Ally Financial Boosts Carvana Financing Commitment to $2.3 Billion

Ally Financial has increased its financing commitment to Carvana by 15%, to $2.3 billion. In the third year of the partnership, Ally has agreed to provide Carvana with a $650 million floorplan line of credit, up from $350 million previously. Ally will also provide as much as $1.25 billion available for bulk purchases, and a […]

Economists Balk at Likelihood Slowdown Will Lead to Recession

MIAMI — When the investor and issuer audience at ABS East was asked when the U.S. economy will enter a recession, 44% answered 24 to 36 months. However, chief economists challenged the audience’s opinion, arguing that the chances of an economic slowdown turning into a recession are unlikely. “Recessions are very rare,” said James Sweeney, […]

Subprime Lenders Willing to Cut Rates to Maintain Volume, Analyst Says

Rising interest rates pose some challenges to subprime lenders, but ultimately, “If you’re willing to cut price there’s plenty of volume — and volumes are strong right now,” Moshe Orenbuch, managing director at Credit Suisse, told Auto Finance News. He explained that subprime lenders have more wiggle room to cut their return on the loan […]

CPS ‘Pleased’ with 4Q15 Earnings, Despite Dip in Contract Dollars

Consumer Portfolio Services saw a drop in quarterly auto contract dollars, but the company remains “pleased” with its operating results for the fourth quarter of 2015, Chief Executive Charles Bradley said in a press release yesterday. CPS purchased $269.2 million of new contracts during 4Q15, down from the previous quarter’s $287.5 million, but up 1.8% […]

Veritas Auto to Tap Auto ABS Market

Veritas Auto Finance LLC, a specialty finance company, is look-ing to enter the securitization market. The news comes in the wake of the Santa Ana, Calif.-based lender’s newly inked $92.5 million revolving credit agreement with Credit Suisse AG, Vince Scardina, Veritas Auto’s chief financial officer, said in a company release. “This transaction is a milestone […]

CPS Enters Into Third Credit Facility

Consumer Portfolio Services (CPS) announced yesterday that it has entered into a new two-year revolving credit agreement with Credit Suisse AG and Ares Agent Services L.P., according to a press release. “We are pleased to have established this new facility and to have forged new relationships with partners such as Credit Suisse and Ares,” said […]