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05.10.2011– Irvine, CA – CarFinance Capital LLC (www.CarFinancecaptial.com), today announced that it has launched as a new, specialized provider of non-prime auto financing for automotive dealers. The Irvine, California-based company is led by an experienced management team who previously built one of the largest U.S. auto finance companies (Triad Financial Corporation). CarFinance was formed to provide dealers with a better way to finance the growing ranks of non-prime car buyers and will first launch in the West Coast, expand to Texas in June, with a continued rollout across the U.S. throughout 2011.
“There is a clear need for a new, more dealer-friendly player in non-prime auto financing today,” said Jim Landy, CarFinance Capital’s President and CEO. “While the non-prime auto loan industry and consumer is storming back, a significant amount of lending supply dried up in the recent recession, so dealerships are woefully underserved. We believe the timing is right for a strong lender to fill this gap with a superior dealer process that delivers far more consistency, flexibility and one-on-one support than some of the more rigid, mechanized players. CarFinance is that lender, and our mission is to provide premium service to auto dealers so they can meet the needs of today’s non-prime customer.”
The Consumer Demand/Lending Supply Gap
CarFinance launches at a time when non-prime car buyers represent one of the auto industry’s most powerful, future growth markets -- but dealers still lack the right, specialized lending partners to tackle the vast industry opportunity. The recent downturn significantly increased the ranks of credit-challenged car buyers, with nearly 40% now falling into the sub-670 FICO score category. Across 2009-2010, the number of approved non-prime auto loans plummeted from a pre-recession rate of 60% to only 5-9%. Analysts concur that with the economy and car sales improving, and available credit slowly increasing, the non-prime auto finance market is now poised for the market’s first growth since 2007.
Strong Management Team With Deep, Successful Industry Roots
CarFinance’s management team is well positioned to address the needs of this market. The new company is comprised of the former executives that founded and built Triad Financial Corporation, one of the largest, top-tier non-prime lenders (1,000-plus employees) in the U.S. auto market from 1989 to 2005. CarFinance’s President and CEO, Jim Landy, served as Triad’s founder and CEO; Dennis Morris, CarFinance’s COO was a former senior vice president and product manager at Triad; CarFinances’s CFO, Jeff Butcher, held the same position at Triad, while Chief Credit Officer John O’Dowd was Triad’s director of credit risk management.
Landy notes: “While we launch with a fresh solution for dealers, it’s also very much a return to the market for us. We look forward to re-developing the partnerships with the thousands of dealers with whom we’ve had such a long, successful history.”
The CarFinance Difference for Dealers
The CarFinance team’s deep background partnering with auto dealerships means that they understand the importance of working to facilitate the dealership sales process, rather than inhibit it, which is why the product is designed to eliminate any surprises in credit and/or cashing contracts and to be consistent across the board. Benefits include:
• Credit for the mid-market non-prime spectrum: from 525 FICO, through 675
• Beyond black and white decisions: loan decisions preserve dealer flexibility and negotiating room, offering structuring options on an average approval, ensuring dealers can put together more profitable deals.
• Speed on contract funding side: so dealerships get reimbursed fast.
• One-on-One support: customer service experts available to answer questions and provide help
About CarFinance Capital LLC
CarFinance Capital LLC (www.carfinancecapital.com) is a fresh new company focused on partnering with franchise auto dealers to provide credit to non-prime consumers. Dedicated to premium service for its customers, CarFinance offers one-on-one support, consistent, predictable credit decisions, fast funding, multiple lending options, and deal-structuring flexibility to help auto dealers meet the needs of today’s non-prime car buyer. Headquartered in Irvine, California the company is led by Jim Landy and a seasoned team of executives that have long histories working together in the non-prime auto market.
Melanie Webber, mWEBB Communications, (424) 603-4340, firstname.lastname@example.org
Angela Jacobson, mWEBB Communications, (714) 454-8776, email@example.com
 CNW Research, cited in F&I Magazine, 4/2011: http://www.fi-magazine.com/News/Story/2011/04/Auto-Finance-Driving-Sales-in-Early-April.aspx?ref=-20110412&utm_source=Email&utm_medium=Enewsletter
 Associated Press, cited in Edmunds Auto Observer, 7/2010: http://www.autoobserver.com/2010/07/fewer-than-one-in-ten-sub-prime-auto-loans-approved.html
 CNW Research, cited in F&I Magazine, 4/2011: http://www.fi-magazine.com/News/Story/2011/04/Auto-Finance-Driving-Sales-in-Early-April.aspx?ref=-20110412&utm_source=Email&utm_medium=Enewsletter/ Experian Report cited at MSNBC http://www.msnbc.msn.com/id/40546261/m/videos/