Tony Wanderon had a busy start to 2023, highlighted by becoming CEO of APCO Holdings after it acquired National Auto Care (NAC).
Wanderon spent some time during NADA Show 2023 in Dallas for this episode of the Auto Remarketing Podcast recapping how the deal came together as well as current views of the F&I market.
To listen to the conversation, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes.
Paul McCarthy returned for another episode of the Auto Remarketing Podcast, this time as vice president of sales, key accounts, at Protective Asset Protection.
McCarthy took time during NADA Show 2023 in Dallas to share his perspectives on the current F&I landscape and why it’s important for dealers to present products before vehicle buyers are “in the box.”
To listen to the conversation, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes.
Among the episodes of the Auto Remarketing Podcast recorded during the 2023 Vehicle Finance Conference hosted by the American Financial Services Association, this one features Quality Acceptance CEO Ofer Alon.
The head of the Van Nuys, Calif.-based finance company and AFSA board member described the current subprime landscape and more during a conversation in Dallas.
To listen to the conversation, click on the link available below.
Download and subscribe to the Auto Remarketing Podcast on iTunes.
Your customers’ need for financing might not just be prevalent in your dealership F&I office.
The need could be significant in your service drive, too, based on a recently completed a survey of 1,100 fixed ops service professionals at more than 500 dealerships in the U.S. orchestrated by Sunbit.
More than 75% of the participants reported that at least one in four customers verbally express concern with the cost of repairs.
Additionally, the vast majority of those surveyed (nearly 70%) report that less than 50% of repair orders (ROs) are fully executed. And nearly 25% of ROs are declined entirely.
Sunbit discovered most service drives surveyed report that they offer a financing option less than 25% of the time.
Sunbit acknowledged traditional financing options have low approval rates and lengthy applications.
“As such, harried advisors working to close service agreements don’t want to further compromise acceptance rates, embarrass their customers, or lose precious time with long application processes,” Sunbit said in a news release.
Yet, in a recent Harris poll of more than 1,000 consumers, nearly 70% of respondents expressed interest in an option to spread the cost of necessary expenses (such as vehicles repairs) over time.
Based on Sunbit’s proprietary data, when customers are approved for financing, the RO is executed more than 70% of the time and nearly doubles in value, and the customer is more likely to come back for additional service.
In fact, nearly one-third of drives surveyed report higher CSI scores thanks to good financing options, according to the company.
Sunbit is a preferred partner of 14 OEMs offered in more than 6,000 dealerships and 1,500 independent service shops and has partnered with 22 of the top 25 largest auto groups in the nation.
In addition, Sunbit technology is fully integrated into leading customer experience platforms, including Xtime, Quik, Update Promise, and Everyware, making financing an integral part of the customer journey.
Sunbit is available at booth No. 6729 at NADA Show 2023 in Dallas next week. The complete survey report can be found via this website.
Open Lending Corp. recently offered a in-depth reminder for when a finance company decides to buy that installment contract, especially for an applicant in need of reliable transportation.
The provider of analytics, risk-based pricing, risk modeling and default insurance to auto finance companies throughout the United States highlighted five findings from its survey on vehicle accessibility in the U.S.
With responses from 1,347 full- and part-time employees, including 597 vehicle owners and 750 non-car owners, the survey examined barriers to ownership, misperceptions around the financing process, and opportunities for finance companies to expand their customer base by reaching those who believe they can’t afford a vehicle.
Between rising vehicle costs, the return to physical workplaces and a growing move away from urban hubs with public transportation, Open Lending pointed out the question of vehicle access has come into sharp focus.
Open Lending’s report shows how significantly vehicle access impacts job performance, earning potential and daily life. It also explores why lenders should look to dispel negative perceptions of the financing process and adopt solutions to engage non-vehicle owners — especially those in near- and non-prime credit segments.
The five key themes that emerged from the survey included:
1. Access misconceptions
Open Lending acknowledged that it comes as no shock that affordability issues stop people from purchasing vehicles.
What’s more surprising is that vehicle affordability is a widely cited issue across income levels: 52% of Gen Zers and 50% of millennials say they can’t afford a vehicle, regardless of annual earnings.
2. Car-buying complexity
For many non-car owners, the process of getting approved for auto financing lacks clarity, with just 11% saying they perceived the vehicle-buying process as “extremely transparent.”
By contrast, over one-third of non-owners (35%) said they viewed the process as either “mostly” or “extremely opaque.”
At the same time, 83% said they would return to lenders for other purposes if they had a positive auto loan experience.
3. The professional toll
A majority of non-car owners said owning a vehicle would improve their job performance, with 64% saying they felt their earning potential would increase with access to a vehicle.
Open Lending said it’s more than a gut feeling as 55% of non-car owners have had to turn down a better job or promotion due to not owning a vehicle.
4. The ownership impacts
When asked to explain in their own words how vehicle ownership would most change their lives, Open Lending found that respondents widely cited flexibility, financial gains and independence as life-changing benefits of vehicle ownership.
5. A discrepancy in equitable opportunities
Open Lending determined that non-car owners reported a slew of personal and professional inconveniences and hardships.
The survey showed 60% of non-car owners said essential tasks and errands are more challenging without a car, while 48% said not having a car makes it difficult to spend time with family and friends.
“For lenders, these findings illustrate the transformative power of more accessible auto loans. There’s virtually no aspect of daily life that isn’t impacted by lack of vehicle access,” Open Lending chief revenue officer Matt Roe said in a news release. “By taking steps to put auto loans within reach for more Americans, lenders can improve quality of life and livelihoods across underserved populations, while also enhancing the loan experience for these underserved populations.
“And it’s good for business too: With industry-leading risk management solutions that include default insurance coverage, lenders can expand their portfolios to near- and non-prime buyers while controlling for risk — leading to higher yields and loyal repeat consumers,” Roe went on to say.
For more insights from Open Lending’s survey, go to this website.
Like when two friends share a serious conversation over their beverage of choice, EFG Companies is trying to be straight with dealers about their F&I prospects this year.
EFG said through its annual forecast released on Tuesday that it sees the end of record-high front-end profit coupled with …
AutoPayPlus selected five experienced automotive agents to serve on its 2022-23 agent advisory council.
The group recently convened to discuss the market challenges dealerships will face in the coming year and learn more about how AutoPayPlus can support agents in helping their dealers compete and succeed in the marketplace.
Members of the 2022-23 agent advisory council include:
• Kevin Daley, owner, Daley Care Management in Massachusetts
• Nate Himsel, president, Pivotal Solutions in Indiana
• Jon Leino, president, J Michael Holdings in Florida
• Bob McKinney, owner, Paragon Dealer Services in Alabama
• Alan Miller, advisor/consultant, Paragon Dealer Services in Alabama
The AAC’s inaugural meeting took place in Orlando, Fla., at the historic Bay Hill Club & Lodge, originally owned by Arnold Palmer and home to the Arnold Palmer Invitational tournament on the PGA Tour.
Activities included onsite council meetings, a visit to AutoPayPlus’ headquarters to tour the departments that support the company’s best-in-class servicing model and customer experience, and an afternoon golf outing with PGA TOUR professional golfer and AutoPayPlus ambassador D.A. Points.
“In addition to providing the council with an in-depth update of our full suite of capabilities, we also valued their input on the development of future product ideas,” AutoPayPlus CEO Robert Steenbergh said in a news release. “In fact, we have already begun moving forward with several initiatives based on their feedback.”
With used-vehicle prices easing a bit, the amount of risk that finance companies are absorbing into their portfolios is starting to abate a bit, too.
According to Experian’s State of the Automotive Finance Market Report: Q3 2022, the average amount financed to deliver a used vehicle during the third quarter came in at
While some retailers seemingly started Black Friday sales promotions before Labor Day, dealerships and finance companies likely are bracing for some additional business this week as consumers feel the urge to shop and make big purchases.
As Cox Automotive noticed access to auto credit expanded slightly for the second month in a row, Edmunds shared its latest financing data to help dealerships and finance companies brace their new customers for what it will take to complete delivery of a used or new vehicle.
According to new Edmunds data, average transaction prices for …
In separate letters sent to its investors and dealer clients on Wednesday, Car Capital said it is still in business, but it paused auto finance originations due to “difficult capital market conditions.”
As a result, Car Capital also said it “executed a material reduction” in its workforce, particularly the employees who helped to build its portfolio that often catered to subprime and deep subprime consumers.
Speaking of that portfolio, Car Capital transferred servicing of those outstanding contracts to Westlake Financial in a move that happened last Friday.
“As you are likely aware, Car Capital has pulled back on origination volume over the past few weeks,” the company said in the letter to dealers. “In large part, this pullback was caused by a combination of the tremendous volume growth we have experienced and difficult capital markets conditions that have constrained the capital we have available to support you and your customers. We are fortunate to have a deep base of committed investors who are continuing to support us, and we are working actively with those stakeholders to provide us additional growth capital so we can continue to support you.”
Car Capital also elaborated about transferring its our consumer servicing function to Westlake Financial.
“We believe this is an important step in maximizing the value of our (and your) existing portfolio and all future originations,” Car Capital said. “Westlake is a top-notch consumer loan servicer, and we expect great performance from them. The transfer of servicing will not impact our contractual relationship with you or your interest in your portfolio. All communications with the consumer customers will be handled by Westlake going forward, and all of those customers should have already received various communications from Westlake advising them of the transfer and the associated changes.
“Importantly, transferring consumer servicing to Westlake enables us to focus our capital and energy on one thing — providing you and your customers with attractive financing alternatives that are great for you and them. That is why we started our business in the first place, and we are excited to refine our focus and concentrate our energy,” Car Capital went on to say
In that letter to dealers, Car Capital said it expects to relaunch its financing platform “in the very early part of Q1 2023,” telling dealers, “we will be communicating with you regularly prior to the relaunch to let you know our plans and how they will benefit you.”
Getting back on track early in the new year also was mentioned in Car Capital’s letter to investors, who watched the company begin its operations in the spring of last year. Then in January, Car Capital landed a $150 million three-year secured credit facility and a $6.125 million equity investment from funds managed by affiliates of Fortress Investment Group.
“We have significant support from our lenders and existing major equity investors. These investors have already provided valuable flexibility around credit facility compliance and two tranches of bridge financing to ensure we can continue to operate and develop our plan to retool and relaunch,” Car Capital said in Wednesday’s letter.
Late on Wednesday afternoon, Cherokee Media Group connected with Car Capital CIO John Chipps, who did not give a specific number about the number of employees impacted. But Chipps did share this perspective.
“Yes, the reduction in workforce was extremely difficult. We had a very large staff in tech sales and on the originations, collections and funding side. Those areas were hit extremely hard,” Chipps said. “As we know what’s going on with the economy, it’s a tough time for families. It was a difficult decision but the right one from a business perspective. It’s always extremely difficult when people’s livelihoods are impacted. It was a decision not made lightly. But it was one of those things where we felt in order to emerge whole and to be able to serve dealers in 2023, it was an important decision.”
Through its proprietary, fully digital platform, Dealer Electronic Auto Loan System (DEALS), Car Capital came into the market saying it can allow dealer partners to approve 100% of their customers instantly, regardless of credit history.
With DEALS, Car Capital explained dealers have the ability to make 24/7 approval decisions based on the economics of each unique vehicle and consumer. And dealer partners get back-end profit based on performance, not a minimum portfolio size.
