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 for used vehicles. To keep revenues […]

• George Yacik
• November 23, 2016
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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 note program that he says not […]

• George Yacik
• October 19, 2016
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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 and need some fixing. The consequences […]

• George Yacik
• September 8, 2016
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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 of improved technology and a bigger […]

• George Yacik
• June 23, 2015
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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 to interviews with auto finance industry […]

• George Yacik
• June 19, 2015
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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,” said Paul Kirkbride, senior vice […]

• George Yacik
• May 28, 2015
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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% had terms between 73 and […]

• George Yacik
• May 21, 2015
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Tips for Monitoring Dealer Compliance

Monitoring the behavior of another company and its employees may seem difficult, but with the right data and tracking, it’s easier than you might think. Like other lenders that make loans through automobile dealers, Pelican Auto Finance LLC is required by the Consumer Financial Protection Bureau to monitor how its 5,000 dealers in 27 states […]

• George Yacik
• April 29, 2015
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Using Data to Improve the Customer Experience

The more data auto lenders collect, the more ways they are finding to use it. Traditionally, auto lenders have used customer data to improve credit quality, refine marketing tactics, and find out what consumers like ― and dislike ― about the company’s products. Today they’re taking it a step further, using it to proactively reduce customer […]

• George Yacik
• April 22, 2015
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