News
Used Vehicles Accounting for Larger Share of Auto Finance Market
Used financing increased 2.4% year-over-year and reached 55.15% in the third quarter of 2019.
Used financing increased 2.4% year-over-year and reached 55.15% in the third quarter of 2019.
Several manufacturers offered attractive discounts and competitive pricing on compact cars and SUVs, while most luxury and full-size vehicle brands maintained their lease prices.
The Federal Reserve announced a quarter-point interest rate reduction yesterday, its third such move this year. The target federal funds rate now stand at 1.5% after starting the year at 2.25%.
Cox Automotive’s chief economist, Jonathan Smoke, said he didn’t expect the Fed’s latest move to match the impact of the July cut for auto manufacturers or dealers.
Swapalease.com, a car lease marketplace, reports car lease credit applicants registered a 69.1% approval rate in July, a rise from the June rate of 65%.
Federal Reserve Chairman Jerome Powell officially announced a widely expected cut to the federal funds rate yesterday, dropping the central bank's target by a quarter-point to 2%.
Swapalease credit approvals registered 65% entering July, a drop from the 72.4% approval rate registered in May, the company announced.
Black Book will begin offering vehicle verification information to automotive lenders to help reduce misrepresentation about a vehicle's trim and equipped options, the valuation firm announced.
Originations for car buyers and lessees with sub-620 credit scores grew 13% to $27.9 billion, accounting for 21.8% of total outstanding auto balances in the Fed's latest Household Debt and Credit report.
New data from Swapalease.com’s survey-based Q1 lease trends report shows the decades-long domination of the lease market by sports cars and luxury sedans may be over.
The annual percentage rate on new financed vehicles is expected to average 6.36% in March, compared to 5.66% last year and 4.44% five years ago, according to the latest report from Edmunds.
John Fuller, founder of NextGear Capital, died Wednesday at age 75, the company announced. Fuller is known throughout the auto retail industry as an innovator in the floorplanning segment, having founded and sold Automotive Finance Corp. and Dealer Services Corp., the latter to Manheim.
Tim Sloan, president and CEO of Wells Fargo & Co., will retire June 30, the bank announced. General Counsel Allen Parker will serve as interim chief executive while the search for a new leader is conducted.
The Federal Reserve has voted unanimously that it would not hike interest rates any further for the remainder of 2019.
Average monthly payments for new-vehicle purchases ($530), new-vehicle leases ($430), and used vehicles ($381) all reached new highs, growing by 4% to 6% year-over-year. Auto loans now account for a full 8% of all outstanding consumer debt — up from 6% just a decade ago.