What’s the best way to pursue direct auto lending? The Center for Auto Finance Excellence offers a webinar that aims to answer just that quest. Entitled, “Boosting Direct & Indirect Lending Through Online Engagement,” the webinar recorded May 13 features Jim Landy, CEO of Powerautoloan.com and a veteran of direct lending. Landy discusses the importance of building relationships with buyers as early as possible in the car-shopping process as possible, which, in 2015, almost always means online.
Auto delinquencies remained flat last quarter, even though car loan and lease volume increased and the average automotive debt per borrower hit a record $17,508, TransUnion reported today. Serious delinquencies, defined as delinquencies of 60 days or more, represented 0.99% of outstanding accounts, unchanged from the first quarter of 2014, accordingRead More
Despite the obvious advantages of e-contracting, like faster credit decisions and a quicker F&I process overall, “some dealers just won’t get on board,” said Marty Crowley, chief information officer for Gateway One Lending & Finance, when speaking from a non-captive lender perspective during an Auto Finance Risk and Compliance Summit panel discussionRead More
A company’s collection vendor can be one of the highest risks a lender has — maybe the highest — said attorney John Redding, a partner at BuckleySandler LLP, during a presentation at last week’s Auto Finance Risk and Compliance Summit in San Diego. Redding warned attendees to be careful when outsourcingRead More
Auto lenders shouldn’t count on the U.S. Supreme Court to rescue the auto finance industry from the disparate impact theory, said Chris Willis, a partner with the Ballard Spahr LLP law firm. The Consumer Financial Protection Bureau relies on the disparate impact theory to try and prove discrimination in auto loans. “There’sRead More
Advertising disclosures are not a cure-all even though many people think so, said Yan Fang, an attorney for the Federal Trade Commission. “You can’t disclaim away a falsehood,” she said at the Auto Finance Risk and Compliance Summit in San Diego on Monday. The FTC often encounters prominent, misleading claims in autoRead More
Total outstanding auto loans reached a record high of $905 billion at the end of the first quarter, an increase of 11.3% from last year, while delinquencies were essentially flat, according to Experian Automotive. The latest figures refute the notion that subprime auto loan growth is overheating, said Melinda Zabritski,Read More
As cars get more expensive and consumer budgets get tighter, loan terms are extending to keep monthly payments affordable. The average loan term on all new cars was 66 months in the fourth quarter of 2014, according to Experian, up a month from the prior-year period.
A majority of consumers in the powersports segment said they would not have made the purchase or would have gone to another retailer if financing were not available, according to a study by Synchrony Financial, a consumer financial services company. The highest rated reasons consumers chose for getting financing atRead More
SAN DIEGO — July will mark the fourth anniversary of the Consumer Financial Protection Bureau, and it is now clear that no organization’s founding — other than perhaps General Motors’s launch of the first auto finance company ever in 1919 — has had a greater influence on this industry. JustRead More
Demand for auto and powersport financing — from both borrowers and investors — is growing at Prosper Marketplace, according to President Ron Suber. “I would say that auto, motorcycle, and RV are all on the rise,” Suber told AFN, noting that the company is more active in the used space,Read More
SAN DIEGO — Dire warnings for auto lenders were the order of the day at the Auto Finance Risk & Compliance Summit here on Monday. “The regulatory field has a lot of landmines in it today,” said Dan Soto, chief compliance officer for Ally Financial Inc. Still, the auto financeRead More