CENTRIX Financial to Become 'Official Auto Finance Company of NASCAR'?
CENTENNIAL, Colo., April 5 -- CENTRIX Financial, a financial management and services firm, today announced it will become the "Official Auto Finance Company of NASCAR," beginning with the 2004 season. Under the multi-year agreement with NASCAR, CENTRIX's official status will extend over all NASCAR series, including the NASCAR NEXTEL Cup series, NASCAR Busch series, NASCAR Craftsman Truck series and NASCAR Dodge Weekly series. Terms of the agreement were not disclosed.
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CENTRIX also announced that it is in discussions with two undisclosed NASCAR NEXTEL Cup teams to take a significant associate sponsor position for the remainder of the season. The company will also support Drive for Diversity, a program which identifies and develops Black and Hispanic drivers and crew participants.
CENTRIX chose to pursue sponsorship with NASCAR after determining that the sport provided the best platform for the Company to introduce long planned for business initiatives. Coinciding with the launch of its NASCAR relationship, CENTRIX will begin a staggered roll-out of its expanded consumer-focused initiative in both auto dealerships and on the Internet through sites including nascar.com and centrixfinancial.com. The Company will also launch an updated program aimed at current and future financial partners.
The NASCAR relationship joins the CENTRIX Financial Grand Prix of Denver, the CENTRIX Financial Ultimate Baja Challenge and Team USA at the Race of Champions Nations Cup in CENTRIX's motorsports portfolio.
Robert E. Sutton, CENTRIX Financial Chairman and Chief Executive Officer said, "Motorsports play a pivotal role in our business. Winning on the racetrack requires teamwork, accountability, technology and the ability to analyze and manage risk -- these are the same qualities that underpin CENTRIX and our business. In addition, an association with NASCAR, one of the world's premiere motorsports series, bolsters our ties to the greater automotive industry."
Brett Yormark, Vice President of Corporate Marketing for NASCAR, said, "As NASCAR continues to diversify our base of sponsors, financial services represent a significant growth opportunity. We are pleased to have a partner who truly understands our sport and whose support will touch NASCAR at many levels, including at the grassroots and in helping to diversify our base of participants on the race track."
A History of Partnership
At the heart of CENTRIX Financial's innovative approach to auto financing are the partnerships it has forged. After being purchased by Sutton in 1997, the Company launched a new business model that brought together nearly 200 financial institutions and 7,000 auto dealerships to provide consumers with fair, efficient auto financing. For financial institutions, CENTRIX has developed a proprietary risk management and insurance model that helps to manage risk while creating substantial and consistent returns. Dealers benefit from CENTRIX's efficiency and ability to generate new consumer traffic.
Sutton said, "NASCAR's community of businesses provides an outstanding way to strengthen our current relationships while adding new ones to the mix. As we sought the best avenues to expand our reach into the automotive industry, we kept coming back to NASCAR."
Central to CENTRIX's growth plans is expanding its ties to the automotive and finance industries. To further that initiative, the Company has designed a program to help build CENTRIX's business with new financial institutions, including a number of NASCAR sponsors, as well as to strengthen its relationship with key current partners. Details of this new program will be announced shortly.
Building Ties to Consumers
While developing its programs in the consumer arena it became clear to CENTRIX that NASCAR presented the best possible vehicle for both reaching out to consumers and driving business to CENTRIX's partners.
It is also clear that CENTRIX and NASCAR speak directly to the same audience. Sutton said, "CENTRIX and NASCAR are both engaged in the process of peeling back layers of stereotype and misinformation to reveal the true nature of our core consumer bases. In the end, we are both reaching out to the same people -- successful, middle class families who own cars, and more often than not, have two incomes."
CENTRIX is in the auto finance business and specializes in providing auto loans to the credit-challenged, which represent in excess of 40% of American public. Said Sutton, "Personal financial and credit health are constantly in flux, and attending to their needs is just as important as addressing issues of physical health. The reality of our economy over the last 15 years is that living costs have grown at a far faster rate than income. When you throw in the unexpected -- healthcare, divorce, unemployment -- it is no wonder that non-standard credit is quickly becoming the new standard."
In developing its direct-to-consumer program, CENTRIX focused on both helping consumers recover their credit standing and on developing loyalty between the consumer and the auto dealer. This first in the industry program is designed to drive traffic to CENTRIX endorsed dealerships that will be trained to understand and manage the needs of CENTRIX customers. These dealers will also provide consumers incentives to maintain their vehicles through the dealership they purchase from, creating a mutually beneficial relationship between dealer and consumer. The program will provide consumers with a seamless "CENTRIX experience," allowing a rewarding ownership experience, while delivering dealers long-term customers who come back to them first when their credit is repaired.
CENTRIX plans a staggered roll-out of this program through key dealerships, such as those in the Sonic Automotive, AutoNation, Bill Heard, Lithia and Van Tuyl groups among others, over the course of 2004. The dealership presence will be supplemented through a consumer web profile on sites such as nascar.com and centrixfinancial.com.
Continuing Development
CENTRIX will utilize the first year of its NASCAR sponsorship to lay the groundwork for its continuing expansion and will be mostly focused on growing business-to-business opportunities. The Company expects to build its presence at NASCAR events and on the track throughout its program.
Said Sutton, "This relationship is just at its beginning stages, and we can already see the tremendous potential it holds. We look forward to a long and fruitful relationship for all involved."
About CENTRIX Financial, LLC
Founded in 1990, Denver-based CENTRIX Financial's unique Special Auto Finance programs have helped to put over 100,000 vehicles on the road in the last five years alone. In 1998, the Company's CEO, Robert E. Sutton, introduced a new business model that was designed to address the shortcomings in traditional approaches to the special finance market. CENTRIX is leading the evolution of the auto finance industry. For financial institutions, the Company's programs have brought a previously unknown level of security and profitability to the $200 billion special auto finance lending industry, while helping auto dealers find new ways to reach out to a clientele that represents more than 40% of their potential market. Just as importantly, CENTRIX is providing an underserved consumer group the keys to new opportunities at competitive financing rates and with professional service. Today, CENTRIX provides services across the country through agreements with nearly 7,000 dealerships, has nearly 700 employees and is managing a $1.5 billion loan portfolio.
For further information, please contact: Brandon Borrman, Corporate Communications of CENTRIX Financial, +1-303-225-3585, bborrman@centrixfinancial.com; or Andrew Giangola of NASCAR Business Communications, +1-347-236-2094, agiangola@nascar.com.
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