Cox Automotive Enters F&I Product Business
January 28, 2016
ATLANTA — Cox Automotive is getting into the F&I business. The company announced today it has acquired a minority interest in SilverRock Holdings LLC, which is majority owned by Ernest Garcia and Ray Fidel of DriveTime through a separate company, Oreno Holdings Inc. The transaction closed on Dec. 31, 2015.
According to officials, Go Financial and NextGear Capital affiliated dealers will soon be able to offer SilverRock Holdings F&I products, which include vehicle service contracts (VSC), GPS-based theft-recovery products, GAP and auto insurance.
“Our stake in SilverRock Holdings supports our goals of delivering the types of products and services that dealers need to grow and compete. The aftermarket vehicle ancillary products industry is highly fragmented,” said Brian Geitner, president of Financial Services and NextGear Capital. “This partnership will offer GO Financial and NextGear Capital affiliated dealers a greater variety of services, creating a one-stop approach and a more efficient transaction for retail customers.”
SilverRock owns the following warranty and insurance companies: VSC administrator and obligor SilverRock Automotive, online insurance agency SilverRock Insurance, and property and casualty insurance provider BlueShore Insurance Co.
“This new arrangement with Cox Automotive is a result of our close collaboration and mutual desire to offer our clients what they need and want to succeed,” said Garcia, who serves as chairman of DriveTime and majority owner of equity partner Oreno Holdings LLC. “Our deep knowledge of the subprime vehicle market and independent dealers pairs well with Cox Automotive’s expansive products and services across the automotive ecosystem.”