Ridero and AFG Partner to Scale Residual-Based Vehicle Lending

The collaboration operates on two distinct tracks designed to simplify the automotive finance landscape. By embedding AFG’s lender programs into the Ridero platform, the companies intend to provide dealers with immediate access to a broader suite of financing options. This integration bypasses traditional administrative hurdles, allowing financial institutions to increase their origination volume without overhauling existing internal systems.

Beyond expanding current distribution, the deal addresses the high barrier to entry for institutions looking to launch leasing products. Historically, lenders have avoided residual-based financing due to the significant cost of building specialized infrastructure and managing residual risk. Through this alliance, banks, credit unions, and captives can now leverage AFG’s residual guarantees alongside Ridero’s technology stack. According to Ridero CEO Brock Thompson, this provides a accelerated path to market, enabling lenders to offer competitive, lower-payment options to borrowers. Richard Epley, CEO of Auto Financial Group, noted that the initiative seeks to democratize access to these financing models, which have long been concentrated among a limited number of industry players.