West Coast companies team up to target non-prime auto lending

First Associates Loan Servicing, a third party loan and lease servicer in the automotive and powersports finance industries, has teamed up with Crediauto Financial, a company that provides auto financing solutions to franchise and independent car dealers in California, in a bid to develop new options for potential buyers with poor credit history.

Based in San Diego, Crediauto specializes in providing auto loan financing to individuals with limited or non-existent credit history and those with less-than-perfect credit. Crediauto has particular expertise in understanding and serving the needs of the Hispanic auto purchase market. The company recently completed a capital facility which provides for up to $75 million to facilitate the acquisition by Crediauto of non-prime automobile financing contracts.

Crediauto says it uses a specially designed underwriting model that goes beyond credit scores by evaluating a number of factors to determine credit worthiness. The company helps auto dealerships across California grow sales and expand their customer base by providing them with a competitive choice to finance non-prime car buyers, including those who may have been excluded from traditional lending channels.

“We are very excited to partner with First Associates.” said Rafael Gomez, president and CEO of Crediauto Financial. “First Associates’ great leadership, highly-trained and experienced staff provides the high-touch levels of service that helps us build strong, long-term relationships with our clients.”

“We look forward to partnering with Crediauto Financial,” said First Associates Loan Servicing CEO David Johnson (pictured above). “Their innovative approach to credit decisioning expands much needed financing opportunities to traditionally underserved borrowers, providing them with the independence and flexibility that comes with car ownership.”

First Associates has more than 25 years of industry experience in the consumer finance industry and has partnerships with many leading automotive and powersports financing companies. In addition to loan and lease servicing, the company offers support services, such as backup servicing, contract validation, verification calls, and title management.