Tuesday, Mar. 31, 2020, 12:36 PM
Ally Financial is continuing to expand its commitments to online-only vehicle retailers as the coronavirus pandemic cripples the economy.
On Monday, Vroom announced a $450 million inventory financing relationship with Ally Financial, broadening the floorplan financing it has provided to Vroom since 2016.
Executives said the new agreement — finalized earlier this month — doubles the total amount of available credit and is Ally’s first fully committed facility to Vroom.
“We’re thrilled to be broadening our financing relationship with Ally, so we can expand our offering of thousands of high-quality, affordable vehicles with delivery straight to customers,” Vroom chief executive officer Paul Hennessy said in a news release.
“Car buyers and sellers are turning to ecommerce solutions more than ever, especially right now, and Vroom is well-positioned as we deliver a seamless online experience,” Hennessy continued.
The expanded relationship with Vroom came on the heels of Ally pledging up to $2 billion to help Carvana originations.
“Ally takes great pride in using our extensive auto experience to find solutions that help support our dealer customers, particularly during this difficult time confronting the country and the auto industry,” said Doug Timmerman, president of auto finance for Ally.
“We’re excited to expand our financing relationship with Vroom to continue supporting the innovative e-commerce company’s inventory acquisition efforts and national growth strategy,” Timmerman continued.