Ally Financial will commit $750 million to finance retail contracts for used-vehicle retailing giant DriveTime this year, the lender said Wednesday.
"We're excited to work with DriveTime to provide committed financing that frees up capital it can use to grow its business,'' Tim Russi, president of auto finance at Ally, said in the statement. "Our expertise allows us to support DriveTime in a way that complements our well-established indirect model."
DriveTime is the second-largest retailer focused only on used vehicles, according to the statement. In early 2017, Ally agreed to finance up to $600 million in retail contracts for online used-vehicle retailer Carvana. In November, Ally committed $2 million to Carvana's finance retail contracts until November 2018.
The agreement will also propel DriveTime's expansion into the near-prime segment, the statement said.
"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,'' Kurt Wood, chief financial officer of DriveTime, said in the statement.
