Don Hankey (Subprime Premo) According to the writer Chris Peterson, Don Hankey has made a fortune off of financially challenged customers in need of a car and his ambition has landed him partners with Uber. “On a typical day, Westlake finances 750 cars with 336,000 loans originating from one of the 23,000 dealerships it works with (from Carmax to small mom-and –pop used car lots),” states Peterson. Most of his clients have bankruptcies, repossessions, or limited credit histories. Hankey commented, traditional leaders would not consider these clients. Westlake offers loans as low as 1.65% specializing in financing specializing in financing credit challenged buyers at 19%, over half the average used car loan rate. Hankey state that the concept …show more content…
Peterson states that Hankey reposses around 250 cars per day and his debt collectors keep a close eye on the borrowers to ensure that they pay. Hankey realizes that most of America with an exception of New York and San Francisco needs a car for work and financing a used car is quick way to improve credit. The writer reports that the 2.7 billionaires latest bet is on Uber. As of September 2014, Hankey is Ubers only outside financing partner. Anyone interested in purchasing an Uber car can get prequalified online in minutes. Interest rates, sales price, and down payments are determined by Westlake. The Uber approved app.in 18 states including California, Florida, and Texas , deducts car payments from the drivers earnings each week. Westlake knows a lot of Uber drivers are behind in their payments compared to their subprime borrowers, more Uber drivers are joining in on the …show more content…
He used a recording ledger for his sales at a young age as an entrepreneur. After the death of his father, he graduated with a finance degree from USC in 1965and enrolled in the MBA program but quit halfway. Hankey became a clerk at Jeffries Bank in Los Angeles and later a trader at a brokerage firm, Mitchum, Jones, and Templeton. In 1972 as reported by Peterson, Hankey bought out partners of Midway Ford, after borrowing 250,000 dollars from Ford Motor Credit. At this point, Hankey fought to turn profits, stumbled into subprime lending and later begin extending credit to help finance deals to credit challenged customers. The writer states that Hankey moved the lending business to its own location to protect the business of his car sales and eventually it became a subprime finance program expanding to other dealers as well. Today Hankey owns a Toyota dealership rental car business and a millon square feet of southern California retail and office space among a few. Peterson states “,Hankey has been very successful with his real estate company and kept it balanced. Within 10 years he plans to subprime with RVs and boats to furniture lending financing fico scores as low as 580 where no one else will. Presently, he rents his beach house for $12,500 a day for filming, commercials, tv shows, and