Auto lenders are not yet ready to turn credit decisions over to artificial intelligence and machine learning; Mike Kane, Ally Financial...
According to data from Fitch Ratings delinquency rates for subprime auto loans are at 5.8 percent, higher than the financial...
TCF Financial has stepped away from the auto lending business while Regions Financial and Fifth Third Bancorp are tapping the breaks according to American Banker; lenders are concerned with credit, regulation as well as low yields; some expect the trend to continue while creating an opportunity for lenders who stick around. Source
AutoGravity CEO Andy Hinrichs was interviewed by CNBC’s On the Money program with Becky Quick; Andy explains the AutoGravity solution of simplifying the car buying process; successes to date include availability in 49 states, 500,00 app downloads and 20,000 dealership members since launch in 2016; they also discuss who the target buyer is for their product and how they generate revenue. Source
The auto finance market is such a unique space. In some ways it has a lot in common with home...
A new report by the Federal Reserve Bank of New York shows that subprime auto loans from nonbank lenders have higher delinquency rates than banks; about 4.4 percent of subprime loans from banks are delinquent while 9.7 percent from nonbank lenders are delinquent; “This suggests that bank auto loans may have some additional layers of underwriting — credit score alone does not explain the gap and divergence in the delinquency rates,” the New York Fed report stated as reported by American Banker. Source.