As fun as driving a new—or new to you—car can be, sometimes the hassle of the purchase puts a damper on the whole experience. What if your loan isn’t approved? How embarrassing is that to hear from your salesperson? Makes you want to make a U-turn before you even head to the dealership.
Which is where automotive fintech company Car Capital sits safely in the driver’s seat. The Grapevine-based startup’s fully digital proprietary platform, Dealer Electronic Auto Loan System (DEALS), allows dealer partners to instantly approve 100% of their customers, no matter their credit history.
And now Car Capital, whose $8.8 million Series A funding round we covered last spring, has more good news for consumers and dealers alike: It’s closed a $150 million three-year secured credit facility and a $6.125 million equity investment from funds managed by Fortress Investment Group affiliates.
“We’re very pleased to partner with Fortress, which has a long history of providing capital to fintech and automotive companies,” said Justin Tisler, Car Capital co-founder and CEO, in a statement. “The commitment, both on the debt and equity side of such a respected market participant, is a testament to our business model, team, and market opportunity.”
Will fuel ‘significant and continued’ future growth
Dominick Ruggiero, managing director at Fortress Investment Group, said his company is excited to provide a capital solution that positions Car Capital to achieve significant and continued growth in the future.
“Car Capital has built an exceptional business powered by proven, innovative technology and a business model that delivers substantial benefits to consumers and dealers alike,” he said.
The company, whose aptly named slogan is “drive that deal home,” currently operates in Texas, Florida, Georgia, Illinois, Indiana, Kansas, Missouri, North Carolina, Ohio, Oklahoma, South Carolina and Tennessee—five states more than it did last year–with plans to include 11 states soon and even more in the near future.
Helping dealers sell more cars to underserved consumers
“We saw a need in the market for a technology solution that helps franchise and independent dealers sell more cars to underserved consumers,” Tisler said in a statement last year. “We want our dealer partners’ customers to feel confident when shopping for a car at the dealership that approvals can be available to all. Anyone, no matter their credit situation, should be able to buy a car for personal transportation, particularly during these trying times.”
Car Capital, a wholly owned subsidiary of Car Capital Technologies, Inc., was founded to provide dealers with capital and advanced technology, which in turn helps all consumers buy the cars they need.
Fortress Investment Group, founded in 1998, manages assets on behalf of approximately 1,800 institutional clients and private investors worldwide. The highly diversified global investment manager had around $54.2 billion of assets under management as of last September.
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