Westlake Financial, the largest privately held auto finance company, has announced the successful sale of approximately $100 million in subprime auto loans to HFC Acceptance, LLC. The transaction, identified as WTTD-2026-1, marks a novel structure for both entities and was completed at a 112% principal premium. This agreement allows Westlake Financial to optimize its balance sheet and capital while expanding HFC Acceptance’s investment footprint in consumer credit assets.
The transaction involves both seasoned and newly originated subprime auto finance loans. These loans were generated using Westlake Financial’s underwriting standards and servicing expertise. The structure was designed to ensure efficient asset transfer and maintain continuous servicing and borrower experience.
Ian Anderson, Group President of Hankey Group, stated, “We are excited to partner with HFC Acceptance on this innovative transaction. WTTD-2026-1 reflects our continued commitment to flexibility, innovation, and collaboration as we seek new ways to support our growth objectives and serve our dealer partners. We look forward to additional transactions with HFC Acceptance and identifying new partners on future transactions.”Jeff Brodsky, President of HFC Acceptance, commented on the significance of the deal: “This transaction marks a significant milestone for HFC Acceptance. This transaction demonstrates our ability to execute large-scale acquisitions with premier originators while achieving attractive risk-adjusted returns. We view this as the foundation for a long-term strategic relationship with Westlake Financial and a model that can be followed in future transactions with other industry lenders.”Both parties indicated that the successful execution of WTTD-2026-1 could serve as a model for future transactions of similar scope and design. Don Hankey, Founder and Chairman of the Hankey Group, added, “The acquisition expands HFC Acceptance’s growing investment footprint in consumer credit assets while providing Westlake Financial with an innovative balance sheet and capital optimization solution. As both companies continue to grow, this model can be used as a framework to structure future deals with additional partners.”HFC Acceptance LLC operates as a diversified specialty finance company, concentrating on structured lending across various asset classes. The firm is recognized for its vehicle fleet financing programs, which support commercial operators with scalable, credit-driven solutions. Additionally, HFC provides customized financing for yachts, aircraft, and specific real estate assets. As of December 31, 2025, the company manages more than $1.5 billion in assets.
Westlake Financial originates indirect automotive retail installment contracts through a nationwide network of new and used dealers. The company supports its growth by securitizing loans on the ABS market and wholesaling loans to financial and investment firms. Westlake Technology Holdings, headquartered in Los Angeles, CA, oversees Westlake Financial and manages approximately $24 billion in assets. Its portfolio includes Westlake Capital Finance (WCF) for credit facilities and commercial real estate loans, Westlake Portfolio Management (WPM) for loan portfolio servicing, Westlake Flooring Services for floor plan lines of credit, Western Funding Inc. for shared cash flow auto lending, Credit Union Leasing of America (CULA) for indirect automotive leasing, Westlake Direct for dealer leads and direct-to-consumer auto loans, and LoanCenter for consumer installment loans.
