NextGear Capital Takes on SubPrime with Go Financial

Manheim

Speed Read:

Man­heim expands its remar­ket­ing and deal­er ser­vices into sub­prime finance.

Buy­ing DriveTime’s Go Finan­cial gets Man­heim deep­er into inde­pen­dent deal­er mar­ket through Next Gear Cap­i­tal.

Drill-Down Details:

  • Man­heim signed deal to pur­chase “stake” in Go Finan­cial
  • Go Finan­cial is/was owned by Ernie Garcia’s Dri­ve­Time com­pa­ny
  • Deal cre­ates one stop approach to inde­pen­dent deal­er oper­a­tions
  • Gives Next Gear Cap­i­tal an addi­tion­al foothold in sub prime
  • Inde­pen­dent deal­ers need cash flow financ­ing & title man­age­ment
  • Go Finan­cial will oper­ate inde­pen­dent­ly from Man­heim and Dri­ve­Time
  • Pro­vides clos­er col­lab­o­ra­tion & involve­ment with mutu­al cus­tomers
  • No men­tion of the pur­chase price, only that it comes down in June
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