The CarFinance Capital LLC brand has been “retired” as an indirect auto finance provider, according to a presale report from Kroll Bond Ratings Agency released last week. Flagship Credit Acceptance — which was merged with CarFinance in January 2015 — will be the company’s indirect brand going forward.
“In January 2016, the company migrated to a single origination system for its dealer network, and the CarFinance brand was retired from a dealer perspective,” Kroll wrote in the report.
“CarFinance continues to be the direct brand to consumer.”
The combined company had been originating direct and indirect loans under both brands. However, as of August 2015, both brands have used the Flagship scorecard — which is based on its pre-recession, historical data from 2006 to 2007 — to price all indirect applications submitted by dealers, according to Kroll.
The Chadds Ford, Pa.-based lender managed a $2.7 billion port-folio as of Dec. 31, 2015, and originated $1.6 billion of loans last year, according to the report.Like This Post