Used-Vehicle Values Will Climb in 2019 If Tariff Threat, Rate Hikes Persist 

December auction prices increased 4.3% year over year, bringing the Manheim Used Vehicle Value Index to 137.6, the company announced last week. “Three-year-old vehicles ended the month worth 2% more than they would normally have been worth had typical depreciation occurred instead of the abnormal appreciation observed this summer,” said Manheim Chief Economist Jonathan Smoke. Two main factors that […]

Auto Finance Risk Summit to Examine Top Strategies for Risk Management

The auto finance market today has thrown a curveball at lenders with rising interest rates, slipping new-vehicle sales, uncertain regulations, and mounting dealership fraud. The 12th annual Auto Finance Risk Summit will delve into these issues and others of top concern for lenders. Auto Finance Risk Summit participants will gain insights on fraud risk, learn […]
  • Nicole Casperson
  • January 16, 2019
  • Risk

Powell Says Fed ‘Waiting and Watching’ With Patience on Rates

Federal Reserve Chairman Jerome Powell said the U.S. central bank can be patient before adjusting interest rates again as it waits to see how global risks impact the domestic economy. “We’re in a place where we can be patient and flexible and wait and see what does evolve, and I think for the meantime we’re […]

Higher Interest Rates Will Likely Reduce 2019 Sales by 300,000 Units, Analyst Says

Rising interest rates will likely shave vehicle sales by 300,000 units this year, predicted Eric Lyman, senior vice president of ALG, an analytics subsidiary of TrueCar. “It’s not insignificant,” Lyman told AFN, “but not large enough to be a shock to the auto retail environment either.” A 300,000-unit sales decline in 2019 would translate to […]

Fitch Forecasts Subprime Auto ABS to Weaken in 2019

While prime auto lease and loan asset-backed securitizations are projected to remain stable, Fitch Ratings Agency expects the outlook for subprime auto ABS to weaken. In a 2019 consumer lending outlook, Fitch’s Senior Director of ABS Ian Rasmussen said subprime auto asset-backed securities are more vulnerable due to weaker borrower profiles and industry headwinds inflated […]

Auto Finance News’ Top 5 Stories of 2018

It was an interesting year. Early in 2018, Fiat Chrysler Automobiles said it would form a captive unit. The end of the year saw the arrest of Renault-Nissan-Mitsubishi alliance head Carlos Ghosn. And there was plenty of news in between. What follows are AFN editors’ picks for top five stories of 2018: Fiat Chrysler Automobiles […]

Oregon CU Caps Loans at 84 Months Despite Consumer Demand for Longer Terms

Despite increasing customer requests for 96-month auto loans, Oregon Community Credit Union caps terms at 84 months, Ethan Nelson, Oregon Community Credit Union vice president of credit administration, told Auto Finance News. While indirect auto lending at the credit union has decreased in the past year, Nelson said the lack of 96-month financing was not […]

New-Car Interest Rates Climb Fastest on West Coast

New-car interest rates in the West have increased 112 basis points in the past year, the biggest jump for any region, according to Informa Research Services. Informa analyzes auto loan interest rates by region and credit tier for current-year and 1-year-old models. The national average interest rate for auto loans in the West increased to […]
Page 1 of 3123