Goeasy acquires $40 million stake in Canada Drives
The finance company Goeasy Ltd. buys a minority stake in online used car retailer Canada Drives, as the venture lender seeks to increase its stake in the Canadian auto finance market.
Goeasy announced the $40 million equity investment, coupled with a business partnership, on June 27. The deal will make Goeasy the “preferred” non-bank finance provider within online retail platform Canada Drives and will give the lender a minority stake in the Vancouver-headquartered used-vehicle dealership. located.
As more Canadians turn 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 its growth and enable us to capture an even greater share of the auto finance market, on our journey to becoming the largest unpreferred consumer lender in Canada,” Mullins said. in a press release.
Goeasy operates a range of finance services for people with poor or limited credit histories, known as non-preferred borrowers. LendCare, the company’s point-of-sale brand that provides consumer financing for vehicle, powersports and other retail purchases, will be integrated into the Canada Drives platform as part of the agreement. , giving non-preferred buyers access to financing. The interest rates offered were not immediately available.
Canada Drives CEO Cody Green said integrating LendCare into the company’s platform will make the car shopping experience more seamless.
“Our partnership and technology integration with Goeasy will allow us to further grow our inventory, enhance our platform and enhance 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 home delivery. It operates in Alberta, British Columbia, Ontario and Saskatchewan.