5 Ways Lenders Should Prepare for Transition Into 2019

It’s the beginning of October and auto dealers are doing the old car/new car shuffle. Current models are moved out of the indoor spotlight and pushed to the part of the lot where they are “priced to sell.” Showy 2019 models are off-loaded from haulers and placed under those coveted spotlights. 2018 inventory exposure is […]

Credit Unions Flourish as Interest Rates Rise, Auto Count Data Shows

Credit unions are taking advantage of the rising interest rate environment as some have grown loan volumes in their state by more than 50% year over year, according to Auto Finance News’ analysis of Experian’s July AutoCount data. Namely, Security Service Federal Credit Union grew its Texas loan originations by 69% year over year to […]

Consumer Credit Scores Rise But Risks Remain, Executive Says

Nearly half of consumers saw their credit scores increase by 20 points or less this year, but subprime lenders should be cautious of the real impact it has on consumers’ ability to repay, said Damon Edmondson, chief of analytics at debt purchaser and servicing company Flock Specialty Finance. Credit scores increased by an average of […]

Captives, Banks Lag in Industry Efforts to Reduce Delinquencies

Delinquency rates are down for the auto finance industry overall, but captives and banks are showing increased rates, Melinda Zabritski, Experian’s senior director of automotive financial solutions, told Auto Finance News. Industry-wide 30-day delinquencies dropped to 2.1% of total loans outstanding in 2Q18 compared with 2.2% a year ago. Meanwhile, 60-day delinquencies fell to 0.64% from […]

Chrysler Capital More Than Doubles Originations in New York

Chrysler Capital is making a big sales push in New York state as the lender’s loan and lease volumes are up 128% year over year for the month of June, according to Experian’s Auto Count data provided to Auto Finance News. The company originated 5,465 contracts across the state, up from 2,391 the same month […]
  • William Hoffman
  • August 28, 2018
  • Earnings

Wells Fargo Faces Competition as It Pushes for Volume

Wells Fargo & Co.’s renewed push into the auto finance space is likely driven by a desire to fund higher yielding loans in a rising interest rate environment, one dealer told Auto Finance News. Wells Fargo Chief Executive Tim Sloan announced the bank’s intentions in the space earlier this month. “We’ve pulled back enough, and […]

Lenders Pull Back Financing to Subprime Tiers in Favor of Prime, Experian Says

New vehicle loans made to subprime and deep subprime consumers are decreasing as prime and superprime consumers are receiving the highest volume of new-vehicle funding they have received since 2012, according to Experian’s first quarter State of the Automotive Finance Market report. Specifically, subprime and deep subprime consumers received a 22.5% fewer new-vehicles loans in the first […]

Something has to Give: How Bloated Incentives are Harming the Industry

New vehicles are getting more expensive, but so far those price increases have done little to dissuade consumers from pulling the trigger on new-car purchases or leases because manufacturer incentives have been so generous. However, incentives and production could be taking a downturn as auto sales slow. Average incentive spending through February rose year over […]
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