Instead of booking subprime auto paper, Westlake Financial sold approximately $100 million of subprime auto loans in what it called a “landmark transaction.”

Westlake on Tuesday announced the successful sale to HFC Acceptance that included what the companies dubbed a “first-of-its-kind structure” for both organizations and was completed at a 112% principal premium.

According to a news release, the transaction consists of seasoned and newly originated subprime auto finance loans originated using Westlake Financial’s underwriting standards.

Hankey Group president Ian Anderson, who also oversees Westlake, explained that the transaction was structured to allow for efficient asset transfer while maintaining continuity of servicing and borrower experience.

“We are excited to partner with HFC Acceptance on this innovative transaction,” Anderson said. “WTTD-2026-1 reflects our continued commitment to flexibility, innovation, and collaboration as we seek new ways to support our growth objectives and serve our dealer partners. We look forward to additional transactions with HFC Acceptance and identifying new partners on future transactions.”

HFC Acceptance is a diversified specialty finance company focused on structured lending across multiple asset classes. The firm is best known for its vehicle fleet financing programs, supporting commercial operators with scalable, credit-driven solutions.

In addition, HFC provides tailored financing for yachts, aircraft, and select real estate assets, positioning itself as a versatile capital partner for high-value transactions.

As of Dec. 31, the company manages more than $1.5 billion in assets, reflecting its strong balance sheet, disciplined underwriting, and expanding footprint.

“This transaction marks a significant milestone for HFC Acceptance,” HFC Acceptance president Jeff Brodsky. “This transaction demonstrates our ability to execute large-scale acquisitions with premier originators while achieving attractive risk-adjusted returns. We view this as the foundation for a long-term strategic relationship with Westlake Financial and a model that can be followed in future transactions with other industry lenders.”

Both companies noted that the successful execution of WTTD-2026-1 may serve as a template for future transactions of similar scale and design.

“The acquisition expands HFC Acceptance’s growing investment footprint in consumer credit assets while providing Westlake Financial with an innovative balance sheet and capital optimization solution. As both companies continue to grow, this model can be used as a framework to structure future deals with additional partners,” said Don Hankey, founder and chairman of the Hankey Group.