September 2009 Blog Posts (19)

Pockets of Problems

By and large, the auto finance industry has much to showcase. When it comes to credit quality, auto loans have certainly outperformed mortgages, and the capital markets have already begun to turn a kinder eye to the auto sector in recent weeks.

This is true only in most cases. There are concentrations of problematic auto loans, and one such pocket evidently did in a credit union… Continue

Added by JJ Hornblass on September 30, 2009 at 10:30pm — 1 Comment

Police Department Receives Visit From Repo Man

Times are hard for everyone these days. Even for the local Sheriff's office.

An unnamed bank has repossessed five police cars of the Alexander County (Ill.) Sheriff's office, forcing some deputies to find alternative means of transportation. The department still has a few police cars, but one deputy described them as "junkers" to a local television station. The report did not mention which institution… Continue

Added by Mike Gibb on September 29, 2009 at 10:01am — No Comments

Who's TALFing?

The next -- and eighth -- loan application deadline for the Term Asset-Backed Securities Loan Facility, more affectionately known as TALF, is Oct. 2, and the rumor mill is spinning with scuttlebutt on which auto finance providers will come in with securitizations.

Dow Jones is reporting that Citi Financial Auto is in the market with a $1.40 billion auto deal, quoting "a person familiar with the… Continue

Added by JJ Hornblass on September 25, 2009 at 12:05pm — 1 Comment

Chevy Scores Lending Partner in India

Hope you like curry, courtesy of The Economic Times of India:

IDBI Bank and Chevrolet Sales India Pvt Ltd, GM's Chevy arm in India, have entered into an agreement for providing auto finance to prospective customers of the latter. As per the scheme, CSIPL and its…

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Added by JJ Hornblass on September 25, 2009 at 12:00pm — No Comments

Ford’s Figo: A Small Car for a Big Market

With vehicle sales in India skyrocketing 31% in July, it’s no wonder Ford Motor Co. is looking to get in on the action.

The carmaker announced today that it would launch its first small car in India next year. The four-door hatchback is called the Figo, Italian slang for “cool.”

"We expect the small car segment to double in volume during the next 10 years," said Michael Boneham, president of Ford India. "When we look out the next 20 years, we see about one-third of all… Continue

Added by Marcie Belles on September 23, 2009 at 1:00pm — 1 Comment

Invitation to Participate in the Auto Finance Forecast

Every quarter AutoFinanceNews.net and sister publication Auto Finance News conduct the Auto Finance Forecast, which gauges activities and sentiments in the automotive lending and leasing market. We invite your participation here. Results will be made public at the 2009 Auto Finance Summit, Oct. 12-13, as well as in Auto Finance News and on AutoFinanceNews.net.

Added by Marcie Belles on September 23, 2009 at 10:30am — No Comments

Good News From CarMax

CarMax posted strong earnings yesterday for the quarter that ended on Aug. 31, and the company's executive vice president and chief financial officer, Keith Browning, offered a detailed review of the company auto finance business during the company's conference call with investors yesterday. His report:

We experienced a…

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Added by JJ Hornblass on September 23, 2009 at 10:00am — No Comments

Once Again Scant Leasing Impedes New-Car Sales

The lack of available leasing appears to be trumping vehicle quality when it comes to spurring new-car sales at GM's Cadillac.

The WSJ:

General Motors Co.'s Cadillac division is rolling out new models and a fresh advertising campaign to stem a deep decline in sales, but it may not be able to make up much ground until the car maker gets back into the leasing business.

More than… Continue

Added by JJ Hornblass on September 22, 2009 at 12:00pm — 1 Comment

Member of Obama's Automotive Task Force to Speak at the Auto Finance Summit

Rick Wade, a member of President Obama's Task Force on the Auto Industry, will address the 2009 Auto Finance Summit.

Wade, who is also the senior advisor and deputy chief of staff of the Department of Commerce, will speak on the future of the auto industry in the eyes of the federal government. The speech offers a unique opportunity to better understand the Obama administration's plans for the auto… Continue

Added by JJ Hornblass on September 21, 2009 at 11:00am — 4 Comments

Introducing Inside Remarketing, Our Latest Auto Industry Social Network

AutoFinanceNews.net is pleased to introduce InsideRemarketing.com, a new sister website for the automotive industry.

Like AutoFinanceNews.net, Inside Remarketing synthesizes the community of remarketing. Where information today is so disjointed and localized, our social networks have the unique ability to bring not just information but people together in a valuable, centralized location online. In… Continue

Added by JJ Hornblass on September 18, 2009 at 11:00am — No Comments

Adesa Proposed IPO Yet Another Positive for the Auto Biz

First, it was the Cash for Clunkers program. Then, it was some heartening car-sale numbers. Now, it is Adesa's planned $400 million initial public offering.

Things are looking up for the auto industry.

Adesa's parent Kar Holdings Inc. filed for an IPO yesterday. The company did not set an offering date.

In the filing, which you can view… Continue

Added by JJ Hornblass on September 15, 2009 at 10:17am — 7 Comments

U.K. Mulls Regs for Sales of Ex-Fleet Vehicles

The U.K. Office of Fair Trading is targeting used-car dealerships in an investigation into the sale of ex-rental vehicles to consumers.

Some car buyers claim that they overpaid for their cars because the dealerships sold them ex-fleet cars under the premise that they had “one previous owner” when, in fact, the vehicles were rented to multiple drivers.

Some U.K. lawmakers are calling for regulations to that would clearly label ex-rental vehicles.

The OFT plans to… Continue

Added by Marcie Belles on September 14, 2009 at 1:30pm — No Comments

Looking for Floorplan in Florida

I am looking to put an additional 20 used cars on my lot, average cost between $3500-$5500. I have a buy here pay here set up going and also do some sub prime loans. I want to get into used car leasing aswell as rent to own. Both of these need a source of capital. I am looking for a partner that would be interested in working with me in this area!

Jack

Added by Jack Papesch on September 11, 2009 at 3:27pm — No Comments

GMAC's Russi, Ford Credit's McCarthy to Speak at Auto Finance Summit

Tim Russi, executive vice president of North American automotive operations at GMAC LLC, and Paul McCarthy, a senior economist at Ford Motor Credit Co., have joined the Speaker Faculty of the 2009 Auto Finance… Continue

Added by JJ Hornblass on September 11, 2009 at 12:30pm — No Comments

Chrysler Eyes Lease Return

Chrysler is looking to get back into the consumer leasing space after a one-year hiatus. GMAC, which returned to leasing last month, would underwrite Chrysler’s leases.

I understand that leasing is an important financing tool for OEMs — if they want to be able to sell vehicles, their customers must be able to afford them. And leasing often provides that accessibility.

But leasing has proven over the years to be a thorn in the OEMs’ side, and I fear that this move would put… Continue

Added by Marcie Belles on September 11, 2009 at 11:07am — 3 Comments

Auto Lending on the Rise in the South

Auto lending activity increased in the South in July and August, according to the Federal Reserve's Beige Book released this afternoon.

According to the Dallas Fed, "Some contacts reported an increase in demand for auto loans, saying they were unsure how much of it was a result of the… Continue

Added by JJ Hornblass on September 9, 2009 at 3:30pm — 2 Comments

Chinese Food (for Thought)

I wrote last July that the future of the auto finance sector was largely wrapped up in China. August car sale numbers in the Middle Kingdom -- while supplemented by government stimulus (their government, not ours) -- showed why China is the most important car-buying market in the world today.

According to… Continue

Added by JJ Hornblass on September 8, 2009 at 1:15pm — 1 Comment

Fleeting Changes

With cities and states nationwide facing budget crunches, spending on vehicle fleets is under the microscope.

West Virginia, for one, is cutting fleet expenses 25% to 40% for some of its agencies by buying used cars rather than new ones. Recently, State Purchaser David Tincher bought 115 used cars — with extended warranties — for the state’s fleet. The cars had been leased for a year before being sold.

In New York, the Metro Transit Authority of Long Island plans to… Continue

Added by Marcie Belles on September 2, 2009 at 11:10am — No Comments

Floorplan Aid Down Under

Nine months after GE Money and GMAC pulled out of the floorplan business in Australia, the country’s government has activated a floorplan finance program for dealers.

The new program, called OzCar, launched today. Supported by country's big four banks, OzCar is a special purpose vehicle worth A$550 million ($460.7 million). When it was initially announced last December, OzCar was pegged at A$2 billion ($1.66 billion). But since some dealers have managed to secure other floorplan… Continue

Added by Marcie Belles on September 1, 2009 at 11:00am — No Comments