March 2009 Blog Posts (43)

Drop Dead Day

Well, we were ready to go to “press” with a piece on the wholesale market and auctions, when “Drop Dead” day for GM and Chrysler arrived and Rick Wagoner’s head rolled. I have been shocked by the “hue and cry” from so many different angles. So the piece on wholesale will have to wait.

So what is “Drop Dead Day?” On December 12, 2008, the Bush Administration “bridged” GM and Chrysler with TARP funds. The plan was to tide them over and let the next administration deal with the true… Continue

Added by David Ruggles on March 31, 2009 at 11:00pm — No Comments

Say Ah: GMAC CDS Spreads Widen Way Out

GMAC LLC CDS spreads widened considerably today to 1,847.45 basis points, an increase of 241.69 basis points, or 15.05%. (See here.) Only GM CDS widened more today. Blame the threat of a GM bankruptcy.

Added by JJ Hornblass on March 31, 2009 at 5:58pm — No Comments

Solving the Floorplan Dilemma

ORLANDO, FLa. — With so much news — at times, conflicting — coming out of Washington, there was no better place to be yesterday than in a room brimming with lenders and industry executives.

After President Barack Obama’s address about reviving the auto industry, which was streamed live into the conference hall, attendees at the Consumer Bankers Association’s Auto Finance Conference were buzzing. Some folks were encouraged by the President’s recognition of the import of our industry,… Continue

Added by Marcie Belles on March 31, 2009 at 2:00am — 1 Comment

Task Force Nixes Plans; Wagoner Gets the Boot

The government committee tasked with restarting the auto industry has issued its ultimatums: Chrysler has 30 days and $6 billion to finalize an alliance with Fiat, and GM has 60 days and an undisclosed “interim financing” to rework its restructuring plan. Should the companies fail to meet their deadlines, they could face bankruptcy.

The task force put the kibosh on GM’s request for another $16.6 billion, and forced the resignation of GM CEO Rick Wagoner. The majority of the GM board… Continue

Added by Marcie Belles on March 30, 2009 at 1:00am — 6 Comments

Honda Finance Risk Chief Joins AFRS Speaker Faculty

Paul Kramarz, manager of risk and analysis at American Honda Finance Corp., has joined the Price Execution & Optimization panel at the upcoming Auto Finance Risk Summit.

Kramarz will address topics including today’s thinking on risk-based pricing, integrating enterprise risk management into pricing practice, and innovations in pricing, among other things.

Prior to joining American Honda Finance, Kramarz worked for several banks in branch management. He holds a B.A. in… Continue

Added by Marcie Belles on March 27, 2009 at 12:30pm — No Comments

Is a Backlash Coming?

Warning: you are not going to like what you read in this blog.

You won't like it because I am starting to fear that auto financiers -- arguably the most responsible of all consumer credit providers during the drunken credit boom of the 2000s -- could be the next target for consumer advocates criticisms of recipients of federal funding.

In reading a review of the Term Asset-Backed… Continue

Added by JJ Hornblass on March 27, 2009 at 8:00am — 1 Comment

Assurant, Fiserv, VantageScore Headline Leading Vendors at Risk Summit

A distinguished -- and growing -- list of companies have signed up to participate as sponsors and exhibitors at the upcoming Auto Finance Risk Summit. The exhibit hall, which is nearly sold out, will present an excellent opportunity for lenders and lessors to learn about the latest and greatest tools and services from leading providers in the industry.

"Our goal is to make the upcoming Auto Finance Risk Summit as valuable… Continue

Added by Mike Gibb on March 27, 2009 at 8:00am — No Comments

Turn Your Auto Notes Into Cash

We Turn Auto Notes Into Cash

Are you an Auto Dealer or Finance Company that creates auto notes, buy here pay here auto paper? Do you need CASH for inventory or for your business or personal use? Sell your auto notes, to increase your CASH flow and reduce your risk exposure. Let us show you how to increase your CASH flow without creating new debt, don't wait for your customer to pay you off, Or total your car. We can help you get the financial flexibility… Continue

Added by Russell Crosby on March 26, 2009 at 4:20pm — No Comments

Clyma, Salik Added to Risk Summit Speaker Roster

Douglas Clyma, the senior vice president of credit risk management at AmeriCredit Corp., and Boaz Salik, principal of FischerJordan, the New York consultancy, have been added to speaker faculty of the upcoming Auto Finance Risk Summit.

The Auto Finance Risk Summit, the only industry event focused on auto… Continue

Added by JJ Hornblass on March 26, 2009 at 11:30am — 1 Comment

Making It Work

After 50 years in auto finance, Fireside Bank is shutting its doors. Parent company Unitrin Inc., a Chicago-based property and casualty insurer, announced yesterday that its subprime auto lending subsidiary had stopped originating loans.

Fireside, which employed 730 people at yearend 2008, has a loan portfolio in excess of $1 billion, making it one of the top financiers in the nation. It will continue to service its portfolio, winding down operations in the next few years. During… Continue

Added by Marcie Belles on March 25, 2009 at 12:00pm — 8 Comments

Economic slump drives used car sales, prices up

I found this article on USA Today, and heard on it on the radio this morning. RIght now it's best time to buy a used car, or even take your old car to the repair shop to get in working order. Just make sure you have a Warranty on it, so you don't pay for the high cost of repairs, or if you have a auto warranty check the paperwork to make sure that the warranty is transferable.

Used car salesmen are becoming the kings of the lot as demand… Continue

Added by Charles Butler on March 25, 2009 at 10:01am — No Comments

Liquidity Programs Start Looking Good to Investors

Like a steak that had been too rare and is now looking scrumptious, the new Public-Private Investment Program (PPIP) from the Treasury Department is starting to look awfully enticing to fixed-income investors. Which is exactly how the federal government likes it.

The PPIP has two parts: a legacy loan program and the legacy securities program. The legacy loan program is being administered through the FDIC (see… Continue

Added by JJ Hornblass on March 23, 2009 at 1:24pm — 1 Comment

Treasury's Liquidity Programs Start Looking Good to Investors

Added by JJ Hornblass on March 23, 2009 at 1:22pm — No Comments

Treasury's Liquidity Programs Start Looking Good to Investors

Added by JJ Hornblass on March 23, 2009 at 1:21pm — No Comments

What Can We Do To Protect Teen Drivers?

Did you know that motor vehicle crashes are the leading cause of death for U.S. teens, accounting for more than one in three deaths in this age group? In 2005, twelve teens ages 16 to 19 died every day from motor vehicle injuries.

How big is the problem, and what are the costs?

Did you know that in the United States during 2005, 4,544 teens ages 16 to 19 died of injuries caused by motor vehicle crashes. In the same year, nearly 400,000 motor vehicle occupants in… Continue

Added by Charles Butler on March 22, 2009 at 9:30am — No Comments

AFCD and Nowcom Team with XpressCredit to Offer Access to New Lender Opportunities

LOS ANGELES and CARMEL, Ind. — Automotive Finance Consumer Division LLC (AFCD) and Nowcom Corp. announced today they will complete integration of their dealer management system, Dealer Desktop, by the beginning of the second quarter 2009. As a result, dealers will have access to new lender opportunities on the XpressCredit lending platform through Dealer Desktop.

"This new partnership brings additional lenders to our platform, which during these tough economic times, puts us in the… Continue

Added by XpressCredit - Indirect Lending on March 20, 2009 at 5:30am — No Comments

Teen Drivers

Car crashes are the leading cause of deaths for american teenagers, more than drugs, guns, and cancer. Speed and lack of judgment is the two most common factors involved in a teen auto crash with injuries. (per National Institute of Health, National Institute for Highway Safety)

Fact: Research has shown that teenagers don't drive safely for fear of crashing, but rather for fear of getting a ticket. Researchers said that… Continue

Added by Charles Butler on March 19, 2009 at 11:16am — No Comments

Spring Is in the Air

Ford Motor Credit, Huntington Bank, and Nissan Motor Acceptance are getting set to tap the securitization market with TALF offerings.

TALF, an acronym for the Term Asset-Backed Securities Loan Facility, is a Federal Reserve program meant to restore the flow of capital to the lending sector.

According to published reports, Ford Credit is readying $2.95 billion of bonds, and NMAC is preparing to sell a $1.3 billion package. The Ford deal size exceeds to total amount of auto… Continue

Added by Marcie Belles on March 18, 2009 at 2:00pm — 2 Comments

Bad times equal more business for auto repairs!

I found this article and since our office sell auto and motorcycles and RV warranty's I wanted to share this with you.

With today's economic conditions, more and more people are keeping their cars longer, rather than trading them in for new or used models. Lot of dealerships has decreased in auto sales over the last few months. More customers have been bringing older vehicles for repairs, while others who opt for purchasing used cars bring them for inspections prior to buying… Continue

Added by Charles Butler on March 17, 2009 at 3:57pm — No Comments

Dictating Sales

Here’s an interesting article from CUNA, the credit union trade group.

The story in a nutshell: The South Carolina Department of Motor Vehicles shut down an informal car sale site that happened to be located at a local credit union. The reason: Used-car dealers in the area complained that they were losing business.

Apparently, the sale had been happening for years. Every weekend, people would slap contact… Continue

Added by Marcie Belles on March 17, 2009 at 11:30am — 5 Comments