Take a look at WESTAR (WEST) Great news for the company to be a part of driveoff.com.DriveOff.com Announces Plans for $1 Billion Per Year In Auto Loan and Lease Funding Through First Union and Westar Financial
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June 4, 1999 07:00 AM
DENVER, June 4 /PRNewswire/ -- DriveOff.com Inc., a wholly owned subsidiary of e-business provider Navidec Inc. NVDC , today announced an agreement with Westar Financial Services Incorporated and a letter of intent with First Union Capital Markets Group that will provide up to $1 billion in annual funding for vehicle sales originating from DriveOff.com and its affinity web sites.
"This is a key component in the DriveOff.com strategy," said Michael Kranitz, president of DriveOff.com Inc. "Creating relationships with two of the nation's most innovative and progressive finance sources will give us the power to deliver efficient service and market leading rates."
The letter of intent provides for First Union Capital Markets' support of the venture through a loan purchase arrangement with Westar for up to $1 billion annually. Westar will serve as the financial administrator and underwriter for leases and loans originated by DriveOff.com and its affinity sites. First Union will fund loans, while Westar funds the leases.
"DriveOff.com brings a unique strategy to the business of selling cars through technology and with a focus on customer satisfaction," said Sal Mirran, managing director in First Union's Capital Markets Group. "We are excited about the opportunity to provide funding for their customers."
"As the next evolution for Internet automotive transactions, DriveOff.com will empower consumers and provide them with binding prices and monthly payments that include financing," said R.W. Christensen, Jr., Westar's chairman and CEO.
In a May 25 announcement, DriveOff.com unveiled its plans to launch the next generation auto-buying web site later this summer. DriveOff.com will empower consumers to complete substantially all of their vehicle transaction by visiting the site. Consumers will select and accept a guaranteed vehicle price and monthly payment and even experiment with their deal terms and monthly loan or lease payments by altering aspects of their "DriveOff Deal" including down payment, term length and mileage allowed on leases.
In addition, DriveOff.com's exclusive partnership with the Internet Automobile Dealers Marketing Association (IADMA), provides member dealers with a competitive presence on the Internet. IADMA members will receive incremental sales without paperwork, monthly fees or commissions.
"It's a no-risk proposition for dealers that results in prosperous and ongoing service relationships with new customers," added Kranitz.
DriveOff.com Inc.
Based in Englewood, Colorado, DriveOff.com Inc. is a wholly owned subsidiary of e-business provider, Navidec Inc. NVDC . DriveOff.com Inc. provides the market with world-class auto buying and information web sites including DriveOff.com, USWheels.com, CarWizard.com and LeaseSource.com. Expected to launch this summer, the company's premier web site, DriveOff.com, partners with a national dealer cooperative to allow consumers to complete their entire vehicle transaction by visiting the site. The company's corporate web site is located at driveoff.com.
First Union Corporation
First Union FTU is a leading provider of financial services to more than 16 million customers throughout the East Coast and the nation. At March 31, 1999, First Union had assets of $223 billion and total stockholders' equity of $16 billion. Through its banking subsidiaries, the company operates full-service banking offices in Connecticut, Delaware, Florida, Georgia, Maryland, New Jersey, New York, North Carolina, Pennsylvania, South Carolina, Tennessee, Virginia and Washington, D.C.
Westar Financial Services Incorporated
Westar Financial Services Incorporated WEST is an innovative, fast-growing, Washington-based automobile financing company. It has focused solely on the prime-credit segment for the $110 billion auto-lease finance market and has completed nine securitizations of auto lease receivable certificates for the prime credit market. WEST is the only publicly traded automobile lease finance company focused solely on this huge market.
All statements in this press release, other than historical facts, are forward looking statements. These statements are based on certain assumptions and analyses made by Navidec in light of its experience and its perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. Such statements are subject to a number of risks and uncertainties, including general and economic business conditions, demand for automobiles, competition from other automotive online services, market acceptance of the Company's online automotive solutions, the ability of Navidec to reach agreements with local media partners and other risk factors indicated from time to time in Navidec's filings with the Securities and Exchange Commission. Those filings are available online at www.freeedgar.com.
SOURCE DriveOff.com Inc. |
