Finance | Auto Finance News

Testing the resiliency of auto ABS

The auto asset-backed securities market continues to attract investors — even from overseas. While market headwinds brought on by lengthening loan terms, trade disagreements and a potential economic downturn test the market’s resilience, closer examination of the auto ABS structure proves the strength of these bonds in the face of adversity. In fact, investor appetite […]

Santander debuts $1.3B revolving ABS

Santander Consumer USA is bringing $1.3 billion worth of nonprime loans to market with the debut of its revolving asset-backed securitization slated to close Nov. 26, according to Moody’s Investors Service presale report.   The securitization pool consists of 66,522 contracts, with 43% of the pool comprised of new vehicles and 57% used. The weighted average […]

Tightening credit standards to slow auto growth

Tightening lending standards from auto finance companies, interest rates and rising vehicle prices are poised to reduce total outstandings about 5% through 2020 and 2021, according to Moody’s Analytics U.S. Consumer Credit Outlook. In fact, finance companies have stiffened underwriting guidelines due to deterioration in credit performance, which has allowed banks and credit unions to […]

Residual value uncertainty bogs down Tesla lease ABS

Tesla Finance brought $940 million to market with its first securitization of the year backed by retail auto lease contracts, according to a Moody’s Investors Service presale report. The weighted average Fico score for the transaction was 790, according to Moody’s. While high credit quality of the lessees was marked as a credit strength, limited […]

Nicholas Financial maps growth trajectory

Nicholas Financial  has outlined expansion plans for its direct loan product and branch network, according to a Nov. 14 SEC filing. Nicholas plans to roll out its direct loan product in Indiana, Missouri, South Carolina and Kentucky this quarter, according to the filing. “We remain focused on proliferating our direct loan product to all of […]

Serious delinquencies improve for young borrowers

Serious delinquencies — auto loans 90 days or more past due — for borrowers aged 18 to 29 years dropped 38 basis points to 3.8% year over year, marking this age group’s lowest delinquency level since 2Q15, according to the New York Federal Reserve’s third-quarter Report on Household Debt and Credit. Though this age group’s […]

Oportun debuts auto refi product

Oportun Financial rolled out an auto refinance product this week after applying lessons learned from a retail loan offering that launched in the second quarter, said Chief Executive Raul Vazquez during an earnings call. “We are excited about the introduction of auto refi loans, because we believe they will be a larger contributor to growth […]
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