The nature of mobility is changing, Deloitte says. Gen Y, those born from the early 1980s to the early 2000s, appear to be less inclined to purchase automobiles than previous generations. And this could have profound implications for auto finance.
Millennials are known as the toughest sell for lenders and auto dealers alike. Thanks to a balance of education and nascent careers, this generation is in a state of flux while trying to figure out how to finance their lives.
For any auto finance company, capital is the lifeblood. And the capital markets are the ultimate source of funding for most auto finance ventures. When working with — or wanting to work with — the capital markets, it is important to understand what each “customer” in the capital markets wants and needs. Below is a handy […]
How easy it is to forget the credit crisis, forget the auto finance downturn in the late 1990s, forget the fundamentals of the automotive lending and leasing business. That's why re-calibrating the auto finance business model is so crucial.
For any entrepreneur considering the auto finance sector, the options can seem daunting. Is the prime sector best? Maybe the yields in deep subprime make that niche more worthwhile? These questions become more challenging, because every two auto finance executives will offer three definitions for credit tiers — if not more. That’s why Charles Bradley Jr.’s […]
While the bulk of the auto finance industry is considered “prime,” making loans to consumers with credit scores over 680, there is an entire world of originations in the so-called deep subprime sector. The question is, how can lenders play in this sector, where credit scores never rise above 549, without getting burned — badly? […]
How can lenders best prepare themselves for the coming flood of lease returns set to enter the marketplace? Start early and plan ahead. That was the resounding advice given during the Center for Auto Finance Excellence webinar today, entitled “How to Play the Great Lease Return.”