Off the Lot: What does Auto Finance Summit 2024 have in store?  

It’s showtime!

The 2024 Auto Finance Summit kicks off today in Las Vegas. It seemed like a good time to consider and anticipate the excitement of this year’s event.

What could be better in this time of challenging portfolio performance than a roundtable on risk management? Likely the focus will be on current credit trends but expect, like in most conversations today, some dialogue on how to use AI in risk modeling. These stimulating discussions may get you thinking along lines not previously considered and you can’t miss the insights you’ll gain from these discussions.

The luncheons topics are always great, and the annual Women in Auto Finance Luncheon will explore and honor the experiences of women in our industry.

As we slide toward the end of the year, a look at the market outlook and views toward 2025 will get thoughts spinning and people talking. This challenging year has dealt many a difficult hand and clearly analyzing where we have made progress and how to build on that next year will be an important session.

Then some fun with a session called Spark Tank. Yes, the similarity to the TV show is intentional. You will need to bring your creativity, as participants will look to the future of the finance industry, bringing their best ideas on how to create the next great company. Although the sessions are sold out, you won’t want to miss hearing the buzz on ideas and entrepreneurship from the participants. Although you may not be in the contest, the presentations will surely get your own creativity simmering. And, just like on TV, but wait there’s more … the winning group will get symbolically “funded” by the investor judges.

Finally, you’ll end your day with the session on the future of auto finance. What could be better than ending the day looking forward with insights on the future of the industry from leaders of iconic companies. 

After all that, we’ll meet up for specialty and craft cocktails at the opening reception.

On Day 2, you’ll have it your way with multiple tracks and sessions on the industry’s most important topics, including discussions on the state of the capital markets and funding and point/counterpoint in The Great Subprime Debate: Risk vs. Reward. Two teams will face off in a debate format and challenge your paradigms regarding lending standards, tools, AI usage and more.

Other Day 2 sessions will cover one of today’s most hotly debated subjects, where used-car values are likely to go and how you should be thinking about loan-to-value ratios. The panelists are well-known analysts from some of the industry’s best data resource companies. Additionally, discussions will include the growing EV lease market share and residuals and, ultimately, used-car values.

Don’t plan to leave early or you’ll miss the abundant information with Day 3 offerings on enhancing customer loyalty, as well as the market outcome of EVs, hybrids and the future of auto finance. In an election year, how the variables on future tax policy may drive values will be something you won’t want to miss. This is a vital conversation that will drive your future considerations.

Additionally, there’s a session to make sure companies are fully abreast of the current compliance strategies vs. responsible growth.

We can’t forget the packed exhibit hall with vendors that are bringing today’s most advanced tools to help the industry move forward with insight and efficiency. With an open mind and conversation with exhibitors, it’s almost impossible to leave without new ideas and awareness of tools to implement for better performance, cost savings, customer satisfaction and regulatory compliance.

It’s likely that our tongues will be wagging and heads spinning as we assimilate the exhibits, sessions and networking. My prediction is that since we are getting further away from what was a challenging 2022 portfolio and its continued reduction as a percentage of outstanding receivables, we’ll be talking most about what’s the right course from here.

Will we be aggressive? What is aggressive? What’s the right LTV? Should I think differently about EVs? What tools should I use, how much can I implement AI and who are the best partners to work with? These questions are likely to get the juices flowing and, as has happened so many times in the past, the ongoing reinvention and instincts of the leaders of the industry will drive performance as we continue to return to a more normalized market.

There will be great opportunities if we’re ready to break some paradigms, keep an open mind, and make smart and courageous choices. 

Bruce Newmark, formally chief adviser of Vroom an.d United Auto Credit Corp., is retired and a consultant to the industry. Newmark has more than 45 years of experience in automotive retail and finance. Before joining Vroom, Newmark’s tenure spanned leadership roles at Fimanco, Ford Motor Co., Hankey Automotive Group and Westlake Financial.  

Follow all the latest news from this week’s Auto Finance Summit here.