KAR Auction Services Inc.

05/12/2020 | Press release | Archived content

AFC Customer Relief Program Defers More than $84 million in Curtailment Payments for Customers

While social distancing becomes the new norm, AFC remains dedicated from a distance to support customers in need during COVID-19

Automotive Finance Corporation (AFC), a business unit of global vehicle remarketing and technology solutions provider KAR Auction Services Inc., d/b/a KAR Global (NYSE: KAR), announces more than 10,000 customers have taken advantage of the company's customer relief program. AFC introduced the program to customers on March 24, 2020 to support independent dealers as they navigate the economic impact of COVID-19. In the first month of the program, AFC has deferred more than 117,000 payments totaling over $84 million.

'Now more than ever, our dealers - the small businesses that make up the backbone of our economy - need our support and compassion,' said AFC President Jim Money. 'Without consumers visiting lots, dealers are especially susceptible to economic hardship. We view every dealer relationship as a long-term partnership, so we're committed to doing what we can to help them through the short-term challenges they're experiencing right now.'

AFC launched the customer relief program to support dealers experiencing business challenges due to the economic downtown related to COVID-19. Reduced consumer demand for retail used vehicles has extended the length of time floorplanned vehicles remain on dealership lots. As a result, AFC has extended its payment terms and given eligible customers the option to make no payments on any new or existing unsold eligible vehicles through May 31, 2020. Customers have applauded AFC for the quick response and support through the current economic hardships.

'AFC's Customer Relief Program came right on time to help lower payments when business income went down,' said George Bechara, owner of Sky Leasing and Rental in San Antonio, Texas. 'This program is a big deal and is helping us keep our doors open for business.'

Throughout this pandemic, AFC's local branch teams have been in active communication with their customer base to ensure their challenges are heard, understood and considered. 'We care about the wellbeing of our customers, their business and their livelihood. Our local teams understand the regional market conditions and check-in regularly to ask how we can help,' said Money. 'Though we miss the personal interaction, this crisis has only reinforced our commitment and dedication to our customers.'

As an additional resource for dealers, AFC launched a dedicated COVID-19 webpage and phone line to provide information about government and community resources, such as available loan and wage subsidy programs. For relief program details and resources, visit https://www.autofinance.com/covid-resources/.

'Small businesses like mine are in a more comfortable position now because of AFC,' said Avi Porat, owner of DSA Motor Sports in Long Island, N.Y. 'AFC's customer relief program helped me hold cash flow, preparing for the unknown ahead.'

While AFC remains dedicated from a distance, customers are encouraged to temporarily conduct all regular transactions on AFCDealer.com or the AFC On the Go mobile app. AFC's online solutions make it easy to access the services customers value the most, including making payments, flooring units and viewing valuable inventory management reports.

AFC helps independent dealers grow their business faster and easier by providing financing for used vehicle inventory. With more than 120 locations in North America and a robust digital platform, AFC fuels the entrepreneurial dream - helping entrepreneurs grow and succeed.