Ridero, AFG Partner to Scale Residual-Based Auto Financing
The two firms will work together to grow vehicle lease originations and help lenders launch leasing programs across new and used cars.
Ridero, a technology platform focused on vehicle leasing infrastructure, and AFG have announced a strategic partnership aimed at expanding residual-based vehicle financing across the United States, the companies said Monday.
Under the agreement, the collaboration is designed to drive incremental loan and lease originations through AFG's existing lender network while simultaneously giving those lenders the tools to launch and grow leasing operations for both new and used vehicles.
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The partnership addresses a segment of auto finance that has historically required significant capital and operational infrastructure to enter. By combining Ridero's technology layer with AFG's established lender relationships, the two companies are positioning themselves to lower those barriers and bring residual-based financing to a broader set of institutions.
Residual-based financing, which includes traditional leasing, ties monthly payments to a vehicle's projected future value rather than its full purchase price — typically resulting in lower monthly costs for consumers. Expanding access to such programs through lenders that previously lacked leasing capabilities could increase competitive options in the auto finance market.
Terms of the partnership were not disclosed. Continue reading at All Financial Services & Investing.
