Ally Financial has announced it is to provide up to $750 million for the purchase of retail contracts from DriveTime, the nation's second largest vehicle retailer focused solely on used vehicles.
Under the terms of the agreement, Ally will provide committed financing for the purchase of retail contracts for 12 months. The agreement is designed to support DriveTime's expansion into the near-prime segment.
Tim Russi, president of auto finance at Ally (pictured above), said: “We are excited to work with DriveTime to provide committed financing that frees up capital it can use to grow its business.
“Our expertise allows us to support DriveTime in a way that complements our well-established indirect model.”
Kurt Wood, chief financial officer of DriveTime, said the relationship with Ally would enable the business to grow originations, diversify its retail and finance platforms and enter into a new consumer segment, while still maintaining “the exceptional customer experience we take pride in delivering”.
He said: “We appreciate Ally's financing agility in implementing an innovative solution to meet our needs."