An Unlikely Investment with Unbelievable Potential: The Journey of OCM Auto Fund

BY COLIN KEDDY, INVESTMENT ADVISOR WITH THE OCM AUTO FUND

Back in 2013, I was introduced to a concept that seemed counterintuitive: financing car loans with private capital. At the time, I remember thinking, cars lose value the moment they leave the lot, and borrowers with bruised credit didn’t seem like the ideal recipe for an investment fund. I politely wished them luck and walked away.

Years later, I revisited the idea and was surprised to learn that what had started as a small “auto fund” had grown to nearly $10 million. That stopped me in my tracks. Clearly, there was something I misunderstood about the business model. There had to be more to it than just determination.

The reality is, more than 3.7 million Canadians rely on subprime credit to get behind the wheel. A vehicle isn’t a luxury; it’s the key to earning a paycheque, caring for family, and moving through daily life. Without alternative financing, millions would be stranded. And this is not a short-term influx in the market due to an economic recession—the need for subprime has been consistent for decades and growing as banks become more stringent with their lending policies. Often referred to as “banking for the unbanked.”

As a seasoned investment advisor, I’m always looking for opportunities that my clients can invest in that are resilient in almost any economic condition. Historical information on the subprime industry reinforced that this was an opportunity that could weather all financial climates. And as it turns out, it could also weather a worldwide pandemic.

That realization sparked the OCM story. What began as a small initiative grew into a company built to meet a national need. And over the last 13 years, OCM has proven its resilience through every twist in the economic road. During COVID, when businesses closed and uncertainty reigned, demand for vehicles soared. New cars were scarce, public transit was avoided, and people did everything they could to keep up with payments. Rather than faltering, OCM’s portfolio grew stronger. Then came 2022, when interest rates shot up faster than they had in decades. Once again, traditional lending shrank, and more Canadians turned to us.

Many still assume “subprime” means unstable. But OCM is different. We focus on used cars where most depreciation is behind us, and we lend with strict criteria. Recovery rates sit in the 90th percentile. Our structure, built with legal, accounting, and financial expertise, ensures transparency, governance, and sustainability. For over a decade, investors have seen steady, reliable returns.

Today, OCM manages $100 million in financing and boasts a phenomenal track record of investor returns—on time and as promised. As a trusted investment fund now with national recognition, OCM has set its sights on expanding the fund to $250 million in the next three years. But more than numbers, it’s about the people—the families who depend on their vehicles, and the hundreds of investors who’ve trusted us along the way.

Looking back, I’m grateful I was wrong in 2013. Because what started wasn’t just an “auto fund.” It was the beginning of a story about meeting real needs, building resilience, and creating opportunity for Canadians who need it most.