The Auto Finance Roadmap

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 J...

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 A...

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...

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...

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 bas...

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 securitizat...

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 W...

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 Edi...

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 workforc...

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 thi...

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 Execut...

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....

The auto finance industry has recently seen the removal of certain ambiguities in compliance and regulation practices. The U.S. Supreme Court, for one, clarified the definition of an automatic telephone dialing system in its April 1 decision of Facebook v. Duguid, providing auto lenders a better understanding of what an ATDS is, and how to apply that knowledge to their processes. The Telephone Con...

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...

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 significan...

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 t...

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 reta...

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...

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 Pizzolat...

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.