Ridero and AFG Partner to Scale Residual-Based Auto Financing
Ridero and AFG have formed a strategic alliance to expand 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 aimed at broadening residual-based vehicle financing, the companies said Monday. The collaboration is designed to drive incremental loan originations through AFG's established lender programs while giving lenders the tools to launch and scale leasing operations across both new and used vehicle markets.
The deal positions Ridero's platform as a backend engine for lenders that may currently lack the infrastructure to offer lease products competitively. By plugging into AFG's existing network, Ridero gains immediate distribution reach without requiring lenders to overhaul their core systems — a common barrier to entry in the lease financing space.
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Residual-based financing, which bases monthly payments on a vehicle's projected future value rather than its full purchase price, has historically been dominated by captive automaker finance arms. Partnerships like this one signal growing momentum among independent technology providers seeking to democratize access to lease structures for a broader range of lenders and dealers.
The announcement comes as the auto finance industry navigates persistent affordability pressures on consumers, with residual-based products offering comparatively lower monthly payments than traditional installment loans. Whether the partnership delivers on its origination growth targets will depend on lender adoption rates and the accuracy of residual-value forecasting in a volatile used-vehicle market.
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