Less than a year after AutoNation Inc. acquired auto finance company CIG Financial, the dealership giant is narrowing the division’s focus to its own stores.
AutoNation’s Aug. 31 letter to independent dealer customers said it would end credit application processing with independent dealers as of Sept. 1. Moving forward, the company will concentrate its lending business solely on its franchised stores and its standalone AutoNation USA used-car business.
Jeffrey Butler, president of AutoNation Finance (CIG Financial’s new name), said the division’s move to focus fully on AutoNation-specific dealers was always part of the long-term plan.
“The progress made to date has now put us in a position to expand and accelerate the integration across more of our dealerships and markets,” Butler told Automotive News in a statement. “To facilitate this, we are increasingly focusing AutoNation Finance’s resources on our stores. This was the notification to our independent dealers and is consistent with the intent of the acquisition a year ago.”
AutoNation, based in Fort Lauderdale, Fla., stressed in its letter to dealers, however, that it would honor “all valid issued approvals before the expiration dates listed on each.”
As well, dealers’ representations and warranties in AutoNation Finance/CIG’s Dealer Agreement will continue for all contracts it purchased from dealers, the company said.
AutoNation bought CIG Financial in October 2022 for $85 million.
AutoNation ranks No. 2 on Automotive News‘ most recent list of the top 150 dealership groups based in the U.S., with retail sales of 229,971 new vehicles in 2022.
