Daily News: February 29, 2012

CarFinance Capital Secures $200 Million Credit Facility


CarFinance Capital, a provider of non-prime financing for auto dealers, announced that it has secured a $200 million warehouse credit facility. The new credit line, which is provided by Deutsche Bank and Credit Suisse, further enhances CarFinance Capital’s ability to help auto dealers serve the growing ranks of non-prime consumers, who now account for over one-third of U.S. car buyers.

CarFinance Capital is led by an experienced management team that previously built one of the largest non-prime U.S. auto finance companies (Triad Financial Corporation). Launched in May 2011, CarFinance Capital currently serves over 1,000 dealers nationwide with indirect, less-than-prime lending solutions, as well as first look opportunity on referrals from the Company’s new consumer direct lending site, CarFinance.com.

“As the economic climate shifts and car sales lift, more and more non-prime consumers are looking for financing, and more and more auto dealers are looking for an experienced partner to help them serve these customers,” said CarFinance Capital president and CEO Jim Landy. “Securing this $200 million warehouse facility further supports CarFinance Capital’s mission of providing the industry’s best solutions to help car dealers finance – and reach – the more than one in three car buyers with less-than-prime credit.”

CarFinance Capital’s indirect lending product is designed to be dealer-friendly, to eliminate any surprises in credit and/or cashing contracts and to be consistent across the board. The program offers credit for the mid-market non-prime spectrum (from 525 FICO through 675), expertise that preserves dealer flexibility and negotiating room, and rapid funding and reimbursement – as well as one-on-one customer support.

The company’s dealer referral program sends approved and financed customers from CarFinance.com – many of who might otherwise fall through the cracks for dealerships – to participating dealers to make their vehicle purchases. The program, which has a paperless, online application process, can dramatically minimize a dealer’s work as all required stipulations have been collected and the signed agreement is in hand. Additionally, the Company funds dealers’ bank accounts directly via ACH, so when paid, the funds are available immediately. The program provides LTVs (Loan-to-Value ratios) of up to 120% and $2,000 for back-end products (i.e., extended service contracts, etc.) sold by the dealer.

Irvine, CA-based CarFinance is licensed in over 24 states for both its direct and indirect businesses and will roll out nationwide in the coming months.