Marcie Belles's Blog – February 2010 Archive (6)

Toyota’s Breaking Point

News about Toyota’s recalls has been swirling for nearly a month. Six-million-recalled-vehicles later, the Japanese manufacturer has been subpoenaed by a U.S. federal grand jury and the Securities and Exchange Commission. Congress is supposed to start hearings tomorrow regarding Toyota’s handling of safety problems.

Here’s the question: So far, resale values for Toyota vehicles — recalled or not — are holding their own. But how much longer will they retain their strength? In other… Continue

Added by Marcie Belles on February 22, 2010 at 2:49pm — 5 Comments

Integrated Approach Key to Effective Risk Management

WASHINGTON, D.C. — Improper risk management is one of the greatest risks lenders face.

A decade ago, financial institutions started to break down lending silos. Banks revamped systems and technology so they could identify which auto loan customers also held mortgages, credit cards, or other loans. That total credit picture enabled lenders to better service customers and to more accurately predict delinquency trends. Today, that approach has filtered down to risk… Continue

Added by Marcie Belles on February 19, 2010 at 11:00am — No Comments

Toyota Owners Sue for Lost Resale Value

In the wake of multiple recalls of millions of Toyota vehicles, some owners and lessees of the vehicles sued Toyota Motor Corp. in an effort to recoup monthly loan and lease payments while repairs are being made.

But another lawsuit, filed earlier this week, takes the charges a step further. In effect, 10 people in Ohio and Kentucky have banded together on behalf of all Toyota and Lexus owners —not just those affected by the recalls. Their claim:

“...The harm to Toyota's… Continue

Added by Marcie Belles on February 18, 2010 at 2:30pm — 3 Comments

False Sense of Security

ORLANDO, Fla. — Used-car prices, strong throughout 2009, will likely maintain their momentum for the next couple years, industry experts said at AFSA’s Vehicle Finance Conference yesterday.

Low sales volume has translated to fewer trade-ins. Plus, as manufacturers keep production levels in line with demand and consumers shy away from big-ticket purchases, the supply of used cars will drop even further.

Combine that scenario with the fact that leasing is picking up — for… Continue

Added by Marcie Belles on February 12, 2010 at 2:29am — 2 Comments

Auto Finance Big Wheels Query Posted Online

Financiers may now electronically submit 2009 results for inclusion in Auto Finance Big Wheels, a ranking of the nation’s top car financiers, at www.BigWheelsDataQuery.com.

Auto Finance Big Wheels is the only collection of origination and portfolio metrics for the automotive lending and leasing industry. It offers a unique opportunity to include your company's performance among a ranking of the best of the best in auto finance, a… Continue

Added by Marcie Belles on February 9, 2010 at 11:56am — No Comments

Are Incentives Working?

American Honda Finance Corp. plans to bump up incentives to reduce excess inventory, while other captives are using money-back offers to lure car buyers seeking to trade in their Toyotas.

Overall, incentives averaged $2,382 last month, down $160 from December 2009, according to Edmunds.com. But how effective are incentives these days?

Take a look at this chart tracking incentives and vehicle sales, dating back to January 2008 (incentive data is culled from… Continue

Added by Marcie Belles on February 8, 2010 at 2:00pm — No Comments