ALPHARETTA, Ga. -

SubPrime Auto Finance News has learned Dealer Funding — a finance company specializing in subprime auto financing for both franchised and independent dealerships — “has paused all new business activities as part of an evaluation of its ongoing business operations.”

According to a note we obtained that Dealer Funding sent to its network of dealers on Tuesday, the move is effective immediately.

When SubPrime Auto Finance News reached out to David Stoltz, the national sales manager at Dealer Funding, in an attempt to clarify when or if the finance company would begin to originate contracts again, Stoltz replied on Thursday morning via email stating, “Dealer Funding has no comment.”

The message Dealer Funding sent to dealers said the last day for the funding of contract purchases would occur no later than June 29. The company added that the timetable for financing is subject to all verifications and other requirements being completed and satisfied by that date.

The company went on to mention that dealers with pending transactions that do not want to wait until up to June 29 to learn if the contracts will be purchased can withdraw those transactions by submitting a request to Stoltz at dstoltz@dealerfunding.com.

Dealer Funding added that any unpurchased contracts as of June 29 or earlier will be returned as soon as practicable. 

The company also stated that servicing and collection activities associated with outstanding contracts will continue.

“We would like to thank all of our dealers, both independent and franchise, for their support and business over the last many years,” the company said in that message to its dealer network.

Dealer Funding’s profile on its LinkedIn page indicated that the finance company has worked with “thousands of dealerships” since 1995.

“Dealer Funding has been there to support our customers and dealerships through the last few tough years,” the company said. “We have continued to grow our dealership base and geographic footprint even as our competitors have come and gone. Our stability is attributed to 100-plus years of indirect auto finance experience among the senior management.”

The decision by Dealer Funding arrived about a month after DriveTime Automotive Group chose to wind down GO Financial.