Last week, a slew of new monthly macroeconomic mile-markers released, painting a murky picture of the economy’s recovery as new COVID-19 variants continue to disrupt the U.S. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the week’s top stories, and what to expect in the week ahead.
Last week, Exeter Finance expanded its product offering to near-prime while dealers auto dealers continue to flourish in the industry’s new normal. Profitability has continued to increase — especially in the F&I office — but many dealers are concerned that increased profits could spur increased scrutiny from regulators. Meanwhile, OEMs continue to make investments in in-vehicle technologies. In this week’s episode of the Weekly Wrap, the editors discuss last week’s top stories, and what’s to...
In the November episode of the Industry Pulse webinar, Rusty West, president of Market Scan Information Systems, discusses payments-as-a-service and the importance of data as lenders look to capitalize on digitization.
Last week, RumbleOn and Octane Lending sought to increase the reach of their powersports financing products as another auto lender ramped up its presence in the segment. In this episode of the Weekly Wrap, Associate Editor Whitney McDonald and Editor Joey Pizzolato discuss the week’s top stories, and what to expect for the week ahead.
Third-quarter earnings wrapped up last week, highlighting the importance of direct-from-consumer vehicle purchases to combat inventory challenges and the opportunities automation provides for growth in the auto finance industry. In this episode of the Weekly Wrap, Associate Editor Whitney McDonald and Editor Joey Pizzolato discuss last week’s top stories and what’s to come in the week ahead.
The 2021 Auto Finance Excellence Awards were presented Oct. 28 at the Auto Finance Summit in Las Vegas as industry executives and automotive lenders were recognized for their notable efforts in community service, leadership and operations. In this episode of the Weekly Wrap, Editor Joey Pizzolato and Associate Editor Whitney McDonald discuss the winners of this year’s Auto Finance Excellence Awards and what’s to come in auto finance this week.
During last week’s 2021 Auto Finance Summit, industry executives shared updates on return-to-office plans, future changes to the auto market, continued fallout from the inventory shortage and compliance concerns. In this episode of the Weekly Wrap, Deputy Editor Amanda Harris and Associate Editor Whitney McDonald discuss key takeaways from the 2021 Auto Finance Summit, and what’s in store for the upcoming week.
At Ally Financial, for one, floorplan fell 8.4% YoY and 2.4% from the second quarter to $7.6 billion. Ally joins a growing list of lenders this quarter to post some of the highest origination volume in years. Ally broke a 15-year record, with originations clocking in at $12.3 billion, up 25.5% year over year from a record 3.3 million decisioned auto applications. This follows similar trends seen in Q2. Citizens One Auto, too, saw another strong quarter of originations. The lender’s auto portfoli...
This week brought a closer look at third-quarter earnings at some of the largest banks, painting a picture of how supply constraints are shaping financial institutions’ performance. Both Bank of America and Truist, for example, logged declines in floorplan outstandings as dealers work with fewer cars on lots. However, while supply has led to shrinking commercial business for auto lenders, the consumer portfolio continues to perform well. U.S. Bank logged a 22.4% YoY increase in auto oustandings ...
Last week, new September data points in unemployment, used-vehicle values and new-vehicle sales painted a less-than-optimistic picture of what’s to come during the third-quarter earnings season as the auto finance market begins to cool, following two quarters of robust growth.
Last week, electric vehicle manufacturer Rivian unsealed its initial public offering filing with the U.S. Securities and Exchange Commission, which brought to light further details on its financing forecast, structure, and operations. In this episode of the Weekly Wrap, the Auto Finance News editors discuss Rivian's IPO, electric vehicle batteries, and direct-to-consumer retail sales structures.
In an August poll by Kelley Blue Book, 48% of consumers indicated they will wait at least three months to purchase a new car, up from 37% in a similar study in May. As a result, new-vehicle sales have been slowing for the past four months. Meanwhile, the co-founders of the now-defunct subprime auto lender Honor Finance are facing further legal action in a case that dates back to 2018. A Securities and Exchange Commission complaint, filed with the U.S. District Court for the Northern District of ...
Last week, the Auto Finance News team examined credit union trends in auto finance and attended the 2021 FinovateFall, the latter of which highlighted a handful of promising startups. Auto financiers have strived in recent years to update their technology stacks through new partnerships, but the interconnectedness of technologies from different suppliers poses a new risk to lenders. In this episode of the Weekly Wrap, the editors discuss last week’s top stories and what’s to come in the week ahe...
Used-vehicle prices have begun to stabilize in part due to increased inventory, but the trend is likely to be short-lived as wholesale prices increased 0.6% in August as manufacturers are calling for supply constraints to worsen in the coming months. Meanwhile, Tricolor Auto Acceptance has secured $90 million in funding from BlackRock and Gesa Credit Union has adopted fintech Scienaptic’s credit-decisioning technology, driven by artificial intelligence.
Stellantis N.V. agreed to acquire F1 Holdings Corp., the parent company of Houston, Texas-based subprime lender First Investors Financial Services Group, in a step toward establishing the company’s own captive finance business. Meanwhile, Wells Fargo Auto has expanded its ability to offer digital services by partnering with AutoFi.
Pandemic-related inventory constraints continue to force automotive and powersports OEMs, dealers, lenders and consumers to adapt, with some OEMs, such as General Motors, announcing that low inventory will be the new operational norm. Dealers have had mixed reactions to the potential shift, with lower floorplan costs being a positive and build-to-order wait times a concern.
The powersports finance industry is facing many of the same challenges as auto, including a lack of new supply due to the chip shortage, production constraints and high consumer demand. Powersports dealers have turned to used units to fill their lots and drive business, offering incentives for consumers to either trade in their current bikes or take advantage of deals on needed upgrades. In this episode of the Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the late...
Consumer Portfolio Services, for one, benefited from the low cost of funding on the asset-backed securities market, selling on June 30 $50 million in 7.86% notes backed by residual interests retained from auto securitizations dated January 2018 through September 2020. The new capital enhances CPS’ liquidity position as the lender also continues to grow its auto book. Rideshare, too, represented a positive note for the auto industry as active riders return to the market. Meanwhile, the pandemic c...
The auto finance industry is poised for change as used-vehicle values declined for the second straight month following nearly a year of record increases. Meanwhile, the industry also saw an influx of funding this quarter, with several lenders also recently piquing the interest of investors. In this episode of The Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the implications of these developments on the auto finance industry, as well as what is in store for the co...
Squeezed inventory could mark a shift in the auto finance industry as OEMs look for alternative ways to meet consumer demand. Ford Motor Chief Executive James Farley, for one, said during the company’s earnings call last week that the OEM’s new strategy would focus more on build-to-order vehicle sales and less on building inventory on dealership lots. In this episode of the weekly wrap, Associate Editor Amanda Harris and Editor Joey Pizzolatto discuss further earnings developments and what’s in ...
Several auto lenders have benefited from positive recoveries and growth in their auto portfolios during the second quarter of 2021. In this episode of the Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the most recent earnings reports and what to expect in the coming week.
Last week, second-quarter earnings season kicked off, with Bank of America, Chase Auto, Truist Bank, U.S. Bank and Wells Fargo Auto all reporting growth in auto loan volume and strong credit performance. Auto lenders will continue to report earnings this week, notably with Ally Financial and Citizens reporting Tuesday. In this episode of the Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss last week’s earnings reports and what to expect in the coming week.
Last week, used-car values began to cool after meteoric rises over the past five months set new records for the Manheim Index and drove up the country’s inflation figure. Meanwhile, the Auto Finance News editorial team took a deep dive into Banco Santander’s July 2 proposal to acquire all remaining outstanding shares of Santander Consumer USA. In this episode of the Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the top stories for the week ended July 9, and what t...
Last week, subprime lender Exeter Finance announced it will be acquired yearend 2021 by private equity firm Warburg Pincus from a fund managed by Blackstone, which has owned 91.26% of Exeter since August 2011. Meanwhile, June’s SAAR forecast has been revised down to around 15.3 million units, according to TrueCar and the Bureau of Economic Analysis, from Cox Automotive’s original forecast of 16.4 million units. In this episode of the Weekly Wrap, Auto Finance News Associate Editor Amanda Harris ...
The auto finance industry has in many ways benefited from a combination of lower funding costs and pricier cars, but ancillary service providers are feeling the pinch of rising product costs. CarMax Auto Finance, for one, experienced record-setting volume during the first quarter of fiscal year 2022 as originations jumped 150% YoY to $2.5 billion due to high demand combined with improved interest margin. Still, while interest rates remain historically low, costs for insurance and other ancillary...
Last week’s look at the asset recovery industry showed that repossession companies have yet to see repo volume return to pre-pandemic levels. Meanwhile, blockchain and cryptocurrency company Carnomaly said last week it would enter the auto finance market by yearend. In this week’s episode of the Weekly Wrap, Auto Finance News Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the basics of cryptocurrency with special guest Jaspreet Kalra, associate editor of Bank Automation News, w...
Last week, credit unions once again took center stage, with CU Loan Direct posting 100% year-over-year origination growth as the company expands into new markets and increases the number of participating CUs. Credit unions have increasingly been shaking up the way they do business in auto finance, with Unify Federal Credit Union and Credito Real making their inaugural auto asset-backed securitization this year.
This week, the Manheim Used Vehicle Value Index reached 203.3, the highest in its history and the first time it has ever surpassed the 200 mark, reigniting affordability concerns as new-vehicle inventory remains squeezed well below normative levels. How much longer can used vehicle prices remain elevated, and what secondary issues might arise from their continued increase? In this episode of the Weekly Wrap, Associate Editor Amanda Harris and Editor Joey Pizzolato discuss the week’s top stories,...
The average listing price on used vehicles surpassed $22,000 in April for the first time ever as inventory sat at 35 days’ supply. Eventually, prices may become too high to entice consumers to purchase. Meanwhile, the future of another round of government stimulus support remains undecided, prompting subprime auto lenders to prepare for an imminent rise in delinquencies and net charge-off rates.
Last week, the Auto Finance News team rounded out the last of first-quarter earnings results from online retailers Carvana, Vroom and Shift Technologies, all of which posted continued growth on the heels of increased consumer adoption for digital car buying. But how long can this momentum last? 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 May 21, 2021, and what’s in store for ...
