerships’ digital functionality and presence, CarGurus is the most widely used third-party digital platform, according to new data from an Auto Finance News dealer insights survey. The survey tapped a sampling of dealers nationwide to unveil digital trends directly from the showroom. Among dealers surveyed, 45% said they leverage CarGurus’ platform, a marketplace […]

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Auto fraud ring targets Mississippi credit union


Two women have been sentenced for their role in a $234,467 auto fraud ring involving Jackson, Miss.-based Magnolia Federal Credit Union, the Department of Justice announced. Both Shakedra Verleece Smith and Sheri Youse — who also goes by the name Sheri Johnson — were sentenced to five years’ probation with six months home confinement. They […]

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EXCLUSIVE: Ford Credit sells Canvas portfolio to Fair 


Used-car leasing app Fair has finalized a deal to acquire the assets of Ford Motor Credit’s subscription service Canvas, the company announced today. The Canvas acquisition increases Fair’s fleet by 1,000 for active consumer subscribers and 600 that can be used for rideshare or consumer demand — adding to the 45,000 active users Fair currently […]

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Fleet management startup scores $5M credit line from MBFS


Mercedes-Benz Financial Services has granted a $5 million credit line to VMAC Holdings, a fleet management firm that provides inventory for rideshare companies.  The new line of credit will be used for VMAC’s incoming projects, including expanding its mobility-as-a-service business into “various municipalities” across the U.S., Co-Owner and Chief Operating Officer Grant Stark, told Auto […]

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Thinning margins spur Ford Credit downgrade


Ford Motor Credit’s weakened credit profile will likely have negative implications for the captive’s access to funding and financing volumes after a downgrade by Moody’s Investors Service this week. The downgrade moved Ford Credit’s rating to non-investment speculative-grade status.  Moody’s said an upgrade for Ford Credit is “unlikely in the near term,” as margins are […]

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Citizens One ramps up CPO program


Citizens One Auto Finance has been revving up used-vehicle loan originations since launching its CPO program “a little over a year ago,” President Craig Lamp told Auto Finance News. Volume for the bank’s CPO program has “more than doubled,” Lamp said, adding that the program has exceeded company expectations. To that end, “a big chunk […]

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