U.S. automotive lender Westlake Financial provided a $400 million debt facility to NextCar Holding Company, a finance and insurance technology-enabled vehicle subscription platform.
“Subscriptions represent an entirely new way to get flexible access to mobility,” Scott Painter, founder and CEO of NXCR, said. “Having strategic partners like Westlake is one of the building blocks for scaling subscriptions in a profitable way.”
Westlake and NXCR also entered into a strategic partnership, which will provide NXCR with loan and collections services through Westlake as well as access to Westlake’s dealer network to scale indirect subscription offerings. Westlake will have access to NXCR’s product line that enables digital transactions.
“Figuring out how to innovate around our financial products with a known entrepreneur like Scott is an exciting development,” Bret Hankey, president of Hankey Group and vice chairman of Westlake Financial, said. “We see used vehicle subscriptions similar to how leasing was seen when it was introduced 40 years ago, except the size of the opportunity is much bigger on the used car side and we believe technology and a digitally-driven consumer base will enable much faster adoption.”
“Partnering with NXCR is an exceptional product market fit that puts Westlake on the frontline of financial services innovation,” Ian Anderson, group president at Westlake Financial, said. “A flexible mobility option outside the traditional loan or lease that’s affordable and not bound by terms is a highly attractive value proposition for consumers and forward-thinking dealers.”
