DALLAS, Sept. 01, 2022 (GLOBE NEWSWIRE) -- Tricolor today announced the opening of its new state-of-the-art mega reconditioning center in Wilmer, Texas, south of downtown Dallas. The 200,000 square foot indoor facility and adjacent 12-acre parking facility employs more 200 people and accommodates 200 service bays, a full paint and body center, and an automated car wash at scale. The facility is designed to be environmentally friendly, utilizing water-based paint, waste material recycling, and air monitoring features.
“Our unique, integrated model allows us to execute a full end-to-end solution that meets the mobility demands and affordability needs of the Hispanic consumer, many of whom require dependable transportation for survival,” said Daniel Chu, founder and CEO of Tricolor. “This substantial investment in our reconditioning infrastructure will enable us to scale the delivery of unprecedented value to our customers.”
As part of its overall value proposition, Tricolor performs a 150-point inspection, invests an average of $2,200 in every vehicle, and provides each purchaser with a free 18 month/18,000 mile limited warranty on the vehicle’s major components.
“Given today’s macro environment, as the burdens of high inflation impact the financially vulnerable, managing vehicle quality allows us to mitigate major mechanical issues, which can be devastating for a low-income borrower,” continued Chu.
Tricolor has more than doubled its origination volume over the past two years, as well as doubled its market share over the past three years. Only CarMax and Carvana sell more used vehicles than Tricolor in Texas.
During that same span, as a result of its focus on expanding financial inclusion to the underserved, Tricolor became the first ever lender in the United States to issue a social bond collateralized by consumer auto asset backed securities (ABS). This designation furthers the company’s mission to empower underserved, low-income communities and provide them with improved access to mainstream financing that ultimately allows them to build a better future.
Meeting the Needs of Underserved Hispanics
The more than 59 million Hispanics in the United States would collectively rank as the eighth largest economy in the world. Yet, according to the FDIC National Survey of Unbanked and Underbanked Households, 32% of this US Hispanic population has no or limited access to mainstream credit.
According to the US Bureau of Labor Statistics, over 80% of the workforce growth in the US over the last dozen years can be attributed to the Hispanic population, yet fewer than one in six Hispanics in the US can work remotely.
Tricolor uses artificial intelligence (AI) and nearly 15 years of proprietary customer insights and with over 25 million unique non-traditional credit attributes to unlock financially inclusive opportunities for low-income, credit invisible Hispanics left behind by mainstream financial providers. To date, Tricolor, a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI), has disbursed over $2 billion in affordable auto loans as part of its mission to empower underserved Hispanics and provide them a path to a better future through both physical mobility and upward financial mobility.
Tricolor has now completed eight well-received ABS transactions and is the only issuer in all of subprime auto ABS with loans primarily backed by no-file or thin file borrowers. The Company issued its first securitization in July 2013. In September 2021, Tricolor closed a $90 million convertible preferred equity investment from funds managed by BlackRock.
Tricolor has been routinely recognized for its important work supporting consumers, including being named the winner of the Excellence in Financial Inclusion Award at the 2022 LendIt Fintech Industry Awards as well by the Finovate Awards and Auto Finance News.
This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
For more information about Tricolor, please visit tricolorholdings.com and tricolor.com.
About Tricolor
Tricolor is a U.S. Department of the Treasury certified Community Development Financial Institution (CDFI) and a mission-driven company that leverages its direct-to-consumer, A.I.-powered platform to provide transportation and upward financial mobility solutions for underserved Hispanics in the United States. It utilizes advanced data analytics and technology to advance financial inclusion to a highly underserved market and offer responsible, affordable, credit-building auto loans to individuals with no or limited credit history.
Headquartered in Dallas, Texas, Tricolor and its affiliate Ganas Auto Group operate 50 retail centers across 20 markets in Texas, California, Nevada, and Arizona with a shared services center in Guadalajara, Mexico. On a combined basis, Tricolor and Ganas have served over 90,000 customers and disbursed over $2 billion in affordable auto loans using their proprietary model to segment risk.
CONTACT INFORMATION
Stephanie Hicks
Cosmo PR for Tricolor
(805) 295-9455
stephanie@cosmo-pr.com
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/55824096-cfda-4d9a-af5b-17c35f602cf5
