Manheim signed an agreement to buy an equity stake in Go Financial, which provides subprime auto financing to third-party auto dealerships. Go Financial is owned by a pair of DriveTime executives, Chairman Ernie Garcia and President Ray Fidel. Pricing details weren’t revealed.
Manheim expects the move to allow NextGear Capital customers easier and faster sales financing for subprime customers. Floorplan provider NextGear was formed last year from the merger of Manheim Automotive Financial Services and Dealer Services Corp.
“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.
According to a Manheim release, Go Financial will operate independently from Manheim and DriveTime. Go, which employs a staff of 175 and has a $1.5 billion portfolio, will remain headquartered in Phoenix. The transaction is expected to close by midyear.
“We’ve been a long-time 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,” DriveTime’s Garcia said.
Manheim also said today that it has created a new enterprise software business called Global Remarketing Management System. Nick Peluso was named Global RMS president. In addition, Tim McKinley will join Manheim as senior vice president of sales. Both roles become effective April 1. The company also named Rich Coutu vice president of commercial sales, effective March 1.
