Update | Auto Finance News

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 […]

Safco Builds Verification Tool to Enable Next-Day Funding

Indirect subprime lender Southern Auto Finance Co. is gearing up to roll out a next-day funding tool that hinges on the ability to verify customer information internally for dealer partners, Chief Executive George Fussell said. With the tool, slated to launch “in the next few months,” Safco aims to verify “stips” — consumer information like […]

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 […]

CFPB Innovation ‘Sandbox’ Likely to Fuel State AG Enforcement

SAN DIEGO — Companies that participate in the Consumer Financial Protection Bureau’s proposed innovation-focused “sandbox” rules to spur innovation may be penalized by state attorneys general, lawyers said at the Auto Finance Innovation Summit last week. The CFPB released proposals earlier this year meant to encourage innovation in the consumer financial services space by allowing […]

Investment Research Firm to Buy Rating Agency DBRS

Investment research firm Morningstar Inc. will acquire credit rating agency DBRS for $669 million, according to the companies. The deal is expected to close in the third quarter.    Morningstar has been mostly absent from the public auto-ABS rating space, primarily rating private placement transactions, a company spokeswoman said, without providing details. In the public […]
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