Mr. Mehdi Moghareh reports

OCAL FINANCIAL OUTLINES HOW ITS VIRTUAL, FINANCE-FIRST MODEL DIFFERS FROM THE TRADITIONAL DEALERSHIP

Ocal Financial Inc. today outlined how its asset-light, finance-first model is structured differently from the traditional dealership approach to selling and financing vehicles.

The traditional model depends on physical lots, owned inventory and people-intensive sales and finance processes. It carries fixed costs -- land, facilities, vehicle maintenance and unsold inventory -- that ultimately flow through to consumer pricing, and it is exposed to fluctuations in used vehicle prices and to inventory aging. For the customer, sticker price, real price and monthly payment are rarely tied together clearly, and the finance-and-insurance office frequently becomes a bottleneck. Critically, scaling the traditional model generally means more real estate, more inventory and more payroll -- not more efficiency.

Ocal is designed to invert that structure. Approval comes first; vehicles are sourced only after a customer is approved; and the entire workflow runs remotely through a single platform rather than across a network of lots and back offices. Because Ocal does not carry owned inventory, it is not forced to push aging stock or to absorb used-vehicle pricing swings. The result is lower fixed overhead that flexes with volume, with margin generated from financing and related products rather than from carrying and marking up inventory. The company believes this model produces more consistent, better-packaged files for lenders and a more transparent, lower-pressure experience for customers.

The shift is aligned with changing consumer preferences. Published industry data indicates that a majority of Canadian consumers now prefer digital or fully on-line financing experiences and are increasingly payment-sensitive, while lenders increasingly support remote documentation, e-signature and digital stipulation collection. Ocal is built to meet that demand with a licensed, integrated, fully remote model.

"We are not trying to build a better lot -- we are trying to remove the lot from the equation," said Mehdi Moghareh, chief executive officer of Ocal. "When your margin comes from financing and services instead of inventory, you can grow without piling on real estate and risk.

"The traditional model was never designed for a digital, data-driven world," added Mr. Moghareh. "Ours was designed for nothing else."

About Ocal Financial Inc.

Ocal Financial is an asset-light, artificial-intelligence-native virtual automotive dealership and vehicle-finance platform. Operating remotely and licensed in British Columbia and Alberta, Ocal moves customers from application to approval, vehicle matching, digital contracting and delivery in a single workflow. Rather than carrying owned inventory, Ocal sources each vehicle only after a customer is approved, drawing on the Openlane auction network and select partners. Ocal earns revenue from vehicle sales and related finance and protection products, and does not hold consumer loans or assume credit-default risk. Its proprietary technology stack -0- workflow orchestration, a lender-routing credit-intelligence system, voice AI and a centralized business-intelligence system -- is purpose built for automotive transactions.

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