A recently released study about identity manipulation has been picked up by the mainstream media and is making its way around the internet. But before we talk about the study, a little context. 

Near the end of "The American President," Michael Douglas gives a speech. It's the point in any movie where the main character attempts to…

Continue

Massive dealership consolidation was the hallmark of 2009 and 2010, with more than 2,300 new-car stores shutting their doors. In fact, the number of franchise dealerships as of Jan. 1 ― 17,700, according to NADA ― was the lowest it’s been in more than 20 years.



But with Chrysler and GM out of bankruptcy, and vehicle sales on the upswing, dealerships are starting to crop up again. Here are some recent reports I’ve seen:



• Hendrick Automotive has opened a Chrysler Dodge… Continue

 

I have a customer who has a 683EQ with timely paid auto loans and good depth but mortgage lates on closed accounts from a short sale on an investment property. Any ideas for lenders that would consider such a customer profile?

The agenda has been set for the 2011 Auto Finance Summit, the industry’s premier event, with a particular focus on growth amid heightened competition.



Now in its 11th year, the Auto Finance Summit — sponsored, in part, by AutoFinanceNews.net — draws the entire automotive lending and leasing community for meaningful discussion and debate on the future of the industry.…

Continue

UNCASVILLE, Conn. -- Lenders and repossession agents created an interesting paradox at an annual conference held here this week. 

The conference, sponsored by RSIG, is a gathering of nearly 300 agents and lenders from across the nation. 

Lenders were optimistic about the future of their business, citing higher origination volumes and lower delinquency and default rates. Ally Financial, in one case, noted that repossession rates…

Continue

FORT WORTH, Texas ― In the past few months, several major financial institutions have been slapped with millions of dollars in fines for violations of the Servicemembers Civil Relief Act. While the focus has largely been on mortgage foreclosure proceedings, auto-repossession procedures are on the Department of Justice’s radar, according to a compliance panel at the National Automotive Finance Association conference earlier this month.



“The Department of Justice, the Federal…

Continue

Porsche Financial Services issued its inaugural securitization last week ― a $518.5 million privately placed transaction that was “significantly oversubscribed,” according to sources, and priced tighter than anticipated.



PFS has been originating and servicing auto loans and leases since 1997. In last week’s deal, 70% of the cars and SUVs securing the retail installment contracts were new; 30% were used. The average credit score was 764, and the average outstanding loan balance was… Continue

Today, when people decide to buy something, they go online first. They research products and models, look at pictures, read professional and user reviews, try to find the site offering the best deal, then at some point, they click "add to cart," check out and wait for the package to arrive at their doorstep.

Why can't this be done with car purchases? To put it more bluntly, does the world still need car dealerships?



Before I defend the position of eliminating car…

Continue

JPMorgan Chase & Co. agreed to pay $25 million to customers allegedly misled about credit-protection products ― for auto, credit card, and mortgage ― and $2 million to the Office of the Comptroller of the Currency, which investigated the matter.



The OCC claimed the bank violated the Federal Trade Commission Act in marketing its Chase Payment Assurance product. Specifically, the OCC complaint centered on certain credit protection products ― debt-cancellation contracts and…

Continue

ORLANDO, Fla. ― Though the sweeping dealership closures of 2008 and 2009 are a thing of the past, front-line consolidation will be an issue for lenders to contend with for the next three to five years.



That was the message from a panel of industry execs at the Consumer Bankers Association conference here yesterday.



Dealership consolidation will likely take a few different forms. In some cases, dealerships that barely survived the credit crisis might be looking for an… Continue

Loosening credit and increased competition are putting the squeeze on profits.



That was one of the core findings in the Auto Finance Forecast Spring 2011, an exclusive survey conducted by Auto Finance News and sister web site AutoFinanceNews.net. The Auto Finance Forecast gauges activities and sentiments in the automotive lending and leasing market.



With finance companies and banks entering ― or reentering ― the market, the next 12 months will…

Continue

OPENLANE’s RDN Subsidiary Aligns with KeyCode Pro to Boost Repossessions

OPENLANE announced subsidiary Recovery Database Network is nearing a partnership with KeyCode Pro to ease the repossession process. Officials said the partnership is designed to provide a customized user interface that can allow RDN subscribers to…

Continue

I'm going to start and end this blog post with a question: Why are there no adjustable-rate auto loans? Is the idea that ridiculous? (Ok, I'll start it with two questions.)

Car loan terms have increased significantly during the past 40 years. When the Federal Reserve started tracking auto loan terms in 1971, the average maturity was 35 months. Since then, the average car loan has stretched to 62 months, according to the Federal Reserve. Five years is a long time. It's the equivalent…

Continue

It’s cap-and-gown season, and captives and credit unions are touting their graduate auto loan offerings. A quick look at the promos, and one trend is clear: delayed payments are the graduation gift of choice, with 60-to-90-day deferments the norm.



The whole concept of payment deferments seems contrary to the habits lenders should instill in their customers, particularly first-time buyers. In fact, it seems like the delayed-payment strategy might be setting up customers for a missed… Continue

This new forecast released today by Polk is still foreseeing a solid new-car sales total of 12.9 million vehicles in 2011. Polk points out that, despite a dour month of sales in May down 3.7% vs.…

Continue

A guilty pleasure movie favorite of mine is "Trading Places." The social experiment of lifting one man up while kicking another to the ground is great fodder for comedy and offers a perfect analogy for this blog post. 

What makes "Trading Places" such a good movie is that in the end, both Louis and Billy Ray end up winning. Even Louis, who loses everything he has at the beginning of the movie, ends up on a yacht exchanging air kisses with Jamie Lee Curtis. 

 

The…

Continue

Since finalizing its acquisition of Chrysler Financial in April, TD Bank is making strides to get the new auto finance unit up and running.



So far, the company has signed 5,000 U.S. dealers, doubling the dealer network at yearend 2010.



"We’re seeing excellent activation,” TD CFO Colleen Johnston told The Wall Street Journal. “About 85% of those dealers did some business with us. It's still early days. I don't want to overstate the volume in the first month,…

Continue