Auto Finance News | The News That Drives the Industry - Part 2

Four Things Lenders Should Know to Mitigate TCPA Risk

SAN DIEGO – One question Buckley LLP Partner John Redding often hears from his auto lender clients is: What is the status the Telephone Consumer Protection Act? “The state of TCPA is a complete mess, let’s not kid ourselves,” was his answer last week at the Auto Finance Risk Summit during a presentation titled “TCPA […]

Carvana Turns to AI For Customer Support

SAN DIEGO — Carvana is integrating a conversational artificial intelligence platform into its customer support channels, Christina Keiser, vice president of strategy, said at the Auto Finance Sales and Marketing Summit last week. Propel.AI, which Carvana bought last year, is in the early stages of testing. “We think the human touch is important,” Keiser said. […]

Hyundai Capital to Debut Bundled Lease in Florida

SAN DIEGO — Hyundai Capital America plans to roll out the Hyundai Plus Lease pilot in Florida as it continues down “the path of bundling total cost of car ownership,” National Sales Director John Thacker said during a panel discussion at the Auto Finance Sales & Marketing Summit. “[HCA] found that typical car insurance runs $100 a […]

Ford Motor Credit Posts Highest Earnings Since 2010

Ford Motor Credit earned $801 million before taxes in the first quarter, notching a 25% year-over-year increase and the captive’s best results in nine years. “Ford Credit benefited from lower depreciation on vehicles in our leased portfolio and improvement in credit loss reserves, reflecting continued strength in consumer credit metrics,” said Bob Shanks, chief financial […]

Loan Losses Are Worse Than Expected at Two Subprime Auto Lenders

Recent subprime-auto bonds from Prestige Financial Corp. and Exeter Finance Corp. are performing worse than anticipated, at a time when many competitors are at least meeting expectations, according to credit raters. The challenges both face may be remnants of a push for rapid growth a few years back, when these smaller lenders temporarily loosened credit […]

KBRA Downgrades Honor Finance Securitization — Again

Honor Finance’s 2016 asset-backed securitization has been downgraded for a second time by Kroll Bond Rating Agency due to cumulative net losses increasing to 31.2% compared with 29.4% over three collection periods, the rating agency reported April 25. The now-defunct subprime lender’s Class B notes were downgraded to B+ from BB+, and its Class C […]

Fidelity Bank Exits Indirect Auto

Fidelity Bank is shuttering its indirect auto business after nearly 30 years, Auto Finance News has learned. "Effective May 15, 2019, Fidelity Bank will cease indirect auto originations," according to a fax distributed to dealers in Florida and Georgia, the two remaining states in the bank's dwindling auto finance footprint. "Contracts dated May 15, 2019, […]

Proposed Changes to Collection Practices Could Affect First-Party Creditors

The Consumer Finance Protection Bureau has issued a Notice of Proposed Rulemaking (NPRM) to the Fair Debt Collection Practices Act (FDCPA) and, while the proposal is geared toward third-party collectors, first-party creditors will need to make changes as well, Stefanie Jackman, a partner at Ballard Spahr, told Powersports Finance. “Some of the proposals, if enacted as […]

Bank of America Expects Direct Volume to Match Indirect Within 5 Years

SAN DIEGO — Bank of America‘s direct loan portfolio may catch up with its indirect portfolio as soon as 2022, Duane Freeman, senior vice president of consumer vehicle lending and national sales executive, predicted during a panel discussion at the inaugural Auto Finance Sales & Marketing Summit on Monday. “We do see a future within the […]

AI Startup Helps BMW Financial Scale Call Center With Chatbots

SAN DIEGO — BMW Financial Services will have automated “digital assistants” added to its call center capabilities by the third quarter, thanks to a partnership with startup CarLabs.AI, the tech company’s Chief Executive Martin Schmitt said at the Auto Finance Innovation Summit Wednesday. CarLabs is a company that delivers AI-powered digital assistants for automotive brands. It started […]

Tricolor Uses Innovation, Technology to Drive Customer Experience 

At Tricolor Auto Acceptance, technology drives the goal of delivering seamless, sustainable financial products across dealerships and digital channels, President and Chief Operating Officer Don Goin told Auto Finance Excellence. “Our business strategy is hyper-focused on the customer experience relative to financial inclusion,” Goin said. “Part of this strategy is the prioritization of product development […]

Fidelity Bank Exits Indirect Auto

Fidelity Bank is shuttering its indirect auto business after nearly 30 years, Auto Finance News has learned. "Effective May 15, 2019, Fidelity Bank will cease indirect auto originations," according to a fax distributed to dealers in Florida and Georgia, the two remaining states in the bank's dwindling auto finance footprint. "Contracts dated May 15, 2019, […]

Tricolor’s Machine Learning Tech Is Reducing Its Reconditioning Costs

SAN DIEGO — The machine-learning technology deployed by Tricolor Auto Acceptance has cut its vehicle reconditioning costs, Chief Executive Daniel Chu said during the Auto Finance Innovation Summit here on Wednesday. Tricolor provides the reconditioning centers that service its chain of retail dealerships with technology that determines the most cost-effective source of car parts. The […]

Mobility Matters in the Auto Lending Process

The volume and variety of innovative commerce transactions available on mobile devices continues to grow. Younger generations — millennials and Generation Z — live with mobile devices. The gradual adoption of 5G networks will substantially enhance the speed and functionality of all things mobile — along with higher expectations from millions of users. To remain […]

Bloom Wins DEMOvation Challenge at Auto Finance Innovation Summit

SAN DIEGO — Bloom, a decentralized data security solution powered by blockchain, was crowned the winner of the third annual DEMOvation Challenge at the 2019 Auto Finance Innovation Summit, toppling six other startups. The DEMOvation Challenge offers fledgling startups the opportunity to showcase their technology in front of a wide audience of auto lending and […]
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