The Auto Finance Roadmap

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 coul...

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 recorde...

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 acco...

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 t...

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 r...

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 indus...

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...

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...

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 h...

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...