Add Row 
Add 
Add Row 
Add Element 
Significant Transformation in Subprime Auto Financing
Since its acquisition by Obra Capital, Arra Finance has been making waves in the subprime auto finance market. Just seven months into the transition, the company reports remarkable advancements in its operations, including innovative platforms and user-friendly processes that are enhancing dealer relationships and benefiting consumers.
Access to Capital and Technological Innovations
Backed by Obra Capital, Arra Finance has significantly improved its operational capabilities. The combination of scalable originations, a proprietary scorecard, and a comprehensive data warehouse has streamlined the process for dealers, enabling quicker underwriting and faster funding of retail installment contracts. Dealers are now receiving decisions on credit applications in an astonishing average of under nine minutes.
The quick turnaround isn’t just a boast; about 20% of the retail installment contracts are being cashed the same day that the funding package is submitted. The overall efficiency means that on average, contracts are being funded within just three days of receipt, which is a crucial advantage for dealerships managing their cash flow.
Dealer Testimonials Highlighting the Change
Feedback from dealers underscores the positive impact these advancements have had. Thomas Diggs from Ricart Chevrolet Buick GMC praised Arra Finance for its willingness to support both the dealer and the consumer. “Arra has demonstrated a refreshing willingness to find a way to put a deal together… in a way that protects our dealership, as well as our portfolio,” he noted.
Market Needs and Future Aspirations
Blair Wallace, president and CEO of Obra Capital, expressed confidence in Arra's potential to address the needs of the auto finance market. The scalable nature of Arra’s platform, bolstered by Obra’s financial backing, positions the company to expand and better serve dealers across the country. Both organizations focus on quality underwriting and solutions that ensure long-term success for subprime car buyers.
Holistic Approach to Financing Solutions
Kenn Wardle, CEO of Arra Finance, emphasized the need for a dealer-focused origination process that merges technology with the personal touch of experienced professionals. The goal is to optimize the car-buying experience for consumers, particularly in underserved market segments. By refining their financing solutions, Arra aims to enhance affordability for car buyers, ensuring they can navigate through credit challenges effectively.
Conclusion: Why the Auto Industry Should Pay Attention
The rejuvenation at Arra Finance reflects significant trends in the subprime market and sets the stage for a broader transformation in how auto financing can be approached. As the company continues to expand and implement these innovative strategies, dealerships and consumers alike stand to benefit from improved accessibility and enhanced decision-making processes. For those involved in the auto financing landscape, keeping an eye on Arra's evolution could prove invaluable.
Write A Comment