Marcie Belles's Blog – March 2010 Archive (9)

Loosey-Goosey Leasing

For the past two years, financiers have pulled back on leasing as residual value losses skyrocketed, in some cases to the tune of $10,000 or more per vehicle.

Late last year, some manufacturers returned to the sector, vowing to stick to conservative leases on higher-priced models.

Well, it looks some OEMs are feeling the pressure of slower sales. Toyota sweetened lease deals last month to lure consumers back after multiple recalls. And now Honda is stepping up efforts to… Continue

Added by Marcie Belles on March 26, 2010 at 11:30am — 6 Comments

Thousand-Dollar Leases

At least 10 U.S. Congressmen spend more than $1,000 a month to lease their corporate vehicles, according to an analysis by Politico.com.

The lawmakers cited a number of reasons for the seemingly high monthly costs for vehicles like the GMC Yukon and Tahoe, Chevy Malibu, and a couple Ford SUVs, among others. For one thing, as members of Congress, they are required to choose fuel-efficient vehicles. Also, because legislators are only in office for two years, their payments are higher… Continue

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

Lenders Redesign Online Auction Programs

Online or in-lane — that is the choice many lenders are pondering when it comes to remarketing vehicles.

For decades, brick-and-mortar auctions dominated vehicle-resale strategies. Lenders would gather as many dealers as they could at their weekly or monthly sales to maximize returns on off-lease vehicles, fleet and rental units, and repossessions. Dealers would get to the auction early to touch and feel — and even test-drive — the cars they… Continue

Added by Marcie Belles on March 18, 2010 at 12:14pm — 2 Comments

GMAC CFO Joins Private Equity Firm

In a two-sentence filing with the Securities and Exchange Commission, GMAC announced that Chief Financial Officer Robert Hull had resigned. He has taken a job at private equity firm Providence Equity Partners.

“GMAC Financial Services today announced that Chief Financial Officer Robert S. Hull has elected to depart the company at the end of March to pursue another career opportunity,” according to the March 9 filing. “The company will conduct an internal and external search for… Continue

Added by Marcie Belles on March 11, 2010 at 2:00pm — No Comments

Delinquencies on the Mend

Delinquencies are still on the rise for auto financiers, but their pace is slowing.

That was the message from Melinda Zabritski, director of automotive credit for Experian Automotive, in a conference call yesterday detailing fourth-quarter and full-year 2009 auto finance trends.

In a nutshell, the total dollar value of at-risk auto loans dropped 10% to $26.6 billion in the fourth quarter of 2009, from $29.6 billion in the prior-year quarter.

The 30-day… Continue

Added by Marcie Belles on March 10, 2010 at 12:44pm — 1 Comment

Striking a Balance

In the throes of the credit crisis, banks were vilified for granting loans to unworthy borrowers. The unsurprising result: Banks pulled back. They revamped risk-management policies and clamped down on credit.

Now, it seems, banks are being hammered again — this time, for being too vigilant with credit. At a conference of the National Association of Business Economists yesterday, FDIC chief Sheila Bair warned that tight credit could hamper economic recovery.

"A light needs… Continue

Added by Marcie Belles on March 9, 2010 at 12:00pm — 1 Comment

FDIC Deputy Dismisses Lighter Risk Mandates for Non-Mortgage Assets

WASHINGTON, D.C. — Issuers of auto loan-backed securitizations will likely have to adhere to the same risk-retention requirements as issuers of other asset classes — even subprime mortgage — said Michael Krimminger, deputy to the chairman for policy of the Federal Deposit Insurance Corp.

Krimminger’s comments came during a session at the American Securitization Forum’s annual conference last month, in response to a question from fellow panelist Lawrence Rubenstein, general counsel… Continue

Added by Marcie Belles on March 9, 2010 at 11:50am — No Comments

The Marketshare Battle Heats Up

As February vehicle sales figures trickle in today, Ford Motor Co. appears to be locking in a stronger marketshare position.

Ford outsold GM for the first time in more than a decade, selling 142,285 vehicles last month to GM’s 141,951.

Toyota sales, meanwhile, were expected to drop off as a result of multiple recalls of more than six million vehicles. GM, too, announced a recall today, of 1.3 million compact cars whose power steering could fail. Seems like Ford could… Continue

Added by Marcie Belles on March 2, 2010 at 1:30pm — No Comments

Lenders Beef Up Consumer Education Efforts

ORLANDO, Fla. — With more consumers getting turned down for financing during the credit crisis, financiers have boosted efforts to explain the lending process to potential car buyers — before they set foot on a showroom floor.

During a session at the American Financial Services Association’s Vehicle Finance Conference last month, representatives from AFSA, Capital One Financial Corp., Ford Motor Credit Co., GMAC, Toyota Financial Services, and the Walt Disney World Boys & Girls… Continue

Added by Marcie Belles on March 2, 2010 at 1:21pm — 1 Comment