Leasing’s New Look: Financiers Give Lease Options a Makeover

From the February issue: With new-car purchases lagging and used-values increasing, captives and OEMs are reimagining lease products to keep their customer bases growing. Roughly a decade ago, 1.4 million new vehicles were leased — a 16% penetration rate. Fast forward to 2019, and lease volume is expected to reach 4.1 million, with penetration as […]

• Nicole Casperson
• February 13, 2019
• Features, Innovation & Mobility, Operations, Sales & Marketing, Strategy

BB&T-SunTrust Merger to Establish $23B Auto Finance Operation

BB&T Bank’s acquisition of SunTrust Banks is likely to combine auto lending operations in a move that will improve efficiency but take time to configure, analysts told Auto Finance News. A SunTrust-BB&T merger would create a $22.8 billion auto finance operation, propelling the business into the top 20 among auto financiers, according to Big Wheels […]

• Nicole Casperson
• February 7, 2019
• Innovation & Mobility, Operations, Strategy, Technology

5 Trends to Watch: 2019 Promises to be an Interesting Year

From the January issue: The pace of U.S. growth is expected to slow, according to most economists, who also think interest rates will rise. There is uncertainty about tariffs and, beyond the economic factors, the race between different lenders, dealers, and manufacturers to overhaul products and services is picking up. But perhaps the biggest challenge […]

• Bianca Chan
• January 17, 2019
• Capital Markets, Features, Operations, Risk, Sales & Marketing, Strategy

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

How Lenders Can React to Negative Equity Situations

Here’s a commonly heard dialogue: Consumer #1 – “I’d like to buy a new car but I’m still upside down on this one!” Consumer #2 – “Oh don’t worry about that! You can just roll the balance into your new loan!” Consumer #1 – “Great! Let’s get started!” According to Edmunds.com, nearly 33% of car […]

• EFG Companies
• December 20, 2018
• Sponsored

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