General Motors Seen Tightening Integration With Captive Amid Leadership Changes

General Motors‘ latest executive management change appears to be part of a push for integration between the OEM and captive finance arm GM Financial, Jeremy Acevedo, Edmunds‘ manager of industry analysis, told Auto Finance News. Chief Executive Mary Barra is taking charge of GM Financial, according to several reports. GM’s President Dan Ammann, who had been overseeing […]

• Nicole Casperson
• December 7, 2018
• Operations, Strategy

Despite Decline in November, Interest Rates Set to Rise, Edmunds Says

The auto industry is bracing for a 25-basis-point increase in interest rates later this month, but a boost in 0% financing deals reduced average APRs in November, according to data provider Edmunds. Average APRs on new vehicles fell to 6% in November from 6.2% in October, according to Edmunds’ Third-Quarter Used-Car Market Report. Zero percent […]

• Monica Melton
• December 3, 2018
• Credit Performance

How General Motors’ Closings May Affect GM Financial

General Motors’ plans to close five North American plants, cut 15% of its staff, and halt the manufacture of several car models including the Cruz, raised questions from an Edmunds analyst about how the moves will affect GM Financial. On Nov. 26, the OEM said it was making the cuts to improve near-term performance and […]

• Nicole Casperson
• November 30, 2018
• Innovation & Mobility, Operations, Strategy

Used-Car Values: How Lenders Manage Unexpected Appreciation

Roughly two years ago, the automotive market and the economy were heading for a peak year where lenders were aggressive, competition was stiff, and the economic environment was gaining strength. Since then, lenders have taken their foot off the gas, the economy has stabilized, and lenders have operated business as usual — while used-car values […]

• Nicole Casperson
• October 25, 2018
• Features, Operations, Risk, Strategy

‘Huge’ Potential for China Auto Finance Growth Draws Wide Interest

SHANGHAI ­— Regardless of the global tariff war, Chinese automotive financing executives are looking to work with their counterparts around the world, especially in the United States. That was the undercurrent truth to come out of the inaugural Auto Finance Summit Asia here today. The U.S. executives repeatedly said the same thing: If there are […]

• JJ Hornblass
• September 6, 2018
• Asia, Operations, Strategy

Healthy Economy, Rising Challenges: How Climbing Interest Rates Highlight an Uncertain Future

After years of record lows, interest rates are on the rise again — but the Federal Reserve’s 25-basis-point hike in June has yet to send shockwaves through the industry. However, further rate increases — combined with rising gas and new-car prices, looming tariffs, and lengthening loan terms — have put the industry on track for […]

• Matthew Wood
• August 9, 2018
• Credit Performance, Features

0% Financing on the Decline as Interest Rates Rise

Financing deals in July with 0% interest were at their lowest levels since 2005 and are down 439 basis points year over year, according to a new report from Edmunds. Zero percent financing deals accounted for 6.95% of sales in July, down from 11.34% compared to the same time last year. Typically, the summer is […]

• Matthew Wood
• August 1, 2018
• Credit Performance

18 Subscription Programs That Are Changing Auto Finance

Subscription programs that allow for more flexible vehicle ownership could wind up being a bust, but if investments from just about every major OEM on the market, a handful of startups, and numerous dealerships are any indication, this is a fad that will be around for some time to come.    What “flexible ownership” means […]

• William Hoffman
• July 31, 2018
• Innovation & Mobility, Risk, Technology