March 2024

March 2024

Vroom repays Ally Financial, nears e-commerce wind-down completion

(Photo/Bloomberg)

Vroom has paid the balance on its floorplan facility with Ally Financial, sold nearly all of its used-vehicle inventory, cut staff and expects to complete the wind-down of its e-commerce business by the end of the first quarter.

The company ceased its e-commerce sales and used-vehicle dealership businesses in January due to liquidity concerns. It retained its finance arm, United Auto Credit Corp. (UACC), along with retail analytics platform CarStory.

Vroom employed 1,682 people as of Dec. 31. Of that total, UACC had 683 employees and CarStory had 219, according to a March 13 10-K filing. Staff cuts began in January that will affect approximately 800 employees in connection with the wind-down, shedding 93% of employees not involved in UACC or CarStory operations.

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Why is digital crucial in auto finance?

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Navy Federal Credit Union is developing an omnichannel lending platform as credit unions and captives prioritize technology upgrades in the face of increased competition and changing consumer preferences.

Along with migrating more processes to the cloud, Navy Federal is aiming to give consumers the same financing and servicing experience regardless of what channel or device they use, Joe Pendergast, vice president of consumer lending, told Auto Finance News. He did not provide a timeline for when the omnichannel platform will launch. ?

“There is a big push for technology as a whole [at Navy Federal],” Pendergast said. “You can never move quick enough; you always have to try to stay ahead of your competitors.”

WEIGH IN HERE

CFPB’s auto finance data initiative could cost lenders millions

(Photo/Bloomberg)

The Consumer Financial Protection Bureau is proposing a new annual data collection initiative that, if approved, is poised to cost auto lenders millions of dollars annually.

The data would be collected from auto financiers that originate more than 20,000 auto loans annually in an extension of its February 2023 pilot , which requested portfolio data from nine auto lenders, according to a Jan. 23 notice in the Federal Registrar. The bureau also proposes to collect repossession and loan modification data from lenders that originate between 500 and 20,000 auto loans.

The CFPB estimates that its data-gathering initiative would affect 4,000 auto lenders and require an estimated annual burden of 1,375 hours.

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American Honda remarketing executive to present on used-vehicle financing at AFS East

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American Honda Motor Co.’s Director of Auto Remarketing and Fleet Operations David Rodriguez is set to take the stage in Nashville, Tenn., during Auto Finance Summit East for a presentation on used-vehicle financing.

The session, “The Ins and Outs of Used-Vehicle Financing Programs,” kicks off Friday, May 3, at 11:30 a.m. ET, and will explore: ?

  • Current trends in used-vehicle values; ?
  • Key risk and pricing factors to consider; and??
  • CPO vs. non-CPO in sales and customer retention.??

Rodriguez is responsible for managing the pre-owned business and fleet operations for the Honda auto and Acura brands and has spent the majority of his 22-year career with the Japanese automaker in remarketing- and CPO-focused roles, according to the OEM. ?

During his career, he has been responsible for $8.2 billion in annual CPO sales, according to his LinkedIn profile. ?

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