Ally Enters Retail Financing Agreement With DriveTime
Ally Financial said it will make up to $750 million available to DriveTime for the purchase of retail contracts over the coming year.
DETROIT — Ally Financial today announced it has entered into an agreement to purchase retail contracts from DriveTime, pledging to make up to $750 million available to the used-car retailer over the coming year.
Under the terms of the agreement, Ally will provide committed financing for the purchase of retail contracts for 12 months. The agreement helps support DriveTime’s expansion into the nearprime segment.
“We’re excited to work with DriveTime to provide committed financing that frees up capital it can use to grow its business,” said Tim Russi, president of auto finance at Ally. “Our expertise allows us to support DriveTime in a way that complements our well-established indirect model.”
DriveTime CFO Kurt Wood added: “This relationship with Ally enables us to grow originations, diversify our retail and finance platforms and enter into a new consumer segment, while still maintaining the exceptional customer experience we take pride in delivering. We appreciate Ally’s financing agility in implementing an innovative solution to meet our needs.”
More Auto Finance
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →