Auto Finance News | The News That Drives the Industry - Part 8

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 […]

Startup Fair raises $2b in funding with new credit facility 

Used-car leasing app Fair closed a $500 million revolving credit facility financed by Mizuho Bank, the companies announced today. With Mizuho’s investment, the vehicle subscription company has raised nearly $2 billion in funding over four outside equity rounds.  The new credit facility is a move for Fair to increase its supply of rideshare vehicles for […]

Pentagon FCU gears up for omnichannel approvals

Pentagon Federal Credit Union will be granting “omnichannel approvals” once it completes a company-wide migration to a new loan origination system, said Ivan McBride, VP of auto lending products and sales.  The LOS will enable PenFed to approve customers for one type of loan, say an auto loan, and approve them for a second loan […]

Subscription service Mobiliti preps for global expansion

Startup Mobiliti has set in motion plans to establish itself as a global player in the subscription space via a newly inked partnership with Australian marketplace Carsales.com.  With an inventory of more than 200,000 new and used vehicles, Richmond, Australia-based Carsales.com is an online marketplace for consumers to buy and sell cars. The site attracts […]

Wells Fargo partners with nonprofit, donates vehicle to vet

Wells Fargo, in partnership with Minneapolis-based Walser Automotive Group, is sponsoring the donation of a 2019 Nissan Rouge Sport through the Military Warriors Support Foundation’s Transportation4Heroes program. The vehicle will go to an undisclosed retired Marine Corps veteran today at the Minnesota State Fair at 3 p.m. ET. This is the second straight year Wells Fargo […]

Securitization residual values hit 12-year low

The average residual value expected in auto lease securitizations this year dropped to a level unseen since 2007, according to a report published last week by Moody’s Investors Service. Residual value risk, as measured by securitizations’ residual value settings, was set at an average of 46.2% of MSRP, down from 47.1% in 2018. “The lower […]

Toyota to pilot autonomous vehicle program with Chinese startup [Video]

Toyota Motor Corp. has struck a deal with Chinese startup Pony.ai to launch an autonomous vehicle program next month in Beijing and Shanghai, the companies announced on Monday. Pony.ai will build its autonomous driving system into Toyota’s Lexus RX vehicles. The companies will start the pilot project as they “attempt to accelerate the development and […]

Alabama dealer defrauds credit union

A Huntsville, Ala., man has been sentenced to 30 months in prison for bank fraud and tampering with vehicle odometers, the Department of Justice announced last week. He has been ordered to pay $109,000 in restitution, $28,000 in fines, and will spend three years in supervised release after serving out the term of his sentence. […]

Canadian police bust fraud scheme 

A scheme racking up C$800,000 ($600,968) in fraudulent auto loans has been busted after a yearlong investigation. Canada’s Calgary Police Service discovered that two perpetrators had been using stolen identities to obtain financing for vehicles. The victims of identity theft were held responsible for the vehicle loans taken out in their names. After obtaining vehicles, the […]
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