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 […]

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 […]

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 […]

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 […]

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 […]

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 […]
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