Also, those who made payments on time could have their down payment refunded, usually 10 to 15 percent of the purchase price. The company allowed people to get Visa credit cards by paying a deposit to Visa. The company prepared tax returns and let people use their expected refunds for down payments. Ugly Duckling arranged financing in several ways. The company had a new source of income-buying installment contracts from other dealers, still considered subprime, but from customers more affluent than Ugly Duckling usually had. In 1994, Ugly Duckling bought Champion Financial Services from Steve Darak, making Darak Chief Financial Officer. Ugly Duckling also tried an experiment in Gilbert, Arizona, selling newer and more expensive cars, but ultimately sold that dealer in 1995. One dealer closed in 1994 because it did not live up to the new image. The company bought three more dealers but added four new ones, giving them an appearance comparable to a standard dealer, rather than the unpleasant look most subprime lots had. Ugly Duckling had two car dealers, one in Phoenix and one in Tucson, by 1992. Later he started Ugly Duckling Holdings, Inc. in 1990 and bought Ugly Duckling's assets. Ultimately, Ugly Duckling filed for bankruptcy in 1989 Ernest Garcia II, who studied business at The University of Arizona in Tucson, and a convicted felon for his role as a straw borrower in the Lincoln Savings and Loan Association collapse, formed Duck Ventures, Inc. By 1985, with the car rental business a major success and companies such as Budget Rent a Car doing well, Duck's company was the number five rental car company in the United States, with 600 franchises. Duck, Sr., retired from selling insurance, started Ugly Duckling Rent-A-Car Corp. History Ugly Duckling ĭriveTime originated as a Tucson, Arizona–based rent-a-car business called Ugly Duckling, which was founded in 1977. 15 on Computerworld's 100 Best Places to Work in IT list in 2015. 5000 list of fastest growing companies after posting $2 billion in revenue and adding 1,192 jobs in 2014. Sister companies spun off from the company include GO Financial, Carvana and SilverRock Group. It also encourages employees to create startup companies. In addition to its headquarters in Tempe, the company has an operations call center in Mesa, Arizona and a collection center in Dallas, Texas. and as of 2015, employs more than 3,800 workers. The company has approximately 138 locations in the U.S. The company is owned by its chairman, Ernest Garcia II, who bought the company then known as Ugly Duckling in 1991, and Ray Fidel, who is its former president and CEO. Approximately 8 percent of cars bought at auction do not pass the inspection process and are not sold through its dealerships. It makes necessary repairs before sending the vehicles to its dealerships. After auction, the company puts the purchased cars through a 14-day inspection at one of its 24 inspection centers. ĭriveTime buys 150,000 cars annually at various auctions. It uses a proprietary credit scoring model to finance car purchases at its dealerships in-house, including subprime lending. The company's business model is focused on selling previously owned vehicles to car-buyers. and 3,800 employees.ĭriveTime is a private company headquartered in Tempe, Arizona. As of 2018, DriveTime had approximately 145 locations in the U.S. It also spun off Carvana and GO Financial, SilverRock Group Inc, and Bridgecrest Acceptance Corporation. The company was formerly known as Ugly Duckling and was renamed DriveTime in 2002. It is based in Tempe, Arizona, and sells and finances cars to customers around the nation. is an American used car retailer and finance company.
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