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What Bubble? Smaller Volume of Auto Loans Coming from the Subprime Market

Automotive industry commentators have long feared a “bubble” in car sales, in which every consumer can drive off the lot with a car, no matter how bad his or her credit happens to be. Recent findings by Experian Automotive overturn that assumption, however. In fact, subprime and deep subprime car loans, those loans made to […]

CFPB Auto Lender Complaints: Now Viewable at AFN!

Auto Finance News, the industry’s leading publication, has recently announced a new offering that will turn heads of industry executives and consumers alike:  the company has accessed, sorted, and published the information contained in the complaints database of the CFPB (Consumer Financial Protection Bureau). This allows everyone, from C-level execs at leading banks and lenders […]

Auto Finance Industry’s Growth Faces Challenges in 2014

All in all, it appears that 2013 was a year of major growth in the auto finance field. Originations grew by 30%, and Loans/Lease products grew by 14% among the top 100 financial institutions. Marcie Belles, Vice President of Auto-Finance at Auto Finance Advisors, speculates that 2014’s growth will be challenged by tough competition and […]

Healthy Consumer Credit in August

Analysts have found that overall consumer credit performance appears to be doing well. S&P Dow Jones Indices and Experian found that auto loan defaults rose to 1.11% in August from 1.03% in July. Consumer credit defaults decreased from 1.35% in July to 1.34% in August. The first mortgage default rate declined from 1.25% in July […]

Changes To 2007 Military Act Could Affect Mortgages and Auto Loans

The United States Department of Defense is considering revisions to a the Military Lending Act, begun in 2007. These revisions would give service men and women more protection in regards to lenders. It is still too early to know if these revisions will be accepted, but they could impact loans, such as automobile loans, as […]

First Half of 2013 Positive for Subprime Market

The subprime market showed very positive signs during the first half of 2013, and Manheim economist Tom Webb believes there is good reason to expect a continuation into 2014. Buy here, pay here dealers contributed significantly to the results as they made more longer-term financing options available to less-qualified buyers. Finance companies are also taking […]

Car Loans Getting Longer, More Expensive

In an effort to make monthly payments more affordable, some car loan terms have increased to a whopping 8 years. The average price of a new car is $13,200, but financial experts say that stretching out payments to make this more affordable may be a bad idea. Three years used to be a standard loan, […]

GM Financial Buys Latin American, European Operations from Ally Financial

Is General Motors Financial taking over the world? The signs are there that it is after the auto financial arm purchased most of Ally Financial’s Latin American and European operations for around $2.6 billion paid in the form of $190 million in dividends and $2.4 billion in piles of cash. The deal makes GM Financial […]

NADA and NAMAD Fire Back at CFPB

The Consumer Finance Protection Bureau (CFPB) issued a bulletin last week, which put auto dealers on notice that discriminatory financing practices among auto dealers could result in legal action. The National Automobile Dealers Association (NADA) and the National Association of Minority Automobile Dealers (NAMAD) fired back at the CFPB shortly afterward, decrying the lack of […]

6 Year Auto Loan Hits All Time High

It’s good to see that the 2008 recession has failed to teach us any lessons. Many rosy-eyed procrastinators had been thinking that the recession, brought about too many people having too much debt, would serve as a stark reminder that debt can hurt for at least a generation or two. Turns out we Americans would […]