Finance company Money3 has continued its push into the auto finance market, with the acquisition of Automotive Financial Services.

Money3 announced yesterday that it has entered into a binding agreement to acquire AFS, which is a funder of consumer and commercial vehicle purchases in the near-prime segment. The acquisition price was not disclosed.

AFS has a gross loan book of A$52.1 million. At June 30, Money3’s loan book was worth $433.8 million.

Money3 has been an auto finance specialist since 2019, when it acquired Go Car Finance in New Zealand and sold its small amount credit contract business a short time later.

Money3 chief executive Scott Baldwin said in a statement that the AFS acquisition would extend Money3’s product offering along the credit quality curve.

The company’s other recent news is that it secured a warehouse facility last month, with initial funding of $250 million and with scope to grow.

The company said the warehouse funding, which is being provided by a “globally recognised A+ rated bank”, will allow it to grow its loan book and reduce borrowing costs.