Post Tagged with: "subprime"

via Experian.com

Subprime Loan Volume Reaches Record Low, Experian Finds

June 19, 2017 at 10:35 am 0 comments

Subprime loan volume declined 55 basis points in the first quarter compared to the year prior while prime loans increased, Experian’s latest State of the Automotive Finance Market report shows. The subprime loans in 1Q17 comprise 19.8% of the total loan risk distribution compared with 20.4% in 1Q16. As usual,Read More

Managing Rising Consumer Debt [SPONSORED]

Managing Rising Consumer Debt [SPONSORED]

June 16, 2017 at 9:00 am 1 comment

The data says it all. According to Euromonitor and JATO, between 2009 and 2016: U.S. consumer spending on vehicles grew by 36% The outstanding balance of consumer auto loans increased by 36% Disposable income only grew 15% The outstanding balance of consumer loans as a whole decreased by 7% The average auto debt perRead More

Sound the Credit Quality Alarm

Sound the Credit Quality Alarm

June 15, 2017 at 10:00 am 0 comments

It’s time to sound the alarm. Weakness has taken hold of the credit quality within securitized subprime auto assets. Deutsche Bank reported today that year-over-year delinquencies and net loss rates for subprime are up noticeably. Specifically, on a year-over-year basis subprime 60-plus day delinquencies climbing 65 basis points, and the annualizedRead More

Axis Auto Finance Shows 43% Origination Growth in Latest Earnings

Axis Auto Finance Shows 43% Origination Growth in Latest Earnings

May 30, 2017 at 12:11 pm 0 comments

 Axis Auto Finance, a Canadian used-vehicle lender, grew its originations to $13.5 million in the nine month period ending March 31 — a 43% increase, compared with the same period the prior year, the company announced in its latest earnings report. The company has sought an expansion of its credit facilityRead More

Protecting Against Subprime Lending Concerns [SPONSORED]

Protecting Against Subprime Lending Concerns [SPONSORED]

May 19, 2017 at 10:22 am 1 comment

A few weeks ago, the Federal Reserve Bank of New York reported record-high auto debt in the fourth quarter of 2016, totaling a whopping $1.16 trillion, up about 9% from 2015. The news sent alarm bells ringing, stirring up talk about the possibility of a bubble. Lenders and dealers alikeRead More

MotoLease Revs Up New Inventory Website, Dealer Portal

MotoLease Revs Up New Inventory Website, Dealer Portal

May 18, 2017 at 9:31 am 0 comments

MotoLease LLC is bolstering its technology initiatives this year, starting with a new dealer inventory website, Managing Partner Emre Ucer told Powersports Finance. The new site will allow authorized dealers to list inventory, and consumers can view the pricing, estimate monthly payments, and pre-qualify for loans, Ucer said.

Compete or Manage Risk [Sponsored]

Compete or Manage Risk [Sponsored]

May 12, 2017 at 9:00 am 0 comments

Remember when you were shocked that average loan terms had increased to 62 months, then 68 months and so on? While the industry is no longer shocked by loan terms that last more than five years, lenders are now grappling with the reality that their borrowers are up-side-down on theirRead 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

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 3 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

CREDIT: Delinquencies Rise, Lenders Tighten Credit

CREDIT: Delinquencies Rise, Lenders Tighten Credit

April 12, 2017 at 11:00 am 0 comments

Subprime 60-plus-day delinquencies declined to 4.28% in February, compared with 5.09% in January, according to S&P Global. Year over year, however, February subprime delinquencies were up 14% over the same month a year prior. “Generally, delinquencies decline from January to February due to tax refunds, and this pattern played out againRead More

Ride Today Acceptance Rebrands, Post $5MM Cardiff Acquisition

Ride Today Acceptance Rebrands, Post $5MM Cardiff Acquisition

April 7, 2017 at 10:00 am 0 comments

Cardiff International Inc. signed a definitive merger agreement to acquire American Cycle Finance — formerly known as Ride Today Acceptance — as its subsidiary, in an all-stock transaction valued at $5 million. Following the acquisition, Cardiff’s total assets will increase to $13 million, according to a company press release. Powersports Finance firstRead More

CycleOne to Offer New Motorcycle, Prime Financing

CycleOne to Offer New Motorcycle, Prime Financing

April 5, 2017 at 9:30 am 0 comments

CycleOne Financial will expand its breadth of offerings to include new motorcycle financing, after the startup expands its leasing limit — the amount it approves consumers for — beyond $12,000, President Logan Riley told Powersports Finance. Orlando, Fla.-based CycleOne Financial is a subprime lessor that leases all pre-owned motorcycles included in the NADA Guide.Read More

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Santander Pays $26M For Loans Deemed ‘Unfair’

March 30, 2017 at 10:00 am 1 comment

Santander Consumer USA entered into a written agreement with the Federal Reserve Bank of Boston on March 21, and agreed to pay $25.9 million to resolve an investigation in two states regarding the financing and securitization of subprime auto loans, the company revealed in a Securities and Exchange Commission filing today. Investigations wereRead More

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