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

6 steps to building a dealership culture that attracts female employees

5 questions with… TFS’s Carrie McNamara

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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

Westlake taps CarFinance to grow refi business

Westlake Financial Services has inked a deal to start purchasing auto refinance loans originated through CarFinance, the companies announced this week. The goal of the partnership is to “complement” Westlake’s direct lending platform, LoanCenter, with auto loan refinancing, Ralph Ontiveros, vice president of Westlake services and lending solutions, said in a press release. The Los Angeles-based […]

Nicole Casperson
September 18, 2019
Archives, Sales & Marketing

Auto Financial Group expands Canadian reach

Auto Financial Group (AFG), a provider of residual-based financing options to credit unions, is stretching its reach across Canada by signing on its first Nova Scotian financial institution, the company announced yesterday. Halifax, N.S.-based CUA is the first credit union in the province to partner with AFG Canada, said Director of Marketing Monica Mendoza. Now, […]

Bianca Chan
September 18, 2019
Sales & Marketing

5 questions with… TFS’s Carrie McNamara

Five Questions With is a monthly Q&A segment on AutoFinanceExcellence.org that offers a glimpse of what senior industry executives are thinking about outside the boardroom. Read on to find out. Eighteen years at Toyota Financial Services has taught Carrie McNamara, national manager of consumer and dealer experience, that each hurdle encountered also represents an opportunity for growth. “When […]

Joey Pizzolato
September 18, 2019
Auto Finance Excellence, Customer Experience, People

Nissan seeks sale of trading unit in $1b deal

Nissan Motor Co. is seeking to sell a wholly owned subsidiary that distributes vehicle parts and materials in a deal that may be valued at about $1 billion, as the struggling Japanese automaker seeks to slim down, people familiar with the matter said. The company has invited private equity and trading firms to bid for […]

Bloomberg News
September 18, 2019
Bloomberg, 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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