Marcie Belles's Blog – February 2011 Archive (12)

Auto Finance Big Wheels Query Posted Online

Financiers may now electronically submit 2010 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…

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Added by Marcie Belles on February 25, 2011 at 2:00pm — No Comments

Execs from Hyundai, LEAP Auto Join Risk Summit Speaker Faculty

Kenneth Gang and Tim Condon are the latest additions to the Auto Finance Risk Summit speaker roster.

Gang, head of risk and consumer credit at Hyundai Capital America, will join a panel entitled “Dealer Risk: Countering Today’s Challenges.” Panelists will discuss floorplan performance trends, spotting warning signs, and knowing when to end the relationship.

Condon, chief executive of LEAP Auto Finance, will present a session about non-traditional scoring techniques. He… Continue

Added by Marcie Belles on February 24, 2011 at 11:30am — No Comments

GM Financial Posts Fourth-Quarter Earnings

General Motor Co.’s captive earned $74.6 million and originated $935 million of loans and $10.7 million of leases in the final quarter of 2010.

By comparison, GM Financial, as the financing unit is called, originated $378.6 billion of loans and no leases in the fourth quarter of 2009. At the time, prior to GM’s acquisition, the company was known as AmeriCredit Corp.

Financing for GM vehicles accounted for 18.1% of originations in 4Q10, compared with 10.8% in 4Q09. At… Continue

Added by Marcie Belles on February 24, 2011 at 11:13am — No Comments

Toyota Recalls 2.17 Million Vehicles

Sticking accelerator pedals are again at the center of Toyota Motor Corp.’s latest recall.

Toyota today announced the voluntary recall of several model years of its Highlander, GS, RX, 4Runner, Lexus LX 570, and RAV4 models. It warned that if the floor carpet surrounding the accelerator pedals were not placed properly, the pedals may become stuck in a depressed position rather than returning to idle.

As with other recalls, Toyota and Lexus dealers will fix or replace the… Continue

Added by Marcie Belles on February 24, 2011 at 10:10am — No Comments

Consumer Confidence Hits Three-Year High

Consumer confidence has been one of the biggest obstacles to new-vehicle sales, and auto financiers have repeatedly cited improved consumer sentiments as a requirement for higher sales volume.

For February, consumer confidence climbed to its highest reading in three years: 70.4, according to The Conference Board. While still relatively low, the index surpassed its 64.8 reading in January and eclipsed a 46.0 reading in February 2010.

Though this recent consumer…

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Added by Marcie Belles on February 23, 2011 at 4:17pm — No Comments

The Short-Term-Lease Dilemma

With more than 40 new-car models available for lease for $200 or less per month, according to Edmunds.com, leasing is definitely making a comeback.

Vehicles in the average American’s fleet are aging, and a low-payment lease option is tempting. If the choice is a $200-a-month payment for 48 months on a used car or the same monthly payment for a 24-month lease on a new car, I’m guessing the lease option would win much of the time.

And for OEMs, getting consumers back on a… Continue

Added by Marcie Belles on February 17, 2011 at 11:30am — 11 Comments

Auto Finance Risk Summit Further Expands Speaker Roster

The Auto Finance Risk Summit has added another two risk gurus to its already stellar speaker faculty: Santander Consumer USA execs Graham Cameron and Jeff Sterling.

Cameron, vice president of operational and technology risk, will participate in a discussion entitled “Executive Dialogue: Defining the New Risk Challenges in Auto Finance.” The panel will address topics including evolving risk goals within the industry, the most dangerous risk threats, and success stories of recent… Continue

Added by Marcie Belles on February 16, 2011 at 4:00pm — No Comments

Three Risk Execs Join AFRS Speaker Faculty

The Auto Finance Risk Summit has augmented its speaker faculty with senior risk executives from Prestige Financial, Turner Acceptance, and Westlake Financial.

Marcus Tarbet, senior risk analyst at Prestige Financial Services Inc., and Andres Huertas, manager of direct and indirect merchant financing at Turner Acceptance Corp., will participate in a panel to hash out strategies for controlling growth in a newly competitive market. The group will present tactics for increasing…

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Added by Marcie Belles on February 16, 2011 at 12:00pm — No Comments

Used-Car Value Predictions

Manheim’s Used Vehicle Value Index hit its highest level ever in January: 124.9.

Used-car values have exceeded 100 on the Manheim Index since the start of 2009, surpassing 120 six times last year.

Strong auction prices have lowered lenders’ loss severity and have enabled lessors to offer vehicles with higher residual values. The key, though, is trying to…

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Added by Marcie Belles on February 14, 2011 at 1:00pm — 4 Comments

Unrest in Egypt: How Will Oil Prices Fare?

After nearly three weeks of protests, Egyptian President Hosni Mubarak has stepped down. With control of the country now in the hands of the military, it remains to be seen how the situation evolves.

A critical consideration is potential unrest in neighboring Middle Eastern countries, particularly Saudi Arabia. Though Egypt produces very little oil, Saudi Arabia is the world’s largest oil exporter.

How real is the threat for increasing oil prices? Will prices spike… Continue

Added by Marcie Belles on February 11, 2011 at 1:24pm — 1 Comment

Resisting Irrational Competition

Valley National Bank is holding firm with underwriting guidelines, despite competitive pressure to loosen standards.

Since June 2008, Valley National’s portfolio has plunged 44% to $850.8 million as demand for new and used cars declined. Though car sales are slowly rebounding, competition is heating up quickly. Low-rate financing by other banks and captives has Wayne, N.J.-based Valley National on guard.

"We like the auto business," Valley National's CEO Gerald Lipkin…

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Added by Marcie Belles on February 8, 2011 at 1:00pm — 2 Comments

Mapping a Social Media Strategy

SAN FRANCISCO — When it comes to social media, a negative comment about a brand could become a “slap that keeps on slapping,” said Pete Blackshaw, chief marketing officer at NM Incite during a session yesterday at AFSA’s Vehicle Finance Conference.

Like most companies, auto lenders are still finding their way in the social media space. Yet there are a handful of rules that lenders should keep in mind as they shape their strategies for sites like Facebook, Twitter, and YouTube.… Continue

Added by Marcie Belles on February 3, 2011 at 5:30am — No Comments