Ridero and AFG Partner to Scale Residual-Based Auto Financing
Ridero and AFG have formed a strategic partnership aimed at expanding residual-based vehicle financing and leasing across new and used vehicles.
Ridero, a technology platform focused on vehicle leasing infrastructure, and AFG have announced a strategic partnership designed to broaden access to residual-based vehicle financing, the companies said Monday in New York.
Under the arrangement, the partnership is expected to drive incremental loan originations through AFG's existing lender programs, giving financial institutions a pathway to launch and scale leasing operations across both new and used vehicle segments.
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The deal reflects a growing industry push to bring leasing — long dominated by captive automaker finance arms — to a wider range of lenders. Residual-based financing structures tie monthly payments to a vehicle's projected future value, often resulting in lower payments compared with traditional installment loans.
By leveraging Ridero's technology infrastructure, participating lenders would gain tools to underwrite and manage lease portfolios without building proprietary systems from scratch, a barrier that has historically limited non-captive lender participation in vehicle leasing markets.
The financial terms of the partnership were not disclosed. Continue reading at All Financial Services & Investing.
