Auto Finance News | The News That Drives the Industry - Part 797

Golden 1 CU inches toward lower credit

LAS VEGAS — Golden 1 Credit Union is looking to expand its underwriting focus in anticipation of slowing vehicle sales in 2020, said Chief Lending Officer Greg Brown. The Sacramento, Calif.-based lender’s average credit score is 739, Brown said. “We haven’t had that conversation internally yet, but dropping the credit average by 10 points would […]

Chase Auto pilots subscription model, questions scalability

LAS VEGAS — Chase Auto is experimenting in the subscription service space by funding a “cross-product or cross-model” offering, Chief Executive Mark O’Donovan said at the Auto Finance Summit. Chase is providing a wholesale credit line, with the dealership groups running the subscription models, he said. “We’re dabbling in it to try to support our dealer […]

Rodo integrates insurance into app to mitigate cancellations

LAS VEGAS — Digital leasing app Rodo has launched an insurance marketplace in conjunction with Travelers Group to mitigate lease cancellations, said Patrick McKeever, vice president of sales and business development at Rodo. “One of the things we heard from our consumers — and certainly first-time buyers — is they had no idea how expensive […]

Testing the resiliency of auto ABS

The auto asset-backed securities market continues to attract investors — even from overseas. While market headwinds brought on by lengthening loan terms, trade disagreements and a potential economic downturn test the market’s resilience, closer examination of the auto ABS structure proves the strength of these bonds in the face of adversity. In fact, investor appetite […]

A Jump in Loan Terms

Loan terms have been inching upward as consumers struggle to make car payments fit into their tightening budgets. For the past few years, average maturities have hovered around 63 months, according to Federal Reserve data. But the Fed’s most recent G19 report, released Monday, shows that in July, the average maturity among auto finance companies […]

Auto Lending Ignorance

Apparently, Americans don’t know much about their auto loans. A new study released today by Capital One Financial Corp. found that 61%, yes 61%, of auto loan holders “do not know the interest rate they are paying on their loan.” Also, 62% of the approximately 800 consumers surveyed “said they did not know refinancing their […]

Consolidation Looms

Auto finance companies have been growing for the past few years, putting acquisitions largely out of reach. It’s difficult to find a player large enough to acquire a company originating $5 billion or $10 billion of loans per year. That dynamic is finally changing, and consolidation will be the name of the game soon. With […]

The Saga of Sagging Sales

I think the numbers speak for themselves. Vehicle sales volume continues to dive and, contrary to a handful of reports I read yesterday, I doubt we’re near bottom. Consider the facts: Chrysler LLC sales were down by 34.5% last month, compared with August 2007. Ford Motor Co. sales were down by 28.6%, and General Motors […]

Lessors Get Tough on End-of-Term Fees

With auction prices for sport-utility vehicles in a tailspin, lessors have started to assert greater control over the lease-end process, according to some industry executives. Though they have not actually changed lease-end inspection rules, some lessors are more ardently assessing fees for vehicle damages. Lessors “are not letting people off the hook as much,” said […]

Demand for Leasing Remains Strong

While it might not be as frenetic as the great tulip craze of 1637, leasing activity on is strong enough that consumers looking to take over car leases outnumber those seeking to transfer them by a rate of four to one. Those numbers offer at least some perspective on the amount of business being […]

Betting on Bargains

Rising interest rates, increasing debt burdens, and saturated auction lanes are pressuring vehicle lenders in sub-Saharan Africa and sending repossession rates climbing. Relative to Europe and the United States, the African car market is small. For all of sub-Saharan Africa, sales of new passenger cars totaled fewer than 690,000 units in 2007, said Dan Brett, […]

Lenders Rein in Travel, Technology Costs

Auto lenders are trimming the fat from their budgets as declining loan volume pressures profits. “Everybody is in cost-cutter mode,” said Rich Damschen, marketing analytics and business strategy manager at subprime lender Westlake Financial Services. Already, Los Angeles-based Westlake has pared back attendance at some industry events. “The first thing to go for everyone is […]
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