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

Credit margins shrinking in auto amid Fed rate cut, economist says

Despite the Federal Open Market Committee’s (FOMC) goal of boosting the economy and reducing the cost of borrowing money for lenders and banking institutions, the auto finance market may not see the intended benefits of Wednesday’s cut to the Federal Reserve’s benchmark interest rate, Jonathan Smoke, chief economist at Cox Automotive, told Auto Finance News. […]

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

Financing costs prop up expense of new-vehicle ownership

Aston Martin is shopping for expensive junk

EXCLUSIVE: Ford Credit sells Canvas portfolio to Fair

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From Auto Finance Excellence

Unpacking California’s new privacy reg: 2 issues lenders need to know

6 steps to building a dealership culture that attracts female employees

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No margin, no mission: Credit unions push to reclaim market share

From the September issue: Credit unions are feeling the sting of tighter margins as banks leverage used-car financing to spur higher yields. In the past year, banks have grabbed an extra 5% of the used-car financing pie, accounting for 36% of the market, while credit unions have lost 7% to drop down to 26%, according […]

Nicole Casperson
September 20, 2019
Features, Innovation & Technology, Sales & Marketing

Credit margins shrinking in auto amid Fed rate cut, economist says

Joey Pizzolato
September 20, 2019
Capital Markets, Exclusive, Risk Management

Unpacking California’s new privacy reg: 2 issues lenders need to know

Starting January 2020, financial institutions will need to keep their data security procedures in check as California’s new consumer protection act goes into effect. The legislation gives California consumers the “private right of action,” or the ability to sue companies, if their personal information is the subject of a data breach resulting from a business’s […]

Bianca Chan
September 20, 2019
Auto Finance Excellence, Compliance & Regulation, Risk Management

Europe renews pledge to retaliate against any Trump car tariffs

The European Union’s trade chief reiterated a pledge to impose retaliatory tariffs against the U.S. should President Donald Trump follow through on a threat to hit the bloc’s automotive goods with duties. European Trade Commissioner Cecilia Malmstrom criticized Trump’s assertion in May that EU cars and auto parts shipped to the American market pose a […]

Bloomberg News
September 20, 2019
Bloomberg, Sales & Marketing

FBI busts Porsche dealer in $3m fraud scheme

A former dealer for Pompano Beach, Fla.-based Champion Porsche has pled guilty to a fraud scheme racking up $3 million. The fraudster, Shiraaz Sookralli, pled guilty to conspiracy to commit mail fraud and wire fraud. He is scheduled for sentencing on Nov. 14 and faces a maximum sentence of 20 years in prison, according to […]

Nicole Casperson
September 19, 2019
Risk Management

Tricolor appoints industry vet as CEO of new insurance unit

Tricolor Auto Group has named auto insurance vet Archie Gall as the chief executive of its newly launched insurance business, the company announced. At the helm of Tricolor Insurance, Gall will be responsible for creating and expanding insurance offerings for “non-standard” carriers – that is, insurers that offer coverage to high-risk consumers. “I’m eager to […]

Bianca Chan
September 19, 2019
People, Risk Management

6 steps to building a dealership culture that attracts female employees

Traditionally the auto industry has historically been dominated by men, but as the workforce advances to include, value and support more women, the auto retail industry is making an effort to keep up. Not only is this an important cultural evolution for dealers to make, but it’s also a crucial business evolution. Studies show women […]

Marisa Carnevale-Henderson
September 19, 2019
Auto Finance Excellence, Customer Experience

Veros Credit’s chief legal officer to present at Auto Finance Summit

At the upcoming Auto Finance Summit, Robert Tennant, chief legal officer at Veros Credit, will offer insights into the latest on regulations and enforcement during a presentation on Tuesday, Oct. 29 at the Bellagio Las Vegas. Tennant will speak about current trends in Fair Debt Collection Practices Act (FDCPA) and Telephone Consumer Protection Act (TCPA) […]

Nicole Casperson
September 19, 2019
Auto Finance Summit, Risk Management

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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