Articles by: JJ Hornblass

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15 Tricky Questions Consumers Ask About Auto Finance

Guides, Operations, Sales & Marketing March 27, 2018 at 11:14 am

Any company needs to anticipate the questions their consumers will ask — before they ask them — in order to create a positive customer experience. Auto finance is no different. In fact, since auto loans and leases are relatively complex products compared to, say, neckties, lenders should do more upfrontRead More

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The Privacy Pickle of Massive Data

IT, Opinion, Risk March 22, 2018 at 11:59 am

Mark Zuckerberg and Facebook are in quite a pickle. The Cambridge Analytica scandal that has roiled the country this week has exposed a basic truth: that privacy and Facebook’s business model are at odds. Amp up the privacy and data protections, and the social network that fuels Facebook’s growth is stanched.Read More

Early Evidence of a Down June

Early Evidence of a Down June

Management, Operations, Risk, Sales & Marketing June 27, 2017 at 11:05 am

Reports are coming in today that suggest June will be a down month for car sales in the United States. According to estimates, the SAAR for the month could be 2.3% to 3.6% lower. Here’s an excerpt from the LMC Automotive/J.D. Power forecast via Seeking Alpha: The LMC Automotive/J.D. PowerRead More

Sound the Credit Quality Alarm

Sound the Credit Quality Alarm

Management, Operations, Risk June 15, 2017 at 10:13 am

It’s time to sound the alarm. Weakness has taken hold of the credit quality within securitized subprime auto assets. Deutsche Bank reported today that year-over-year delinquencies and net loss rates for subprime are up noticeably. Specifically, on a year-over-year basis subprime 60-plus day delinquencies climbing 65 basis points, and the annualizedRead More

Signs of Further Market Decline

Signs of Further Market Decline

Management, Operations, Risk, Sales & Marketing June 2, 2017 at 10:28 am

The rumblings around a deterioration in the auto lending sector have gotten louder. This morning the Federal Reserve published its bimonthly Beige Book report on regional economic activity, and it displays cracks in the auto finance facade. Regional Fed banks report tightening credit in various pockets around the nation. ForRead More

Is That the Smell of Compounding Risk?

Is That the Smell of Compounding Risk?

Risk May 4, 2017 at 11:07 am

If you only looked at GM Financial’s origination volume last week, you would think auto finance was continuing on its boom-time ways. GMF grew its North American originations 19% last quarter to around $11 billion, according to company earnings released last Friday. Sing Hallelujah! Well, don’t lose your voice yet. ThereRead More

One for the Record Books

One for the Record Books

Management, Risk, Sales & Marketing January 5, 2017 at 2:48 pm

It is hard to avoid gaping at the performance of the auto industry in 2016. “Wow” just doesn’t seem to do justice to the record sales year. The 17.6 million new cars sold last year did not just top the 2015 total. Yes, analysts had projected another record year inRead More

Hints of an Auto Lending Plateau

Hints of an Auto Lending Plateau

Management, Operations, Risk, Sales & Marketing August 29, 2016 at 11:42 am

These have been the best of times. Auto lending over the past few years has hit new highs, buoyed by vibrant car sales. It would be tough to find an auto finance venture that hasn’t benefited from the strong SAARs in recent years. As an example, by the end of lastRead More

In Decline in Auto ABS Volume, Evidence of a Shifting Landscape

In Decline in Auto ABS Volume, Evidence of a Shifting Landscape

Risk July 27, 2016 at 5:50 pm

The volume of automotive asset-backed securitization — a key source of auto finance liquidity — through May this year is off 12% compared with the same period in 2015, according to Deutsche Bank. That’s not to say auto ABS has turned in consistent volumes in recent years. Last year, totalRead More