Auto Finance News | The News That Drives the Industry

Credit Performance

Thinning margins spur Ford Credit downgrade

Ally Financial scores investment-grade rating

Honda Finance injects $1B into ABS market

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 […]

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Capital Markets

Startup Fair raises $2b in funding with new credit facility

Used-car leasing app Fair closed a $500 million revolving credit facility financed by Mizuho Bank, the companies announced today. With Mizuho’s investment, the vehicle subscription company has raised nearly $2 billion in funding over four outside equity rounds. The new credit facility is a move for Fair to increase its supply of rideshare vehicles for […]

Financing costs prop up expense of new-vehicle ownership

Aston Martin is shopping for expensive junk

EXCLUSIVE: Ford Credit sells Canvas portfolio to Fair

Fleet management startup scores $5m credit line from MBFS

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From Auto Finance Excellence

Westlake doubles down on dealer strategy

3 strategies for lenders to mitigate internal threats to consumer data security

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Startup Fair raises $2b in funding with new credit facility

Nicole Casperson
September 17, 2019
Capital Markets, Exclusive, Leasing

CarMax expands delivery service to Texas

CarMax has expanded its online car-buying service to seven cities in Texas, with three more slated to launch in late-October, the used-car retailer announced. The functionality allows customers to complete the entire car-buying process from home — including retail shopping, securing financing, and filing trade-in paperwork. CarMax customers may be financed by captive CarMax Auto […]

Joey Pizzolato
September 17, 2019
Sales & Marketing

Golden Eagle launches ‘GAP coverage for life events’

Golden Eagle Insurance launched a new product last week designed to aid lenders and customers during unexpected life events. The negative-equity protection program is described as GAP insurance for life events, allowing customers to walk away from their auto loans or skip payments in the case of unexpected life events, including involuntary unemployment, physical injury […]

Bianca Chan
September 17, 2019
Operations, Risk Management

Startup CEO Amitay Kalmar to present at AFS

Lendbuzz CEO Amitay Kalmar will join Auto Finance News on stage at the 19th annual Auto Finance Summit, which will take place Oct. 28-30 at the Bellagio in Las Vegas. Kalmar will present on leveraging technology to underwrite loans to consumers overlooked by the traditional credit system. His presentation will begin at 4:15 p.m. on […]

Bianca Chan
September 17, 2019
Auto Finance Summit, Innovation & Technology, Risk Management

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. […]

Nicole Casperson
September 16, 2019
Archives, Sales & Marketing

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 […]

Joey Pizzolato
September 16, 2019
Capital Markets, Sales & Marketing

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 […]

Bianca Chan
September 16, 2019
Auto Finance Excellence, Customer Experience, Features, People, Sales & Marketing

GM faces $50m losses a day as UAW digs in for strike

The United Auto Workers union is leading its first strike against General Motors Co. in 12 years, digging in for a fight over jobs and benefits that could cost the carmaker dearly for an indefinite period. The walkout began at midnight and may deal GM a daily blow of about $50 million in earnings before […]

Bloomberg News
September 16, 2019
Bloomberg, Risk Management, Sales & Marketing

Aclaró releases EcoSystem 3.0, adds new board member

Aclaró, which provides disruptive technologies to the automotive, financial and government sectors, has released Aclaró EcoSystem 3.0 (ES 3.0), a game-changing toolset for vehicle purchasers, lenders and dealers, and added a new member to its board. With these announcements, the artificial intelligence software company continues the rapid advancement toward its overarching mission of helping lenders, […]

Compliance considerations when buying and selling customer leads

As an auto lender, you’re likely aware of the due diligence required when purchasing consumer leads. Lenders must exercise the same diligence when referring — or selling — declined leads downstream. Purchasing customer leads via referral programs has adapted as technology has allowed online lenders to communicate instantaneously with potential customers. Due to the nature […]

An inside look at 2 new credit scoring models

Ever since the concept of loaning money was conceived, lenders have been trying to find the ideal way to predict who will pay them back and who will default. Over time, methods for evaluating the likelihood of borrower repayment progressed from individual human judgment calls to more objective credit bureaus and reports. Today, scores often […]

Tech Partnerships Help Drive Digital Transformation in Auto Finance

Aclaro, a company that develops tools for companies in the automotive industry, recently announced game-changing news that validates its mission of helping small, scrappy dealerships compete with larger competitors. As part of its efforts to deliver five-star service for its clients, Aclaro joined the Microsoft Partner Network, allowing the company to continue building its business […]

How Lenders Should Leverage the Power and Promise of Artificial Intelligence

Technology does not wait for rules or regulations. Artificial intelligence (AI) is no exception. The potential profit associated with fintech speeds up innovation, but it also increases the risk of implementing machine intelligence without assessing potential hazards. Simply put, we do not understand how some machines solve problems with deep learning algorithms. This risk can […]

How to Leverage Current Machine Learning and AI Tools in Auto Lending

Auto dealers have heard the hype about how machine learning (ML) and artificial intelligence (AI) are going to transform their businesses. Typically, there are usually two binary outcomes that are discussed. On one hand, the promise of the future seems so bright. Instead of relying on intuition and gut feeling, many divisions of their businesses […]

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