Marcie Belles's Blog – May 2010 Archive (7)

Speeding the Repo Cycle

Strong used-car values have been softening the blow of loss severity for the past couple years. Now the trend may be contributing to slightly higher repo rates.

Auto repossessions have bumped up slightly since 2008, to 0.77% in the first quarter from 0.68% in 1Q08, according to data released yesterday by Experian Automotive. Repo rates at finance companies climbed to 2.17% from 1.80%; at credit unions they were up to 0.25% from 0.18%.

While the higher repo rates could… Continue

Added by Marcie Belles on May 28, 2010 at 12:00am — 11 Comments

Chrysler to Subvent GMAC, Santander Loans

With more than 20% of its potential customer base falling into the less-than-650 credit score range, Chrysler Group LLC has ramped up its financing to that sector, subsidizing loans made by GMAC and Santander Consumer USA, AutoFinanceNews.net has learned.

Earlier this… Continue

Added by Marcie Belles on May 21, 2010 at 4:00pm — No Comments

Defining the Dealership Role

For consumers looking to switch brands, the dealership experience plays a pretty small role. Those were the findings of a Foresight Research study five years in the making.

Specifically, among conquest buyers, 22% reported that the experience at the dealership gave them their "first favorable opinion" of the brand they ultimately purchased. That means that 78% are looking outside the dealership when it comes to developing favorable opinions about manufacturers.

To be… Continue

Added by Marcie Belles on May 17, 2010 at 2:30pm — 1 Comment

Limited Used-Car Volume Will Prop Up Recoveries Through 2015

Used cars will be in short supply for the next few years, pushing up auction values and mitigating lenders’ loss levels.

Used-car supply is on track to shrink through 2015, according to ALG. For 2010 through 2013, supply will likely decline about 4% per year. It’s on pace to drop 2% in 2014 and 9% in 2015. By 2016, supply should reverse course, shooting up 10%, according to ALG.

The dip stems from the steady contraction of the new-vehicle market, where volume has plunged… Continue

Added by Marcie Belles on May 14, 2010 at 12:12pm — No Comments

The Risk Mitigation-Loan Origination Balancing Act

DALLAS — With competition heating up and the lending spigot starting to loosen, risk management becomes an even more critical issue for auto finance executives. The question that lenders are grappling with these days is how to strike a balance — how do you successfully grow your portfolio while ensuring that prudent lending decisions are being made?

That was one of the main topics lenders discussed yesterday at the Auto Finance Risk Summit.

One strategy that lenders… Continue

Added by Marcie Belles on May 12, 2010 at 9:41am — 12 Comments

What Sessions Do You Want at the 2010 Auto Finance Summit?

2010 will mark the 10th annual Auto Finance Summit, presented by Auto Finance News and AutoFinanceNews.net, and we are determined to make it as beneficial to attendees and the industry as possible. That's why we invite you to submit your own ideas for session topics. We're absolutely going to heed your input, so comment often and honestly.

Post comments below, or… Continue

Added by Marcie Belles on May 7, 2010 at 2:30pm — No Comments

GMAC CEO Answers Captive Question

Ever since GMAC became a majority-owned unit of Cerberus Capital Management in 2006, industry players have questioned whether the mega-financier would reestablish its position as the captive finance company for General Motors.

GMAC CEO Michael Carpenter addressed that issue during the Q&A portion of the company’s first-quarter earnings call earlier this week. Here’s the exchange:

Doug Karson - Bank of…

Continue

Added by Marcie Belles on May 6, 2010 at 2:30pm — No Comments