The Auto Finance Roadmap

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 chan...

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. I...

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 Award...

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 th...

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...

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 con...

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 Securitie...

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 episod...

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-d...

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 e...

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...

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 imp...

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...

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.