PHOENIX – GO Financial, the Phoenix based subprime auto finance company, completed the sale of a substantial equity interest in GO Financial to Manheim, the leading global provider of vehicle remarketing services. GO Financial is now majority owned by DriveTime Chairman Ernie Garcia and DriveTime President/CEO Ray Fidel and minority owned by Manheim. NextGear Capital is wholly owned by Manheim.
Manheim’s investment in GO Financial is intended to allow NextGear Capital and GO Financial to provide their dealers with fast and easy inventory financing and sales financing for subprime buyers. Combining extensive industry experience, dealer relationships, access to capital and technology resources allows GO Financial and NextGear Capital to be the inventory and sales financing sources of choice for independent dealers. By the end of 2014, NextGear Capital and GO Financial will complete the roll-out of the GO Financial subprime financing program to NextGear Capital’s dealers across the country. Participating dealers will benefit from the faster funding and sharing of cash flows in the GO Financial program and benefit from increases in availability of inventory financing with NextGear Capital. Technology innovations already being developed will make the financing provided by NextGear Capital and GO Financial seamless and convenient for participating dealers.
“With strong partners in Manheim and NextGear Capital, GO Financial will deliver superior financing products and services to more dealers, allowing GO Financial to grow rapidly,” said owner Ernie Garcia. “Inventory financing and sales financing are very competitive today so dealers expect speed, convenience, innovation and value from their financing sources. GO Financial and NextGear Capital will team up to exceed dealers’ expectations.”
Patrick Brennan, Group Vice President of Manheim Financial Services, shared, “This partnership supports NextGear Capital’s commitment to provide dealers with the tools they need to compete, to win and to grow. Everyone knows subprime customers are a large and profitable portion of the retail sales market. By joining forces with GO Financial, an experienced subprime finance company, NextGear Capital now provides fast, easy and consistent financing for dealer’s purchase of inventory through the retail sale of each vehicle.”
Manheim’s agreement to purchase an interest in GO Financial was announced in February, 2014. The transaction closed March 31, 2014. Terms of the transaction were not disclosed.
About GO Financial (www.gofinancial.com)
Go Financial provides subprime sales finance options for independent and franchise dealers. With its roots as an independent dealer focused on the subprime market for over 20 years, GO Financial offers a perspective different than any other indirect lender in the industry. GO Financial is licensed in 44 states with plans to complete licensing in all 50 states throughout 2014.
About NextGear Capital (www.nextgear.com)
NextGear Capital is the world’s leading independent floor plan company delivering innovative solutions to thousands of independent dealers throughout North America and the United Kingdom. Based in Carmel, Indiana, NextGear Capital was created in 2012 by the merger of Manheim Automotive Financial Services (MAFS) with Dealer Services Corporation (DSC).
About Manheim (www.manheim.com)
Manheim is the leading global provider of vehicle remarketing services, connecting buyers and sellers of used vehicles to the largest wholesale used-vehicle marketplace. The company helps dealer and commercial customers achieve results by providing physical and digital auction channels, data analysis, financing, transportation and mobile products and solutions. Headquartered in Atlanta, Manheim has more than 20,000 employees in 107 worldwide sites and generates annual revenues of more than $2.5 billion. A subsidiary of Cox Enterprises, Manheim participates in “Go Green with Manheim,” the company’s sustainability program.