Used-Vehicle Depreciation Forecasted for Spring 2019

Used-vehicle values are likely to depreciate 15% by yearend, compared with the 12.4% total depreciation seen in 2018, Black Book's Executive Vice President of Operations, Anil Goyal, told Auto Finance News. “We had a great year last year in terms of used vehicle value retention, and it’s highly unlikely it’ll repeat itself this year,” Goyal […]

• Bianca Chan
• February 13, 2019
• Risk, Sales & Marketing

2019 Survival Guide: How Lenders Are Planning for the Year Ahead

From the January issue: 2018 was a strong year for auto finance as delinquency rates dropped, the economy grew, and consumer demand remained high. However, the new year finds lenders and analysts bracing for an economic slowdown. But that’s not the only worry. New-car purchases are lagging, according to Manheim’s November data, which has new-vehicle sales […]

• Nicole Casperson
• January 4, 2019
• Archives, Compliance, Credit Performance, Features, Innovation & Mobility, Risk, Strategy, Technology

Higher Used-Car Volume Could Benefit Captives, HCA Says

Though slipping new-car sales typically translate to lower origination volume for captives, increased flow of off-lease vehicles in the market could dull the sting next year. The goal of a manufacturer’s captive is to finance new vehicles for its OEM, but an influx of used vehicles can benefit an enterprise, Marcelo Brutti, chief risk officer […]

• Nicole Casperson
• December 18, 2018
• Sales & Marketing, Strategy

Future of Renault-Nissan-Mitsubishi Alliance Uncertain Amid CEO Arrest

Renault–Nissan–Mitsubishi Alliance is likely to undergo reconfiguration regarding which brand holds the power, following the arrest of Nissan Chief Executive Carlos Ghosn on Monday. However, the impact on the financing side should be minimal, analysts told Auto Finance News. “Most consumers pay little attention to these palace-intrigue stories,” Michelle Krebs, an executive analyst at Autotrader, […]

• Nicole Casperson
• November 20, 2018
• Operations, Strategy

Hurricane Florence to Damage Up to 40,000 Vehicles in Its Wake

As Hurricane Florence hits the Carolinas and surrounding areas, the flooding could damage 20,000 to 40,000 vehicles, according to forecasts from Black Book and Cox Automotive. “The losses are set to cause demand for cars to push higher as consumers rush to replace damaged vehicles,” Anil Goyal, executive vice president of operations for Black Book, […]

• Nicole Casperson
• September 26, 2018
• Risk

Poor Returns on Repo-Vehicle Sales Push Losses Higher, Bank Exec Says

Despite default rates remaining steady on repossessed vehicles, the cars are selling for less and causing lenders to experience more loss, Micky Watts, senior vice president of indirect lending at Anderson Brothers Bank, told Auto Finance News. “Defaults have stayed steady for the last few years as far as percentage, but we’re actually losing more […]

• Matthew Wood
• August 22, 2018
• Operations, Risk

Used-Car Values Hold Up Despite Forecasted Depreciation

Analysts have predicted high depreciation rates in the used-car market for more than a year now, but those forecasts have yet to come to fruition. In July, Manheim registered its highest level ever in its used-vehicle value index — reporting values at auction are up 5.1% year over year. Black Book’s used-vehicle index uses a […]

• William Hoffman
• August 15, 2018
• Risk

Nonprime Originations Shrink Despite a Rise in Portfolio Balances

Nonprime portfolio balances increased year-over-year to $34.6 billion at yearend 2017, yet the number of loans originated during that time decreased, according to data from the 2018 Nonprime Automotive Finance Survey. Balances grew by 5.3% year-over-year in 2017 for the seventh consecutive increase for the 40 nonprime lenders surveyed. However, the number of loans originated dropped by […]

• Nicole Casperson
• June 5, 2018
• Strategy