Solera's "captive-like" indirect lending program Solera Auto Finance has spread quickly, growing from fewer than five dealerships in April to nearly 2,300 by the end of July.
"There's been a really good reception to our product," Solera Auto Finance CEO Kenn Wardle told Automotive News last week in an update on the business. He also expressed confidence that discipline in payment-to-income ratios would allow the lender and its consumers to weather inflation.
Solera Auto Finance has expanded geographically faster than anticipated. When Solera announced the auto finance lender in March at the NADA Show, it expected the initiative to reach about 20 states by the end of 2022. As of Aug. 2, the lender had spread to 39 states, according to Wardle, who said he thought his company could potentially reach all 50 states by the end of the year.
Wardle said Solera had received "such a really strong reception" at the NADA Show that it recognized the need in the marketplace and decided, "Let's just see what we can do."