Subprime auto loan servicer Innovate Auto Finance is keeping an eye on new models of car ownership as innovation surges in the space, President and Chief Executive Preston Miller told Auto Finance News.
“There is a change in some of the things going on in the auto space as it relates to car ownership and how people do things,” Miller said. “We believe that we have services that can benefit in that scenario, so we’re looking at all the alternatives out there as it relates to fintech and others to get better at what we do and take advantage of opportunities in the space as things change.”
Innovate Auto Finance is a company that purchases subprime portfolios in bulk and then conducts leases or loans for third-party servicing. The company expanded into servicing after merging with Loan Portfolio Servicing in 2016 and has grown its leasing offers to nontraditional models.
“We’re one of the few third-party services out there that do weekly rideshare,” Miller said. “It’s really a lease product and we’ve expanded our platform to do leasing which includes a lot of things different than traditional retail on the servicing side.”
The company is also examining options in fleet finance management and renting vehicles. However, it does not have any clients in this space yet, and is watching for the opportunities that emerge as the industry develops.
Innovate Auto Finance was recently retained by an investment firm to source $50 million worth of subprime auto loan portfolios. Innovate will source, perform due diligence, underwrite, process, and service all portfolios that the unnamed investment firm ultimately chooses to acquire.
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