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GDEXAuto to Launch in January

December 03, 2007

Alamo, CA – Global Debt Exchange Automotive (GDEXAuto), a new online marketplace where independent, BHPH and franchise dealers in the used car market can sell loan portfolios, is preparing to launch its site in January of 2008.

As GDEXAuto notes, next to mortgage lenders and home builders, no one is keeping a closer watch on subprime finance trends than America’s automobile dealers. That’s why it has designed a system to streamline portfolio risk management in the automotive industry for both dealers and lenders, according to founder and president of GDEXAuto, Mike Sheridan.

“It’s a web-based platform where dealers and finance institutions can buy and sell loan portfolios, as well as a place where finance institutions can trade back and forth,” Sheridan explains to Special Finance magazine. “Dealers spend so much time selling cars. In this marketplace, especially with the mortgage situation, we thought we could bring some efficiency, liquidity and transparency to the process for the auto industry.”

Sheridan explains that this system is designed for dealers to focus on what they do best – sell cars. The process also makes it easier for dealers to be proactive as opposed to reactive, because as Sheridan notes, oftentimes dealers won’t consider selling their portfolio until they are in dire need of liquid assets. That means they need a quick turnaround time to get the money quickly, which makes it very difficult to get fair market value for their portfolio. GDEXAuto’s system allows users to upload their loan portfolios and have access to a number of different lenders, as opposed to the few companies many dealers are used to working with.

With all the benefits that exist for dealers, GDEXAuto says its online marketplace is also very beneficial to lenders.

“One of the groups that have been very active is the financial institutions,” Sheridan says. “They feel [our system] lowers their acquisition costs to purchase a loan portfolio, because they can get right on our system, can customize their portfolio search, and they can find the exact loan portfolios that fit their needs.”

The mortgage industry fallout’s impact on the car industry still remains to be seen, but Sheridan feels the GDEXAuto platform provides a solution to a growing concern in lending.

“There’s a greater need for transparency, because of the mortgage meltdown, so that financial institutions know what they’re getting,” Sheridan says. “Dealers tend to sell loan portfolios on a reactive basis. We’re hoping to provide an avenue for those dealers to focus on what they do best, as well as help them get the cash they need to expand their business.”

For more information on Global Debt Exchange Automotive, visit

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