June 2024
Chase Auto is no longer financing Fisker vehicles and dealerships have been forced to pause Fisker sales.
The EV manufacturer filed for bankruptcy June 17 after operational changes.
A spokesperson with Chase, which formed its private-label relationship with Fisker in 2022 to create Fisker Financial Services, confirmed to Auto Finance News on June 20 that the lender is no longer financing Fisker vehicles but will continue to service existing loans.
“We remain committed to our Fisker Finance customers,” the spokesperson said.
Salespeople at several Fisker dealerships on June 20 also confirmed that they have been instructed to stop sales and are awaiting next steps following the bankruptcy announcement.
Some auto dealerships were affected more than others after a cyberattack struck dealer software provider CDK Global on June 20, the second attack in as many days.
Plainville, Conn.-based dealership Gengras Ford’s team met in the early afternoon to discuss how to work around the platform since the cyberattack made populating purchase orders a challenge, the dealership’s finance manager told AFN.
“We were on a full digital deal jacket with CDK,” said the manager, who asked not to be named. “We are in the process of implementing something on our own, and we know that we probably should have had a contingency plan in place. It’s been a bit of a worrying experience for us but we’re getting through it.” ?
Bank of America estimates that EV sales penetration will slowly build over the next three years as affordability challenges, residual value risks and higher ownership costs plague wider adoption.
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Bank of America projects EV penetration of 11% in 2024, 15% in 2025, 20% in 2026 and 25% in 2027, John Murphy, senior automotive analyst for Bank of America Securities, said during the bank’s Global Research Virtual Car Wars report roundtable June 18.
EV penetration growth in the short term will likely be hindered by manufacturers having few economic incentives to ramp up EV production compared with ICE dynamics, Murphy said.
Nonprime lenders project originations to grow in 2024 despite the increasing cost of funds and the challenges of credit performance due to elevated interest rates.
Nonprime lenders surveyed by the National Automotive Finance Association had mixed views on the competitive market. Results of the survey, which included 24 respondents operating in the nonprime space with clients who had FICO scores below 650, were presented during a panel discussion at the Non-Prime Auto Financing Conference June 6 in Fort Worth, Texas.
On the originations front, 54% of respondents expected to increase originations by 25% or more heading into 2024 compared with 45% of respondents heading into 2023 and 60% leading into 2022.
The 2024 PowerSports Finance Summit will be held Oct. 9-10 at the Wynn Las Vegas and serves as a forum for companies involved in the finance of motorcycles, jet skis, side-by-sides and other specialty vehicles.
The ninth annual event invites attendees to join powersports leaders for deep-dive sessions, high-impact networking and exposure to the latest in lending technologies and strategies tailored to the powersport market’s unique dynamics and needs.
The first day of the summit features presentations on the state of the powersports market, an outlook for 2025 and a panel on opportunities in motorcycle financing, followed by group roundtables and an evening cocktail reception.
During a one-on-one fireside chat on the second and final day of the summit, Susan Medrano, senior vice president and general manager of Synchrony Outdoors, will talk product development, demand, promotions and fresh growth ideas heading into 2025.