Capital One Auto Finance’s originations grew in the first quarter following several quarters of year-over-year declines.   Originations totaled $7.5 billion, up 22.2% quarter over quarter and 21.1% YoY, according to the bank’s earnings supplement published April 25. The increase breaks from steady YoY declines as the bank has cautiously addressed auto finance, Capital One Chief ..read more

Used-vehicle values continue to trend downward from 2022’s peak levels but are outpacing pre-pandemic levels.   Used-car values remained unchanged from last month but are down 10.8% year over year, according to the Exponential Used Vehicle Index, which measures wholesale used-vehicle values adjusting for differences in models and mileage.   The index, updated weekly, was at 140.74 ..read more

U.S. new-vehicle sales are projected to decline in April while the seasonally adjusted annual rate is expected to finish above last year’s pace.   Vehicle sales are estimated at 1.34 million units in April, down 6.8% sequentially and 2.2% year over year, according to the latest forecast from Cox Automotive.   The SAAR, however, is anticipated to ..read more

Harley-Davidson Financial Services’ credit losses inched up while originations increased during the first quarter in tandem with a rise in sales.  Retail loan originations increased 2% year over year during the first quarter, Chief Financial Officer Jonathan Root said during the retailer’s earnings call today. The company did not break out origination volume for Q1.    ..read more

Ford Credit’s finance penetration rate soared in the first quarter as finance margin improved and credit performance continued to normalize. Financing penetration on Ford Motor sales hit 60% in Q1, up from 48% year over year, according to the captive’s earnings presentation. Ford Motor sold 508,083 vehicles in the quarter, according to the OEM. U.S ..read more

US economic growth slid to an almost two-year low last quarter while inflation jumped to uncomfortable levels, interrupting a run of strong demand and muted price pressures that had fueled optimism for a soft landing. Gross domestic product increased at a 1.6% annualized rate, below all economists’ forecasts, the government’s initial estimate showed. The economy’s ..read more

The auto asset-backed securities market has been chugging through the first four months of the year in a welcome reprieve following a turbulent 2023. Auto asset-backed securities (ABS) volume hit $62.4 billion as of April 19, outpacing 2023 year-to-date volume by 38.7%, according to JPMorgan Securities. That’s nearly half of 2023’s $146 million of auto ..read more

Auto sales should be included in the latest proposal on junk fees, consumer advocates told an FTC public hearing on unfair or deceptive fees today.    Some auto dealers would be exempt from the proposed junk fee rule if they are subject to price disclosure requirements under the “Combatting Auto Retail Scams (CARS)” rule, according to ..read more

Tesla Finance’s lease portfolio grew year over year in the first quarter, but lease penetration and deliveries declined.   Lease outstandings totaled $5.7 billion in Q1, down 4.2% sequentially and up 4.8% year over year, according to Tesla’s earnings presentation published today. Sales subject to lease accounting dropped in Q1 to 2.2% of deliveries, down 3 ..read more

Does your GAP (Guaranteed Asset Protection) refund process need an overhaul? In recent years, the scrutiny surrounding GAP refunds has intensified, with state and federal regulators making deeper inquiries into how these payments are calculated and disbursed. While dealers are typically responsible for refunding consumers upon early termination of their GAP contract, state regulators often hold lenders accountable for the accuracy and delivery of refunds. With litigation on the rise, more lenders are proactively overseeing—or even taking over—the GAP refund process from start to finish. For bo ..read more