Auto Loan News

11
Sep
Santander Will Settle With the CFPB on Vehicle Loan Claims

Santander Consumer USA Holdings Inc., an affiliate of European lender Banco Santander SA, will settle claims alleged by a U.S. consumer watchdog group that borrowers weren’t fully informed about some of their costs. In particular, the lack of information was about insurance policies and auto loans. Santander Consumer accepted interest-only payments on loans allegedl

Posted in: Auto Loan News,
05
Jun
Monthly Car Payments Now Higher Than Ever

People financing new cars are paying a higher average monthly payment than ever, according to information released by Experian. The average car payment reached $523 in the first quarter of 2018. Experian came up with that figure after pulling numbers from over 4.7 million automobile loans. Although that figure might seem high, the average new car, […]

Posted in: Auto Loan News,
30
May
Wells Fargo Plans to Expand Auto Lending Again

Wells Fargo & Co. expects to increase its auto lending again. In mid-2017, Wells Fargo decided to reduce car financing and tighten its underwriting standards. In February 2018, the firm said it intended to finish consolidating its regional car loan centers by April, and that lending would expand within two quarters, reported Bloomberg. In April, Wells […]

Posted in: Auto Loan News,
18
May
Subprime Auto Loan Defaults at Highest Rate in 20 Years

Despite the growing economy in the United States, an increasing number of subprime auto loan borrowers are defaulting on their loans. The information collected by Fitch Ratings reveals the delinquency level is now at 5.8 percent, which is the highest rate of delinquency in more than 20 years, Bloomberg reported. Lenders Are Getting Nervous With 60-day […]

Posted in: Auto Loan News,
11
May
Congress Votes to Erase Auto Loan Anti-Discrimination Rule

Under the authority granted by the Congressional Review Act, the House of Representatives passed a measure on May 8 to roll back an Obama-era rule on auto lending practices issued by the Consumer Financial Protection Bureau (CFPB). It should be noted that the rollback pertains to a set of administrative guidelines issued by the CFPB, […]

Posted in: Auto Loan News,
04
May
Report Highlights Climbing Auto Loan Rates

Interest rates on new vehicle loans in April continued at higher levels not seen since 2009. The annual percentage rate (APR) on new financed vehicles averaged 5.6 percent, according to data by Edmunds, a vehicle information and shopping platform. This represents the third consecutive month that rates have jumped above 5 percent. It noticeably exceeds a […]

Posted in: Auto Loan News,
26
Apr
Why the 84-Month Auto Loan Isn’t Your Best Option

Some auto lenders are considering a jump to offering 84-month loans for new cars and trucks. While paying interest for seven years doesn’t appeal to some customers, others will take that deal if it helps them afford a more expensive vehicle. Why Bump Up the Loan Length? An 84-month term is a boost from the […]

Posted in: Auto Loan News,
13
Apr
The CFPB’s Auto Lending Rules to be Repealed by the U.S. Senate

The Consumer Financial Protection Bureau’s (CFPB) auto lending rules were fashioned to protect consumers who had indirect auto loans financed by banks through a dealership. The U.S. Senate Banking Committee is now planning to repeal those auto lending rules, according to Republican Pat Toomey, who sits on the Senate committee. What Rules Are Being Repealed

Posted in: Auto Loan News,
11
Apr
Some Small Subprime Auto Lenders Are Shutting Down

Loan losses have forced banks and private equity sources to shut down funding for an increasing number of smaller subprime vehicle lenders. That lack of funding is causing those subprime vehicle lenders to close up shop, according to Bloomberg. Three subprime auto lenders that have filed for bankruptcy or shut down in recent weeks include Summit […]

Posted in: Auto Loan News,
05
Apr
Subprime Borrowers Ditching New Car Purchases

U.S. subprime borrowers are staying away in larger numbers from buying new cars, according to research company J.D. Power, via Bloomberg. The shift is likely because of increasing interest rates and the higher cost for a new vehicle. The first two months of 2018 showed a 9 percent decrease in new car sales to those in […]

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