The Industry's Leading Source For F&I, Sales And Technology

Top News

Automax Group Steps Up Aggressive Growth Plan

March 28, 2001

Automax Group Inc., a "buy here, pay here" used-car sales and finance company based in Delray Beach, Fla., is stepping up its aggressive growth plan.

Automax recently started trading on the Pink Sheet exchange under the symbol of AMXX. Previously, Automax was a wholly owned subsidiary of Kenwick Industries, Inc. Presently, Kenwick owns approximately 75 percent of the issued and outstanding shares of Automax.

Automax has served the South Florida nonprime auto market for three years. The company underwrites, finances and services loans generated from its dealerships, and serves customers with limited credit histories, low incomes, or past credit problems who cannot access traditional financing.

For the nine months ending Sept. 30, 2000, the automobile division was profitable and sales increased by $1.9 million. Under present management, Automax believes that they can implement their business plan, which will expand their operations into other closely related business sectors, according to comnpany officials.

Automax is seeking other acquisition targets that would expand on their "buy here, pay here" concept. Also, the company has started financing its accounts receivable utilizing an exclusive program with Wells Fargo America, a division of Wells Fargo Bank. Wells Fargo is the largest purchaser of bulk receivables in the country. They will purchase paper that is aged at least ninety days, giving a 66 percent advance on each contract sold.

Financing is a necessary part of the profitability equation, according to Automax, since it means the ability to "recycle" the funds every 90 to 180 days, therefore, utilizing the funds on hand to their fullest capabilities which would include increasing its floor plan.

Your Comment

Please note that comments may be moderated. 
Leave this field empty:
Your Name:  
Your Email: