AFC Targets More Floor Planning Penetration in Salvage Market and More
CARMEL, Ind. — KAR Auction Services management reiterated a
pledge this week to make Automotive Finance Corp. an even greater resource for independent
dealers with intentions to expand floor planning opportunities for salvage
vehicles as well as motorcycles, recreational vehicles and powersports units.
Chief executive officer Jim Hallett described the plan
during a conference call when KAR discussed its third-quarter performance. Hallett
said the strategy is aimed at leveraging AFC's core competencies into markets
primed for growth.
"AFC does more than just loan money," Hallett said. "They're
providing services to these independent dealers that these dealers aren't
necessarily able to provide for themselves. Many of these services are
administrative services or as we would say back-office services. I think
they've done just a phenomenal job of being able to really build the
relationship and establish a long-term relationship with the independent
dealers."
AFC currently had 104 field offices, many on the same site
as an ADESA or Insurance Auto Auctions location.
The work at those offices helped AFC generate a 17-percent rise
in revenue and an 18-percent increase in gross profit during the third quarter.
The year-over-year jumps pushed the company to post $161 in revenue per loan
transaction — a year-high — within a portfolio that's 99 percent current.
"What can I say? Just an absolutely outstanding performance.
AFC just continues to be just a really good story for KAR," Hallett said.
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