NXCR and Westlake Financial announce $400 million debt facility
Santa Monica-based vehicle subscription platform NextCar (NXCR) and Westlake Financial have signed a letter of intent to secure a NXCR $400 million debt facility, and to enter into a strategic partnership. Westlake is one of the largest automotive lenders in the US with nearly $12 billion in assets under management, and provides indirect financing through a network of over 20,000 new and used car dealerships throughout the US.
NXCR was launched this past October by Scott Painter in response to COVID-19 and the heightened relevance and expected demand for a Car-as-a-Service (CaaS) mobility model for consumers. “Subscriptions represent an entirely new way to get flexible access to mobility. Having strategic partners like Westlake is one of the building blocks for scaling subscriptions in a profitable way.” – Scott Painter, Founder and CEO of NXCR.
According to NXCR, the $400 million debt facility from Westlake will provide the company with highly flexible and efficient capital to finance subscriptions. The strategic partnership will also provide NXCR with loan and collections services through Westlake, as well as access to Westlake’s dealer network to scale indirect subscription offerings. For Westlake, the partnership with NXCR will also introduce access to a new product line that enables a 100% digital transaction.
“Figuring out how to innovate around our financial products with a known entrepreneur like Scott is an exciting development. We see used vehicle subscriptions similar to how leasing was seen when it was introduced 40 years ago, except the size of the opportunity is much bigger on the used car side and we believe technology and a digitally-driven consumer base will enable much faster adoption.” – Bret Hankey, President of Hankey Group and Vice Chairman of Westlake Financial.
“Partnering with NXCR is an exceptional product market fit that puts Westlake on the frontline of financial services innovation. A flexible mobility option outside the traditional loan or lease that’s affordable and not bound by terms is a highly attractive value proposition for consumers and forward-thinking dealers.” – Ian Anderson, Group President at Westlake Financial.
