Financing firm Goeasy Ltd. is buying a minority interest in online used-car retailer Canada Drives, as the sub-prime lender looks to increase its stake in the Canadian auto finance market.
Goeasy announced the $40-million equity investment, coupled with a commercial partnership, June 27. The deal will make Goeasy the “preferred” non-bank financing provider within the Canada Drives online retail platform and give the lender a minority stake in the Vancouver-headquartered used-vehicle seller.
As more Canadians switch to buying vehicles online, Goeasy CEO Jason Mullins said Canada Drives is “well positioned” to be an industry leader.
“Our partnership and investment will help Canada Drives accelerate their growth and allow us to capture an even greater share of the automotive financing market, on our journey to become Canada’s largest non-prime consumer lender,” Mullins said in a release.
Goeasy operates a range of financing services catered toward those with poor or limited credit histories, known as non-prime borrowers. LendCare, the company’s point-of-sale brand that offers financing to consumers on vehicle, powersport and other retail purchases, will be integrated into Canada Drives’ platform as part of the agreement, giving non-prime buyers access to financing. The interest rates offered were not immediately available.
Canada Drives CEO Cody Green said building LendCare into the company’s platform will make the car-buying experience more seamless.
“Our partnership and technology integration with Goeasy will further enable us to grow our inventory, enhance our platform, and improve our financing programs for Canadian consumers looking to buy and finance their car online.”
Founded in 2010 to simplify online vehicle transactions, Canada Drives says it offers transparent pricing, instant trade-in valuations and at-home delivery. It operates in Alberta, British Columbia, Ontario and Saskatchewan.