Auto Finance News | The News That Drives the Industry

Thinning margins spur Ford Credit downgrade

Ford Motor Co.'s weakened credit profile will likely have negative implications for its access to funding and financing volumes after a downgrade by Moody’s Investors Service this week. The downgrade moved Ford’s rating to non-investment speculative-grade status.  Moody’s said an upgrade for Ford is “unlikely in the near term,” as margins are expected to remain […]

Ally Financial scores investment-grade rating

Ally Financial’s long-term default rating has reached investment-grade status after an upgrade by Fitch Ratings, thanks to a boost in profitability stemming from increased used-car originations. The upgrade is a plus for Ally since investment-grade paper is typically in higher demand by investors, Michael Taiano, senior director of the Financial Institutions Group at Fitch Ratings, […]

Honda Finance injects $1B into ABS market

Loans in American Honda Finance Corp.‘s latest securitization have the shortest original and remaining terms when compared with other issuers’ pools, according to a Moody’s Investor Services presale report. The $1.1 billion securitization is on track to be upsized to $1.3 billion based on investor demand. Read more: American Honda Finance Dodges Class-Action Lawsuit The loans backing […]

Financing costs prop up expense of new-vehicle ownership

Financing charges on new vehicles increased 24% year over year to a weighted average of $920 per year, according to data in AAA’s 2019 Your Driving Cost report. The increase was primarily driven by higher interest rates, rising vehicle prices and lengthening loan terms. AAA estimates that for every 12 months added to the life of […]

Ford Credit finance volume drops 14% year over year

Ford Motor Credit’s total volume of units financed has declined 13.7% year over year to 70,793 units financed in July, according to AutoCount data from Experian. In a couple emblematic states, the captive’s volume decreased more than 30%. In Texas, Ford Credit’s number of loans and leases financed dropped 31.3% to 5,979 units in June. […]

Financing costs prop up expense of new-vehicle ownership

Financing charges on new vehicles increased 24% year over year to a weighted average of $920 per year, according to data in AAA’s 2019 Your Driving Cost report. The increase was primarily driven by higher interest rates, rising vehicle prices and lengthening loan terms. AAA estimates that for every 12 months added to the life of […]

Westlake doubles-down on dealer strategy

Dealers have stopped telling Westlake Financial Services to increase sales rep visits thanks to a move pushing face time and call frequency. The common dealer refrain of “we’re not hearing from you enough” prompted Westlake to overhaul its dealer strategy. Those efforts have paid off, said Westlake Senior Vice President of Sales and Marketing Mark Vazquez. “It’s gotten […]

Auto fraud ring targets Mississippi credit union

Two women have been sentenced for their role in a $234,467 auto fraud ring involving Jackson, Miss.-based Magnolia Federal Credit Union, the Department of Justice announced. Both Shakedra Verleece Smith and Sheri Youse — who also goes by the name Sheri Johnson — were sentenced to five years’ probation with six months home confinement. They […]

More dealers use CarGurus, TrueCar than other digital platforms

When it comes to dealerships’ digital functionality and presence, CarGurus is the most widely used third-party digital platform, according to new data from an Auto Finance News dealer insights survey. The survey tapped a sampling of dealers nationwide to unveil digital trends directly from the showroom. Among dealers surveyed, 45% said they leverage CarGurus’ platform, a marketplace […]

DriveItAway expands rideshare offering to consumers, small fleets

DriveItAway is expanding its product offering to non-rideshare drivers, said Chief Executive John Possumato. The Haddonfield, N.J.-based company, which connects rideshare drivers with dealerships’ idle stock, will now connect individuals and small businesses with fleets to partnering dealerships for long-term rentals. “The whole idea is to be this functional mobility platform,” Possumato said, noting that […]

Early registration discount for Auto Finance Summit ends today

The early registration deadline for the 19th Annual Auto Finance Summit ends today. The Auto Finance Summit, at the Bellagio in Las Vegas, October 28-30, 2019, is presented each year by Auto Finance News. Register now here. Don’t miss out on your chance to secure your spot at the lowest rate for the premier auto […]
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