July 2010 Blog Posts (22)

Your Customer’s Perception Is Reality

I get it. It’s tough out there. Customer access to information on the internet continues to squeeze margins. Dealerships are just trying to make a buck in a fiercely competitive marketplace. You have to do whatever it takes to stay ahead of the competition.

I also get that some may view compliance as unnecessary, overrated, annoying, a waste of time and money, and downright harmful to profitability. These are perceptions and as they say, perception is reality.

Some… Continue

Added by Jim Radogna on July 31, 2010 at 6:09pm — No Comments

New FCC Portal Makes Filing Telecom Complaints Easier

Creditors and collection agencies beware: The Federal Communications Commission is making it easier for consumers to complain.

Today, the government agency announced the launch of a new portal that will help consumers file comments and complaints to the FCC faster, among other functionality. Indeed, with the launch of the new portal -- dubbed the Consumer Help Center -- the "File a Consumer Complaint"… Continue

Added by Mary Wisniewski on July 28, 2010 at 3:37pm — No Comments

Introducing AccountsRecovery.net

CollectionTechnology.net, AutoFinanceNews.net's sister site, starts a new chapter this week as AccountsRecovery.net.

The name change reflects the growing evolution of CollectionTechnology.net’s content and community from just “collections” to an online community for all AR professionals, in addition to third-party execs. AccountsRecovery.net, we believe, accurately reflects that expanded community.

In addition to the new name…

Continue

Added by Mary Wisniewski on July 27, 2010 at 9:00am — No Comments

BMW, VW Credit Execs Join AFS Speaker Faculty

Shaun Bugbee, a vice president at BMW Financial, and Bruce Harris, chief risk officer at VW Credit, have joined the roster of stellar speakers at the upcoming Auto Finance Summit.

Bugbee will participate in a discussion entitled “The Prognosis for Leasing Amid Strong Tailwinds.” The panel will address topics including the Detroit Three’s return to leasing, residual trends and auction values, and the outlook for fleet leasing.

Harris will present a session called… Continue

Added by Marcie Belles on July 26, 2010 at 11:30am — No Comments

What’s Happened to the Market for Auto Loans?

According to CUNA Mutual Group’s Credit Union Trends Report for May 2010, “Through the first three months of 2010, vehicle loans held by CUs declined by 2.6%. Since the expiration of ‘cash for clunkers’, month-only declines have averaged 0.8%. Over the past year, CU vehicle loans have declined 3.7%”.

Over the last very difficult year credit unions using the DILLS™ system have fared better than the national average, but hardly anyone’s numbers are where they were a year ago. As we move…

Continue

Added by Integrated Lending Technologies on July 23, 2010 at 12:33pm — No Comments

Have Losses Leveled Off?

Ford Motor Credit chalked up its 35% increase in earnings last quarter to lower losses and higher auction values. But don’t expect that trend to continue in the second half, the Ford Motor Co. captive warned, as loss-improvement will likely slow and auction prices are due to drop.

Here’s the comment from the company’s 2Q10 earnings release today:

“Ford Credit now expects full year 2010 profits to be higher than its 2009 profits. The second…

Continue

Added by Marcie Belles on July 23, 2010 at 12:30pm — No Comments

Auto Finance Council Debuts Industry Code of Ethics

In a first-ever move to codify best practices for the auto finance industry, the Auto Finance Council, a new group of lending and leasing executives that advocate on behalf of the entire industry, have published the Auto Finance Code of Business Conduct and Ethics.

The Code of Ethics is meant to serve as a baseline for companies in the auto finance sector that identifies the proper way an auto finance venture should act. The code consists of five sections: Customer and… Continue

Added by Marcie Belles on July 23, 2010 at 11:00am — 6 Comments

GM's Sensible Strategy

This deal is aimed at the two segments where GM is at a greatest competitive disadvantage: lease and subprime (ACF's base is FICO 500-700, half homeowners with $60K-65K gross incomes, not "buy-here-pay-here"

customers). It's not clear from ACF's current business how they will handle

leases, but GM does not claim they will expand rapidly in that segment.…

Continue

Added by Michael Smitka on July 23, 2010 at 10:40am — No Comments

Reversing the Subprime Bum Rap

For all the commentary out there questioning GM’s return to the subprime business, I take an opposite view.

I think the acquisition of AmeriCredit could bolster the auto finance industry’s place in the financial services market. In a sense, this might be just the move that will confirm that auto finance — even subprime auto finance — is a far cry from the exotic mortgages that set off the financial meltdown.

Admittedly, subprime auto lenders got caught up in some… Continue

Added by Marcie Belles on July 22, 2010 at 1:40pm — 1 Comment

AmeriCredit’s Leasing Question Mark

There’s no question, AmeriCredit is one of the premier nonprime auto lenders in the nation. The company has weathered storms that have sunk many of its competitors. It has invested heavily in technology to bolster underwriting and risk-based pricing, and has a solid management team at the helm. It has treasure troves of historical data to help it map credit trends within its core customer base.

As such, the 20-year-old Fort Worth, Texas-based lender is an ideal partner for General… Continue

Added by Marcie Belles on July 22, 2010 at 1:05pm — 1 Comment

GM Recasts Auto Finance Landscape with AmeriCredit Deal

General Motors, in agreeing to acquire AmeriCredit Corp., has reshaped the auto finance landscape.

In this one move, GM solves its financing dilemma, freeing it from the whims of outside providers of financing and returning it to arguably its most profitable historical endeavor: vehicle finance.

Meanwhile, AmeriCredit jumps to the top of the auto finance heap with its marriage to GM. The venture gives it access to a deluge…

Continue

Added by JJ Hornblass on July 22, 2010 at 10:30am — 1 Comment

LIVE BLOG OF THE GM-AMERICREDIT CONFERENCE CALL @ 10 AM ET

We will be live-blogging the GM-AmeriCredit conference call regarding the carmaker's proposed acquisition of the finance company at 10 a.m. ET. We invite AutoFinanceNews.net members to post comments here about the call and live-blog.

Refresh page for live-blog updates.

10:00 AM ET: Call starts on time. GM IR director introduction/disclaimers. Ed Whitacre, Dan Berce Chris Laddel will will offer comments.

Mark Royce…

Continue

Added by JJ Hornblass on July 22, 2010 at 9:30am — 8 Comments

GM TO ACQUIRE AMERICREDIT FOR $3.5B - Links to Outside Coverage

Official GM release.

Coverage from around the web:

WSJ

Bloomberg…

Continue

Added by JJ Hornblass on July 22, 2010 at 9:00am — No Comments

Guaranteed Approval

I am happy to mention again that Credit Acceptance Corporation offers a non-recourse "Guaranteed Approval" program, regardless of credit or FICO score for our Dealer-Partners This program is available to both Independant and Franchise dealers. View the website at www.creditacceptance.com , contact customer service and one of our local Market Managers will contact you with details.

Added by Steve Cortes on July 22, 2010 at 4:47am — No Comments

Obama Signs Financial Overhaul Bill

Moments ago, Pres. Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, meant to protect borrowers from abusive lending practices.

The legislation, one of Obama’s top priorities since taking office, is intended to prevent another massive credit crisis like the one that rocked the stock market and prompted the current economic troubles.

“These reforms represent the strongest consumer financial protections in history," Obama said just… Continue

Added by Marcie Belles on July 21, 2010 at 12:00pm — No Comments

Solid Auto Biz Props Up Chase’s 2Q Earnings

Auto finance was a bright spot for JPMorgan Chase last quarter.

Year over year, origination volume at Chase Auto Finance grew 9.4% to $5.8 billion, bolstering the auto portfolio 10.7%, to $47.5 billion.

Higher auto loan and lease balances helped prop up revenue for the bank’s mortgage banking and consumer lending division last quarter. Net revenue hit $2 billion, up 10% from the prior-year quarter.

As for loan performance, the net chargeoff rate for the auto… Continue

Added by Marcie Belles on July 15, 2010 at 1:50pm — No Comments

A Blunt Prediction from Jamie Dimon

I've heard Jamie Dimon, the CEO of JPMorgan Chase, speak in person several times and he always comes across as the straightest of shooters. He's blunt. He's honest. He's going to tell it to you like it is.

Which is why the warning he just issued this morning deserves more than cursory attention. Dimon's warning: competition will heat up in auto finance.

Dimon said in response to…

Continue

Added by JJ Hornblass on July 15, 2010 at 9:30am — No Comments

An Aggressive Pitch from GM

In exchange for business, investment banks have been known to trade a Yankees ticket or two (Legends seats a few rows off the field, of course) or perhaps a box at the US Open.

General Motors, however, appears to be taking the gratuity idea to a whole new level in preparation for its initial public offering, according to a…

Continue

Added by JJ Hornblass on July 14, 2010 at 9:36am — No Comments

Wells Fargo to Close Finance Unit

Wells Fargo plans to shutter its 638 Wells Fargo Financial offices in favor of direct lending via the Wachovia branch network it acquired in 2008. As part of the closure, Wells Fargo will lay off 3,800 employees in the next year.

The 100-year-old Wells Fargo Financial unit had been originating auto loans, subprime mortgages, and credit cards. Instead, Wachovia branches will originate auto and credit card loans, as well as mortgages guaranteed by the Federal Housing Administration.… Continue

Added by Marcie Belles on July 8, 2010 at 2:00pm — 3 Comments

Is Now the Right Time for a CPO Program?

Mazda North American Operations launched a new certified pre-owned program today.

Model year 2006 to 2010 Mazda cars, SUVs, and trucks with less than 60,000 miles may qualify for the program. Every Mazda CPO vehicle will offer either the remaining balance of the factory warranty or an additional 12-month/12,000-mile comprehensive warranty, as well as a seven-year/100,000-mile powertrain warranty. Also, all CPO vehicles will receive roadside assistance — including flat-tire changing,… Continue

Added by Marcie Belles on July 6, 2010 at 2:04pm — No Comments