Articles

Best Practices For a More Profitable Lender and Dealer Relationship

Best Practices For a More Profitable Lender and Dealer Relationship

In DataScan’s ongoing effort to provide useful information regarding the automobile floor plan industry, we occasionally call upon our clients to help bring perspective to a subject.  As such, we came across this great article written by NextGear Capital.  It is an informative piece on floorplan lending best practices forRead More

Credit Unions Look to Improve, Post 2016 Origination Growth

Credit Unions Look to Improve, Post 2016 Origination Growth

Credit unions, as a collective group, grew auto loan origination volume by about 7% in 2016, while all other loan providers — captives, banks, finance companies, and buy here pay here locations — saw volumes decline year over year, according to Michael Cochrum, vice president of analytics and advisory servicesRead More

Zest is Using Math to Comply with CFPB Disparate Impact

Zest is Using Math to Comply with CFPB Disparate Impact

When you think about the greatest invention of the 20th century, a few key technologies might come to mind: the personal computer, internet, antibiotics, or the electric guitar. But, for Douglas Merrill, founder and chief executive of Zest Finance, nothing compares to the Fico score. “The Fico score is theRead More

Negative Equity Trade-Ins Spike to Record High, Where Do Lenders Draw the Line?

Negative Equity Trade-Ins Spike to Record High, Where Do Lenders Draw the Line?

Spurred by extending loan terms, a record-number of consumers — 31% — turned in cars with negative equity in 2016, in order to get their next vehicle, according to data from Edmunds.com. This trend, and longer-term loans, are not expected to reverse anytime soon, Greg McBride, chief analyst at Bankrate.com,Read More

Could the Car be the Next New Channel for Engagement? [Sponsored]

Could the Car be the Next New Channel for Engagement? [Sponsored]

Few would disagree with the notion that the only thing changing faster than technology is consumer expectations.  When it comes to auto finance there is an expectation that lenders be accessible to the borrowers through a variety of channels and reach them in step with the fast-paced way they liveRead More

Like a Dog with a Bone: Is it Time for the CFPB to Drop Disparate Impact?

Like a Dog with a Bone: Is it Time for the CFPB to Drop Disparate Impact?

On Jan. 18, the Republican staff of the House Committee on Financial Services issued Unsafe at Any Bureaucracy, Part III: The CFPB’s Vitiated Legal Case Against Auto-Lenders. This was the third in a series of reports addressing the Consumer Financial Protection Bureau’s attempts to hold auto finance companies responsible forRead More

Few Banks Tightened Credit Standards for Auto Loan Approval, Fed Finds

Few Banks Tightened Credit Standards for Auto Loan Approval, Fed Finds

Several large auto lenders reported elevated delinquencies and losses in the fourth quarter, but only 13% of banks surveyed by the Federal Reserve have tightened credit standards for approving auto loans. Meanwhile, 85% reported standards remained “basically unchanged,” while, on the bright side, no respondent reported loosening standards, according toRead More