Auto Finance News | The News That Drives the Industry

Credit Performance

American Honda Finance leads captives with lowest debt-to-equity ratio

Thinning margins spur Ford Credit downgrade

Ally Financial scores investment-grade rating

American Honda Finance leads captives with lowest debt-to-equity ratio

American Honda Finance Corp.’s short-term debt rating was reaffirmed with a stable outlook by Fitch Ratings, thanks to a low corporate leverage ratio and credit losses, which are the lowest among its captive finance peers, Michael Taiano, Fitch senior director of the Financial Institutions Group, told Auto Finance News. “Honda Finance has the lowest debt […]

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, […]

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Capital Markets

Westlake to underwrite mortgages for dealerships

Westlake Technology Holdings is establishing itself as a financier for dealerships “on all levels” with a program to provide commercial real estate loans to auto dealers, Group President Ian Anderson announced in a press release this week. The program, called Westlake Capital Finance, is the Los Angeles-based lender’s newest business venture to become a holistic […]

OneMain Financial’s stock outperforms Ally, Santander in 3Q

Canadian ABS market remains strong despite consumer bankruptcies

Nonprime lender Oportun goes public

Asbury Automotive amends $1.5b credit facility

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From Auto Finance Excellence

Becerra releases proposed CCPA regulations

Capitalizing on today’s tech

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Westlake to underwrite mortgages for dealerships

Mobility rideshare app expands Texas footprint

Hitch, an Austin, Texas-based mobility startup, has expanded its service to include a route from Austin to Dallas, the company announced. The peer-to-peer service, which connects riders with drivers that are traveling long distances between major cities, launched its inaugural Austin-to-Houston route earlier this year. The platform is structured as a homage to traditional hitchhiking. […]

Ally reveals 5-year remarketing goal

Since pulling together remarketing services into an “end-to-end” solution in March, Ally Financial has revealed to Auto Finance News its target market share for 2024. While it’s still a “fledgling business,” Ally 3PR (short for 3rd-party remarketing) has set his sight on “10% of the overall repossession space,” Director Scott Dumboski told AFN. “If you […]

Bianca Chan
October 11, 2019
Exclusive, Operations

Renault board votes to replace CEO Thierry Bollore

Renault SA named Clotilde Delbos interim chief executive officer after ousting CEO Thierry Bollore, as the French carmaker works to repair its partnership with Nissan Motor Co. Delbos, currently chief financial officer, will take over immediately from Bollore, making her one of the highest-ranking women in the auto industry. Renault’s board will begin a search […]

Bloomberg News
October 11, 2019
Bloomberg, People

Becerra releases proposed CCPA regulations

California Attorney General Xavier Becerra released the office’s long-awaited proposed regulations implementing the California Consumer Privacy Act (CCPA). AFSA previously submitted comments on behalf of its members, raising significant concerns with the draft regulations during the preliminary rulemaking process. As part of the rulemaking process, the AG’s office will hold four public hearings in early December to […]

American Financial Services Association
October 11, 2019
Auto Finance Excellence, Risk Management

OneMain Financial’s stock outperforms Ally, Santander in 3Q

Investors eyeing auto finance stocks are turning to OneMain Finacial (OMF), which had the highest share performance during the third quarter, outpacing Ally Financial and Santander Consumer USA (SCUSA), according to a research report released this week by JPMorgan. OneMain Financial’s third quarter share performance reached 15.2%, compared with Ally Financial at 7.6%, and Santander […]

Toyota Mobility to buy UK fleet management company

Inchcape Plc has agreed to sell its U.K.-based fleet leasing business, Inchcape Fleet Solutions (IFS), to Toyota Fleet Mobility for £100 million ($123 million) in cash. Toyota is IFS’s oldest OEM partner. The deal is set to close by year end. IFS operates as a franchisee for BMW, Mercedes-Benz, Volkswagen, Porsche, Toyota and Lexus. The […]

Bank of America to enhance online portal amid volume boost

Bank of America is planning to revamp its online lending portal and "take it to another level," as dealer adoption has spurred a boost in volume, Tim Owens, consumer vehicle lending sales executive, told Auto Finance News. The goal is to create a "Gen 2" version of the portal, which will provide more optionality for […]

Bianca Chan
October 9, 2019
Customer Experience, Exclusive, Innovation & Technology

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, […]

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 […]

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