The Auto Finance Roadmap: Recent Episodes
Auto Finance News
Auto Finance News is pleased to present The Roadmap, the podcast on best practices and trending topics in automotive lending and leasing. If you are in auto finance, this is your podcast.
Auto Finance News, published by Royal Media, is the flagship publication for the auto finance industry. Published since 1996, Auto Finance News is the nation’s leading source for news, insights and analysis on automotive lending and leasing.
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Auto Finance News produces the following leading industry events: the Auto Finance Innovation Summit, the Auto Finance Risk Summit, and the Auto Finance Summit, the industry’s premier event.
In this episode of “On the Job,” Tom Collins, executive vice president and managing director of FreedomRoad Financial speaks with AFN Senior Associate Editor Riley Wolfbauer about lessons he has learned during his career and how he conducts himself as a leader.
Banks continued to tap the auto asset-backed securitization market last week to offload consumer debt amid shrinking deposits. In this episode of the “Weekly Wrap,” Senior Associate Editor Riley Wolfbauer and Associate Editor Johnnie Martinez II discuss the top stories for the week ended Aug. 25, and what to expect in the week ahead.
Vehicle affordability and credit access improved in July in a positive sign for the auto finance industry following months of credit tightening as captive’s reclaimed lost market share.
Electric vehicle OEMs last week posted mixed production volume as inventory continues to improve. In this episode of the “Weekly Wrap,” Editor Joey Pizzolato, Deputy Editor Amanda Harris, Senior Associate Editor Riley Wolfbauer, and Associate Editor Johnnie Martinez II discuss the top stories for the week ended Aug. 7, and what to expect in the week ahead.
Subprime auto lenders posted mixed second-quarter earnings last week as credit tightened amid ongoing interest rate increases. In this episode of the “Weekly Wrap,” Editor Joey Pizzolato, Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top stories for the week ended Aug. 4, and what to expect in the week ahead.
Captives’ second quarter earnings were mixed as rising interest rates push down origination volume and lenders pull back.
Banks continued pulling back on auto in the second quarter, with nearly every bank except Chase Auto posting year-over-year declines in auto originations. In this episode of the “Weekly Wrap,” Editor Joey Pizzolato, Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top stories for the week ended July 22, and what to expect in the week ahead.
Second-quarter earnings kicked off last week to mixed results amid declining auto loan demand, even as sales remain strong. In this episode of the “Weekly Wrap,” the auto finance news editors discuss the top stories for the week ended July 14, and what to expect in the week ahead.
June marked a continued pullback on indirect auto lending in a challenging market, but a strong sales month for electric vehicles. In this episode of the “Weekly Wrap,” Auto Finance News’ Deputy Editor Amanda Harris and Senior Associate Editor Riley Wolfbauer discuss the top stories for the week ending July 7, and what to expect in the upcoming earnings season.
Shake-ups in the market continued last week as Fifth Third pulled back from indirect auto in western states, EV prices fell and negative equity on used-car loans increased. In this episode of the “Weekly Wrap,” the Auto Finance News Editor Joey Pizzolato, Senior Associate Editor Riley Wolfbauer and Associate Editor Johnnie Martinez discuss the top stories for the week ending June 30, and what to expect in the week ahead.
In this episode of “On the Job,” Bruce Newmark, chief adviser at Vroom and United Auto Credit, speaks with Auto Finance News Senior Associate Editor Riley Wolfbauer about his leadership style and the lessons he has learned throughout his career.
CarMax Auto Finance is the latest auto lender to brace for an increase in delinquencies ahead of second-quarter earnings season as rising interest rates continue to squeeze consumers. In this episode of the “Weekly Wrap,” the Auto Finance News Editor Joey Pizzolato, Deputy Editor Amanda Harris, Senior Associate Editor Riley Wolfbauer and Associate Editor Johnnie Martinez discuss the top stories for the week ending June 23, and what stories to expect in the week ahead.
Loan terms are shortening, leasing is making a return and market share is trending back toward normal breakdowns as interest rate increases slow.
Last week, Citizens Financial Corp. pulled out of indirect auto, marking the second bank to voluntarily exit auto financing and the fourth financier to shutter operations this year.
Auto credit availability continued to improve in October while regulation scrutiny ramped up. Regulators continue to home in on fees related to auto lending. Florida Attorney General Ashley Moody’s office is investigating several dealerships and lenders following consumer complaints regarding fees associated with lease end buyouts.
Each of the major automotive retailers recorded year-over-year increases in finance and insurance (F&I) revenue in the third quarter amid strong penetration rates. Asbury Automotive recorded the largest YoY jump at 99% while Sonic Automotive recorded the smallest increase of 1%.
In this episode of the Weekly Wrap, Editor Joey Pizzolato and Associate Editor Riley Wolfbauer discuss the week’s top stories, and what to expect in the week ahead.
In this episode of the Weekly Wrap, Editor Joey Pizzolato and Associate Editor Riley Wolfbauer discuss the week’s top stories, and what to expect in the week ahead.
In this episode of the Weekly Wrap, Deputy Editor Amanda Harris and Associate Editor Riley Wolfbauer discuss trends from the Summits.
In this episode of the Weekly Wrap, Deputy Editor Amanda Harris and Associate Editor Riley Wolfbauer discuss trends from the Summits.
Bank of America, Chase Auto, Citizens Bank, Fifth Third Bank, Huntington Bank, PNC Financial, U.S. Bank and Wells Fargo have all reported sequential declines in outstandings for Q3. Citizens Bank recorded the largest quarter-over-quarter decline at 5.1%. Alternatively, Ally Financial and Truist are the only institutions to report sequential increases at 2.2% and 2.9%, respectively.
Bank of America, Chase Auto, Citizens Bank, Fifth Third Bank, Huntington Bank, PNC Financial, U.S. Bank and Wells Fargo have all reported sequential declines in outstandings for Q3. Citizens Bank recorded the largest quarter-over-quarter decline at 5.1%. Alternatively, Ally Financial and Truist are the only institutions to report sequential increases at 2.2% and 2.9%, respectively.
Third-quarter earnings season kicked off last week, painting yet again another dismal outlook for the auto finance industry. Chase Auto and Wells Fargo Auto reported origination volume declines of 35% year over year and 41% YoY, respectively, as limited vehicle supply and higher interest rates limit auto loan production.
Third-quarter earnings season kicked off last week, painting yet again another dismal outlook for the auto finance industry. Chase Auto and Wells Fargo Auto reported origination volume declines of 35% year over year and 41% YoY, respectively, as limited vehicle supply and higher interest rates limit auto loan production.
The auto finance landscape continues to evolve in the wake of rising interest rates, elevated vehicle prices and long-running supply shortages.
Last week, the Bank Automation Summit shed light on lenders’ shift to cloud technology and efforts to satisfy compliance and regulatory guidelines.
The auto finance landscape continues to evolve in the wake of rising interest rates, elevated vehicle prices and long-running supply shortages.
Last week, the Bank Automation Summit shed light on lenders’ shift to cloud technology and efforts to satisfy compliance and regulatory guidelines.
Last week, FinovateFall in New York City was in full swing, bringing together fintechs and financial institutions for three days of technology demos, panel discussions and fireside chats, and the Consumer Financial Protection Bureau and the Federal Trade Commission have teamed up to challenge a lower court’s ruling that is poised to have far-ranging implications in lenders’ ability to determine whether to investigate trade-line disputes from credit reporting agencies.
In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ending Sept. 16.
Solera, a Westlake, Texas-based vehicle lifecycle management solution provider, has partnered with fintech DigniFi to allow consumers to finance between $350 and $7,500 for vehicle repairs and maintenance.
Affordability is becoming a growing concern in the automotive industry in the face of a looming recession. In fact, economists at analytics company S&P Global last week increased the chance of a recession to 40% over the next 12 months.
Last week, credit unions continued on a steady march to claim more market share, reaching a five-year high amid limited inventory and rising interest rates as the auto finance industry continues to feel the effects of manufacturing constraints and inflationary pressures. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ending Sept. 2, and what to expect in the week ahead.
This week brought a range of activity in the auto finance industry, with Elliot International suing Santander Holdings USA (SHUSA) following the company’s acquisition of Santander Consumer USA, while powersports leasing company Speed Leasing resumed originations after a two-year hiatus. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ending Aug. 26, and what to expect in the week ahead.
Technology investments in the auto finance industry showed no signs of slowing last week as more lenders announced new partnerships and internal overhauls. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ending Aug. 19, and what to expect in the week ahead.
The landscape of data privacy is changing on the heels of the Federal Trade Commission’s (FTC) amendments to the Gramm-Leach Bliley Act (GLBA) and as states enact their own data privacy laws in an effort to fill gaps not covered by federal laws.
Auto lenders continued their investment in technology advancements as the industry leans into widespread digitization amid uncertain economic conditions. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ending Aug. 12, and what to expect in the week ahead.
Last week the auto finance industry entered the tail end of second-quarter earnings season as used-vehicle values depreciated for the second straight month and the unemployment rate remained strong. Credit Acceptance, Carvana and Solera Auto Finance posted increased origination volume in Q2 even as credit demand weakened.
Earnings season continued in full swing last week, with two major powersports OEMs and two U.S.-based captives reporting second-quarter results. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ending July 29, and what to expect in the week ahead.
Ally Financial, Bank of America, Capital One, Huntington Bank and Truist posted auto loan growth, while U.S. Bank, Citizens and Fifth Third Bank logged sequential declines in outstandings. Capital One, Citizens, Fifth Third and U.S. Bank intentionally backed off auto lending in Q2 due to rising interest rates, tightened inventory and elevated vehicle prices.
Last week, second-quarter earnings season kicked off with Chase Auto, PNC Financial and Wells Fargo Auto reporting drops in auto loan production, painting a less-than-optimistic outlook for the industry marked by on-going inventory shortages and rising interest rates. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ended July 8, and what to expect in the week ahead.
Last week, used-vehicle values continued to shift amid improving inventory and slowing used-car sales. Meanwhile, CarMax Auto Finance, Hyundai Capital America, Santander Consumer USA and Vroom all announced plans to close $4 billion in prime and subprime asset-backed securities (ABS) deals on July 20.
Also last week, Consumer Portfolio Services (CPS) looked to revamp its operational strategy and focus on growth by doubling its credit facility with Ares Agent Services.
Last week, the Federal Trade Commission zeroed in on junk fees as regulators increase their focus on auto lending, and Ford Motor Co. halted lease buybacks on its electric vehicle (EV) product line to control the secondary market. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ended July 1, and what to expect in the week ahead.
Last week, Ford Credit increased its purchase offer on outstanding debt securities to $3 billion as the industry forecasts declining vehicle sales in June, while interest rates rise and consumer sentiment and confidence decline.
New-vehicle sales are projected to slump year over year in June, with the retail seasonally adjusted annualized rate (SAAR) falling 2.3 million units to 11.3 million, according to a joint forecast from JD Power and LMC Automotive. That’s still an improvement from May’s figure of 10.9 million units, however, according to the forecast.
Affordability concerns continue to plague the auto finance industry amid high prices and rising interest rates in a global economy marked by supply shortages and rampant inflation. Elevated prices have been compounded by interest rate increases across the industry following the Federal Reserve’s decision last week to raise its benchmark rate by 75 basis points.
In this episode of the Weekly Wrap, the Auto Finance News editors discuss the top stories for the week ended June 17, and the industry news in store for the week ahead.
Auto lenders should take a close look at their credit decisioning and dealer relationships following a recent Consumer Financial Protection Bureau (CFPB) bulletin and a decision by the Supreme Court of California. In this episode of the Weekly Wrap, Deputy Editor Amanda Harris, Associate Editor Whitney McDonald and Editor Joey Pizzolato discuss the top stories for the week ended June 10, and in the week ahead.
Last week, the Non-Prime Auto Financing Conference in Plano, Texas highlighted cybersecurity needs, potential new opportunities for subprime lenders and the benefits of widening talent pools.
Last week, the Auto Finance News team wrapped up the June issue of its monthly magazine, highlighting the evolution of GM Financial’s floorplan offering that has been a driving force in capturing commercial floorplan penetration at General Motors’ franchise dealerships. In this episode of the Weekly Wrap, Deputy Editor Amanda Harris, Associate Editor Whitney McDonald and Editor Joey Pizzolato discuss the June magazine features, news for the week ended May 27, and what to expect in the week ahead.
Last week, the Consumer Financial Protection Bureau continued to ratchet up its auto finance industry oversight with a fresh bulletin focused on ancillary product refunds, and the FinovateSpring conference in San Francisco wrapped up last week, highlighting the steps banks are taking to launch digital transformation. In this episode of the Weekly Wrap, the Auto Finance News editors discuss last week’s top stories, and what to expect in the week ahead.
Automotive retailers Shift and Vroom focused on profitability rather than growth in the first quarter following rising interest rates and declining investor sentiment. In this episode of the Weekly Wrap, Auto Finance News Deputy Editor Amanda Harris and Associate Editor Whitney McDonald discuss last week’s top stories, and what to expect in the week ahead.
Last week, used-vehicle values cooled for the third straight month in a positive sign for the U.S. Labor Department’s forthcoming consumer price index, even as rental companies continue to shake up the used-car market. Still, finance and insurance (F&I) profits at publicly traded automotive retailers continued their upward trajectory as pent-up demand coupled with rising new- and used-vehicle prices to keep revenues strong.
In this episode of the Weekly Wrap, the Auto Finance News editors discuss last week's top stories, and what to expect for the week ahead.
Automation, data management and compliance strategies were a focus of discussion last week at the Auto Finance Innovation and Auto Finance Risk Summits in San Diego. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the week’s top stories coming out of the Auto Finance Innovation Summit and the Auto Finance Risk Summit.
Auto finance institutions including Ally Financial, CarMax Auto Finance, Chase Auto, PNC Financial, U.S. Bank and Wells Fargo Auto kicked off 2022 first-quarter earnings reports last week with varying results as vehicle inventory remains crunched. In this episode of the Weekly Wrap, Auto Finance News Deputy Editor Amanda Harris and Associate Editor Whitney McDonald discuss last week’s top stories, and what’s to come in the week ahead.
Last week, Honda Motor Co. added 10-year-old vehicles to its certified pre-owned vehicle platform in an effort to expand its used-vehicle inventory options in an environment plagued with elevated values and crunched inventory. In this episode of the Weekly Wrap, the Auto Finance News editors discuss last week’s top stories and what’s to come in the week ahead.
Powersports lender Octane and manufacturer BRP are leaning into seasonal trends, while inflation concerns continue to present looming uncertainty for the larger economy. In this episode of the Weekly Wrap, the Auto Finance News editors discuss last week’s top stories and what’s to come in the week ahead.
Auto lenders are rethinking how they manage the influx of data coming down the pike as the industry increasingly shifts to digital channels. In this episode of the Weekly Wrap, the Auto Finance News editors discuss last week’s top stories, and what’s to come in the week ahead.
Issues related to the pandemic continue to linger, evidenced by last week’s Federal Reserve rate hike, an influx in fraudulent activity, and suppressed leasing incentives in the automotive lending space. In this episode of the Weekly Wrap, Auto Finance News Associate Editor Whitney McDonald and Editor Joey Pizzolato discuss the week’s top stories and what to expect in the week ahead.
Top takeaways for the auto finance industry from the AFSA Vehicle Finance Conference and CBA Live industry events of last week. In this episode of the Weekly Wrap, Auto Finance News Deputy Editor Amanda Harris and Associate Editor Whitney McDonald discuss the week’s top stories.
Last week, news on the regulatory front kicked into high gear with the Consumer Financial Protection Bureau (CFPB) signaling it would take an increased focus on illegal auto repossessions and U.S. Senators reintroducing a bill aimed at modernizing e-sign requirements.
Separately, four U.S. Senators reintroduced the E-SIGN Modernization Act designed to eliminate outdated regulations that require customers to prove they can receive documents electronically before opting to receive digital versions.
In a market defined by elevated used-vehicle values and limited new- and used-inventory, both subprime lenders and rental car companies are feeling the pressure. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the March magazine feature stories and what to expect in the week ahead.
Rental car companies are starting to re-enter the auction space through fleet sales and public dealer group trends have surfaced as fourth-quarter earnings come to a close. 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 in the week ahead.
Last week, automotive retailers began reporting their Q4 earnings, with results from Group 1, Lithia Motors and Penske Auto painting a continued picture of increasing finance and insurance profits amid low inventory and floorplan balances. 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.
Increased boat prices have yet to deter consumers, evidenced by activity at this year’s New York Boat Show. Powerboat retail sales are expected to exceed 300,000 units at yearend 2021 despite prices escalating 15% to 50% above 2020 values, according to a BMO Capital research note. In this episode of the Weekly Wrap, the Auto Finance News editors discuss fourth quarter earnings reports, and what to expect for the week ahead.
All reporting publicly traded banks posted decreases in allowance coverage rates in the fourth quarter as strong credit and used-vehicle values propped up the market. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the week’s top stories, and what to expect for the week ahead.
Trends began to surface as fourth-quarter 2021 earnings reports continued to file in during the past week, with Ally Financial, Citizens One Auto Finance and U.S. Bank all posting sequential increases and year-over-year declines for net charge-offs on auto loans. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the week’s top stories, and what to expect for the week ahead.
Fourth-quarter 2021 earnings kicked off late last week with Chase Auto and Wells Fargo Auto reporting split performance on origination volume as delinquencies ticked up across the board. In this episode of the Weekly Wrap, the Auto Finance News editors discuss the week’s top stories, and what to expect for the week ahead.
With the Federal Trade Commission’s changes to its rules for how financial institutions safeguard consumer data, which went into effect today, auto lenders will need to get moving in order to bring their compliance departments up to the status quo within the next year.
In this episode of the Weekly Wrap, the Auto Finance News editors discuss what auto lenders can do to begin preparing for the changes, as well as updates to the powersports finance market on the heels of CES 2022.
Last week, the Auto Finance News editorial team highlighted 2021’s top stories as electric vehicle (EV) manufacturers started posting fourth quarter deliveries, showing year-over-year increases across the board as Q4 comes to a close.
Technology advancements in the auto finance industry have been a top priority for lenders during the last two years, and regulators have also turned their watchful eyes toward the space.
Last week, the asset-backed securities (ABS) market posted its highest volumes since the 2008 credit crisis, Shift technologies ended its search for a wholesale financier, and a powersports lender entered new markets. 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, 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 come in the week ahead.
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 portfolio increased 12.1% YoY to a record $13.5 billion.
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 to $23.5 billion.
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 Illinois, accuses James Robert Collins and Robert Frank DiMeo of defrauding investors.
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 ahead.
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 latest developments in powersports finance and what’s in store for the next week.
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 continues to impact how auto lenders conduct business.
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 coming week.
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 store for next week .
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 to expect as second-quarter earnings season kicks off in the week ahead.
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 and Editor Joey Pizzolato discuss last week’s top stories, and what’s to come in the week ahead.
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 products continue to increase as vehicles become more expensive.
In this episode of the Weekly Wrap, Auto Finance News Associate Editor Amanda Harris and Editor Joey Pizzolatto discuss the implications of these developments, along with fresh investments in the auto finance industry.
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, who breaks down everything auto lenders need to know about decentralized finance.
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, and what’s to come in the week ahead.
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 the week to come.
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.
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.
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.
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 what’s to come this week.
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 week ending April 16.
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 ofFacebook 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.
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.
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?
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.
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 EV batteries as they relate to residual values, and what barriers might auto financiers encounter as they try to leverage data and analytics? This, and more, in this week's episode of the Weekly Wrap.
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 relinquishing marketplace control, ownership and development to a third party? How might loan volume increase as a result of affinity partnerships?
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 Pizzolato discuss the implications of the surge in refi volume, the lasting consequences — if any — this shift might have on the auto finance industry, and what to expect in the coming week.
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?
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 Carvana’s new digital direct-lending partnership, and the new opportunities presented by the growing in-vehicle finance industry.
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.
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.
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 for credit losses.
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 Mike Santomassimo. Meanwhile, the Illinois State Legislature passed a 36% “all-in” consumer loan interest rate cap.
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.
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.
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.
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.
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.
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 used-vehicle market.
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.
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.
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.
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.
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.
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.
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 Harris and JJ Hornblass discuss these news developments for the week ending Sept. 11, and what’s to come next week.
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.
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 program or are frozen or have a frozen past due payment.
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.
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.
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 Finance Risk Summit webinar, compliance experts shared regulatory best practices for lenders during this unprecedented time.
In this edition of the Weekly Wrap, Joey Pizzolato and Amanda Harris discuss these news developments during the week ending Aug. 7, 2020. Next week, Auto Finance News will dive into the inner workings of a new digital auto lender in the refinance space and Ford’s new credit card program with linked incentives.
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.
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 on by the pandemic.
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 equipped to handle an expected increase in attempted recoveries due to the coronavirus pandemic.
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.
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.
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.
his week, all eyes were on first-quarter delinquency rates, incentives, and Vroom's IPO.
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.
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.
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.
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.
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.
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 without interest. However, no good deed goes unpunished, and there are many compliance considerations that lenders will have to keep on their radar.
From eligibility and proof, to F&I products and servicing implications, in this discussion Edelman and Lipinski detail actionable advice for lenders to mitigate regulatory risks with deferral programs.
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.
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 executive data scientist at General Forensics
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 experiences to better position the company’s customer service strategy.
Featuring: Annette Kalinowski, Senior Manager of Automotive Product Experience, Pentagon Federal Credit Union
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
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 away by the hype. Featuring: Don Goin, President & Chief Operating Officer, Tricolor Auto Acceptance
While the Consumer Financial Protection Bureau mulls industry feedback on itsproposed 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 have to adapt in order to work with debt collection firms.
Featuring Robert Tennant, Chief Legal Officer, Veros Credit
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 company launched. In this episode of The Roadmap, Auto Finance Excellence chats with Amitay Kalmar about the company’s plans for the fresh capital, geographic growth and tech enhancements to propel the startup onto the main stage.
Featuring Amitay Kalmar, founder and CEO, Lendbuzz
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, and best practices for engaging with consumers.
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 with NMAC's Colin Cooke, director of financial products, about strategies the captive has implemented to appeal to new customers online while keeping loyal customers in the fold.
Featuring Colin Cooke, director of financial products, Nissan Motor Acceptance Corp.
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 points of alternative data and leverage nontraditional credit markers to sharpen decision-making.
Speaker: Chuck Berend, Senior Vice President, Chief Risk Officer at First Investors Financial Services Group
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 build a strong foundation for information security practices. Also, McGlinchey Stafford’s Chief Privacy Officer and Commercial and Consumer Litigation Attorney Richik Sarkar details how lenders can protect themselves and their organizations from risks and liability when handling consumer data.
Featuring Eddie Younker, VP of Information Protection and Chief Information Security Officer at Hyundai Capital America, and Richik Sarkar, Chief Privacy Officer and Commercial and Consumer Litigation Attorney at McGlinchey Stafford
Successful marketing hinges on knowing what consumers want — and part of that is knowing who your customers are. In this episode of The Roadmap, Auto Finance Excellence talks with Chase Auto's Chief Marketing Officer Melinda Welsh to explore the often-missed opportunity of marketing to underrepresented demographics and promoting diversity within the traditionally male-driven industry. Welsh, who will join AFE in a dynamic and engaging fireside chat at the upcoming Auto Finance Accelerate event, also outlines how auto financiers will need to adapt strategies as the role of marketing continues to evolve.
The carshare and rideshare markets are gaining traction, and financiers must adapt their strategies or risk getting left behind. In this episode of The Roadmap, Auto Finance Excellence talks with Brian Allan, senior director of strategic partnerships at HyreCar, to discover how lenders can modify financing practices with an eye toward the mobility-as-a-service paradigm shift. Allan also outlines tactics for managing loan terms with carshare and rideshare consumers.
Featuring Brian Allan, Senior Director, HyreCar
Though credit unions have thrived in the current auto finance market, CU Direct is warning the 1,100 lenders on its platform to remain cautious as near-term macroeconomic factors -- like rising interest rates and a potential downturn -- are likely to spark additional risk factors. In this episode of The Roadmap, Auto Finance Excellence talks with Phil DuPree, CU Direct’s chief revenue officer, to discover how credit unions and other lenders can improve financing strategies amid the current market and outlines the top three ways to keep originations on an upward trajectory.
Featuring Phil DuPree, Chief Revenue Officer, CU Direct
Though regulators have relaxed discriminatory lending rules, auto lenders are stepping up diversity education. Ally Financial, for one, is bolstering training efforts to reduce unintentional snap judgments based on race, gender, or appearance – a concept referred to as “unconscious bias.” In this episode of The Roadmap, Auto Finance Excellence talks with Reggie Willis, Ally’s director of diversity and inclusion, to discover what lending executives can do to become more open-minded and avoid having unintentional bias trickle into interactions between dealers and their car-buying customers.
If there is one lesson Westlake Financial Services has learned since it started purchasing portfolios back in 2011, it’s to be prepared for hiccups along the way. Proactive communication and procedural refinement are two of the elements that enable companies to scale their business. In this episode of The Roadmap, Auto Finance Excellence talks with Paul Kerwin, Westlake’s chief financial officer, about what lenders can do to improve acquisition practices and leverage existing infrastructure for growth.
Whether you’re lending in Los Angeles or Shanghai, some auto finance fundamentals stay the same. Chas Roscow is an industry veteran with more than 35 years of experience in the space and he joins Auto Finance News for a special discussion on the automotive lending space in China and gives lenders some best practices for how to succeed in the growing market. Roscow will be speaking on this topic and beyond at the summit held at the Grand Hyatt Shanghai on September 5-6. For more details and to register, visit www.AutoFinanceAsia.com.
Collaborative corporate strategy, healthy relationships with other businesses, and opportunities that enable colleagues to fully express themselves are just a few of the benefits that come with a well-designed diversity and inclusion program for any financial services business. In this episode of The Roadmap, Auto Finance Excellence talks with two executives from Huntington Bank to discuss the steps required to develop and implement diverse and inclusive programs in the auto finance space. Tune in to find out how to ensure that the topics of race, age, and gender diversity never slip under the radar.
Featuring Rich Porrello, president of Huntington Bank’s auto finance business, and Marlon Moore, the bank’s chief diversity and inclusion officer.
Strategic partnerships are at risk of being marred by culture clash, when the turn-on-a-dime mentality of a startup challenges the red-tape decision-making of larger finance companies. In this episode of The Roadmap, Sonia Steinway, president of Outside Financial, shares insights to help startups and their corporate partners develop – and maintain – healthy relationships. Steinway also outlines the needs for thorough compliance and privacy protocol, as well as an ability to cater to consumers’ various learning styles.
Featuring Sonia Steinway, President, Outside Financial
As auto lenders struggle to integrate artificial intelligence into origination models, powersports lessor MotoLease has fully embraced the technology. In this episode of The Roadmap, MotoLease Chief Executive Maurice Salter and Chief Operating Officer Emre Ucer discuss the steps involved in using AI to make independent credit decisions based on each person’s individual behavior, as well as the rationale for doing the project in-house. The pair also offer details of a soon-to-be launched website to consolidate dealer inventories and offer consumers a centralized resource with prequalification functionality.
Featuring Maurice Salter, Chief Executive, and Emre Ucer, Chief Operating Officer, MotoLease
As credit unions continue to seize auto financing marketshare, knowing how they position themselves for success is key to understanding their growth. In this episode of The Roadmap, Sonya McDonald, Executive Vice President & Chief Lending Officer at Randolph-Brooks Federal Credit Union talks about the lenders’ strategy for growing direct lending by working with dealerships and how credit unions provide a unique customer service experience that bodes well for growth. She also discusses RBFCU’s long-term goal to increase automated underwriting, and even how women’s representation has grown in the credit union space.
Featuring Sonya McDonald, Executive Vice President & Chief Lending Officer at Randolph-Brooks Federal Credit Union
With lingering uncertainty over what will become of the CFPB and unconfirmed appointees to the Federal Trade Commission, lenders’ compliance obligations are in flux. In this episode of The Roadmap, Dama Brown, Southwest regional director of the FTC, clears up confusion about collection practices and the Fair Debt Collection Practices Act, as well as valuable insights into a recent case again Blue Global LLC, which fraudulently sold consumer data that was promised to dealers. Brown also offers a sneak peek of a report that presents consumer sentiments about their auto purchases and financing.
Featuring Dama Brown, Regional Director of the Federal Trade Commission's Southwest Region.
As multiple subprime auto securitizers come to the market with lower average Fico scores, longer terms, and higher loan-to-value ratios than their previous issuances, many of these deals are being rewarded with higher ratings. In this episode of The Roadmap, Joseph Cioffi, a partner at Davis & Gilbert LLP, discusses the latest trends in auto ABS, including the industry's reliance on over-collateralization that may be masking greater subprime risk. Additionally, Cioffi also delves into trends such as the rising subprime delinquencies and losses experienced across the industry.
Featuring Joseph Cioffi, Partner, Davis & Gilbert LLP
From new security features to 3-D images and biometrics, AutoGravity has several technology development projects on its roadmap this year, according to the online auto finance company’s new Chief Technology Officer Sheng Wang. In this episode of The Roadmap, Sheng details her new CTO role at AutoGravity, why it’s important to have a mobile-first strategy, and the company’s tech goals for 2018. Additionally, Sheng talks about the future of the F&I office, where consumers might be “getting stuck” in the online finance process, and how AutoGravity is jumping over those hurdles.
Featuring Sheng Wang, Chief Technology Officer, AutoGravity.
Alternative deal structures — in which lenders can offer potential borrowers with multiple finance options in response to a single credit request — are becoming more prominent as borrowers continue to seek instant credit decisions. In this episode of The Roadmap, Scott Hendriks, director of product management for auto originations at Fiserv, discusses how these alternative structures can prove beneficial for both lenders and borrowers, and why these structures are not just for the nonprime audience anymore. Additionally, Hendriks offers insight into how these structures can improve not only service levels, but book-to-look ratios.
Following the resignation of Consumer Financial Protection Bureau Director Richard Cordray, there has been much confusion surrounding the future of the CFPB and its leadership. Cordray named Leandra English as the agency's interim head, shortly before President Donald Trump named Office of Management and Budget Director Mick Mulvaney to the position, which ensued chaos. However, on the evening of Nov. 28, amid a battle of who would be the agency’s interim head, U.S. District Judge Timothy Kelly ruled in favor of the White House. In this episode of The Roadmap, Lucy Morris, partner in the Washington, D.C., office of Hudson Cook LLC, offers her insight into the CFPB leadership chaos, and advice for lenders in the short and long term. Morris also voices her opinion on who could be the permanent replacement for Cordray, and in what ways the CFPB could potentially change -- or not change -- under new leadership.
Security Service Federal Credit Union attributes its No. 1 rankings in the annual Auto Finance Performance report to managing success by focusing on dealer and member service, and not by trying to gain marketshare. In this episode of The Roadmap, Charles Goss, executive vice president and chief lending officer at Security Service, details the credit union’s secret to success, how it strives to enhance dealer relationships, and conservative underwriting efforts as the industry heads toward a down cycle.
Deep-subprime lending has notably expanded in the nonbank auto space, reaching $38.9 billion outstanding as of June. Additionally, subprime auto defaults reached $1.8 billion in June, making up about 80% of all defaults in the market. In this episode of The Roadmap, Michael Vogan, automobile economist in the credit analytics department at Moody's Analytics, details a presentation he developed on subprime auto credit, including how heightened competition and better analytical capabilities for risk modeling and repossession activity have contributed to the rise in defaults. Vogan also offers insight into where subprime loans are most concentrated geographically, how the recent hurricanes are expected to affect the auto finance market, and why he thinks payment problems are a function of underwriting policy.
Featuring Michael Vogan, Automobile Economist in the Credit Analytics Department at Moody's Analytics.
Industry leaders continue to predict where the end of the line will be for declining used-car values, but what can lenders do to prepare in the meantime? In this episode of The Roadmap, Chuck Jones, head of national indirect lending at SunTrust Banks, shares his “proactive” approach to remaining rational in the market, particularly as delinquencies rise. Jones also offers a peek into how bullish SunTrust will be with new and used financing next year. In 2014, Jones joined SunTrust Banks -- which had $9.8 billion in outstandings at yearend 2016, according to Big Wheels Auto Finance 2017 -- to provide strategic direction, execution, and outcomes for the business.
Featuring Chuck Jones, Head of National Indirect Lending at SunTrust Banks.