Auto Finance News | The News That Drives the Industry

Auto Finance Summit 2019

Golden 1 CU inches toward lower credit

Chase Auto pilots subscription model, questions scalability

Rodo integrates insurance into app to mitigate cancellations

Golden 1 CU inches toward lower credit

LAS VEGAS — Golden 1 Credit Union is looking to expand its underwriting focus in anticipation of slowing vehicle sales in 2020, said Chief Lending Officer Greg Brown. The Sacramento, Calif.-based lender’s average credit score is 739, Brown said. “We haven’t had that conversation internally yet, but dropping the credit average by 10 points would […]

Chase Auto pilots subscription model, questions scalability

LAS VEGAS — Chase Auto is experimenting in the subscription service space by funding a “cross-product or cross-model” offering, Chief Executive Mark O’Donovan said at the Auto Finance Summit. Chase is providing a wholesale credit line, with the dealership groups running the subscription models, he said. “We’re dabbling in it to try to support our dealer […]

Rodo integrates insurance into app to mitigate cancellations

LAS VEGAS — Digital leasing app Rodo has launched an insurance marketplace in conjunction with Travelers Group to mitigate lease cancellations, said Patrick McKeever, vice president of sales and business development at Rodo. “One of the things we heard from our consumers — and certainly first-time buyers — is they had no idea how expensive […]

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Capital Markets

Auto ABS volume to trickle as investors ‘close their books’

Auto asset-backed securities volume has reached $99.2 billion as of Nov. 1, a 5.4% increase compared with last year, according to JPMorgan Securities. Yet, the auto ABS market will likely experience a slowdown in volume as yearend approaches. “A lot of folks need to get deals out before Thanksgiving, then they are finished for the […]

Arivo Acceptance secures warehouse facility with JPMorgan Chase

Florida credit union issues $185M inaugural ABS deal

American Car Center issues third nonprime lease securitization

You’re welcome: The Fed gifts a strong auto finance sector

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From Auto Finance Excellence

Nevada regulators signal enforcement delay of spousal credit rule, lawyer says

Nicholas Financial maps growth trajectory

Nicholas Financial has outlined expansion plans for its direct loan product and branch network, according to a Nov. 14 SEC filing. Nicolas plans to roll out its direct loan product in Indiana, Missouri, South Carolina and Kentucky this quarter, according to the filing. “We remain focused on proliferating our direct loan product to all of […]

Marcie Belles
November 15, 2019
Earnings, Operations, People

Member satisfaction climbs after WSECU brings website design in-house

Since overhauling its online platform in April, Washington State Employees Credit Union (WSECU) members have reported a boost in user satisfaction. “We do surveys of our members that have taken out loans and of members that have applied online, and we’re seeing that 90% of them are rating it as a low-effort experience,” said Ryan […]

Bianca Chan
November 15, 2019
Customer Experience, Exclusive, Innovation & Technology

Serious delinquencies improve for young borrowers

Serious delinquencies — auto loans 90 days or more past due — for borrowers aged 18 to 29 years dropped 38 basis points to 3.8% year over year, marking this age group’s lowest delinquency level since 2Q15, according to the New York Federal Reserve’s third-quarter Report on Household Debt and Credit. Though this age group’s […]

Golden 1 CU inches toward lower credit

Daimler’s new CEO warns electric-car shift will be painful

Daimler AG’s new chief executive officer warned there will be no quick fix for the automaker’s struggle to revive squeezed profit margins during a costly shift to electric and self-driving cars. After two rapid-fire profit warnings earlier this year, Ola Kallenius said on Thursday that the German icon’s earnings would remain under pressure for the […]

Bloomberg News
November 15, 2019
Bloomberg, Innovation & Technology, People, Sales & Marketing

Porsche Financial expands insurance coverage to EVs

Porsche Financial Services has expanded its car insurance coverage to include services related to electric mobility, the company announced. The service, called “E-Cover,” was designed to supplement the upcoming release of the Porsche Taycan Turbo, the German automaker’s first all-electric vehicle. Consumers in Germany will be able to add coverage to an existing insurance policy […]

Oportun debuts auto refi product

Oportun Financial rolled out an auto refinance product this week after applying lessons learned from a retail loan offering that launched in the second quarter, said Chief Executive Raul Vazquez during an earnings call. “We are excited about the introduction of auto refi loans, because we believe they will be a larger contributor to growth […]

Auto ABS volume to trickle as investors ‘close their books’

Nicole Casperson
November 14, 2019
Capital Markets

How aftermarket products give subprime lenders an edge

Fueled by off-lease volume and consumer demand, used-vehicle sales are nearing record levels. For lenders focused on used vehicles — particularly lenders with subprime practices — these are opportune times. However, lenders need to differentiate their services to scale a profit. By leveraging cloud, auto-decisioning and paperless lending technologies, lenders gain a competitive edge with […]

Aclaró expands into prime auto lending market

Aclaró Inc., the rapidly-evolving artificial intelligence company, has expanded its products and services to the prime auto lending market after successfully launching its disruptive technology in the subprime market. It moves into prime auto loans, permitting a range of lenders, borrowers, and auto dealers to take advantage of industry-leading insights to create better long-term financial […]

State of the subprime auto lending market

Working in the subprime auto lending market, the tendency is to focus on the threats and opportunities that are directly in front of us. We zone in on our specific subprime auto portfolios and do our best to obtain the highest risk-adjusted returns. Ultimately, it is easy to get stuck in the weeds rather than […]

Why low balance letters are not working

Regardless of the industry, there comes a time when certain business practices are followed even though they aren’t the most efficient or most profitable. The legendary Rear Admiral Grace Murray Hopper, a pioneer of computer programming, used to say that the most dangerous phrase in any language is, “We’ve always done it this way.” The auto […]

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, […]

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