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.

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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.

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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.

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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.

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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.

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By on July 25, 2014

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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.

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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…)

By on June 2, 2014

MK-CC261A_CarAd_G_20130408211241

The easy-credit train keeps on rolling in the auto world, with credit rating agency Experian reporting new records in key auto finance metrics.

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By on May 23, 2014

PA also 225

The Federal Trade Commission is launching an investigation into biweekly payments sold as a product by dealership finance departments on the basis that consumers may not be getting their money’s worth with such payments.

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By on April 22, 2014

Used cars

Currently, around 2.13 million cars will come off-lease by the end of 2014, up from 1.7 million last year. By 2016 and beyond, however, over 3 million vehicles annually will turn up on many a CPO and used car lot, replacing a long drought with an El Niño-esque flooding of the U.S. used car market.

(Read More…)

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