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Lenders to Retool Finance Models, Experts Say

Lenders to Retool Finance Models, Experts Say

April 18, 2017 at 10:00 am 0 comments

Financial institutions will need to rework their business models to remain relevant in a sector that is evolving away from traditional car ownership toward a more shared economy and autonomous future, panelists said at the Empire State of Mobility conference in New York City yesterday. “From a financial services perspective,Read More

HDFS Losses ‘Temper,’ Yet Continue to Rise in 1Q

HDFS Losses ‘Temper,’ Yet Continue to Rise in 1Q

April 18, 2017 at 9:45 am 0 comments

Harley-Davidson Financial Services originated $709.8 million — up 3.8% year-over-year — in the first quarter, according to the company’s earnings call today. Annualized net losses — at 2.3% in 1Q — were up 33 basis points from the prior-year quarter, and to top the highest level the captive has seen since the fourth quarter of 2010, whenRead More

(L-R) John Redding, partner at Buckley Sandler, and Ken Rojc, managing partner of Nisen & Elliott LLC's Automotive Finance Group, discuss auto finance regulation at CBA Live 2017. (Photo by William Hoffman)

States Step Up Enforcement, Anticipating CFPB Decline

April 17, 2017 at 12:00 pm 0 comments

While there is some optimism for deregulation among auto finance lenders, lawyers are cautioning clients not to not be lax on monitoring, because state attorneys general and financial services departments are stepping into the “void” left by the Consumer Financial Protection Bureau, said Ken Rojc, managing partner of Nisen & ElliottRead More

Pelican Alters Charge-Off Practices

Pelican Alters Charge-Off Practices

April 17, 2017 at 11:12 am 0 comments

Regulatory attention on repossession and collection processes has encouraged Pelican Auto Finance LLC to charge off delinquent assets later in the lifespan of deteriorating loans, said Chief Performance and Compliance Officer Joel Kennedy. The industrywide threat of regulatory enforcement from the Consumer Financial Protection Bureau and the Federal Trade CommissionRead More

Captives Offer ‘Competitive Advantage,’ Analyst Says

Captives Offer ‘Competitive Advantage,’ Analyst Says

April 17, 2017 at 9:45 am 0 comments

Captive finance arms offer a “pretty big competitive advantage” for powersports OEMs, particularly in an environment where independent finance companies are “coming and going,” James Hardiman, managing director of equity research at Wedbush Securities Inc., told Powersports Finance. For example, Speed Leasing LLC began underwriting leases on April 1. SpeedRead More

Credit Cards to Play Big Role in Autonomous Cars, Analyst Says

Credit Cards to Play Big Role in Autonomous Cars, Analyst Says

April 17, 2017 at 9:31 am 0 comments

The credit card industry might get a massive boost once autonomous vehicles come to market, and what’s more: Consumers will no longer need excellent credit when financing a car. “Today, you can either buy, finance, or lease a car, and all three things require excellent credit; I believe in the future,Read More

Direct Lending Helps Grow PNC’s Auto Outstandings 10%

Direct Lending Helps Grow PNC’s Auto Outstandings 10%

April 14, 2017 at 11:56 am 0 comments

PNC Financial Services Group Inc.’s auto outstandings were up 10% to $12.3 billion, from $11.1 billion during the same quarter a year prior, the bank reported in its first-quarter earnings report. The Pittsburgh-based bank attributed some of the growth to its direct-lending product called Check Ready, during the company’s earnings call yesterday. DirectRead More

Subprime Lender Axis Looks to Buy in Ripe Canadian M&A Market

Subprime Lender Axis Looks to Buy in Ripe Canadian M&A Market

April 14, 2017 at 11:00 am 0 comments

Axis Auto Finance is “optimistic” that the current Canadian subprime lending field is ripe for acquisitions, and is looking for opportunities to buy, said Ilja Troitschanski, president of the auto lender. The Ontario-based company has been growing through an expansion of its dealer network and deepening relationships with existing partners.Read More

American Cycle Sets Monthly Goal for Dealers, Ramps Up Training

American Cycle Sets Monthly Goal for Dealers, Ramps Up Training

April 14, 2017 at 11:00 am 0 comments

American Cycle Finance set a monthly contract goal for its dealers in an effort to increase volume following the company’s acquisition by Cardiff International Inc., Ben Donnarumma, managing director of American Cycle, told Powersports Finance. American Cycle — formerly known as Ride Today Acceptance — makes loans in 15 statesRead More

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Wells Fargo Posts Double-Digit Auto Origination Decline

April 13, 2017 at 12:31 pm 0 comments

Wells Fargo Dealer Services‘ first quarter consumer auto originations declined 29% year over year, as the company tightened its underwriting standards, according to its earnings report released this morning. The bank originated $5.5 billion in consumer auto loans in the first quarter, compared to $7.7 billion during the same period a yearRead More

Chase Auto Originates $8 Billion in First Quarter

Chase Auto Originates $8 Billion in First Quarter

April 13, 2017 at 12:06 pm 0 comments

Chase Auto Finance’s first-quarter originations were down 16.6% year over year to $8 billion in loans and leases, the company announced today. The dip in origination is a reflection of record high auto sales in 2016, according to the company. The auto delinquency rate 30-plus days past due — at 0.93%Read More

Wireless EV Charging Offers Investment Options for Financiers

Wireless EV Charging Offers Investment Options for Financiers

April 13, 2017 at 9:45 am 0 comments

There is a massive rush to advance mobility, beyond just traditional rideshare, and the financing beneath the mobility infrastructure has caught the attention of many major automakers and captives. From Toyota Financial Services’s partnerships with Uber and Getaround, to General Motors Co.’s Book by Cadillac and Maven carshare programs, OEMsRead More

BMW Dealer Becomes First to Offer Virtual Reality Test Rides

BMW Dealer Becomes First to Offer Virtual Reality Test Rides

April 13, 2017 at 9:45 am 0 comments

Long Beach BMW Motorcycles is now offering virtual reality test rides, becoming the first BMW dealer to offer the experience in their showroom, according to a company press release. The Long Beach, N.Y.-based dealer is taking advantage of this technology to give non-riders and riders the opportunity to test drive withoutRead More

Kenneth Rojc, managing partner of Nisen & Elliott LLC's automotive finance group, discusses regulation at CBA Live 2017 | Photo by William Hoffman

Despite Little Guidance, Lenders Monitor Ancillary Sales

April 12, 2017 at 11:38 am 0 comments

Lenders are aware that increased regulatory scrutiny of ancillary products, such as GAP insurance, is coming down the pipeline, but there’s little consensus among the Consumer Bankers Association’s Auto Finance Committee as to what aspect of these after-sale products should be monitored, said Robert Griffin, indirect lending manager at CommerceRead More

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