agent Entrepreneur logo
MenuMENU
SearchSEARCH

Prestige Financial Seeks Out Dealer Relationships as It Returns to Growth

June 1, 2010
2 min to read


SALT LAKE CITY — After making some tough decisions and pulling back on loan volumes approved and dealer relationship numbers, Scot Seagrave, of Prestige Financial, said the company is ramping back up and reaching out to more dealers. The plan is to double originations this year, SubPrime Auto Finance News reported. Prestige Financial currently funds about $8 million in auto loans a month and is looking to maintain $15-$20 million a month for the rest of the year. The company hit a high of $40 million a month in 2007 and dropped to $3 million in 2009. "When the year started we were down to 200 dealerships that were actively submitting applications to us," Seagrave explained to SubPrime Auto Finance News. "Unfortunately, we had to make some tough decisions over the last few years and stop doing business with quite a few dealers due to financing constraints. However, we have added about 150 stores in the last 90 days and are looking to add to that number throughout the year. We believe it will take quite a few more dealerships than it did in the past to accomplish the same amount of volume." Helping to drive this growth is a $150 million securitization deal reached in December. Discussing this deal and the capital markets as a whole, Seagrave said, "In a way, our December securitization really marked the end of the ABS (asset-backed securities) drought for subprime auto, in that it was only the second deal in about a year and a half to succeed without relying on the government's Term Asset-Backed Loan Facility program or a third-party insurance policy. There's been a lot of ABS auto activity so far this year, including several sizable subprime deals that have gotten attractive prices. "During the downturn, subprime auto, for the most part, outperformed many other securitized asset classes, as well as the market's expectations. So it proved to be very resilient, even during difficult times," he continued. "As a result, what we're seeing now is increased investor confidence in subprime auto, and with yields so narrow on prime securitizations, investors who are wanting a little more bang for their buck are looking to subprime auto as a place to put their money — even some investors who might not have considered the space a few years ago." While he clarified that this doesn't mean that money is flowing at the same levels as it was in 2006 and 2007, he said subprime lenders who have "earned their stripes" can now access liquidity.

More Industry

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...