Podcast: ‘Weekly Wrap’ on Q2 earnings, e-contracting
Listen as AFN editors break down top stories from the past week
More auto lenders posted year-over-year origination growth last week, further pointing to fluctuating origination performances from auto financiers in the second quarter.
Carvana’s second-quarter originations rose 10.6% sequentially and 37.5% YoY to $2 billion.
Subprime lender Credit Acceptance Corp.’s portfolio hit a record at $8.6 billion as of June 30 as origination volume on a dollar and unit basis increased YoY in Q2.
AutoNation Finance’s originations increased quarter over quarter and YoY despite dampened vehicle sales at AutoNation retail stores following June cyberattacks against dealership software provider CDK Global.
Still, the volume of digitally originated auto loans industrywide totaled 2.7 million contracts in Q2, up 3% sequentially and 29% YoY despite relatively flat Q2 auto sales affected by the CDK attacks in June.
In Q2, auto lenders continued to explore how investing in technology can enhance the online experience for consumers and dealers as interest rates, vehicle prices and monthly payments remained elevated and continue to curate a challenged auto market for some.
Prices on used Fisker EVs are plummeting faster than the wider used-EV market after news of the EV maker’s June 17 bankruptcy filing prompted concerns about the availability of service and parts for the vehicles.
In Powersports, Octane Lending appointed Chief Financial Officer Steven Fernald to serve as the company’s first president.
In this episode of the “Weekly Wrap,” Auto Finance News Associate Editors Ashley Savage and James Van Bramer discuss trends in financier earnings, technology, EVs and the powersports market for the week ending Aug. 2.
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Auto Finance Summit, the premier industry event for auto lending and leasing, returns Oct. 7-9 at Wynn Las Vegas. To learn more about the 2024 event and register, visit www.AutoFinanceSummit.com.
Editor’s note: This transcript has been generated by software and is being presented as is. Some transcription errors may remain.
Hello everyone and welcome to the road map from auto Finance News.
Since 1996, the nation’s leading newsletter on automotive lending and leasing, it is Monday, August 5th and I’m Ashley Savage.
This is our weekly wrap on what happened in auto finance for the week ending August 2nd, 2024.
In economic News, Federal Reserve chair Jerome Powell indicated that an interest rate cut could come as soon as September.
Powell’s comments came after the US Central Bank voted to leave its benchmark at 5.25 to 5.5%, the highest level in more than two decades in auto finance.
More auto lenders posted year over year origination growth last week, further pointing to fluctuating origination performances from auto lenders in Q2.
Carvana second quarter originations rose 10.6% sequentially and 37.5% year over year to 2 billion.
Prime lender Credit Acceptance Corp Corp’s excuse me profolio hit a record at 8.6 billion as of June 30th, as origination volume on a dollar and unit basis increased year over year.
AutoNation finances originations increased quarter over quarter and year over year despite the infinite vehicle sales on AutoNation retail stores following June, cyberattacks against dealership software provider CDK Global on the EV side, prices on used Fisker EV’s are plummeting faster than wider used EV market then the wider used EV market after news of the EV makers June 17th bankruptcy filing prompted concerns about the availability of service and parts for the vehicles in powersports, octane lending, appointed Pay Financial Officer Steven Fernald to serve as the company’s first president.
Also last week my colleague James Van Bramer covered the latest E-contracting.
I’ll hand it to James for more on that.
Thank you, Ashley.
The second quarter was a somewhat surprisingly strong quarter for Econ tracting value.
According to software provider Wolters Kluwer Q2 2024, automotive finance Digital Transformation index, typically the volume of auto loans, originally digitally plateaus in Q2, mostly because in Q1 we the auto industry usually sees pentup activity from the tax refund season.
But even and even but even though the the index usually plateaus and in addition we also saw the cyberattacks on CDK global happen in the second quarter, which affected over 15,000 dealerships, E contracting volume actually grew 3% sequentially and 29% year over year.
Digital digital adoption has also remained strong in the secondary market, which quote speaks to the health of the industry.
There’s a lot of trust in how loans are originated digitally, Tim Yalich, head of head of automotive strategy for Walter Wolters Kluwer.
Help me in my previous reporting when the CDK outage was still ongoing.
Dealerships were telling me that they were financing finding worker ways.
Sorry, they were finding work arounds to continue to finance deals during the outage, which led many of them to upping their econtact and value good old technology.
The auto industry can’t get enough of it.
Eh, that’s all for me.
Back to you, ash.Ashley Savage: Thanks, James.
I’d also like to add that our latest feature ran today and is now available on our site.
The feature takes an in-depth look at lenders, efforts to balance tech with consumer needs while highlighting that this wave of tech adoption might not be A1 size fits all scenario.
Make sure to check that out if you haven’t already.
That about does it for today’s episode as it reminder registration is open for the 2024 Auto Finance Summit and Powersports Finance Summit.
Returning to Vegas in October, more information can be found at auto finance Dot live.
Thanks for joining us on the roadmap and be sure to follow us on X Van LinkedIn.
We’ll see you online at autofinancenews.net and here next time.
