San Diego-based LEAP Financial has announced that its lack of capital is forcing it to stop originating leases. The company that makes its living by offering subprime vehicle loans to help drivers either hold on to their present vehicle, or purchase or lease a new one.
Talking about this unfortunate decision, LEAP Financial CEO Tim Condon said, “We have not grown our volumes as quickly as we originally targeted due to low auto loan default rates and high used-car prices for repossessed vehicles. We still believe, however, that the consumer demand exists and that this will be an effective loss mitigation tool for lenders. Attracting capital with a unique model in a specific niche has been difficult.”
Condon continued, “Hopefully, LEAP’s innovations have added to the industry dialogue on how best to deal with auto loan modifications and repossessions.”
via Auto Finance News.