Curtailment Program Provides Dealers with Expanded Flexibility
CARMEL, Ind. – Nov. 9, 2022 – Automotive Finance Company, a business unit of a leading provider of digital marketplace solutions for used vehicles KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), announces more than $2 million in deferred principal payments since launching an industry-leading deferred curtailment program, Principal Pass. The product enhancement provides eligible dealers with the option to pay a $50 fee in exchange for a $0 principal payment at the time of curtailment for eligible vehicles, without a change to their existing financial contracted terms.
“Dealers need flexibility in how and when they put their capital to work. Principal Pass preserves cash flow—empowering dealers with expanded operational flexibility,” said Will Mitchell, chief operating officer of AFC. “We’re proud to offer a simple, flexible and affordable solution to help our customers operate more effectively and are thrilled to see the response from dealers since we launched it a year ago.”
Eligible dealers can quickly and easily enroll at no cost and with no changes to their contracted financial terms by contacting their local AFC branch. Once enrolled, dealers are able to log on to their account at autofinance.com and choose the specific eligible units to which they would like to apply Principal Pass. The program is available in the U.S. for eligible dealers in good standing on non-specialty vehicles with a total flooring value of up to $20,000.
“I love Principal Pass. By letting me skip my principal payment and only pay interest and fees, Principal Pass increases my cash flow a lot,” said Wes Pinson, owner of Amity Preowned and Nashville Preowned in Arkansas. “Along with the freed-up cash, it also gives me more time to get my cars frontline ready.”
AFC helps independent dealers grow their business faster by providing financing for used vehicle inventory. Across the U.S. and Canada, AFC works with more than 12,000 dealers in the retail and wholesale automotive space as well as RV, power sports and commercial truck dealers, salvage buyers and daily rental operators and is accepted as a form of dealer payment at over 1,300 auction sources in the same footprint. References to AFC herein refer to Automotive Finance Corporation and AFC Cal, LLC.
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About KAR
KAR Auction Services, Inc. d/b/a KAR Global (NYSE: KAR), provides sellers and buyers across the global wholesale used vehicle industry with innovative, technology-driven remarketing solutions. KAR Global’s unique end-to-end platform supports whole car, financing, logistics and other ancillary and related services. Our integrated physical, online and mobile marketplaces reduce risk, improve transparency and streamline transactions for customers in about 75 countries. Headquartered in Carmel, Indiana, KAR Global has employees across the United States, Canada, Mexico, Uruguay, Europe and the Philippines. For more information and the latest KAR Global news, go to www.karglobal.com and follow us on Twitter @KARspeaks.
AFC’s Principal Pass Celebrates More than $2 Million in Deferred Principal Payments – KAR Auction Services, Inc. – KAR Global
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