Cash Converters says it has exercised a right to convert a $4 million loan to Green Light Auto Group, trading as Carboodle, to equity giving it an 80 per cent stake in the company.
Cash Converters also has a warrant deed in place to acquire the balance of the company within a pre-agreed time period.
Carboodle was established in 2010 to provide customers who don't have access to main stream credit with a reliable and well maintained car.
The company offers customers cars on four-year lease terms inclusive of running costs for a weekly payment.
Carboodle already uses Cash Converters' stores as an exclusive agent for its product paying a royalty to the company and a commission to store owners.
Cash Converters managing director Peter Cumins said Carboodle was a terrific concept that offered the company another avenue to leverage its Australian network of 151 stores to widen and grow its customer base.
Shares in Cash Converters were off one cent to $1.305 at 11.30am.