Articles by: George Yacik

Customer Retention, Quick Funding Are Key to Staying Ahead

Customer Retention, Quick Funding Are Key to Staying Ahead

While it’s probably overly pessimistic to say that a “perfect storm” is brewing in auto finance, it is true that some lenders are under increasing pressure on a variety of fronts, including higher loan losses from looser underwriting, plateauing car sales, the possibility of higher interest rates, and lower prices forRead More

Short-Term Note Program Gaining Ground with Dealers

Short-Term Note Program Gaining Ground with Dealers

David Braeger, the Milwaukee-area entrepreneur who brought crowdfunding to the auto finance market two years ago, has come up with a new idea that he says makes it easier and cheaper for independent used-car dealerships to finance their inventories and their internal operations. Braeger’s newest innovation is a short-term noteRead More

After a CFPB Exam: Act and Act Fast

After a CFPB Exam: Act and Act Fast

Let’s say your company just finished an examination by the Consumer Financial Protection Bureau and has emerged without any legal violations or public consent enforcement orders. Congratulations! But don’t start celebrating just yet — the CFPB did find that some of your company’s internal operations were a little bit lax andRead More

Tech, Talk, Customer Treatment are Key to Collections

Tech, Talk, Customer Treatment are Key to Collections

Getting in touch with overdue borrowers has always been challenging for auto lenders. But that task is tougher, as more people cut their telephone land lines. So in today’s mobile society, how do lenders go about reaching customers who probably don’t want to be contacted? It takes a combination ofRead More

Lenders Find New Volume in Refis

Lenders Find New Volume in Refis

Refinancing has an increasing role to play in auto lending. As the average vehicle loan increases in size and stretches to seven years and beyond, borrowers in some cases can lower their monthly payments significantly by refinancing and save hundreds of dollars over the course of the loan, according toRead More

Rate Increases Unlikely to Hurt Auto Loans, Short Term

Rate Increases Unlikely to Hurt Auto Loans, Short Term

Higher interest rates are unlikely to hurt auto lenders much in the short term, for a couple of reasons, lenders said. First, rate increases look to be gradual once the Federal Reserve starts to normalize monetary policy, possibly later this year. “The consumer is not even going to notice it,”Read More

7-Year Loans Require Greater Vigilance, Higher Pricing

7-Year Loans Require Greater Vigilance, Higher Pricing

As cars get more expensive and consumer budgets get tighter, loan terms are extending to keep monthly payments affordable. The average loan term on all new cars was 66 months in the fourth quarter of 2014, according to Experian, up a month from the prior-year period. Among new-car loans, 25.9%Read More