Update | Auto Finance News

Delinquency rates push up subprime APRs

Record severe delinquency rates – loans 60-or-more days past due – are the key reason that subprime annual percentage rates have increased in a year in which bond yields have decreased, Jonathan Smoke, chief economist at Cox Automotive, told Auto Finance News. Delinquency rates for subprime accounts notched 5.38% of total volume in November, according to Equifax data. “The higher […]

6 indicted for straw-buying fraud

Two owners of a Moline, Ill.-based car dealership — 4th Avenue Auto Sales — have been indicted along with four co-conspirators on straw-buying fraud and odometer tampering, according to a filing with the U.S. District Court for the Southern District of Iowa. The owners, Bradley Shane McCorkle and Isaac Bell, would recruit straw buyers to […]

New-Car Model Shifts as Short-Term Leasing Stocks CPO Programs

An emerging trend — where dealers use off-lease vehicles from short-term leases to stock certified pre-owned (CPO) programs — is shifting the way consumers purchase new cars. This trend is occurring across segments and price points, according to Matt DeLorenzo, senior managing editor of Kelley Blue Book. Kia and Toyota are two OEMS that are both “aggressive in it,” he said, […]

Sagent Partners With Experian to Combat Fraud Risks

Sagent Lending Technologies has partnered with Experian and integrated the credit bureau’s Precise ID, a fraud and identity solution, into its Auto Loan Origination System. Experian’s Precise ID allows auto lenders using the Sagent system to better identify would-be consumers’ identities and mitigate the risk of fraud, which is reported to have increased 5% year over year, as […]

Axis Auto Posts Quarterly Loss Amid Expansion Efforts

Axis Auto Finance recorded a $1.7 million net loss for the quarter ending March 31 despite doubling outstandings year over year, the Toronto lender reported last week. By comparison, Axis lost $400,000 in the prior-year period. Expansion across Canada on the heels of two acquisitions last year — Trend Financial Corp. and Cars on Credit Financial Inc.— propped up Axis […]

Carvana’s 7-Day Return Policy Boosts Retention Rate

Carvana’s seven-day return policy has resulted in a single-digit return rate, Christina Keiser, vice president of strategy, said at the Auto Finance Sales & Marketing Summit last month. "Carvana return rates are in the mid- to high-single digits, and about half of those are swaps — meaning, a customer exchanges the original vehicle for a […]

Safco Integrates Chat, Omnichannel Payment Features

Southern Auto Finance Co. is leveraging new communication strategies to bolster customer support, Chief Executive George Fussell told Auto Finance News.   The Fort Lauderdale, Fla.-based lender launched chat capabilities on its website last month to direct and address customer inquiries. Currently, customer service representatives manage the chat feature, but Fussell noted that machine learning […]
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