National Auto Finance and Nuvell Sign Agreement Extension
10 April 2000
National Auto Finance Company, Inc. and Nuvell Credit Corporation Sign Flow Program Agreement Extension
JACKSONVILLE, Fla.--April 7, 2000--Installment Sale Contracts to Nuvell--
National Auto Finance Company, Inc. (OTC: NAFI), a non-prime auto finance company based in Jacksonville, Florida, today announced that Nuvell Credit Corporation has agreed to extend the flow program it previously established with NAFI through December 31, 2000. The program, which began in February 2000, provides for the origination by NAFI of motor vehicle retail installment sale contracts from dealers with whom NAFI has relationships, and the subsequent sale of such contracts to NuVell. NAFI continues to service all contracts sold to Nuvell.
In another development, NAFI announced that it sold to Nuvell approximately $47 million of motor vehicle retail installment sale contracts for which NAFI will retain servicing. The proceeds of that sale paid off in full the outstanding balance of NAFI's warehouse facility with First Union National Bank.
"We are gratified by Nuvell's confidence in NAFI to extend our initial 90-day program," said Keith Stein, NAFI's Chairman and Chief Executive Officer. "The program has been working well, and we have every reason to believe it will continue to be successful for both parties given the processes and personnel we've committed to it."
Nuvell Credit Corporation President Tom Pritchard said his company's decision to extend the program and acquire in bulk the $47 million of installment sales contracts made good business sense. "NAFI has proven to be an able partner in this venture. After a careful review of the flow program, our confidence in NAFI's ability to originate motor vehicle retail installment sale contracts through its network of dealers and efficiently service these contracts prompted Nuvell to further the program and extend our relationship beyond the initial 90-day pilot period."
According to NAFI President and Chief Operating Officer Bill Magro, NAFI has experienced a significant increase in the number of loans originated through its flow arrangement with Nuvell. "Our dealers have responded with vigor since the introduction of the program, and contract volume has reached its highest monthly level since April 1998," he said.
Added Magro: "I also want to point out the fact that the success of this program is attributable to the trust our dealers have in NAFI to provide the credit financing options needed and to quickly fund each eligible loan."
National Auto Finance Company, Inc. is a specialized consumer finance company engaged in the purchase and servicing of automobile loans primarily originated by manufacturer-franchised automobile dealers for non-prime consumers. The company markets its products and services to dealers through the efforts of its direct sales force and through strategic referral and marketing alliances with financial and other institutions that have established relationships with dealers. NAFI has active contractual relationships with approximately 1,200 dealers in 35 states.
Except for the historical information contained herein, this news release contains statements that are forward-looking statements within the meaning of applicable federal securities laws and are based upon the Company's current expectations and assumptions which are subject to a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. Primary factors that could cause actual results to differ include the availability of financing on terms and conditions acceptable to the Company, the ability of the Company to fund its finance contracts on terms and conditions acceptable to the Company, and changes in the quality or composition of the serviced loan receivable portfolio. Certain of these as well as other factors will be described in more detail in the Company's Annual Report on Form 10-K for the year ended December 31, 1999, and in certain other reports filed by the Company with the Securities and Exchange Commission.