Marcie Belles's Blog – July 2010 Archive (10)

BMW, VW Credit Execs Join AFS Speaker Faculty

Shaun Bugbee, a vice president at BMW Financial, and Bruce Harris, chief risk officer at VW Credit, have joined the roster of stellar speakers at the upcoming Auto Finance Summit.

Bugbee will participate in a discussion entitled “The Prognosis for Leasing Amid Strong Tailwinds.” The panel will address topics including the Detroit Three’s return to leasing, residual trends and auction values, and the outlook for fleet leasing.

Harris will present a session called… Continue

Added by Marcie Belles on July 26, 2010 at 11:30am — No Comments

Have Losses Leveled Off?

Ford Motor Credit chalked up its 35% increase in earnings last quarter to lower losses and higher auction values. But don’t expect that trend to continue in the second half, the Ford Motor Co. captive warned, as loss-improvement will likely slow and auction prices are due to drop.

Here’s the comment from the company’s 2Q10 earnings release today:

“Ford Credit now expects full year 2010 profits to be higher than its 2009 profits. The second…

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Added by Marcie Belles on July 23, 2010 at 12:30pm — No Comments

Auto Finance Council Debuts Industry Code of Ethics

In a first-ever move to codify best practices for the auto finance industry, the Auto Finance Council, a new group of lending and leasing executives that advocate on behalf of the entire industry, have published the Auto Finance Code of Business Conduct and Ethics.

The Code of Ethics is meant to serve as a baseline for companies in the auto finance sector that identifies the proper way an auto finance venture should act. The code consists of five sections: Customer and… Continue

Added by Marcie Belles on July 23, 2010 at 11:00am — 6 Comments

Reversing the Subprime Bum Rap

For all the commentary out there questioning GM’s return to the subprime business, I take an opposite view.

I think the acquisition of AmeriCredit could bolster the auto finance industry’s place in the financial services market. In a sense, this might be just the move that will confirm that auto finance — even subprime auto finance — is a far cry from the exotic mortgages that set off the financial meltdown.

Admittedly, subprime auto lenders got caught up in some… Continue

Added by Marcie Belles on July 22, 2010 at 1:40pm — 1 Comment

AmeriCredit’s Leasing Question Mark

There’s no question, AmeriCredit is one of the premier nonprime auto lenders in the nation. The company has weathered storms that have sunk many of its competitors. It has invested heavily in technology to bolster underwriting and risk-based pricing, and has a solid management team at the helm. It has treasure troves of historical data to help it map credit trends within its core customer base.

As such, the 20-year-old Fort Worth, Texas-based lender is an ideal partner for General… Continue

Added by Marcie Belles on July 22, 2010 at 1:05pm — 1 Comment

Obama Signs Financial Overhaul Bill

Moments ago, Pres. Barack Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act, meant to protect borrowers from abusive lending practices.

The legislation, one of Obama’s top priorities since taking office, is intended to prevent another massive credit crisis like the one that rocked the stock market and prompted the current economic troubles.

“These reforms represent the strongest consumer financial protections in history," Obama said just… Continue

Added by Marcie Belles on July 21, 2010 at 12:00pm — No Comments

Solid Auto Biz Props Up Chase’s 2Q Earnings

Auto finance was a bright spot for JPMorgan Chase last quarter.

Year over year, origination volume at Chase Auto Finance grew 9.4% to $5.8 billion, bolstering the auto portfolio 10.7%, to $47.5 billion.

Higher auto loan and lease balances helped prop up revenue for the bank’s mortgage banking and consumer lending division last quarter. Net revenue hit $2 billion, up 10% from the prior-year quarter.

As for loan performance, the net chargeoff rate for the auto… Continue

Added by Marcie Belles on July 15, 2010 at 1:50pm — No Comments

Wells Fargo to Close Finance Unit

Wells Fargo plans to shutter its 638 Wells Fargo Financial offices in favor of direct lending via the Wachovia branch network it acquired in 2008. As part of the closure, Wells Fargo will lay off 3,800 employees in the next year.

The 100-year-old Wells Fargo Financial unit had been originating auto loans, subprime mortgages, and credit cards. Instead, Wachovia branches will originate auto and credit card loans, as well as mortgages guaranteed by the Federal Housing Administration.… Continue

Added by Marcie Belles on July 8, 2010 at 2:00pm — 3 Comments

Is Now the Right Time for a CPO Program?

Mazda North American Operations launched a new certified pre-owned program today.

Model year 2006 to 2010 Mazda cars, SUVs, and trucks with less than 60,000 miles may qualify for the program. Every Mazda CPO vehicle will offer either the remaining balance of the factory warranty or an additional 12-month/12,000-mile comprehensive warranty, as well as a seven-year/100,000-mile powertrain warranty. Also, all CPO vehicles will receive roadside assistance — including flat-tire changing,… Continue

Added by Marcie Belles on July 6, 2010 at 2:04pm — No Comments

Banking's Secret Sauce: Innovation, Solid Customer Experience

HOLLYWOOD, Fla. — “The best way to predict your future is to create it.”

Financiers will have to heed that advice if they want to grow despite challenging regulatory and competitive environments, said a panel of executives discussing the future of banking at the Consumer Bankers Association conference last month. Banks of the future will be marked by innovative products, optimal usage of collected data, and an unparalleled customer experience.

“One of finance’s dirty words… Continue

Added by Marcie Belles on July 2, 2010 at 11:30am — 2 Comments