Articles by: William Hoffman

Tesla Increases Leasing 74% YoY, Details Insurance Plan

Tesla Increases Leasing 74% YoY, Details Insurance Plan

February 24, 2017 at 11:46 am 0 comments

Tesla Finance increased net operating lease vehicle originations to $3.13 billion for the full year 2016 up from $1.79 billion in 2015 — a 74% increase — the company reported in its fourth quarter earnings report. The report did not disclose the number of vehicles leased in the year orRead More

Aging Vehicles Spur Historically High Auto Debt

Aging Vehicles Spur Historically High Auto Debt

February 23, 2017 at 11:48 am 0 comments

The historic high that the U.S. auto debt is at — according to the latest quarterly report from the New York Federal Reserve — is “not necessarily a problem” considering the U.S. market’s need to update its aging vehicle fleet, said Carlos Gomes, senior economist and auto industry specialist at Scotiabank.Read More

U.S. Auto Debt Hits Record High

U.S. Auto Debt Hits Record High

February 22, 2017 at 12:51 pm 0 comments

Auto loan debt in the U.S. hit record highs in the fourth quarter spurred by year-end incentives for new vehicles that pushed the auto finance industry to a $1.16 trillion peak in 2016, the New York Federal Reserve said in its first quarter 2017 Household Debt and Credit report.  Read More

Lenders Refine Loss-Mitigation Strategies Amid Rising Delinquencies

Lenders Refine Loss-Mitigation Strategies Amid Rising Delinquencies

February 22, 2017 at 10:54 am 0 comments

Charge-offs are growing at a slower pace than delinquencies, most likely because of a change in repossession policy, said Amy Martin, senior director and lead U.S. analyst of auto ABS at S&P Global. “Overall, subprime delinquencies were 5% at yearend, the highest we’ve seen since January 2010,” she said lastRead More

Westlake Financial Services Joins AutoGravity

Westlake Financial Services Joins AutoGravity

February 21, 2017 at 10:30 am 0 comments

Westlake Financial Services is now a lending partner on the AutoGravity platform, which facilitates loan originations for consumers shopping for a vehicle online, the company’s announced in a press release this morning. AutoGravity expanded to 46 states earlier this year with the promise it could offer consumers up to fourRead More

CACC and DriveTime Tapped in FTC Kill Switch Inquiry

CACC and DriveTime Tapped in FTC Kill Switch Inquiry

February 20, 2017 at 12:03 pm 0 comments

The Federal Trade Commission sought information regarding the use of kill switches from Credit Acceptance Corp. and DriveTime Automotive Group Inc., both companies reported in separate securities filings late last week. Kill switches and GPS technology are used by some lenders to more accurately identify and track down the vehiclesRead More

CPS Expands Direct Lending to Lower Loss Rates

CPS Expands Direct Lending to Lower Loss Rates

February 20, 2017 at 11:52 am 0 comments

Consumer Portfolio Services plans to expand direct lending offerings “rather significantly in 2017,” President and Chief Executive Charles Bradley said on the company’s fourth-quarter earnings call last week. Direct originations currently account for “a couple million” dollars a month of the company’s reported $1.1 billion in full-year originations for 2016,Read More

Three Republican Plans Take Swipe at CFPB

Three Republican Plans Take Swipe at CFPB

February 17, 2017 at 1:28 pm 0 comments

Republican lawmakers introduced three plans this week that look to limit or outright abolish the Consumer Financial Protection Bureau — the main regulatory arm overlooking auto lenders and other financial institutions.   Texas Senator and former republican presidential candidate Ted Cruz, alongside Representative John Ratcliffe, introduced a one-page bill (S.Read More

S&P Stress Tests Show Rising Subprime Auto Losses

S&P Stress Tests Show Rising Subprime Auto Losses

February 17, 2017 at 12:00 pm 0 comments

S&P Global Ratings ran the auto finance industry through five historical stress scenarios and found that both prime and subprime losses are likely to rise in the coming years. While the research isn’t fully published yet, preliminary results were shared during an auto-finance-focused webcast, which showed that even the mostRead More

Mercedes-Benz E-Klasse All-Terrain; Outdoor.

Daimler Invests Millions in AutoGravity App

February 16, 2017 at 12:16 pm 0 comments

Daimler AG has invested a multi-million dollar figure in the vehicle financing app AutoGravity, Serge Vartanov, the start-up’s chief marketing officer, told Auto Finance News. The announcement was made Tuesday in London, but did not include a specific dollar amount.  “It means a lot to us that Daimler believes inRead More

Lenders Are ‘Pushing The Envelope’ on Loan Terms, Mileage, CPS Says

Lenders Are ‘Pushing The Envelope’ on Loan Terms, Mileage, CPS Says

February 16, 2017 at 12:00 pm 0 comments

Longer loan terms and financing high-mileage cars are two lender strategies that are “pushing the envelope” during a time of a possible downturn in the auto finance industry, said Charles Bradley, chief executive at Consumer Portfolio Services. The company does offer longer term loans, but generally doesn’t go past 72Read More

Via Lending Club

Lending Club Grows Auto Refinance Gradually

February 15, 2017 at 11:28 am 0 comments

Lending Club continues to grow its newly-launched auto refinance product and is investing $5 to $10 million in its expansion, Chief Financial Officer Tom Casey said during the company’s fourth quarter earnings call yesterday. Although originations and revenue from auto refinance were not specifically broken out in the report, CaseyRead More

(L) JJ Hornblass. president and CEO of Royal Media Group, sits down with Consumer Portfolio Services CEO, Charles Bradley, for a fireside chat at AFS 2016.

CPS Originations Drop 20%, Cite Industry-Wide Downturn

February 15, 2017 at 10:57 am 0 comments

Consumer Portfolio Services saw auto originations drop 20% to $215.3 million in the fourth quarter 2016 compared with $269.2 million during the same quarter a year prior, the company disclosed in its latest earnings report. The drop in volume is inline with the company’s current policy of tightening credit restrictionsRead More

TFS Taps Tech to Boost Volume of Repeat Lessees

TFS Taps Tech to Boost Volume of Repeat Lessees

February 15, 2017 at 10:17 am 0 comments

Toyota Financial Services wants to better integrate existing data about current lessees into digital platforms at the dealership level, in order to drive customer loyalty as offlease volume picks up this year, said Matt Haydon, the company’s group manager of retail transformation. “We have a lot of off-lease [volume], andRead More

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