Fifty years ago today Ford Motor Credit Co. launched. There have been some hiccups in the years since (leasing, subprime lending, the credit crisis, etc), but Ford Credit remains the No. 1 auto finance company in the nation with $88.2 billion of total outstandings in the US at yearend 2008 and despite a 14.5% year-over-year decline, according to the Auto Finance Big Wheels data report. We at AutoFinanceNews.net congratulate FMCC on reaching this significant milestone.
Which is why many of us believe the opportunity for non captive lease lenders is in pre-owned! The captives don’t compete well in pre-owned and depreciation is much less volatile. Residuals are much easier to predict and there is new technology from Chrome that enables lenders to determine the original equipment on a pre-owned vehicle based on OEM info based on the VIN. At CyberCalc we have developed a tool for lenders to use to identify and correct residual vulnerabilities before they release their programs.