By on June 3, 2016

Spending hours or days negotiating for a vehicle can be a taxing experience, so reaching an agreeable price feels like a big accomplishment for car shoppers. It seems reasonable to let your guard down and relax as you enter the F&I office to finish up the paperwork, but that can lead to a big mistake.

The finance manager or clerk will start going over the paperwork, representing the car as sold and financed while showing you a specific rate. You skim through the mountain of paperwork and quickly sign all of the forms so you can drive off in your new car.

At this point, most people are brimming with excitement — they show off the car to their friends and family and share pictures on social media — but that jubilation can quickly be deflated with a call from the dealer telling you that the financing has fallen through and you don’t own the car after all. (Read More…)

By on March 3, 2016

subprime-lenders-car-get-you-guaranteed-approval-on-bad-credit-auto-loans

Good times have clearly arrived, because Americans are flinging money at cars like it’s going out of style.

Leasing has never been more popular for American car buyers, reports the Detroit Free Press, and the size of their auto loans have also reached record territory.

(Read More…)

By on January 27, 2016

 

That happy couple at the car dealership, back by popular demand...

That happy couple at the car dealership, back by popular demand.

Since we last reported on the Consumer Financial Protection Bureau (CFPB) and its controversial crusade to uncover racial discrimination by car dealers on interest rate markup on automobile loans, the agency has ordered over $100 million in fines and settlements against banks that some have deemed extortion. This has infuriated lenders and car dealers, and has frustrated lawmakers on both sides of the aisle.

The tale continued last week as the House Committee on Financial Services revealed that their work on this case now includes trying to get the CFPB and Department of Justice to agree on that age-old problem on how to get white car buyers to admit that they are actually white.

Let us review this investigation, which recently prompted the House committee to publish a report about the CFPB probe, titled “Unsafe at Any Bureaucracy: CFPB Junk Science and Indirect Auto Lending.

(Read More…)

By on June 9, 2015

DC Hoods Courtesy cnbc.com

My 25-plus years as a Big Time Auto Industry Executive afforded me many memorable moments. It would be difficult to single out one example, but I may be the only person on earth who has shaken hands with both Soichiro Honda and Derek Kreindler.

As for the low point of my career, there is no contest: the morning of May 7, 1998, four months after I joined Mercedes-Benz Credit Corporation. That was the day it was announced Daimler-Benz had merged with the Chrysler Corporation.

(Read More…)

By on March 12, 2015

Ally NYSE Trading Floor

Though most lenders aren’t comfortable with the idea of 84-month auto loans, Ally Financial is going full steam ahead with such loans.

(Read More…)

By on February 21, 2015

finance

Alan Zibel and Annamaria Andriotis of the Wall Street Journal (subscription required) report that consumer loans to borrowers with bad credit, including those for cars and light trucks, are now approaching 40% of loans issued, the highest percentage since the start of the financial crisis in 2007-08.

Almost four of every 10 loans for autos, credit cards and personal borrowing in the U.S. went to subprime customers during the first 11 months of 2014, according to data compiled for The Wall Street Journal by credit-reporting firm Equifax.

That amounted to more than 50 million consumer loans and cards totaling more than $189 billion, the highest levels since 2007, when subprime loans represented 41% of consumer lending outside of home mortgages. Equifax defines subprime borrowers as those with a credit score below 640 on a scale that tops out at 850.

(Read More…)

By on December 22, 2014

ally-stock-exchange-banner-Article-201404101441

With its GMAC Financial leather jacket burning in the closet while a supermodel lip-syncs in the tub, Ally Financial is at last free from government ownership.

(Read More…)

By on August 7, 2014

subprimechart

The topic of subprime auto loans has been a hotly contested one at TTAC, with numerous commenters defending both the practice and the stability of recent run-up in subprime lending.

(Read More…)

By on July 25, 2014

445x350x20subprime-blog480-445x350.png.pagespeed.ic.uIhvuYIPjL

Buried in a feel good story about auto loans comes the news that subprime auto loans are at levels that we haven’t seen in nearly a decade.

(Read More…)

By on June 11, 2014

12116452-subprime-auto-loan-interest-rates

The global outlook for Auto Back Securities (ABS) is steady – except in North America, where underwriting standards and borrower credit are slipping. (Read More…)

Recent Comments

New Car Research

Get a Free Dealer Quote

Staff

  • Contributing Writers

  • Bark M., United States
  • Chris Tonn, United States
  • Bozi Tatarevic, United States
  • Vojta Dobes, Czech Republic

Get No-holds-barred, take-no-prisoners Automotive News in your Facebook Feed!

Already Liked