Ally to Pay $20M Settling Claims it Overcharged Lease-to-Own Contracts

Ally Financial Inc. has agreed to settle for $19.7 million a 2014 class action lawsuit alleging the lender overcharged consumers who sought to purchase leased vehicles at the end of term, according to court documents filed in Florida federal court last week. Borrower Robert Schreiber sued Ally on behalf of the proposed class after alleging […]

Originations on the Decline as Subprime Lending Falls 8.5%, Equifax Says

Lenders have anecdotally signaled a pullback in subprime loans, but now there’s also data to back up those claims as subprime originations have declined by 8.5% year over year through 2018 so far, according to the Equifax U.S. National Consumer Credit Trends Report.  Year-to-date, 819,600 subprime auto loans have been originated down from 894,500 during the same period […]

Hyundai Capital’s Ross Williams Joins AFS for Fireside Chat

Auto Finance News will host President and Chief Executive of Hyundai Capital America Ross Williams at this year’s Auto Finance Summit for a fireside chat. The event will take place October 24-26 at the Wynn Las Vegas. Click here for the full agenda. The discussion will delve into Williams’ eight-year career at the captive, emerging […]

Appetite for Higher Yields Spurs Boost in Single-B Securitizations

Increasingly risky securitizations are becoming more popular as a looming contraction period has investors hungry for higher yields. Although single-B-rated loan tranches are described as “speculative” and “unlikely to survive even a mild deterioration in economic conditions,” rating stability and upgrades have made investors feel comfortable with this asset class, said Amy Martin, primary credit […]

Subscription Programs Spur Innovation Opportunity

With all the consolidation taking place at dealerships across the country, managers are looking for new ways to drive sales and keep customers coming back, and one of the most popular solutions this year has been subscription programs. BMW Financial Services, Mercedes-Benz Financial Services, Fiat Chrysler Automobiles, and Toyota Financial Services’ Lexus brand have all […]

Residual Risk Is Top Concern for EV ABS Pools

Residual risk is the primary risk factor in electric vehicle ABS pools — not credit, Jennie Lam, director and lead analyst with prime auto ABS at S&P Global Ratings, told Auto Finance News. Because most EVs are leased to super prime or prime credit profiles, there’s a slim chance of default, she said. Additionally, leases offered by […]

Subprime Market Still Ripe for New Entrants, Mark Floyd Says

Despite the specter of rising delinquencies and losses in the auto finance space, longtime subprime financier Mark Floyd believes the market is ripe for new entrants. “If I were originating loans today, I’d think it’s a great time to enter the market,” said Floyd, who served as chief executive of Exeter for a number of […]
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