Goldman Sachs backs auto leasing start-up

MUSA Auto Finance, an auto finance company specializing in new and pre-owned vehicle leasing, has entered into a $125 million warehouse facility with Goldman Sachs.

The auto finance company has also secured a capital investment of up to $50 million from Crestline Investors.

The investments will support its plans to launch its auto leasing program nationwide in 2017.

MUSA’s business plan is to begin originating new and pre-owned leases strategically in key US major markets, with continued geographic expansion and market penetration over the next two years.

MUSA Auto Finance was founded in 2016 by Jeff Morgan (pictured above), together with Richard Frunzi, president, former co-founder and COO of Exeter Finance.

The company has recently completed the asset purchase of an originations, servicing and collections platform based in Jacksonville, Florida.

Morgan, who also owns Mortgages USA and Internet Auto Group, said: “It has always been a career goal of mine to create an auto finance company that would modernize vehicle leasing and make it accessible to more consumers.

“To be entering into this venture with Goldman Sachs and Crestline Investors sets MUSA on the path to become one of the premier consumer vehicle leasing companies in the US.”

Frunzi added: “Our new funding capacity gives MUSA the ability to build out our infrastructure, and launch our innovative lease program nationally.

“Our lease program greatly simplifies the leasing process, opening doors to dealer personnel that have never offered a lease product before. In addition, our unique product gives customers an option to lease both new and pre-owned vehicles.”

MUSA, which is headquartered in Dallas, Texas and has a servicing/collections center in Jacksonville, Florida, originates its leases from franchised and selected independent dealers and will be expanding its sales team nationwide.

The company expects to be in 25 major markets over the next 12 months and all 48 contiguous states within the next two years.