Subprime auto finance company GO Financial completed the sale of a substantial equity interest in GO Financial to Manheim today, furthering connecting the dealer-support efforts of GO Financial and NextGear Capital.

GO Financial is now majority owned by DriveTime chairman Ernie Garcia and DriveTime president and chief executive officer Ray Fidel and minority owned by Manheim. NextGear Capital still is wholly owned by Manheim. 

Officials explained Manheim’s investment in GO Financial is intended to allow NextGear Capital and GO Financial to provide their dealers with fast and easy inventory financing and sales financing for subprime buyers.

Combining extensive industry experience, dealer relationships and access to capital and technology resources, the company highlighted the new relationship can allow GO Financial and NextGear Capital to be the inventory and sales financing sources of choice for independent dealers.

By the end of the year, NextGear Capital and GO Financial will complete the roll-out of the GO Financial subprime financing program to NextGear Capital’s dealers across the country.

Participating dealers can benefit from the faster funding and sharing of cash flows in the GO Financial program and benefit from increases in availability of inventory financing with NextGear Capital.

Furthermore, the companies mentioned technology innovations already being developed are designed to make the financing provided by NextGear Capital and GO Financial seamless and convenient for participating dealers.  

“With strong partners in Manheim and NextGear Capital, GO Financial will deliver superior financing products and services to more dealers, allowing GO Financial to grow rapidly,” Garcia said.

“Inventory financing and sales financing are very competitive today, so dealers expect speed, convenience, innovation and value from their financing sources. GO Financial and NextGear Capital will team up to exceed dealers’ expectations,” Garcia continued.

Manheim’s agreement to purchase an interest in GO Financial was announced in February. The transaction closed on March 31. Terms of the transaction were not disclosed.

“This partnership supports NextGear Capital’s commitment to provide dealers with the tools they need to compete, to win and to grow,” Manheim Financial Services group vice president Patrick Brennan said.

“Everyone knows subprime customers are a large and profitable portion of the retail sales market,” Brennan continued. “By joining forces with GO Financial, an experienced subprime finance company, NextGear Capital now provides fast, easy and consistent financing for dealer’s purchase of inventory through the retail sale of each vehicle.”