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January Vehicle Sales Projected to Hit 10-Year High

January Vehicle Sales Projected to Hit 10-Year High

January 28, 2015 at 2:27 pm 0 comments

2015 has started right for retail sales. January new vehicle sales are expected to reach 932,100 units, for a SAAR of 13.9 million units, up nearly 1 million units from 2014, according to projections by J.D. Power & Associates and LMC Automotive. The companies predict that the sales figures for Jan.Read More

First Niagara to Back Off Auto in 2015

First Niagara to Back Off Auto in 2015

January 27, 2015 at 3:53 pm 0 comments

First Niagara looks to be taking its foot off the gas on auto loans in 2015. During its fourth-quarter earnings call on Jan. 23, First Niagara Financial Group’s chief financial officer Gregory Norwood said the company would “moderate its net indirect auto loan growth in 2015 significantly.” Norwood made the announcement asRead More

CPS Receives Subpoena From DOJ

CPS Receives Subpoena From DOJ

January 27, 2015 at 1:43 pm 0 comments

The Department of Justice issued a subpoena to Consumer Portfolio Services on January 14, according to an 8-K filed with the Securities and Exchange Commission last week. The filing describes the DOJ subpoena as “a civil investigative subpoena from the U.S. Department of Justice pursuant to the Financial Institutions Reform,Read More

NPR, NY Times Latest to Sound the Auto Finance Alarm

January 27, 2015 at 8:51 am 0 comments

Is subprime auto finance a financial-disaster-in-the-making? Well, according to NPR’s “All Things Considered,” it is. The public radio organization last week sounded the subprime auto finance alarm (hear the segment below), joining a growing chorus of such claims (see here and here). The NPR report doesn’t add much, although itRead More

Auto Finance Industry Monitors Supreme Court for Ruling on Disparate Impact

Auto Finance Industry Monitors Supreme Court for Ruling on Disparate Impact

January 26, 2015 at 11:45 am 1 comment

The outcome of a mortgage case being heard by the Supreme Court could ease the burden of disparate impact violations imposed on auto lenders by the Consumer Financial Protection Bureau. Like mortgage lenders bound by the Fair Housing Act, “the CFPB has been saying that even if you have no intention ofRead More

Lenders Not Afraid of Longer Loans

Lenders Not Afraid of Longer Loans

January 23, 2015 at 8:31 pm 0 comments

“There is good [loan] term and there is bad term,” Jason Kulas, president & chief financial officer, Santander Consumer USA, said during a CEO panel discussion at the American Financial Services Association’s 19th annual Vehicle Finance Conference Thursday, when asked about the potential problems resulting from longer loan terms – bothRead More

Credit Losses Have ‘Normalized,’ Cap One Declares

Credit Losses Have ‘Normalized,’ Cap One Declares

January 23, 2015 at 10:49 am 1 comment

On the heels of the clarion call from Honda Motor Co.’s U.S. sales chief that lenders are originating “stupid” 84-month loans, Capital One Financial Corp. officials said yesterday that credit losses on auto loans have “normalized.” Capital One said during its earnings call yesterday that the 7% increase last quarter inRead More

CFPB Isn’t Going Anywhere, Ally’s Soto Says, So Better Be Prepared

CFPB Isn’t Going Anywhere, Ally’s Soto Says, So Better Be Prepared

January 22, 2015 at 10:21 pm 1 comment

Dan Soto, chief compliance officer for Ally Financial Inc. asked attendees at the American Financial Services Association’s 19th annual Vehicle Finance Conference how prepared their companies were for the Consumer Financial Protection Bureau: over half – 56% – answered ‘Somewhat.’ Soto also asked how many attendees knew that their companiesRead More

Auto Loan Balances Near $1 Trillion, Equifax Says

Auto Loan Balances Near $1 Trillion, Equifax Says

January 22, 2015 at 11:45 am 0 comments

The total balance of auto loans was $975 billion at year- end 2014, according to Equifax Inc.’s National Consumer Credit Trends Report released last week. “The automobile industry had a strong year in 2014, selling more than 16.4 million new cars,” Dennis Carlson, deputy chief economist at Equifax, said inRead More

Falling Oil Prices May Boost Vehicle Financing in 2015, S&P Says

Falling Oil Prices May Boost Vehicle Financing in 2015, S&P Says

January 22, 2015 at 11:45 am 0 comments

The drop in oil prices and the decreasing amount consumers are paying at the pump may boost auto sales and financing, according to a new report from Standard & Poor’s. Lower gas spending and the corresponding boost in disposable income will encourage consumers to buy cars, and could also influence the sales mixRead More

On the Horizon: Tougher Sales Environment and Pricing Pressure

On the Horizon: Tougher Sales Environment and Pricing Pressure

January 21, 2015 at 5:47 pm 0 comments

A tough vehicle sales market and profit pressures are on the auto finance horizon. That was the message from a trio of industry analysts in the kickoff session at the American Financial Services Association’s 19th annual Vehicle Finance Conference in San Francisco yesterday. The panelists were Steve Chaouki, executive viceRead More

Mercedes-AMG Buys Stake in Bike Maker

Mercedes-AMG Buys Stake in Bike Maker

January 21, 2015 at 2:35 pm 0 comments

Mercedes-AMG, the sports car and performance brand of Daimler AG, has agreed to acquire 25% of Italian motorbike manufacturer MV Agusta. Although no financial details were revealed, Mercedes will appoint a member to Agusta’s board of directors. The two also signed a cooperation agreement for a long-term partnership involving salesRead More

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