Tesla pushes real-time payments adoption into the fast lane
About $2 billion changes hands daily for the sale of new motor vehicles in the U.S., making auto dealers a prime use case for faster payments. So why aren't more using it?
Auto lending
Lender Westlake is using AI to make more auto loans
Pagaya's artificial-intelligence model utilizes more data points in assessing whether a consumer is creditworthy than the handful typically used by traditional auto lenders, so it can find more consumers who would have previously been denied a loan.
CPS Auto Receivables to raise $291.7 million backed by subprime auto loans
CPS provides auto loans to U.S. consumers who have situational credit problems, but display an ability to pay their obligations, according to the company.
Carvana markets $168 million ABS based on used vehicle loan portfolio
Rising balances and annual percentage rates alongside lower FICO scores mark used vehicle loan pool.
A bumpy road ahead for credit union auto lending
Car loans are among the bread-and-butter products for credit unions, but slowing demand and growing delinquencies are putting some pressure on the category.
American Credit Acceptance plans second ABS this year
The subprime auto lender has a good track record, but there are concerns about used-car prices normalizing, according to KBRA.
Cascade pursues massive $3.1 billion inaugural auto-loan ABS
The deal’s sponsor has issued a small rated portion to investors and sold the remainder back to loan-originator.
Driveway Finance showcases first ABS deal
The sponsor’s Fortune 500 parent provides comfort in the face of the subprime-auto industry’s woes.
What’s driving the boom in auto refinancing
Subprime borrowers whose credit scores have risen since they bought their cars are increasingly looking for a better deal. Credit unions and small banks are seizing the opportunity, often with the help of fintechs.
Santander paying $2.5B to acquire remaining stake in auto lender
The price for the 20% stake in Santander Consumer USA Holdings that Santander does not already own is significantly higher than what the buyer first offered in July.
Ally leads pack of banks benefiting from hot auto market
The Detroit company, one of the nation's largest car lenders, enjoyed a surge in profits during the second quarter, largely due to strong consumer demand for vehicles. But how long will the good times last?
Santander offers to buy remaining 20% of subprime auto lending arm
The Spanish bank’s U.S. holding company said it will pay a premium to purchase the publicly traded shares in Santander Consumer Holdings. The proposal is subject to the approval of the auto lender’s board of directors.
Ally forecasts an extended run of strong margins in auto lending
Surging used-car prices — brought on by a combination of strong consumer demand and limited new-vehicle supply — are boosting loan yields and profits at the Detroit company.
The surprisingly good times for auto lenders will end. But when?
In the midst of the pandemic recession, banks have benefited from government stimulus payments to consumers, low interest rates and constraints on the supply of new vehicles. But intensifying competition and real concerns about borrowers’ ability to pay loans that went into forbearance could soon threaten profits and credit quality.
CFPB pick’s past statements set stage for testy confirmation hearing
Rohit Chopra, President Biden’s nominee to lead the Consumer Financial Protection Bureau, has not minced words in calling out private companies for wrongdoing. He could get a grilling from Banking Committee Republicans and some opposition on the Senate floor.
S&P: Auto-loan extensions spiked in December in prime, subprime pools
The extension rates were the highest since the peak of lender deferrals granted in the wake of the COVID-19 outbreak.
By
Glen Fest
General Motors faces ‘big task’ in building a bank: Ally CEO
The automaker is reportedly planning to apply for a bank charter so it could collect deposits and grow its own auto-finance business. That could create more competition for Ally, which was spun off from GM in 2006 but remains a key lending partner.
How much longer will consumer credit hold up?
Payment rates for auto lenders and credit card issuers have remained strong despite a spike in unemployment. Whether these trends continue into 2021 will depend largely on the actions of Congress and the pace of medical advances.
Santander Consumer warns charge-offs will keep rising into spring
The subprime lender cited low odds that Washington will deliver further economic relief, and the fact that $1.5 billion of loans whose deferral period expired are now more than 30 days behind.
‘Enigmatic’ CFPB chief could drop more surprises in a second Trump term
Kathy Kraninger’s job status would be in question if Joe Biden wins the White House. If the president is reelected, she may continue balancing a deregulatory agenda with her unexpectedly tough stance on enforcement.
Load More
Couldn’t load more articles. Try again.