Last week, the Auto Finance News team wrapped up its final event of the spring season, the Auto Finance Risk Summit. Auto lenders from all corners of the industry cited growing affordability concerns as a major looming pain point, with executives from some the nation’s largest auto lenders stating that they were closely monitoring consumer spending habits and evaluating how to bring their workforce back into office.
May 17, 2021•16 min•Ep. 77
Rebounding origination volumes, improving recovery rates and strong credit performance have defined the auto finance industry’s first quarter of 2021 for many lenders, but risks related to unused capital and the industry’s recovery trajectory remain.
May 10, 2021•18 min•Ep. 76
The first quarter of 2021 has proved a bright spot after many months of stressed vehicle sales due to the COVID-19 pandemic. Multiple auto lenders saw their auto books reach new levels in Q1 as tight supply coupled with increased consumer demand drove originations. In this episode of the Weekly Wrap, Amanda Harris and Joey Pizzolato discuss Q1 earnings calls of the past week and what's to come this week.
May 04, 2021•16 min•Ep. 75
Last week, an Auto Finance News analysis provided a window into electric vehicle financing trends financed on Vroom’s platform, and more banks, such as Fifth Third, PNC Financial and Citizens Bank, posted growth in their auto portfolio on the heels of a global pandemic that was expected to suppress origination volume. In this episode of the Weekly Wrap, Associate Editor Amanda Harris, Chief Executive JJ Hornblass and Editor Joey Pizzolato discuss the top stories for the week ended April 23, and ...
Apr 26, 2021•18 min•Ep. 74
Last week, publicly-traded banks started releasing their earnings reports, and once again, performance remains strong this quarter. Optimism is running high as last week’s jobless claims fell by almost 200,000 and the nationwide vaccine rollout continues to increase while new coronavirus cases remain low. Still, inventory remains a significant headwind to the auto finance market’s full recovery. In this episode of the Weekly Wrap, the Auto Finance News Editors discuss the top stories for the wee...
Apr 20, 2021•16 min•Ep. 73
The auto finance industry has recently seen the removal of certain ambiguities in compliance and regulation practices. The U.S. Supreme Court, for one, clarified the definition of an automatic telephone dialing system in its April 1 decision of Facebook v. Duguid, providing auto lenders a better understanding of what an ATDS is, and how to apply that knowledge to their processes. The Telephone Consumer Protection Act continues to be a point of contention for auto lenders and regulators....
Apr 12, 2021•23 min•Ep. 72
Lenders are coming face to face with the ever-growing need for a strategy for effective specialty recoveries, and no two auto lenders are alike. Auto portfolios have unique complexities and process dependencies that cannot be solved with simple adjustments. These processes require alignment throughout multiple departments to maximize recoveries, and ultimately provide the best survivor experience.
Apr 12, 2021•25 min•Ep. 71
Last week, the Auto Finance News editorial team examined the decrease in incentive spend in February and rising monthly payments in the new- and used-vehicle market, two trends that are likely to continue to be fueled by constricted inventory. Looking forward, will inventory concerns continue to push down incentive spending and increase monthly payments?
Apr 05, 2021•13 min•Ep. 70
Last week, Global Lending Services entered into a pass-through agreement with Nissan Motor Acceptance Corp., and a report from Moody’s Investors Services outlined the upside of the semiconductor chip shortage for securitized loans the auto finance industry. In this episode of the Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the top stories of last week, and what to expect in the coming days.
Mar 30, 2021•17 min•Ep. 69
Last week’s Auto Finance Innovation Summit brought the nation’s top lending and leasing executives together to discuss the changing role technology plays in the customer journey. And while many agreed that antiquated legacy systems pose a barrier to innovation, the increased use of data and analytics, connected car technology, and auto finance’s role in electric vehicle adoption present significant opportunities for the industry to leverage technology. But how should lenders start thinking about...
Mar 22, 2021•19 min•Ep. 68
Last week, Navy Federal Credit Union, the nation’s largest credit union in auto loan volume, announced a new affinity partnership that allows it access to digital retailer TrueCar’s online marketplace of new and used vehicles. Many auto lenders and mobility companies, including Global Lending Services and HyreCar, have entered affinity partnerships with established digital retailers, in response to the shift in consumer buying habits. But what — if anything — are lenders sacrificing by relinquis...
Mar 16, 2021•20 min•Ep. 67
Last week, Amanda Harris took a deep dive into the growing trend of digital refinancing in our March cover story, “Auto refinance enters the spotlight,” examining the driving forces behind the recent uptick in refi volume. Digital refinance has allowed many credit unions and community banks, such as Midwest Bankcentre , to grow their auto books despite an economic landscape that has depressed retail originations for many lenders. In this episode of the Weekly Wrap, Harris, JJ Hornblass, and Joey...
Mar 08, 2021•28 min•Ep. 66
Regulatory changes have long been expected with the administration change in Washington, D.C. As the dust beings to settle on the transition, new priorities for Democrats on Capitol Hill are becoming evident — specifically a federal all-in interest rate cap. But how likely is such a bill to pass both the U.S. House of Representatives and the Senate, and what might the auto finance industry have to do to combat a regulation that could push some subprime consumers out of the market?
Mar 02, 2021•22 min•Ep. 65
Subprime origination volume in the third quarter of 2020 continues to lag behind 2019 levels, driven by tightened credit boxes and inventory shortages, even as many lenders turn to digital financing solutions to meet consumer demand. But what pieces need to fall into place to help prop up subprime origination volume? In this episode of the Weekly Wrap, Amanda Harris, JJ Hornblass and Joey Pizzolato discuss the driving forces behind subprime’s slow recovery, what to expect from Axos Bank and Carv...
Feb 22, 2021•28 min•Ep. 64
Last week, GM Financial joined Ally Financial and Chase Auto in reporting the surge in fourth-quarter originations that pushed the lenders’ yearend into positive territory. Meanwhile, the virtual NADA Show 2021 concluded last week, where dealers touted the widespread adoption of e-contracting and e-signing capabilities, and Ford Motor announced the launch an online certified pre-owned program.
Feb 17, 2021•16 min•Ep. 63
Last week’s earnings reports in the auto finance industry were marked by new initiatives from Harely-Davidson and Truist Bank, and signs from Santander Consumer USA and Capital One Auto Finance that borrower health may be faltering.
Feb 09, 2021•14 min•Ep. 62
ecent fourth-quarter earnings from some of the biggest players in the auto finance industry paint mixed results in loan performance and origination growth. U.S. Bank, for one, saw an uptick in delinquencies and net charge-off rates, but decreased its total provision for credit losses after building a substantial credit loss allowance during the COVID-19 economic crisis. Meanwhile, Ally Financial celebrated a significant increase in auto originations at yearend 2020, and decreased its allowance f...
Feb 04, 2021•17 min•Ep. 61
Several auto lenders last week announced innovative ways to expand or improve their business. Chase Auto, for one, has joined with electric vehicle manufacturer Rivian, forming Rivian Financial Services. The program will offer digital-first consumer financing with applications submitted on rivian.com. Wells Fargo Auto, too, is investing in technology to increase automation within its loan–approval process. The lender hopes to up automation to more than 70% by 2022, said Chief Financial Officer M...
Jan 20, 2021•13 min•Ep. 60
As the country prepares for a shift in leadership, the industry is looking ahead to 2021 and making predictions. Cox Automotive, for one, expects to see tight supply, low interest rates and increased transaction prices. Fitch Ratings forecasts a deterioration in credit performance due to the pandemic. In this episode of the Weekly Wrap, Amanda Harris and Joey Pizzolato discuss the week’s top stories, and what to expect next week.
Jan 15, 2021•8 min•Ep. 59
The auto finance industry saw multiple partnerships take hold last week. Flagship Credit Acceptance partnered with Pagaya, a fintech asset manager, to add a loan-to-value program to its financing offerings. Vroom, investing funding from its June IPO and September follow-on offering, last week entered an agreement to acquire CarStory, a digital services and analytics company for automotive retail powered by AI.
Dec 21, 2020•17 min•Ep. 58
The first half of 2021 is projected to see increased auto originations as the world prepares for the launch of the COVID-19 vaccine as well as car sales driven by pent-up demand and improved inventory. Still, auto lenders must also prepare for a rise in fraud related to originations. Of growing concern is synthetic fraud, in which an identity is created with a consumer’s real name and birthdate tied to a false Social Security number.
Dec 14, 2020•16 min•Ep. 57
Last week, Auto Finance News announced that its second annual Auto Finance Executive of the Year Award goes to Ravi Raghu, executive vice president of Capital One Auto Finance’s Auto Dealer business. Meanwhile, interest rates have fallen to a three-year low, big U.S. banks are planning to reduce reserve balances through yearend, and the subprime credit segment neared Great Recession lows.
Dec 07, 2020•12 min•Ep. 56
Last week, the Auto Finance News team highlighted an uptick of low-mileage lease options as consumers change their driving habits, which could have lasting implications for both consumers and lessors. Used-vehicle values continued to show seasonal strength, and four issuers injected $4 billion in the auto ABS market after nearly a month of no activity.
Nov 24, 2020•11 min•Ep. 55
Last week, used-car values in the Manheim Used Vehicle Value Index increased once again after a month of decline back toward normal seasonality. Used-vehicle values have squeezed some consumers on the lower end of the credit spectrum out of the market in the third quarter, according to Credit Acceptance Corp.’s Chief Executive Douglas Busk. CAC logged an 8.8% year-over-year decrease in originations last quarter. Meanwhile, competitive pricing is helping credit unions gain market share in the use...
Nov 09, 2020•9 min•Ep. 54
This week, the Auto Finance News team took a deep dive into third-quarter earnings for auto lenders and found that, overall, the industry is seeing further signs of recovery. In this edition of the Weekly Wrap, Amanda Harris, JJ Hornblass and Joey Pizzolato discuss these news developments for the week ending Oct. 30 and what’s on the horizon for next week.
Oct 30, 2020•14 min•Ep. 53
This week, the Auto Finance Summit was in full swing, and a resounding theme among executives in the industry was one of cautious optimism. Initial forecasts surrounding the fallout of the coronavirus pandemic haven’t yet come to pass, as the third quarter was marked by strong credit performance, origination volume and used-vehicle values. Still, peak credit losses are expected in 2021, which could be problematic as lenders look to forecast the coming year amid flattening credit loss provisions....
Oct 23, 2020•18 min•Ep. 52
This week, the Auto Finance News team discussed third-quarter earnings for some of the major publicly traded banks, and found some positive trends. In this edition of the Weekly Wrap, Amanda Harris, JJ Hornblass and Joey Pizzolato discuss news developments for the week ending Oct. 16, and the auto industry’s future, as well as what’s to come during the Auto Finance Summit next week.
Oct 16, 2020•15 min•Ep. 51
Auto finance industry professionals are keeping a close eye on demand for new and used vehicles, digital tool adoption and potential leadership changes at the Consumer Financial Protection Bureau as the year winds down. In this edition of the Weekly Wrap, Amanda Harris, JJ Hornblass and Joey Pizzolato discuss these developments for the week ending Oct. 2, and highlight stories to come next week.
Oct 02, 2020•28 min•Ep. 50
This week, the Consumer Financial Protection Bureau announced an uncharacteristic enforcement action against subprime lender Lobel Financial, columnist Marcie Belles penned an analysis on regulators increased interest in the subprime lenders, and fresh synthetic fraud data further illuminated the growing fraud problem in auto finance.
Sep 25, 2020•19 min•Ep. 49
Auto lenders continue to experience ups and downs through the COVID-19 pandemic, and it’s becoming clearer by the week what changes are in store for the industry. Still, industry players have found creative ways to navigate the pandemic.
Sep 18, 2020•20 min•Ep. 48
