Ridero and AFG Partner to Scale Residual-Based Auto Financing
Ridero and AFG have formed a strategic partnership to expand residual-based vehicle financing through existing lender programs and new leasing channels.
Ridero, a technology platform focused on vehicle leasing infrastructure, and AFG have announced a strategic partnership aimed at broadening residual-based vehicle financing across both new and used car markets, the companies said Monday.
The agreement is designed to generate incremental loan originations by routing activity through AFG's established lender programs, while simultaneously giving lenders the tools to launch and grow leasing operations they may not currently offer.
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The partnership targets a segment of the auto finance market that has traditionally been dominated by captive lenders tied to major manufacturers. By combining Ridero's leasing technology stack with AFG's lender network, the two companies are positioning independent lenders to compete more directly in residual-based financing — a structure in which the vehicle's projected end-of-term value drives monthly payment calculations.
Residual-based financing, most commonly associated with consumer leasing, has gained renewed attention as vehicle affordability pressures push buyers to seek lower monthly payments. Extending this model to used vehicles, as the partnership intends, represents a less conventional application that could open additional origination volume for participating lenders.
Neither company disclosed financial terms of the agreement or specific volume targets at the time of the announcement. Continue reading at All Financial Services & Investing.
