Financing agency Goeasy Ltd. is shopping for a minority curiosity in on-line used-car retailer Canada Drives, because the sub-prime lender appears to extend its stake within the Canadian auto finance market.
Goeasy introduced the $40-million fairness funding, coupled with a industrial partnership, June 27. The deal will make Goeasy the “most popular” non-bank financing supplier inside the Canada Drives on-line retail platform and provides the lender a minority stake within the Vancouver-headquartered used-vehicle vendor.
As extra Canadians change to purchasing autos on-line, Goeasy CEO Jason Mullins stated Canada Drives is “nicely positioned” to be an business chief.
“Our partnership and funding will assist Canada Drives speed up their development and permit us to seize a good larger share of the automotive financing market, on our journey to turn out to be Canada’s largest non-prime shopper lender,” Mullins stated in a launch.
Goeasy operates a spread of financing companies catered towards these with poor or restricted credit score histories, often known as non-prime debtors. LendCare, the corporate’s point-of-sale model that provides financing to shoppers on car, powersport and different retail purchases, can be built-in into Canada Drives’ platform as a part of the settlement, giving non-prime patrons entry to financing. The rates of interest provided weren’t instantly obtainable.
Canada Drives CEO Cody Inexperienced stated constructing LendCare into the corporate’s platform will make the car-buying expertise extra seamless.
“Our partnership and know-how integration with Goeasy will additional allow us to develop our stock, improve our platform, and enhance our financing packages for Canadian shoppers seeking to purchase and finance their automobile on-line.”
Based in 2010 to simplify on-line car transactions, Canada Drives says it gives clear pricing, on the spot trade-in valuations and at-home supply. It operates in Alberta, British Columbia, Ontario and Saskatchewan.