This week, the auto finance industry may be reaping the benefits of lenders and dealers adapting to offer digital car buying solutions during the height of the COVID-19 pandemic. Lenders supported dealer partners and ensured continued cash flow as the pandemic closed dealerships and car sales struggled. New York may be a potential example of recovery as the top 10 auto lenders in the state recorded month-over-month growth of more than 100% in June . In this edition of the Weekly Wrap, Amanda Har...
Sep 11, 2020•17 min•Ep. 47
This week, all signs point to the continued recovery of the auto finance sector as the unemployment rate dipped to 8.4% and consumers continued to make partial payments on loans in extensions status.
Sep 04, 2020•12 min•Ep. 46
This week, the auto industry is eyeing potential increases in delinquency rates as long-term deferrals come to an end. Since the COVID-19 pandemic hit the country in March, lenders have made it a priority to help consumers with two to three-month long payment assistance programs. The industry now is seeing payment extensions on securitized auto loans decline, along with the percentage of auto accounts in financial hardship status — accounts with deferred payments, that are in a forbearance progr...
Aug 28, 2020•24 min•Ep. 45
This week, the news cycle was dominated by the Democratic National Convention and former Vice President Joe Biden’s presidential nomination amid increasing jobless claims following two straight weeks of decline. On the auto finance front — and against the now-constant backdrop of the pandemic — the Auto Finance News team took a deep dive into the emerging trend of online financing, the health of the auto ABS market and macroeconomic factors directly impacting the industry.
Aug 21, 2020•19 min•Ep. 44
This week, Carvana reported that it was maintaining its tighter credit underwriting policies, an emerging trend Auto Finance News first reported last week in the Federal Reserve’s senior loan officer survey, and one that could well extend into 2021 amid uncertainty surrounding the coronavirus pandemic.
Aug 14, 2020•11 min•Ep. 43
This week, Ford Motor Credit propped up Ford Motor Co. ’s second-quarter performance with strong consumer loans and leases, and low delinquency rates as major banks tightened credit underwriting standards. Still, Ford Credit increased its allowance for credit losses in anticipation of the end to extension programs and continued economic fallout from the COVID-19 pandemic. Lenders will need to be ready to make tough decisions as payment assistance programs come to a close. During this week’s Auto...
Aug 07, 2020•10 min•Ep. 42
This week, second-quarter earnings wrapped up on a positive note with presentations from GM Financial, Santander Consumer USA and Harley-Davidson. An Auto Finance News analysis also found that Carvana took the top spot in auto finance ad spending during the coronavirus-dominated quarter.
Jul 31, 2020•19 min•Ep. 41
This week, the Auto Finance News team took a deep dive into how the pandemic is affecting subprime lenders. Auto, however, may shine bright in the coming months. Capital One saw an increase in auto originations that helped boost the bank’s overall second-quarter performance, and captives gained 8 points in market share as a result of 0% APR incentive programs. However, the bank, in line with industry trends, still upped its loan loss reserves in preparation for further economic fallout brought o...
Jul 24, 2020•16 min•Ep. 40
This week Bank of America, Chase Auto, PNC Financial, U.S. Bank and Wells Fargo Auto all reported increases in allowances for credit losses despite a dip in delinquencies and charge-off rates, a trend the banks are largely attributing to robust deferral programs aimed to slow the economic damage wrought by COVID-19. In fact, many auto lenders have now transitioned to case-by-case deferral programs to help consumers with payments. Still, there is concern that the repossession industry may not be ...
Jul 19, 2020•15 min•Ep. 39
This week, Auto Finance News took a deep dive into the driving factors behind the goals of two fintech lenders entering the auto finance space on the heels of pandemic-driven growth. We also looked at the Manheim used-vehicle value index, which soared to record highs in June, and explored how consumer complaints with the Consumer Financial Protection Bureau last month reflected coronavirus-related hardships.
Jul 10, 2020•20 min•Ep. 38
This week was ripe with news on the innovation front, as Ford Credit outlined the details of its new financing product, the Ford Option, and Upgrade, a personal loan fintech, has plans to enter the auto finance market this year with its sights set on $1 billion in new loan originations. Meanwhile, loan performance in dealer floorplan asset-backed securities is showing signs of improvement on the heels of rising vehicle sales.
Jun 26, 2020•14 min•Ep. 37
This week, the Auto Finance News team took a hard look at what the car buying and financing experience was like for consumers and dealers at the height of the pandemic, explored recovering used-vehicle values, and as well as the rise of fraud amid a decline in loan applications.
Jun 19, 2020•14 min•Ep. 36
his week, all eyes were on first-quarter delinquency rates, incentives, and Vroom's IPO.
Jun 12, 2020•12 min•Ep. 35
This week, OEMs’ monthly sales figured pointed toward promising signs of recovery in the new-vehicle market, with American Honda, Mazda and Hyundai all reporting improvements on a month-over-month basis, although sales are still tracking well behind 2019’s count.
Jun 05, 2020•11 min•Ep. 34
This week, the potential bankruptcy news of rental car conglomerate Hertz shook the industry as the liquidation of its fleet, combined with an influx of off-lease vehicles, could flood the used-vehicle market.
May 15, 2020•13 min•Ep. 33
This week, news of a 4.8% contraction in the nation’s gross domestic product in the first quarter signaled a recession brought on by the economic fallout of COVID-19, and auto lenders are stocking up on cash. In this editors’ roundtable, Nicole Casperson, Joey Pizzolato and JJ Hornblass discuss news developments during the week ending May 1.
May 01, 2020•14 min•Ep. 32
In the second week of first-quarter earnings season, Ally Financial reported the addition of $2.8 billion to its retail auto reserves, joining last week’s reporters, including Bank of America, JP Morgan Chase and Wells Fargo in setting aside additional credit losses.
Apr 24, 2020•13 min•Ep. 31
First-quarter earnings season kicked off with JPMorgan Chase, Wells Fargo, Bank of America and Consumer Portfolio Services reporting increased loss reserves as the COVID-19 economic crisis continues to rattle the industry.
Apr 17, 2020•3 min•Ep. 30
The coronavirus outbreak has resulted in an economic recession spurred by shelter-in-place orders that have shuttered doors for nonessential businesses, including most car dealerships. During a compliance roundtable with Auto Finance News, industry experts Mark Edelman and Kelly Lipinski from McGlinchey address the key issues auto lenders are facing today. Virtually every major auto financier has now implemented some sort of payment relief program that allows consumers to defer payments with or ...
Apr 15, 2020•34 min•Ep. 29
During the past ten years, lenders have focused on improving data-driven technology on the origination side, yet that same technology hasn’t been as actively applied to the servicing and collections side of the auto finance business. In this episode of “The Roadmap,” Simon Scalzo, founder of Remitter, sat down with Auto Finance News to discuss how consumer data is collected, strategies for communicating with customers and compliance considerations when implementing new tech.
Feb 26, 2020•9 min•Ep. 28
As auto lenders look to technology to scale and grow their businesses, the susceptibility to fraud grows. Technology can help lenders catch fraud, and detection can be achieved at a greater scale with the help of digital tools. In this episode of “The Roadmap,” Auto Finance News chats with General Forensics' Josh Wortman about fraud trends he’s seeing in auto finance, best practices to mitigate criminal exposure, and the intersection between technology and fraud. Featuring: Josh Wortman, chief e...
Jan 28, 2020•20 min•Ep. 27
When it comes to customer service, auto lenders are constantly being compared with companies like Amazon that deliver an easy-to-use — digital — customer service experience. Today, consumers expect that experience from all their service providers, and lenders must adapt to the new paradigm or risk losing business. In this episode of The Roadmap, PenFed’s Senior Manager of Automotive Product Experience Annette Kalinowski outlines how the credit union is leveraging the consumer desire for digital ...
Dec 19, 2019•16 min•Ep. 26
Gone are the days of reaching out to customers solely via mail or phone. WhatsApp, Facebook Messenger, and live chat are quickly gaining popularity as channels of choice among customers seeking support from their lenders. In this episode of The Roadmap, Veros Credit’s AVP of Loss Recovery Mark Medrano shares tools and strategies for tailoring the customer experience with proactive, digital-first interactions. Featuring: Mark Medrano, Assistant Vice President of Loss Recovery, Veros Credit
Dec 17, 2019•26 min•Ep. 25
The term artificial intelligence has been around for decades, and recently the technology has become a part of the auto finance industry — infiltrating lenders’ underwriting processes, loan payments, and customer experience strategies. In this episode of The Roadmap, Tricolor Auto Acceptance’s President & Chief Operating Officer Don Goin chats about how most innovations in auto finance come by way of artificial intelligence and outlines best practices for ensuring your business is not swept ...
Nov 18, 2019•16 min•Ep. 24
While the Consumer Financial Protection Bureau mulls industry feedback on its proposed amendments to the Fair Debt Collection Practices Act, lenders should be proactive in their compliance strategies to prepare for the bureau’s final ruling. In this episode of The Roadmap , Veros Credit’s Chief Legal Officer Robert Tennant chats with Auto Finance Excellence to discuss what the impact on lenders will be if the new debt collection rules are implemented in their current form and how lenders will ha...
Oct 01, 2019•25 min•Ep. 23
Emerging financier Lendbuzz is using learning algorithms to tap into a population of 45 million potential auto loan customers. Rather than rely on traditional credit scores, Lendbuzz analyzes educational and employment histories of foreign-born U.S. residents in their origin countries, along with their earning potential and cash flow. Three years into the business, Lendbuzz has secured $150 million in debt and equity financing and has since grown originations to exceed $100 million since the com...
Aug 19, 2019•15 min•Ep. 23
Engaging with prospective and existing customers through social media is becoming a topic of increasing interest in the auto finance industry, but many questions remain when it comes to how — and in which channels — lenders should spend their time. In this episode of The Roadmap, AFE chats with Saloni Janveja, executive director of social media and marketing innovation at Ally Financial, on compliance considerations when entering the realm of social, limitations of certain social media platforms...
Jul 16, 2019•13 min•Ep. 22
Technology is playing a more prominent role in auto financing as car buyers increasingly look for lenders to provide digital options for communication and payment. Today, customers expect content to relate to what they're doing anytime, anywhere and on any device. To that end, captive financier Nissan Motor Acceptance Corp. is meeting customer expectations with its online portal, text communications, and mobile computing applications. In this episode of The Roadmap, Auto Finance Excellence chats...
Jun 27, 2019•22 min•Ep. 21
Auto lenders are increasingly relying on nontraditional data as they hone underwriting to gain a competitive edge. Alternative data can open the door to unbanked and under-banked consumers, enabling lenders to extend beyond their typical customer base without assuming too much risk. In this episode of The Roadmap, Auto Finance Excellence chats with Chuck Berend, senior vice president and chief risk officer at First Investors Financial Services Group, about how lenders can navigate the pain point...
May 30, 2019•24 min•Ep. 20
Stiffer regulatory oversight of information protection practices has spurred lenders to reevaluate the way they collect and use personally identifiable consumer data. In this episode of The Roadmap, Auto Finance Excellence talks with two distinguished executives to identify what it takes to keep up with changing data security compliance requirements. Hyundai Capital America’s VP of Information Protection and Chief Information Security Officer Eddie Younker provides a guide for how lenders can bu...
May 06, 2019•48 min•Ep. 19
