Auto Finance News | The News That Drives the Industry

Auto Finance News | The News That Drives the Industry

Wells Fargo Names Hurzeler to Head Auto Unit

Wells Fargo Auto Finance tapped its own ranks for a permanent replacement for former President Gary Lorenz. Bob Hurzeler, a 22-year veteran of parent company Wells Fargo & Co., was named to the post on June 12. Hurzeler reports to Dave Kvamme, president and chief operating officer of Wells Fargo Financial. Kvamme served as interim […]

Auto Finance News | The News That Drives the Industry

Snags in GMAC’s Plan

Since posting a $2.5 billion second-quarter loss earlier this week, GMAC LLC has devised a series of moves meant to get it back on track. But in my estimation, the plan alienates both of its major customer groups: dealers and consumers. For starters, dealers will have to pay higher interest rates on their inventory financing. […]

Auto Finance News | The News That Drives the Industry

Lenders Face Huge Losses From the Glut of Gas Guzzlers

Auto financiers are bracing for higher losses — and there’s little they can do about it. High-priced fuel has all but dried up the sale of sport-utility vehicles and light-duty trucks, causing resale values to tank. In some cases, borrowers are simply turning in their vehicles’ keys because they can no longer afford the monthly […]

Auto Finance News | The News That Drives the Industry

Lenders Face Huge Losses From the Glut of Gas Guzzlers

Auto financiers are bracing for higher losses — and there’s little they can do about it. High-priced fuel has all but dried up the sale of sport-utility vehicles and light-duty trucks, causing resale values to tank. In some cases, borrowers are simply turning in their vehicles’ keys because they can no longer afford the monthly […]

Auto Finance News | The News That Drives the Industry

Leasing Becomes an Attractive Option in Times of Economic Uncertainty

In recent months, leasing has become an attractive option for consumers who are in the market for a car. Due to economic uncertainty, inflation and high gas prices, consumers are generally not as interested in becoming locked into long-term financing through loans. “There’s been more interest in leasing,” says Steve Perna, an internet manager who […]

Auto Finance News | The News That Drives the Industry

Despite Heavy Demand, Honda Captive Discounts Civics

Fuel-efficient cars are in acute demand, and the Honda Civic is no exception. The Honda Civic Hybrid is, in fact, one of only two hybrid compact cars on the market. Yet American Honda Finance Corp. is discounting Civics, even the hyper-popular hybrid model. American Honda Finance is providing incentives on 2008 and 2009 Civics by […]

Auto Finance News | The News That Drives the Industry

Q&A: GMAC’s New Credit Risk Chief Outlines His Priorities

Few financial services companies in the United States have had to endure as daunting a year as GMAC Financial Services. With a heavy involvement in the mortgage sector, it was forced to lay off a large portion of its staff in February 2008, and to change its management team the following month. As a result […]

Auto Finance News | The News That Drives the Industry

Interesting Remarketing Statistic

Wish you could quantify the effect of higher gas prices on vehicle values? NADA has, and here’s the math: For every $1 increase in the cost of a gallon of gas, large pickups decline in value by an average of $2,200, while resale prices of compact cars rise by an estimated $980. No wonder financiers’ […]

Auto Finance News | The News That Drives the Industry

The Demise of Leasing

On the heels of Ford Motor Credit’s $2.1 billion writedown of its leasing portfolio yesterday, today Chrysler Financial announced that it plans to stop offering leases in the U.S. effective Aug. 1. Though it came a little sooner than I had expected, I can’t say that I was surprised. In fact, I wrote in this […]

Auto Finance News | The News That Drives the Industry

Realistic Expectations

Reality is finally setting in for auto financiers: The vehicle sales market is shrinking and losses are climbing — a serious combination with which lenders must grapple. Manufacturers continue to take steps to reduce headcount and limit output, particularly of gas-guzzling SUVs and pickup trucks. Lenders, meanwhile, face lower origination volume and higher delinquency and […]