Last year hurt, but 2010 likely will not.
2009 will go down as one of the worst years for auto finance, according to the newly released 2010 Auto Finance Big Wheels report. However, the report, which for the first time includes a forecast for 2010 performance, indicates that auto finance should rebound this year — at least somewhat.
Specifically, auto finance outstandings contracted 10% last year, outpacing the 6.8% drop in outstandings in 2008. Origination performance was even darker, falling 28.9% year-over-year and outdoing the 23.1% drop in originations in 2008.
Auto Finance Big Wheels is the only report that tallies auto finance originations and outstandings. The report ranks the Top 100 auto lenders and lessors, includes comprehensive contact information for each, and, for the first time this year, includes a forecast for 2010 originations. Auto Finance Big Wheels is published by Auto Finance News and AutoFinanceNews.net.
According to the report, “though new-vehicle sales have gotten off to a slow start in 2010, higher anticipated volume should prop up loan and lease originations. Also, as the unemployment rate inches lower, delinquency rates will come down, further improving industry fundamentals in 2010.”
Taking the No. 1 spot in auto finance in 2009 was Ford Motor Credit Co., even though its portfolio shrank 18.3% year-over-year to $72.1 billion, according to Auto Finance Big Wheels. GMAC, Toyota Motor Credit Co., Chase Auto Finance, and Bank of America Dealer Financial Services rounded out the Top 5.
For more information about the report, click here.
Marcie, I let 5 hours pass to see if anyone had any thoughts on this. This is a sad transaction for the finance industry. Predatory payroll lenders are now getting a foothold around a vulnerable market – auto financing for young soldiers. Are these not the same people with offices surrounding the military bases and currently exploiting soldiers at rates that would make a loan shark blush?
How about you asking what the interest rate spread is now and mark your calendar to ask what it is after this deal is done and some “time” has passed?
The miltary does a poor job of preparing young soldiers for finance traps. They do have classes (after the fact) for those that have been trapped.
How is this good for the American soldier? Who is looking out for them?
FYI, any difference between the borrower rate and this company that is greater than 2%, means that they are allowing the dealer to really partner in the exploitation. And because soldiers are always being transfered, the dealer does not care because he does not expect repeat business anyway.