ATLANTA -

NextGear Capital customers who want easier and faster sales financing for subprime customers will have it as a result of Manheim signing an agreement to purchase an equity stake in Go Financial, a subprime auto finance company.

Officials highlighted today this deal creates a unique opportunity for Manheim to invest in a growing subprime auto finance segment – independent dealers who want to take greater control over the financing options they offer their retail customers.

Go Financial is owned by DriveTime chairman Ernie Garcia and DriveTime president and chief executive officer Ray Fidel. Go Financial will operate independently from Manheim and DriveTime. Headquartered in Phoenix, Go Financial employs a staff of 175.

"Our stake in Go Financial supports our goals of delivering the types of products and services that dealers need to grow and compete," said Patrick Brennan, group vice president of Manheim Financial Services.

"Together, Go Financial and NextGear Capital will provide an easier and more convenient way for independent dealers to finance their subprime customers," Brennan continued.

Today, subprime sales financing can be time consuming and restrictive on a dealer's cash flow. This partnership creates a one-stop approach and a more efficient transaction that will allow NextGear Capital dealers to have faster access to cash.

In addition, Go Financial will leverage NextGear Capital's strong dealer relationships and state-of-the-art technology that includes more efficient title management and processing.

The transaction is expected to close by the end of June.   

"We've been a long-time Manheim customer and this new arrangement with Manheim is a result of our close collaboration and identifying what our mutual customers need and want to succeed," Garcia said. "Manheim's success with wholesale auto auctions and our deep knowledge of the subprime vehicle market and independent dealers is a perfect match."

This deal isn't the first time Manheim and DriveTime made a major transaction.

Back in November, Manheim announced a partnership with subprime credit used-car dealer DriveTime to form Go Auto Exchange, a new separate and independent wholesale auction company focused on independent dealers and the low-end vehicle segment.

The first locations for Go Auto Exchange were to be rolled out this year in Atlanta and Phoenix with more to come later this year. .    

Serving as president of Go Auto Exchange will be Tim Janego, who most recently served as Manheim regional vice president for the East Region.

Janego will work closely with teams from Manheim and DriveTime to have the new locations open by the end of the year.

"Tim's extensive background in the wholesale auction industry made him a perfect fit to lead this exciting new business," said Manheim senior vice president and chief financial officer Joe Luppino. "Go Auto Exchange will benefit from Tim's deep operational experience in running wholesale auctions and from DriveTime's inventory and deep knowledge of this growing market segment."   

Go Auto Exchange and its locations will operate independently from Manheim and DriveTime locations.

Headquarters will be in Atlanta, with more locations coming in early 2014.

"As Manheim's business today focuses on serving many different customers, Go Auto Exchange's focus will be exclusively on the low-end vehicle segment in local markets," said Janego.  "Our highly-targeted approach allows us to concentrate solely on growing this segment, while allowing us to aggressively compete."

Go Auto Exchange intends on bringing in a "combination of auction pros and industry experts" to lead its locations, and will partner with NextGear Capital to offer vehicle financing options to independent dealers.