ATLANTA – Manheim announced late last week it has signed an agreement to purchase an equity stake in Go Financial, a subprime auto finance company. Headquartered in Phoenix, Go Financial is owned by DriveTime Chairman Ernie Garcia and DriveTime President and CEO Ray Fidel.
“Our stake in Go Financial supports our goals of delivering the types of products and services that dealers need to grow and compete,” said Patrick Brennan, group vice president of Manheim Financial Services. “Together, Go Financial and NextGear Capital will provide an easier and more convenient way for independent dealers to finance their subprime customers.”
Noting how subprime sales financing can be time consuming and restrictive on a dealer’s cash flow, officials said the impending partnership will create a one-stop approach and a more efficient transaction that will allow NextGear Capital dealers to have faster access to cash. In addition, Go Financial will leverage NextGear Capital’s strong dealer relationships and technology to drive a more efficient title management and processing. The transaction is expected to close by the end of June.
“We’ve been a longtime Manheim customer and this new arrangement with Manheim is a result of our close collaboration and identifying what our mutual customers need and want to succeed,” said DriveTime’s Garcia. “Manheim’s success with wholesale auto auctions and our deep knowledge of the subprime vehicle market and independent dealers is a perfect match.”