Used Car Dealerships Expected to Benefit from Automakers’ Elimination of Auto Lease Programs, CEO of GDNAuto Says

WHAT

With the economy staggered by the mortgage credit crisis, recent announcements by the “Big Three” automakers that they are dropping or limiting popular auto leasing programs is pushing budget-conscious consumers to their local used car dealer – not only for automobiles but for an expanding array of financing options.

More and more used car dealerships are taking steps to benefit from this trend and also manage the attendant financial risk, says Mike Sheridan, founder of Global Debt Network Automotive (www.gdnauto.com), the first nationwide online auto loan portfolio transaction platform. GDNAuto helps dealers and lenders manage their portfolio risk by streamlining the packaging, pricing, due diligence, closing and funding of packages of asset-backed auto loans.

Mike Sheridan, founder & president of GDNAuto, is available to comment on the trend by new-car manufacturers away from leasing programs and how this may force more consumers to look to local used car dealerships both automobiles and auto financing products that meet their needs and their pocketbooks. Sheridan also can address how dealerships can effectively leverage this trend and grow their top line by managing their auto loan portfolio risk.

“The move away from new-car leasing programs is expected to drive increasing numbers of budget-conscious car-buyers to used car dealerships for both a high-quality used vehicle and the financing to purchase it. As buyers flock to these dealerships, the challenge for used car dealers is to expand their inventory and the range of financing options they can offer their new customers while streamlining their auto lending operations.”

Based in California with offices in Alamo, Calif. and Los Angeles, Global Debt Network, Inc. is a privately held company that simplifies auto finance by offering GDNAuto, the first nationwide online loan portfolio marketplace where automobile dealers, banks, credit unions, hedge funds and other financial institutions can come together to securely evaluate, price, sell and purchase whole auto loan debt.

Mike Sheridan, Founder & President

Before launching GDNAuto earlier this year, Sheridan served as director of Finance at Management Partners Leadership Committee; senior associate at Growth Management Partners; partner at Blue Water Ventures LLC; and partner at Venature LLC.

GDNAuto operates much like a secondary market by linking auto dealerships with investors who purchase seasoned auto loans and by bringing efficiencies to the transaction process.

Benefits for auto dealers: GDNAuto provides auto dealers with a fast, efficient way to sell the auto loans they originate to financial institutions and other portfolio buyers. GDNAuto is free to apply and list portfolios once membership is accepted. Our low-cost model allows dealers to operate more profitably by improving cash flow and providing the liquidity they need to purchase inventory and fund daily operations. With GDNAuto, dealers can do it all – including contracting, closing and funding – while protecting the security of confidential borrower and dealer information. GDNAuto’s transaction team helps dealers list their portfolio for sale making it even easier to get access buyers.

Benefits for financial institutions and investors: GDNAuto also enables financial institutions and other investors to evaluate and purchase loan portfolios from auto dealers around the country. Financial institutions can perform due diligence, write a contract, close and fund a transaction without ever setting foot in a dealership. Financial institutions can also participate on GDNAuto as sellers to access new portfolio buyers. GDNAuto is free to apply and sellers only pay our transaction fee once a portfolio is sold.

Benefits for consumers: With credit standards tightening in response to the sub-prime mortgage situation, more car buyers are driven to seek financing from their automobile dealer. GDNAuto opens the door for automobile dealers to finance more loans to consumers by helping dealers free-up cash.

HOW

To schedule an interview with Mike Sheridan of GDNAuto, contact:

Ken Greenberg

Edge Communications, Inc.

818.990.5001

ken@edgecommunicationsinc.com