Ridero, AFG Partner to Scale Residual-Based Auto Financing
Ridero and AFG have formed a strategic alliance aimed at expanding residual-based vehicle financing and leasing across new and used cars.
Ridero, a technology platform focused on vehicle leasing infrastructure, has entered a strategic partnership with AFG to broaden access to residual-based vehicle financing, the companies announced Monday from New York.
Under the agreement, the collaboration is designed to generate incremental loan originations by leveraging AFG's established lender programs, while simultaneously giving lenders a framework to launch and scale leasing operations across both new and used vehicle segments.
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The partnership addresses a recognized gap in the auto finance market, where residual-based products — common in traditional lease structures — have historically been concentrated among a limited set of large captive lenders. By combining Ridero's technology infrastructure with AFG's lender network, the two companies aim to open that model to a broader pool of financial institutions.
For lenders, the arrangement could lower barriers to entering the vehicle leasing space, enabling institutions that previously lacked the operational capabilities or residual-value expertise to compete in a segment that has long been dominated by manufacturer-backed finance arms.
The terms of the partnership were not disclosed. Continue reading at All Financial Services & Investing.
