Vroom, Inc. (NASDAQ:VRM) made an announcement on Tuesday, according to which it will acquire the leading non-prime auto finance company United Auto Credit for $300 million in cash, with the acquisition being immediately accretive and will close in either late Q4/21 or early Q1/22.

The company will begin its first non-prime securitization in H1/22 and accelerate captive loan originations in H2/22.

By integrating an automotive lender the company expects to be able to serve a wider breadth of customers, both prime and subprime, enabling the company to capture better loan economics, accelerate the move toward an auto average selling price more in line with peers and scale the business more quickly.