Braeger Auto Finance Group is benefitting investors, auto dealerships who gain access to adequate capital to grow their business, and individuals seeking to own an auto and build a positive credit profile. It’s a win, win, win.
Milwaukee, WI (PRWEB) March 06, 2014
Braeger Auto Finance Group is inviting individual accredited investors into the world of auto financing. Previously, only hedge funds and institutional investors participated. With an uptick in the economy, consumers of all credit histories are interested in purchasing vehicles. Due to insufficient capital from traditional lenders, auto dealerships can’t keep up with consumer demand, and are looking for financing.
Braeger utilizes http://www.VroomBank.com as its internet investment portal. Interested investors may access the site, set up an account, select a fixed investment: a three, four, or five year note, yielding 7%, 8% or 9% respectively. Investors receive quarterly interest payments.
“We’re seeing strong interest in what we offer. We believe we are offering a safe, sustainable, and simple source of meaningful investments over many alternative fixed income opportunities,” said CEO David Braeger.
Braeger Auto Finance Group CEO David Braeger notes that the timing is right for accredited investors to consider this unique crowdfunded finance model. A recent US Securities and Exchange Commission rule change eliminates prohibition against general solicitations and advertising for certain securities. Consumer delinquencies and credit losses are at historic low levels, non-prime auto default rates are low, and technological platforms offer an easy path for investors to engage.
The National Credit Union Foundation estimates the non-prime auto market at $100 to $200 Billion. “This is an exciting time,” said Braeger. “We’re benefitting investors, auto dealerships who gain access to adequate capital to grow their business, and individuals seeking to own an auto and build a positive credit profile. It’s a win, win, win.”
Investors are gaining an experienced management team. Braeger and COO Gary Bakker have a combined 55+ years of banking and financial services experience. Braeger grew up in the auto dealership business, with the family auto dealership dating back to 1923. Bakker has held senior leadership positions in companies ranging from small software companies to multi-billion dollar international corporations.
Investor monies will flow through an authorized Financial Industry Regulatory Authority (FINRA) broker/dealer. The Braeger management team will perform exhaustive due diligence on capital placed with auto finance companies, including site visits to ensure that only quality dealerships comprise the portfolio. Risk will be spread out across this vetted group of auto finance companies. To date, Braeger has raised more than $4 million, and supports more than $23 million of credit facilities.
Dealerships qualifying for investment are evaluated for demographic attributes including the requirement that the dealer operates its own finance company, resides in a warm climate (year-round buying), portfolio greater than $10 million, and meets standards of third party analysis. One dealership qualifying for a Braeger investment is Drive Away of Houston, Texas. CEO Bill Kellagher says access to capital has allowed them to expand, benefitting the dealership and its customer base.
Braeger Auto Finance Group is truly connecting non-prime auto customers with much needed financing, and providing a unique opportunity for investors to get into the lucrative world of auto dealership financing.