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Autotrader.com Gives $400 Million to…

When Autotrader.com , the internet’s ultimate automotive marketplace, recently borrowed $400 million, folks got to wondering just what the online juggernaut was up to. Some sort of expansion perhaps, people thought, or, a purchase of a rival, some good old fashioned marketing, or research and development.  Nope, no, and uh-uh. Autotrader borrowed this money to […]

Sluggish Sales in Europe a Downer for VW

Bleeding over the positive sale numbers Volkswagen is enjoying in the U.S. and China, dropping sales in Europe, the German automaker’s largest market, is bad news for the maker of the Beetle. Though its total year-over-year sales from the fourth quarter 2010/11 to the same quarter 2011/12 was up by six percent, sales in its […]

Refinance Market is Booming—in Autos

That’s right, the latest trend in refinance has nothing to do with mortgages.  Rather, the downward slope in auto finance rates has meant that on average, consumers pay about a percentage point less in interest on a new car loan or refinance deal. But it doesn’t make sense for everyone.  New car dealerships are offering […]

America’s Auto Lenders to be Ranked Online at Auto Finance Big Wheels

The website, www.BigWheelsDataQuery.com, is accepting 2011 electronic submissions from auto financers so that they can be included in the website’s rankings of the country’s auto loan providers. Big Wheels says that the deadline for submissions is March 9. The Auto Finance Big Wheels ranking of regular and subprime car loan lenders is a respected listing. […]

Should Auto Lenders Pay to Be Tweeted About?

As the various forms of social media become more and more important to business success, auto lenders are going to be forced to come up with new ways to compete. One of these may be the paid tweet. The paid tweet is already being used by at least some businesses. Kim Kardashian makes a good […]

Predatory Lending Practices Continue in Used Car Lots

As car dealers nationwide prepare for a banner year in 2012 in terms of new car sales, there is another group of auto dealers that also expect a windfall this year:  “buy here, pay here” dealerships.  Unlike traditional dealerships, which offer subprime auto loans through third party lenders, a buy here, pay here dealership offers […]

Free Market Forces Leading to Lower Rates, Longer Terms for Auto Financing

As more financing companies enter the market and old lenders began to lend again, consumers are benefiting from reduced interest rates and longer terms. The benefits are not just for the consumers, but also for the automakers and the dealers as well since the more access to financing consumers have, the more vehicles will be […]

Captives Taking Lead In Auto Finance Industry-Wide Recovery

A few aspects of the American economy are showing life. Retail sales of new cars and light trucks are climbing and, along with them, auto financing. This upsurge is much stronger with captive lenders, in particular subprime auto loan companies, because they suffered the most losses during the recent recession. A recent Equifax report really […]

Could Automated Underwriting Work In The Subprime Lending Industry?

A few years ago some banks began underwriting loans based on data accumulated and evaluated by a computer. It works fairly well for people with good credit, but doesn’t seem to work with subprime loans. Why? Good credit loans do not require a computer to interpret anything. A person’s credit score meets a set of […]

Subprime Loans On The Rise Again

Irresponsible subprime lending is often blamed for the credit crisis that our country is just now emerging from. The fallout caused many lending institutions to tighten lending requirements, cutting off those bad credit loans. They are beginning to reemerge. Subprime borrowers accounted for 40.8% of the loans originated in the second quarter of 2011, up […]