Westlake portfolio grows following product launches

Westlake Financial increased its number of funded auto loans by more than 50% year over year in July in some of the most populated states on the heels of new projects and a focused approach to growth. Los Angeles-based Westlake funded 5,224 auto loans in California in July, down 10.5% sequentially but up 54% YoY, according to an Auto Finance News analysis of the most recent data from AutoCount , a unit of Experian Automotive . Westlake also financed 1,548 loans in New York in July, up 10.3% sequentially and 67.7% YoY. The lender also recorded 30.5% YoY growth in Texas and 28.3% YoY growth in Virginia. Overall, Westlake’s number of funded deals increased 37% YoY in July, David Goff , vice president of marketing, told Auto Finance News , citing AutoCount data but providing no specifics. Westlake has leaned into online prequalification and digital shopping to meet consumers’ changing needs and capture more market share, Goff said. The company also offers financing on vehicles priced over $100,000 as well as powersports products, he said. “We continue to expand and grow,” Goff said. “Our producing dealer base has tremendously grown each year. Our average sales per dealer continues to be stronger than ever. As we continue to provide more value with our full-spectrum mentality to dealers, we've seen growth continue to skyrocket.” Westlake funds an average of three deals per dealer per month and is on track to fund at least one deal with more than 25,000 dealers over the course of this year, Goff said. Westlake's growth comes as it has launched projects to expand its full-spectrum reach. The lender is working with tech provider Pagaya Technologies to offer AI-driven decisions on applications for its dealer partners. On transactions that meet certain underwriting criteria, it automatically compares the lender’s decision on a deal with a Pagaya-generated decision, passing the most favorable decision to the dealer. Westlake originates the loan and then sells it to Pagaya. The setup with Pagaya helps fill gaps where the lender can’t offer the best decision for dealers, Goff previously told AFN . BHPH dealer expansion Westlake last month also signed on to provide funding for buy here, pay here dealers (BHPH) on dealer management system DealerCenter ’s platform, according to a Westlake release. Westlake is providing a line of credit for BHPH dealers so they can fund auto loans for customers, Goff said. Dealers must apply for financing and receive approval based on Westlake’s criteria. Westlake typically offers more favorable rates and terms to dealers through the program compared to other sources of funding, he said. “It's ultimately a line of credit that they utilize to loan out to their customers for their buy here, pay here portfolio,” Goff said. DealerCenter has a portfolio of more than 3,000 BHPH dealers and an available balance of $750 million, according to the release. It is part of Nowcom Corp. , which with Westlake Technology Holdings formed the fintech parent company NowLake Technology . Westlake has offered BHPH dealer financing for many years, Goff said. The lender began pushing out the DealerCenter program over the past “several months” following a yearlong pilot, he said. “Our biggest area of opportunity is our sister company to provide [BHPH dealers] with ways to expand their business,” Goff said. “As we help these dealerships grow, that grows their world as well as our world. It’s easy for us to provide the offerings to DealerCenter dealers. … The dealers are then more engaged with the NowLake umbrella.” DealerCenter started working with BHPH dealers in about 2010 and has seen the program grow steadily, Donald Borgmeyer , vice president of product at NowCom, told Auto Finance News . “Dealers searching for financing sources oftentimes will eventually explore the route of doing it themselves,” he said. “Money is getting more expensive, and lenders are pulling back, which is bringing more buy here, pay here dealers into the market. They need cash to run their operation.” Meanwhile, third-party servicer Westlake Portfolio Management took over servicing for American Car Center ’s lease portfolio after the retailer closed in April. “We continue to see lenders [closing], and that benefits Westlake to a degree because as lenders leave, we have more opportunity,” Goff said. “Our relationship with other lenders like Flagship [Credit Acceptance] , Ally [Financial] and [Consumer Portfolio Services] have continued to go well through pass-through [agreements].” Auto Finance Summit, the premier industry event for auto lending and leasing, returns October 29-31 at the Bellagio Las Vegas and features a fireside chat with F ord Credit. To learn more about the 2023 event and register, visit autofinance.live/afs/ .

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