Moody's Analytics | Auto Finance News | Auto Finance News

Loan Losses Are Worse Than Expected at Two Subprime Auto Lenders

Recent subprime-auto bonds from Prestige Financial Corp. and Exeter Finance Corp. are performing worse than anticipated, at a time when many competitors are at least meeting expectations, according to credit raters. The challenges both face may be remnants of a push for rapid growth a few years back, when these smaller lenders temporarily loosened credit […]

New Accounting Rule Likely to Hike Lending Costs

As U.S. financial institutions start to implement a new loan-loss accounting guideline this week, Jefferies Equity Analyst John Hecht forecasts higher lending costs down the road. The Current Expected Credit Losses (CECL) model, introduced by the Financial Accounting Standards Board in 2016, outlines how banking institutions account for and reserve against loan losses. Early adoption […]

4 Auto Finance Trends Shaping the Chinese Market

It’s clear that China’s auto finance market is vastly different from the United States, but it’s hard to conceptualize those differences until you’re on the ground facing them head-on. In hosting the Auto Finance Summit Asia earlier this month, the AFN team learned a lot about the industry as it exists in China from difficulties […]

How Tariffs Will Impact China’s Auto Lending

SHANGHAI — China will remain the largest market for vehicle sales, but the impact of U.S. tariffs on China’s economy may accelerate the decline of an already slowing economy while adding an outsized effect on the automotive industry, Steve Cochrane, Chief APAC Economist at Moody’s Analytics, said during a session at the Auto Finance Summit […]

Ford Captive Receives ‘Negative Outlook’ by Moody’s Citing OEM’s Headwinds

Moody’s Investor Service gave Ford Motor Credit a “negative outlook” and downgraded the lender one ranking above a non-investment grade status this week, but the score is largely driven by risks in the parent manufacturer’s business, Jason Grohotolski, vice president and senior credit officer in Moody’s financial institutions group, told Auto Finance News. The report […]

Interest Rate Anxiety Inflates Car Sales, But Contraction Looms

Rising interest rates were expected to hinder car sales this year, yet consumer anxiety over future rate hikes may be moving metal at dealerships, Jeremy Acevedo, manager of industry analysis at Edmunds, told Auto Finance News. From a consumer standpoint, 2% interest rates aren’t enough to turn most away from expensive new vehicles, he said. […]
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