SANTA MONICA, Calif., Dec. 17, 2020 -- NextCar Holding Company Inc. (NXCR), a fintech and insurtech vehicle subscription platform, and Westlake Financial (Westlake) have signed a letter of intent to secure a NXCR $400 million debt facility, and to enter into a strategic partnership. Westlake is one of the largest automotive lenders in the U.S. with nearly $12 billion in assets under management, and provides indirect financing through a network of over 20,000 new and used car dealerships throughout the U.S.
"Subscriptions represent an entirely new way to get flexible access to mobility," said Scott Painter, Founder and CEO of NXCR. "Having strategic partners like Westlake is one of the building blocks for scaling subscriptions in a profitable way."
The $400 million debt facility from Westlake will provide NXCR with highly flexible and efficient capital to finance subscriptions. The strategic partnership will also provide NXCR with loan and collections services through Westlake, as well as access to Westlake's dealer network to scale indirect subscription offerings. For Westlake, the partnership with NXCR will also introduce access to a new product line that enables a 100% digital transaction.
"Figuring out how to innovate around our financial products with a known entrepreneur like Scott is an exciting development," said Bret Hankey, President of Hankey Group and Vice Chairman of Westlake Financial. "We see used vehicle subscriptions similar to how leasing was seen when it was introduced 40 years ago, except the size of the opportunity is much bigger on the used car side and we believe technology and a digitally-driven consumer base will enable much faster adoption."
"Partnering with NXCR is an exceptional product market fit that puts Westlake on the frontline of financial services innovation," added Ian Anderson, Group President at Westlake Financial. "A flexible mobility option outside the traditional loan or lease that's affordable and not bound by terms is a highly attractive value proposition for consumers and forward-thinking dealers."
NextCar Holding Company, Inc. (NXCR) is on a mission to create a profitable and sustainable vehicle subscription platform in automotive retail. NXCR is innovating through technology, operations and infrastructure, as well as strategic and private-label partnerships in order to advance the vehicle subscription model. Scott Painter, Founder and CEO of NXCR, announced the launch of NXCR this past October. He previously founded digital-first automotive technology companies, Fair, TrueCar, and CarsDirect.com.
About Westlake Financial (Westlake)
Westlake is an auto and finance technology company headquartered in Los Angeles, CA with approximately $12 billion in assets under management. Westlake originates indirect automotive retail installment contracts through a nationwide network of new and used automotive and powersports dealers. Westlake also offers loan portfolio purchasing, lines of credit and portfolio servicing through Westlake Portfolio Management (WPM), www.wpmservicing.com; floor plan lines of credit are provided through its Westlake Flooring Services division, www.WestlakeFlooringServices.com; shared cash flow auto lending through Westlake's wholly owned subsidiary, Western Funding Inc., a Nevada based auto lender; indirect automotive leasing for credit unions through Westlake's subsidiary, Credit Union Leasing of America (CULA); dealer leads and direct-to-consumer auto loans are offered through Westlake Direct; consumer title loans are offered through Westlake's wholly owned subsidiary Loan Center, www.loancenter.com; and commercial real estate lending is offered through Westlake Capital Finance.