Tag Archives: auto loan portfolios for sale
No margin, no mission: Credit unions push to reclaim market share
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FBI busts Porsche dealer in $3m fraud scheme
A former dealer for Pompano Beach, Fla.-based Champion Porsche has pled guilty to a fraud scheme racking up $3 million.
The fraudster, Shiraaz Sookralli, pled guilty to conspiracy to commit mail fraud and wire fraud. He is scheduled for sentencing on Nov. 14 and faces a maximum sentence of 20 years in prison, according to the U.S. Attorney’s Office of the Southern District of Florida.
To facilitate the scheme, Sookralli would sell non-existent exotic Porsche models and did so with 30 customers. He’d require buyers to provide deposits in the form of wire transfers, bank checks and cash that he later deposited into his shell company’s bank account. Sookralli opened the shell company in 2017 with a name similar to the Champion Porsche dealership for which he worked in order to trick buyers, according to the Department of Justice’s press release.
On top of that, Sookralli leveraged a title as “vice president of marketing” for Champion Porsche to ramp up his credibility. He would tell buyers they’d receive a “yet-to-be-built” Porsche vehicle and provided customers with falsely signed and fraudulent purchase orders and fake vehicle build sheets showing the specifications of the customers’ vehicle. Champion Porsche did not authorize Sookralli to conduct these transactions.
Since the scheme has been uncovered, Champion Porsche has contacted his victims and began its cooperation with the criminal investigation, the DOJ noted. All of Sookralli’s victims with valid claims were made whole by Champion.
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.
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.
Startup Fair raises $2b in funding with new credit facility
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Ford Credit finance volume drops 14% year over year
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.