A little more than three years after announcing an aggressive growth plan based on a strategy to add a significant number of dealership customers throughout the United States, Security National Automotive Acceptance Company (SNAAC) is departing the auto-finance business.
A news release sent to SubPrime Auto Finance News late on Wednesday afternoon said SNAAC will discontinue purchasing contracts and will liquidate its portfolio. SNAAC said it will continue to accept credit applications through Monday and the last day to purchase any contract will be Aug. 19.
“We thank our dealers, borrowers, and vendors for their years of support and business,” SNAAC said in its statement.
“While SNAAC’s portfolio continues to outperform the industry with declining delinquency and losses, due to diminished profitable growth opportunities within SNAAC’s key market segment, SNAAC’s board of directors has elected to wind down SNAAC’s operations and cease purchasing contracts,” the company continued.
“The risk-adjusted returns in today’s market do not meet the thresholds SNAAC had set to ensure profitable and sustained growth which led us to this decision,” SNAAC went on to say.
SNAAC concluded its announcement by saying it will continue to service its portfolio through the middle of September after which time the portfolio will be transitioned to a third-party as the finance company liquidates.
Wednesday afternoon’s developments arrived after SNAAC previously made moves to grow its footprint.