Auto Finance News | The News That Drives the Industry - Part 7

Thinning margins spur Ford Credit downgrade

Ford Motor Co.'s weakened credit profile will likely have negative implications for its access to funding and financing volumes after a downgrade by Moody’s Investors Service this week. The downgrade moved Ford’s rating to non-investment speculative-grade status.  Moody’s said an upgrade for Ford is “unlikely in the near term,” as margins are expected to remain […]

Ally Financial scores investment-grade rating

Ally Financial’s long-term default rating has reached investment-grade status after an upgrade by Fitch Ratings, thanks to a boost in profitability stemming from increased used-car originations. The upgrade is a plus for Ally since investment-grade paper is typically in higher demand by investors, Michael Taiano, senior director of the Financial Institutions Group at Fitch Ratings, […]

Honda Finance injects $1B into ABS market

Loans in American Honda Finance Corp.‘s latest securitization have the shortest original and remaining terms when compared with other issuers’ pools, according to a Moody’s Investor Services presale report. The $1.1 billion securitization is on track to be upsized to $1.3 billion based on investor demand. Read more: American Honda Finance Dodges Class-Action Lawsuit The loans backing […]

Credit margins shrinking in auto amid Fed rate cut, economist says

Despite the Federal Open Market Committee’s (FOMC) goal of boosting the economy and reducing the cost of borrowing money for lenders and banking institutions, the auto finance market may not see the intended benefits of Wednesday’s cut to the Federal Reserve’s benchmark interest rate, Jonathan Smoke, chief economist at Cox Automotive, told Auto Finance News. […]

3 strategies for lenders to mitigate internal threats to consumer data security

With the enactment of the California Consumer Privacy Act of 2018 and the barrage of copycat legislation in other states, there has been significant focus on consumer data and privacy issues from the vantagepoint of the consumer: what information is collected and how consumers can direct companies what to do — or not do — with that information. While the discussion has largely […]

Volkswagen Bank taps OneSpan for encryption to fight hackers

Volkswagen Bank, the financial services arm of the German automaker, is turning to QR code-like technology to fight threats posed by hackers. The bank, which focuses on vehicle and dealer financing, implemented the new technology with the help of OneSpan (formerly Vasco), a security and e-signature solutions company based in Chicago. The OneSpan solution is called Cronto, […]

Beneath the surface: The lurking cybersecurity threat

Nine seconds. That’s all the time it took to hack the Department of Defense’s weapons system. Whether a government entity, a captive financier, a midsized bank, or a small credit union — every company has become dependent on a vast and expanding digital infrastructure. That infrastructure, in turn, has made businesses vulnerable to cybercriminals and […]

HyreCar’s earn-to-own program focuses on short-term loans

HyreCar’s dealer portal has paved the way for its new earn-to-own pilot program, Brian Allan, senior vice president of strategic partnerships, told Auto Finance News. The new earn-to-own program would allow drivers who rent cars for ridesharing programs to eventually finance their vehicle. “The portal helps dealers identify these customers that are renting [cars to use […]

SAAR to drop for third straight month

The pace of auto sales continued to slow in August, as the SAAR is forecast to drop for the third month in a row. New-vehicle sales last month are expected to notch 1.59 million units – up 100,000 units, or 6.5%, from year ago levels. Still, the SAAR is forecast to drop to 16.5 million, […]

Toyota Financial enters private-label financing, scores Mazda

Toyota Financial Services (TFS) is establishing itself as a provider of third-party financial services on the heels of a newly inked deal with Mazda Motor of America. Mazda’s consumer loan and lease financing will make the switch to TFS on April 1, 2020, TFS spokesman Vince Bray told Auto Finance News in an email. The […]

HyreCar looks to break rent-for-rideshare mold

HyreCar’s “platform agnostic” approach to ridesharing is a key driver of the startup’s surplus of users, according to Brian Allan, senior vice president of strategic partnerships. “Most every other rent-for-rideshare platform ties [consumers] down to specific platforms, [such as Uber or Lyft],” he said, adding that HyreCar users can drive for services such as Lyft, […]

5 success strategies for consumer lenders in 2020

Investors love growth, and as we approach the longest sustained period of growth in the history of the United States, the business climate has been almost unprecedented. The Dow Jones Industrial Average is hovering around record highs and unemployment is at its lowest level in nearly two decades. These robust economic conditions have supported and […]
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