Ridero, AFG Partner to Scale Residual-Based Vehicle Financing
Ridero and AFG have formed a strategic partnership to expand residual-based vehicle financing and leasing across new and used cars.
Ridero, a technology platform focused on vehicle leasing infrastructure, and AFG have announced a strategic partnership aimed at broadening residual-based vehicle financing options for lenders and consumers alike, the companies said Monday.
Under the agreement, the partnership is designed to drive incremental loan originations through AFG's established lender programs while simultaneously giving lenders the tools to launch and scale leasing operations covering both new and used vehicles — a segment that has historically seen limited leasing penetration compared to new-car markets.
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The collaboration positions Ridero's technology infrastructure at the center of the expansion effort, enabling lenders that currently lack leasing capabilities to enter the market more efficiently. Residual-based financing, which anchors monthly payments to a vehicle's projected end-of-term value rather than its full purchase price, typically results in lower monthly costs for consumers and can broaden credit access.
The deal reflects broader momentum in the auto finance sector toward diversifying beyond traditional installment loans, as rising vehicle prices have pushed monthly payments higher and prompted lenders to explore alternative structures that improve affordability without sacrificing portfolio performance.
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