September 2024

Consumer loan fraud jumps 419% at credit unions in last decade

Credit unions encounter consumer loan fraud at a much greater rate than other lenders, as all lenders look for solutions to limit fraud exposure.

Credit unions had 15,432 consumer loans listed in suspicious activity reports (SAR) in 2023, a 418.9% increase over the last decade, according to the Financial Crimes Enforcement Network (FinCEN), a bureau of the U.S. Department of the Treasury that collects financial transaction information and combats financial crimes.?

While consumer loan SARs rose across all lenders over the decade, the overall growth rate was much lower compared with credit unions, according to FinCEN. SARs rose 12.2% over the past decade across all lender types.

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Are current incentives enough to drive sales?

Stellantis is offering inventory-driven incentive programs for dealers as the manufacturer looks to support new-vehicle production but remains stringent on available deals. Supply and production woes are also prompting pushback from dealers and union members.?

The United Auto Workers union plans to ask members to approve a strike against Stellantis NV related to the manufacturer’s promised product commitments in last year’s agreement, according to a speech on Sept. 17 by union President Shawn Fain.

Stellantis responded, and the company’s statement reads, in part: “Shawn Fain continues to allege that the company has violated the contract, but to date has provided no data or information to back up his claims. … We would all be better served if these issues were addressed across the table with productive, respectful and forward-looking dialogue. A strike does not benefit anyone.”

WEIGH IN HERE

VW Credit to stop originating US auto loans

Volkswagen Financial Services will no longer originate retail loans in the United States starting in April 2025; Wells Fargo Auto has been named the preferred financier for Volkswagen, Audi and Ducati brands.?

Volkswagen Financial Services (VWFS) will service existing contracts and prioritize other parts of the business such as leasing, a VWFS spokesperson told Auto Finance News. ?

“VWFS will continue to lead the customer experience in the U.S. market with Volkswagen, Audi and Ducati brand partners and dealers,” the spokesperson said. “VWFS will prioritize consumer leasing and non-asset-based business, including mobility solutions, providing the company with more significant opportunities.”?

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Incentives climb 4.8% year over year

Incentive levels rose year over year in August as dealers and consumers continued to navigate pricing pressures and affordability concerns.

Industrywide, the average incentive package rose to 7.2% of the average transaction price in August, up from 7% in July and 4.8% a year ago, according to a Sept. 10 report from Cox Automotive, which references data from Kelley Blue Book.

The increase in incentives came as nearly 54% of consumers indicated that they plan to work more hours or pick up an extra job to afford their next vehicle, according to an Edmunds consumer survey published Sept. 11.

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Panelists to examine leasing resurgence at Auto Finance Summit 2024

The AFN team is pleased to announce that leaders from Chase Auto, EV Life and DriveItAway will join Auto Finance Summit 2024 at 2:15 p.m. on Tuesday, Oct. 8, for a panel discussion on the rise of leasing.

The leasing panel, part of the summit on Oct. 7-9 at Wynn Las Vegas, will feature Chris Bresnahan, regional sales director with Chase Auto and Subaru Motors Finance; Peter Glenn, co-founder and co-chief executive of EV Life; and John Possumato, founder and CEO of DriveItAway.

Panelists will review:?

• The state of the market for new- and used-vehicle leases and affordability;?

• The impact of EV adoption on lease-share growth; and

• Residual value calculations and expectations.

View the full event agenda here.