DETROIT — Ally Financial today announced it has entered into an agreement to purchase retail contracts from DriveTime, pledging to make up to $750 million available to the used-car retailer over the coming year.
Under the terms of the agreement, Ally will provide committed financing for the purchase of retail contracts for 12 months. The agreement helps support DriveTime’s expansion into the nearprime segment.
“We’re excited to work with DriveTime to provide committed financing that frees up capital it can use to grow its business,” said Tim Russi, president of auto finance at Ally. “Our expertise allows us to support DriveTime in a way that complements our well-established indirect model.”
DriveTime CFO Kurt Wood added: “This relationship with Ally enables us to grow originations, diversify our retail and finance platforms and enter into a new consumer segment, while still maintaining the exceptional customer experience we take pride in delivering. We appreciate Ally’s financing agility in implementing an innovative solution to meet our needs.”