Go Financial on Thursday stopped accepting new vehicle loans as owners of its parent company, DriveTime Automotive Group Inc., have decided to shift capital to its other core businesses. As a result, Go Financial, which acted as DriveTime’s subprime financing arm, will lay off about 10 percent of its 500 employees.
Just six months ago, Go opened its new headquarters in Mesa, Ariz., and announced it would hire 200 employees in the next two years.
According to Go’s President, Colin Bachinksy, the company was generating profitable loans, but didn’t connect well with DriveTime. The decision, he said, was based not on Go’s profitability, but rather on the parent company’s desire to focus on its other businesses.
Roughly half of Go’s staff will continue to service its current loans, while the others will be reallocated to DriveTime, Bridgecrest Acceptance Co. (a subprime loan servicer) or SilverRock Group Inc. (an auto insurance and vehicle service contract/extended warranty provider).
Go Financial works with 2,800 independent car dealerships in 46 states.
Let us know! Does DriveTime’s decision to close Go Financial impact your dealership?