2018 media kit subprimenewsmediakit.autoremarketing.com/pdf/sp_mediakit_2018.pdf · 1. arbitration...
TRANSCRIPT
Upload all artwork to sacommunications.com/ad-upload
2 0 18 MEDI A K I T subprimenews.com
PRST STD
US POSTAGE PAID
E. GREENVILLE, PA
Permit No. 555
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
Millennials and their focus on payments
MILLENNIALS continued on page 3
Auto Finance News
May + June 2017 | Volume 12 | No. 3
Commentary:
With fraud increasing, revisit your red
flags program8
Annual subprime ABS
performance
dips for 4th straight year
4
Recapping crucial debt collection case
before Supreme
Court6▼
▼
▼
CFPB & industry
experts consider
potential of alternative data
18
Commentary:
Is the price right on that vehicle? 12
▼
▼
Agency update
6 FTC initiatives
meant to eliminate
wasteful regulations
CFPB remains active
as lawmakers seek
major changes
WASHINGTON, D.C. — Along
with planning a workshop to examine fi-
nancial issues and scams that can affect
military consumers, the Federal Trade
Commission said in April it is moving
“aggressively” to implement presidential
directives aimed at eliminating wasteful,
unnecessary regulations and processes.
Acting chairman Maureen Ohlhau-
sen acknowledged excessive regulation
and bureaucracy can create signifi-
cant burdens on the public, while di-
verting scarce resources from the
CARY, N.C. — As steam builds on Cap-
itol Hill to modify — and perhaps even
eliminate the Consumer Financial Protec-
tion Bureau — the agency remains quite ac-
tive even as the Trump administration pass-
es the noteworthy 100-day threshold at the
White House.In relation to auto finance, first the CFPB
filed a lawsuit in a federal district court in
April against the debt collection law firm
Weltman, Weinberg & Reis. The CFPB con-
tends the firm has been falsely represent-
ing in millions of collection letters sent to
OHLHAUSEN continued on page 13
CORDRAY continued on page 10
Richard Cordray,
CFPB director
Maureen Ohlhausen
Image by Gage Skidmore
wasteful regulations
WASHINGTON, D.C. — Along
with planning a workshop to examine fi-
nancial issues and scams that can affect
military consumers, the Federal Trade
Commission said in April it is moving
“aggressively” to implement presidential
directives aimed at eliminating wasteful,
unnecessary regulations and processes.
Acting chairman Maureen Ohlhau-
sen acknowledged excessive regulation
and bureaucracy can create signifi-
cant burdens on the public, while di-
CARY, N.C. — As steam builds on Cap
itol Hill to modify — and perhaps even
eliminate the Consumer Financial Protec
tion Bureau — the agency remains quite ac
tive even as the Trump administration pass
es the noteworthy 100-day threshold at the
White House.In relation to auto finance, first the CFPB
filed a lawsuit in a federal district court in
April against the debt collection law firm
Weltman, Weinberg & Reis. The CFPB con
By Nick Zulovich, Senior Editor
ATLANTA and NEW YORK — Cox
Automotive vice president of research and
market intelligence Isabelle Helms looked
to give auto finance providers insight into
how to tackle the challenges presented by
millennials: the often-discussed demo-
graphic that’s becoming one of the larg-
est potential vehicle-buying segments out
there today.During a keynote presentation at the
annual event earlier this year, hosted by
the Consumer Bankers Association, Helms
touched on why millennials are different.
“Given the time when millennials start-
ed to consider buying cars, given their
past and some of the challenges they have
faced, given the recession we faced in 2008
and 2009, they have a very different mind-
set when it comes to how they enter the
car shopping process,” Helms said during
a phone conversation with SubPrime Auto
Finance News. “With this crew, a significant amount
begin with a budget in mind, which is dif-
ferent than what we see for older genera-
tions,” she continued.
According to Cox Automotive, Helms
noted that 83 percent of millennials say
an affordable monthly payment is most
tends the firm has been falsely represent- graphic that’s becoming one of the larg
est potential vehicle-buying segments out Weltman, Weinberg & Reis. The CFPB con
tends the firm has been falsely representWeltman, Weinberg & Reis. The CFPB con
tends the firm has been falsely represent
ing in millions of collection letters sent to
filed a lawsuit in a federal district court in
April against the debt collection law firm
Weltman, Weinberg & Reis. The CFPB con
tends the firm has been falsely represent
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
Weltman, Weinberg & Reis. The CFPB con
tends the firm has been falsely represent-
ing in millions of collection letters sent to
CORDRAY continued on page 10ing in millions of collection letters sent to est potential vehicle-buying segments out
there today.During a keynote presentation at the
annual event earlier this year, hosted by
touched on why millennials are different.
“Given the time when millennials start
ed to consider buying cars, given their
Millennials and their focus on payments
Auto Finance News
By Nick Zulovich, Senior Editor
ATLANTA and NEW YORK — Cox
Automotive vice president of research and
market intelligence Isabelle Helms looked
to give auto finance providers insight into
how to tackle the challenges presented by
millennials: the often-discussed demo
graphic that’s becoming one of the larggraphic that’s becoming one of the larg
est potential vehicle-buying segments out
there today.During a keynote presentation at the there today.During a keynote presentation at the
annual event earlier this year, hosted by
the Consumer Bankers Association, Helms
touched on why millennials are different.touched on why millennials are different.
“Given the time when millennials start-
Millennials and their focus on paymentsBy Nick Zulovich, Senior Editor
ATLANTA and NEW YORK — Cox
Automotive vice president of research and
market intelligence Isabelle Helms looked
to give auto finance providers insight into
how to tackle the challenges presented by
millennials: the often-discussed demo-
graphic that’s becoming one of the larg-
est potential vehicle-buying segments out est potential vehicle-buying segments out
During a keynote presentation at the
annual event earlier this year, hosted by
the Consumer Bankers Association, Helms During a keynote presentation at the
annual event earlier this year, hosted by
the Consumer Bankers Association, Helms
touched on why millennials are different.
Auto Finance News
IN PRINT / ONLINE / IN PERSON
2 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-upload
Original ContentOur industry experts provide
original and timely content for the industry.
Digital PresenceOversizedYou worked harddeveloping yourmessage and brand.Show it off in our10.5 x 12.5 magazine.
E-NewsScheduled and breaking news platforms that reach our 20,000 subscribers.
3
5
{LongevityWe’ve delivered the news to the subprime auto fi nance industry for over 10 years. Reaching 50,000 desks and inboxes every other month. Our subscribers include subprime lenders, independent fi nance companies, banks, and franchised and top independent dealers
4We are everywhere our readership needs us to be. Find the latest news onsubprimenews.com, Twitter, LinkedIn and now on the Auto Remarketing Podcast.
What sets us apart?
Joe Overby Chris Hart-WilliamsNick Zulovich Sarah Rubenoff
PRST STD
US POSTAGE PAID
E. GREENVILLE, PA
Permit No. 555
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
Top 9 regulatory priorities shared by the CFPB
TOP 9 continued on page 3
Auto Finance News
March + April 2016 | Volume 11 | No. 2
Does your store culture drive subprime business?
18
Whether it’s UDAP or UDAAP, there’s cause for concern
3Some subprime elements of leasing reminiscent of 1990s
4▼
▼
▼
Repossession volume to rise ‘modestly’ in 2016 22
Profile Series with Chuck Jones, National Indirect Lending Head of Dealer Financial Services, SunTrust Banks
20
▼
▼
By Nick Zulovich, Editor
WASHINGTON, D.C. — The chief of staff at the Consumer Fi-nancial Protection Bureau recent-ly spelled out nine priority goals the regulator intends to work toward during the next two years.
While listed alphabetically, the first three mentioned by Chris D’Angelo certainly could be con-nected with auto financing. The rundown included:
1. Arbitration2. Consumer reporting3. Debt collection4. Demand-side consumer
behavior5. Household balance sheets6. Mortgages7. Open-use credit8. Small business lending9. Student lending
“We selected these goals based on the extent of the consumer harm that we identified and our capaci-ty to eliminate or lessen that harm,” D’Angelo wrote in a blog post on the CFPB’s website.
“We weighed each of our tools — for example, setting basic rules of the road, improving consumer education, or holding institutions
By Nick Zulovich, Editor
CARY, N.C. — SubPrime Auto Finance News reached out to a wide array of industry leaders to gather perspective on what makes a successful chief executive offi-cer who in some capacity partic-ipates in vehicle financing. A gen-eral consensus sprouted from sev-eral conversations about the CEOs who are leading companies in a marketplace that’s becoming more competitive and regulated.
Jack Tracey is the executive di-rector of the National Automotive Finance Association. For more
than 20 years, Tracey has interact-ed with CEOs from start-up com-panies to some of the largest play-ers in the industry.
“In the position they’re in, they need to bring talent and ex-perience,” Tracey said about what a successful CEO possesses. “But what’s most needed today is adaptability. With the market con-tinuing to change and technolo-gy evolving and regulations be-ing such a challenge, an execu-tive running a finance company has to be able to adapt himself and make his organization adaptable to these challenges.”
Ken Shilson is the co-founder and president of the National Alli-ance of Buy-Here, Pay-Here Deal-ers. Shilson has pored over reams of data with successful operators who have a single lot, to executives who decide where millions of dol-lars worth of capital are deployed
“They’re being very proactive in their approach to the market,” Shilson said about effective chief executive officers.” In other words, they’re not sitting back and saying, ‘Well we’ve done it this way for the last 15 years. We need to do it the same way for the next 15 years.’
Characteristics of successful chief executive officers
SUCCESSFUL continued on page 6
Sponsored by
Dealers are choosing NextGear Capitalto get the buying power they want
and flexible terms they need!
SubPrime Auto Finance News 3
6
10{
Industry Recognition
Each year, we tip our hats to the good
work being done across the industry.
Live EventsWe partner with NIADA, NAF, and NAAA to bring the industry Used Car Week, which includes the AutoFin Con and Repo Con
In-Demand IssuesA deep look at market infl uencers, including new fi ntech fi rms, regulatory developments and data trends.9
Bonus CirculationEnhance and expand your
marketing efforts at NADA, AFSA, NABD, NAF, NIADA, and UCW.
Industry PartnersOur writing staff has great relationships with industry thought leaders, data providers, associations, alliances, and organizations. All to bring the reader the latest trends, best practices, and impactful changes to the industry.
8 • Millennials and their focus on payments• Fraud could hit $6B in 2017• Expert advice on fi nding successful employees
What sets us apart?
USED CARWEEK
2017
NOVEMBER 13-17 . LA QUINTA
. CA
S U B P R I M E
S U B P R I M E
S U B P R I M E
S U B P R I M E
20%
29%
15%
17%
12%
7%
ATTENDANCEBY TITLE
Manager 29%
Executive 20%
Senior VP 17%
Director 15%
Dealer / Principal 7%
Other 12%
1330+attendees throughout the entire week of Used Car Week and NAAA Convention
40+Hours ofNetworking
128 Speakers
18 Keynotes
33Workshops
11Panel Discussion
1ST BLOCK 2ND BLOCK
652 900
9%of attendeesattended thefull week
2016 Educational Opportunities
2016 Attendance
Attendance by Conference
4 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-upload
PRST STD
US POSTAGE PAID
E. GREENVILLE, PA
Permit No. 555
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
WRITE-OFFS continued on page 15
Auto Finance News
September + October 2016 | Volume 11 | No. 5
Avoiding subprime completely can make credit unions ‘elitist’
5
Commentary: Digital subprime financing: The new kid in town
3▼
▼
Commentary: Employee relations problems emerge for dealers: Things you need to know
10
Commentary: Let the consumer decide product benefits & values
8▼
▼
Used Car Week preview
Used Car Week is coming back to Las Vegas. The Red Rock Resort and Casino will be the backdrop for Used Car Week’s offerings that delve deep into the auto finance space — the SubPrime Forum and the Re3 Conference. Inside this issue is a glimpse of the experts, information and best-practice recommendations to be highlighted during our industry-leading events set for Nov. 14-18. See pages 12 and 13
Photos by Jonathan Fredin.
Top 25 Lenders in Auto Finance
Sponsored by
See page 6
By Nick Zulovich, Senior Editor
ATLANTA — Unless a fi-nance company is encounter-ing a federal regulatory investi-gation, part of what they’re shar-ing with shareholders and oth-er stakeholders are their cur-rent and projected levels of charge-offs.
And when computing those losses or forecasting expecta-tions, Equifax auto lending sales leader Craig Sims acknowl-edged that the strategies finance companies leverage can run the gamut.
“Some folks are using rela-tively simple models. In gener-al, they’re going to take into ac-count the credit quality of what they booked and some view of the macroeconomic environ-ment, whether that’s data like we get through our partnership with Moody’s, unemployment, oil prices, those sorts of things,” Sims told SubPrime Auto Finance News before Labor Day. “In the most simplistic cases, they’re looking at historical performance compared with some macro fac-tors like unemployment.
“At the other end of the spec-trum, you’ve got some very heavy analytical lenders who have a se-ries of models that predict each individual type of loss that you
Predicting write-offs not easy
WRITE-OFFS continued on page 15
individual type of loss that you
Contact us today. We want to help you grow! Call Kyle Reese 800.840.2567. Email [email protected].
www.carmarkcertified.com/dealerinfo. Check us out.
READ BY:
TOP INDEPENDENT DEALERS
TOP FRANCHISED DEALERS
BHPH DEALERS
SUBPRIME LENDERS
INDEPENDENT FINANCE COMPANIES
BANKS
AUCTIONS
SubPrime Auto Finance News, a property of Cherokee Media Group, keeps readers informed on best practices, trends and changes in order to remain profitable.
50,000 Desks & Inboxes
JANUARY
FEBRUARY
Bi-Monthly
SubPrime Auto Finance NewsIN PRINT
Cherokee Media Group (CMG) is the publisher of leading business-to-business media brands for the auto remarketing
and used-car industry in the United States and Canada. CMG has delivered news to this industry for over 25 years. Reaching all franchised and independent dealers, remarketers, auctions,
OEM executives, captive fi nance companies and more.
CMG also produces a number of conferences that bring together the auto remarketing and used-car industry to address the trends and future forecasting impacting the
retail, fi nance, repossession and whole sectors.
PUBLISHED BY
SubPrime Auto Finance News 5
Upload all artwork to sacommunications.com/ad-upload
The Front-Page Cover Wrap is available to select advertisers who also purchase a full-page ad in the print edition of SubPrime Auto Finance News.
Outside Flap Specs: 4.66” x 8.8125” with a .125” bleed on all sidesInside Flap Specs: 4.66” x 12.5” with a .125” bleed on all sides
Front Cover Wrap Details Front Cover Horizontal Details
PRST STD
US POSTAGE PAID
E. GREENVILLE, PA
Permit No. 555
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
Top 9 regulatory priorities shared by the CFPB
TOP 9 continued on page 3
Auto Finance News
March + April 2016 | Volume 11 | No. 2
Does your store culture drive subprime business?
18
Whether it’s UDAP or UDAAP, there’s cause for concern
3Some subprime elements of leasing reminiscent of 1990s
4▼
▼
▼
Repossession volume to rise ‘modestly’ in 2016 22
Profile Series with Chuck Jones, National Indirect Lending Head of Dealer Financial Services, SunTrust Banks
20
▼
▼
By Nick Zulovich, Editor
WASHINGTON, D.C. — The chief of staff at the Consumer Fi-nancial Protection Bureau recent-ly spelled out nine priority goals the regulator intends to work toward during the next two years.
While listed alphabetically, the first three mentioned by Chris D’Angelo certainly could be con-nected with auto financing. The rundown included:
1. Arbitration2. Consumer reporting3. Debt collection4. Demand-side consumer
behavior5. Household balance sheets6. Mortgages7. Open-use credit8. Small business lending9. Student lending
“We selected these goals based on the extent of the consumer harm that we identified and our capaci-ty to eliminate or lessen that harm,” D’Angelo wrote in a blog post on the CFPB’s website.
“We weighed each of our tools — for example, setting basic rules of the road, improving consumer education, or holding institutions
By Nick Zulovich, Editor
CARY, N.C. — SubPrime Auto Finance News reached out to a wide array of industry leaders to gather perspective on what makes a successful chief executive offi-cer who in some capacity partic-ipates in vehicle financing. A gen-eral consensus sprouted from sev-eral conversations about the CEOs who are leading companies in a marketplace that’s becoming more competitive and regulated.
Jack Tracey is the executive di-rector of the National Automotive Finance Association. For more
than 20 years, Tracey has interact-ed with CEOs from start-up com-panies to some of the largest play-ers in the industry.
“In the position they’re in, they need to bring talent and ex-perience,” Tracey said about what a successful CEO possesses. “But what’s most needed today is adaptability. With the market con-tinuing to change and technolo-gy evolving and regulations be-ing such a challenge, an execu-tive running a finance company has to be able to adapt himself and make his organization adaptable to these challenges.”
Ken Shilson is the co-founder and president of the National Alli-ance of Buy-Here, Pay-Here Deal-ers. Shilson has pored over reams of data with successful operators who have a single lot, to executives who decide where millions of dol-lars worth of capital are deployed
“They’re being very proactive in their approach to the market,” Shilson said about effective chief executive officers.” In other words, they’re not sitting back and saying, ‘Well we’ve done it this way for the last 15 years. We need to do it the same way for the next 15 years.’
Characteristics of successful chief executive officers
SUCCESSFUL continued on page 6
Sponsored by
Dealers are choosing NextGear Capitalto get the buying power they want
and flexible terms they need!
Specs: 4.875” wide x 1.4” tall
The Front Cover Horizontal is available to select advertisers who also purchase a full page ad in the print edition of SubPrime Auto Finanace News.
Outside cover wrap
Inside cover wrap
Outside cover wrap
Post-it Note
Specs: 3.0” wide x 3.0” tall
Corners are rounded.White or yellow paper available.
Please ad .125” full bleed to creative.*Post It Note page positioning may appear different than shown.
Front page horizontal ad
Post It Note ad
Premium Print AdvertisingIN PRINT
6 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-upload
September | October 2016 subprimenews.com 5
Avoiding subprime completely can make credit unions ‘elitist’By Nick Zulovich, Senior Editor
LAS VEGAS — Indiana Members Credit Union chief executive officer Ron Collier ex-plained how this segment of auto financing providers can become “elitist” if all they do is book vehicle installment contracts with con-sumers whose FICO scores are 800 or higher.
Perhaps credit unions aren’t originating contracts only with super-prime consum-ers, since the latest TransUnion data showed credit unions grew their auto membership by 9.8 percent year-over-year from the first quarter of this year compared to the first quarter of last year.
In addition, TransUnion indicated that in 2010, only 49 credit unions issued more than 10,000 auto loans during the year. In 2015, analysts determined 126 credit unions were issuing more than 10,000 auto loans annually.
TransUnion shared those data points in August from Las Vegas when the credit bu-reau hosted its annual credit union semi-nar, which included participants from lead-ing credit unions across the country. Tran-sUnion arranged for SubPrime Auto Finance News to speak with a couple of them — Col-lier, as well as Mike Long, who is executive vice president and chief credit officer from the University of Wisconsin Credit Union.
“The word subprime is kind of an unusu-al term for credit unions because we have members. I think we know our members a little bit better,” said Collier, who oversees an
institution of more than 115,000 members who mainly are employed in the medical and education fields based in Indianapolis.
“We still have kind of a traditional field of membership at our credit union. We know when negative things are happening in the med-ical or educational fields and allow for that,” Col-lier continued. “We try to strengthen a loan if a member has some bruised credit by getting a little bit more of a down payment or cosigner. That’s the method that we use. We look at the re-lationship they’ve had with us in the past.
“I’m not sure what the industry defini-tion of a subprime loan is, but I can tell you that we have tried very hard to help mem-bers with credit below what we used to,” he went on to say. “It has been a strategy of ours. You can kind of become an elitist lender if you’re not careful, only making loans to those with great credit when people who have run through a little bad times. If you look at the whole relationship and the entire person, you can probably help them if they’re willing to help themselves, too.”
Indiana Members Credit Union does not participate in indirect auto financing, but Collier estimated auto constitutes about 20 percent of the entire credit portfolio the or-ganization has — components that include mortgages and credit cards. Blossoming rela-tionships with Indianapolis-area dealerships as well as a partnership with Enterprise Car Sales fuels the auto origination pipeline for
CU Direct reaches mid-year milestoneONTARIO, Calif. — CU Direct has
reached a new milestone in auto loans, help-ing credit unions fund more than $16.1 bil-lion in loans at the halfway point of the year.
A provider of technology and automotive solutions for the credit union industry, CU Direct has helped its more than 1,000 cred-it union partners increase funded installment contracts by 24.5 percent year-over-year.
Officials highlighted credit unions fund-ed a record 529,000 contracts through CU Di-rect’s Lending 360 and CUDL platforms in the first half of 2016, a 16.4-percent increase above the mid-point of last year. As a result, CU Di-rect calculated that its credit union partners, as an aggregate, are the nation’s third-largest auto financer, experiencing higher loan origination growth than any auto lender ranked among the nation’s top ten.
CU Direct insisted credit unions experi-enced greater loan growth than Wells Fargo Dealer Services and Ally Financial, according
to AutoCount.The growth re-
flects credit unions’ continued appe-tite in auto financ-ing, growing mar-ket share from 19.7 percent year-end 2014 to 21 percent in June of 2016.
“CU Direct is ex-cited to help our partner credit unions increase auto lending scale and efficiency, improving overall market share and creating a better mem-ber experience,” CU Direct president and chief executive officer Tony Boutelle said.
“We are committed to delivering in-novative technology, products and servic-es that help credit unions make more loans and improve their members’ auto buying and auto lending experiences today and in the future,” Boutelle continued.
CREDIT UNION continued on page 9
Tony BoutelleCU Direct
FILE SPECIFICATIONS» Only fl attened, CMYK digital artwork at 300 dots per inch
will be accepted.
» We prefer high-resolution PDF-X1A fi les but will accept high-resolution TIF, EPS and JPEG fi les. Please include all fonts and graphics.
» If color is critical, a certifi ed color accurate proof can be submitted. We cannot be responsible for color variations and quality on fi les submitted not following these guidelines.
ADVERTISING RATES» Rates are 4-Color » Back Cover: additional 25%» All spreads: additional 25%» Sequential pages or special placement: additional 25%» Inside Cover: additional 15%
Spend Less Time Worrying
And More Time Selling
You’ve got your customers covered
Now let us cover you
Spireon GoldStar GPS protects your assets, giving you peace of mind.
From vehicle recovery to automated reference checks, we’ve got you covered.
We ensure that you’re backed by a technology that’s been tried and tested by
over 8,000+ dealers. Providing you with all the critical vehicle information you
need, so you can spend less time worrying, and more time selling.
To find out more about Spireon GoldStar GPS call1-855-360-9427 or visit spireon.com
Subprime_FullPageDiamond_051116.indd 1 5/11/16 9:25 AM
12 SubPrime Auto Finance News Vol.11 Issue 4
Digital auto retailing: The impact to F&I officeBy Joe Overby, Staff Writer
CARY, N.C. — The growth of digital retailing is broad-based in the auto business.
It runs the gamut from startups offering consumers peer-to-peer or direct-to-consumer online car-buying, to companies like Cox Automotive and CDK Global helping facilitate digital retailing at dealerships. And even certain pieces of the car-buying process are becoming more digi-talized — for instance, consumers being able to get a price on their trade online.
And as digital retailing continues to grow, it may have an effect on the F&I office, says Kelley Blue Book senior an-alyst Alec Gutierrez.
“I would honestly say, within two or three years, I wouldn’t be surprised to see a majority of dealers having at least a buy-it-now, shopping-cart, digital retailing solution integrated into their websites,” Gutierrez said during a con-ference call with the media on July 1.
“Now, with that said, just because there’s a button that says you can buy this thing online doesn’t mean you’re go-ing to find a ton of consumers willing to make that leap. I would say you’re going to see a minority of the market (go that route),” he said.
Gutierrez estimates that the proportion of consumers “willing to go point to point and finalize the deal” would be
5 percent or lower.However, he believes there will be “more and more will-
ing to at least start the process, apply for credit, get a real deal baked and perhaps just not sign on the dotted line, but at least walk into the dealership fully informed on what they should expect to pay.”
Gutierrez has spotted improvements in F&I and extend-ed warranty penetration among dealers his company works with that have implemented “more transparent pricing on-line, where they’re providing actual pricing to market to consumers.”
As such, the customer and dealer don’t spend 45 min-utes or an hour going back and forth on the price of the car or the value of the trade, he said.
“When you’re not focused on getting the right price on the purchase and trade, you’re a little bit more open to spending time on the test drive, understanding the values of the car and ultimately understanding how to protect that car by an extended warranty and some of the other products that are available in the F&I office,” Gutierrez said.
“As digital retailing takes more of a foothold as consum-ers are better informed in terms of what they should expect to pay at the dealership, what they should expect to receive for their trade before they walk in the door, I would suspect that you’re going to see the profit centers of the dealership shift more and more into the F&I office.”
4.71%
8.03%
12.23%12.23%
4.71% 4.79%4.79%
8.03% 7.81%7.81%
12.23%12.23%12.22%12.22%12.22%12.22%
New Franchised used Independent used
AvAvA erage loan rates
Q1 2015 Q1 2016
AvAvA erage loan rates are showing someincreases but remain historically low
11.03%
15.25%
18.53%
11.03%6.57%
15.25%9.12%
11.83%
3.29%
9.12%4.60%4.60%
5.48%
Avg New
Avg Franchised used
Avg Independent used
AvAvA erage loan rate by risk tier for Q1 2016
Prime Nonprime Subprime
“I would honestly say, within two or three years, I wouldn’t be surprised to see a majority of dealers having at least a buy-it-now, shopping-cart, digital retailing solution integrated into their websites.”
— Alec Gutierrez, Kelley Blue Book Source: Experian Automotive
Full
Page
Half
Page
Hor
izon
tal
Half
Page
Ver
tical
1/4
Page
Squ
are
or V
ertic
al
1/8
Page
Hor
izon
tal o
r Ver
tical
Juni
or P
age
1/4
Page
Hor
izon
tal
AVAILABLE AD SIZES
Jun
ior P
age
Spr
ead
AD UNIT 1X 3X 6X
Full Page $6,265 $5,510 $5,185
Spread $9,400 see ad rep for rates
Front Cover Horizontal $1,500 plus full-page ad in same issue
Junior Page $5,080 $4,430 $4,105
Junior Page Spread $7,620 see ad rep for rates
1/2 Page $3,780 $3,345 $3,130
1/4 Page $2,050 $1,835 $1,725
1/8 Page $1,185 $1,075 $970
Used Car Industry Report Full page (Trim size 8.5” x 10.875” Bleed size 8.75” x 11.125”)
$5,000
Used Car Industry Report 1/2 page (7.625” x 4.875”)
$3,000
Used Car Industry ReportSection Sponsor
$10,000
AD UNIT WIDTH DEPTH
Full Page 10.4375” x 12.5”
Full Page with Bleed 10.6875” x 12.75”
Spread 20.875” x 12.5”
Spread with Bleed 21.125” x 12.75”
Front Cover Horizontal 4.875” x 1.4”
Junior Page 7.375” x 9”
Junior Page Spread 15.25” x 9.562”
1/2 Page Horizontal 9.875” x 5.75”
1/2 Page Horiz. Spread Trim 20.875” x 6.1871”
1/2 Page Horiz. Bleed* 21.125” x 6.312”
1/2 Page Vertical 4.875” x 11.625”
1/4 Page Square 4.875” x 5.75”
1/4 Page Vertical 2.375” x 11.625”
1/4 Page Horizontal 9.875” x 2.75”
1/8 Page Horizontal 4.875” x 2.75”
1/8 Page Vertical 2.375” x 5.75”
*1/2-page horizontal spread has a 1/8 inch bleed on left, right and bottom
sacommunications.com/ad-upload
PRST STD
US POSTAGE PAID
E. GREENVILLE, PA
Permit No. 555
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
Auto Finance News
January + February 2016 || Volume 11 || No. 1
FTC’s latest deceptive ad policy statement 5
TransUnion’s forecast should help subprime maintain sector strengths
3
6 takeaways from latest Underbanked Index 4
▼
▼
▼
3 drivers of changein processing & collections 17
▼
Online extra: Learn why spot delivery
can be tricky in this guest column from Rebecca Chernek of Chernek Consulting.
A collection of the industry’s heavy-hitters covers nearly every aspect of the financing business — from lenders, the repossession
and recovery worlds, rapidly advancing technological firms, dealer associations
and much more.
Page 7
D ATA D R I V I N G I N N O V AT I O N SM
Sponsored by
WASHINGTON, D.C. — Coving-ton — a law firm with a global foot-print and whose stable of profession-als includes former Attorney Gener-al Eric Holder, NFL Commissioner Paul Tagliabue and Homeland Securi-ty Secretary Michael Chertoff — creat-ed a new consumer financial services practice aimed at assisting clients with Consumer Financial Protection Bu-reau investigations, examinations and enforcement actions.
Leading this new practice will be co-chair Eric Mogilnicki, who has joined the firm as a partner in its Wash-ington, D.C., office. An-drew Smith, who served as a senior financial ser-vices lawyer at the Fed-eral Trade Commission prior to joining Cov-ington, will also lead the newly formed group.
Covington highlighted that Mo-gilnicki has the combination of four years’ experience at the center of some of the nation’s most critical public pol-icy debates as well as more than 20 years of experience advising and rep-resenting financial institutions. In ad-dition to his extensive experience in private practice, Mogilnicki previous-ly served as chief of staff to Sen. Ed-ward Kennedy when the CFPB was designed and has been a leader with-in the private bar on CFPB issues since its inception.
The firm also mentioned Mo-gilnicki’s CFPB experience includes
counseling clients facing informal re-quests for information from the bu-reau to providing financial institu-tions and other interested parties with product reviews, mock exami-nations and other guidance prior to the commencement of CFPB exam-inations, representing entities in re-sponding to CFPB civil investigative demands, negotiating consent orders with the CFPB, and assisting financial institutions in complying with CFPB consent orders.
“The combination of Eric’s very visible and successful CFPB enforce-
ment experience with Andrew Smith’s prom-inence on consumer fi-nancial services advisory and policy matters posi-tions Covington as an in-dustry leader in the con-sumer financial servic-
es space,” said John Dugan, chair of the firm’s financial institutions group and former U.S. Comptroller of the Currency.
“As the CFPB is coming of age, we now have critical mass of experience in significant CFPB enforcement and advisory matters in a very active area for financial services providers,” Du-gan continued.
Prior to entering private legal prac-tice, Mogilnicki served as Assistant At-torney General in Massachusetts from 1987 to 1991. During that time, he en-gaged in trial and appellate practice in federal and Massachusetts courts.
Covington creates new practice focused on CFPB investigations
Additional CFPB analysis: For more of the latest CFPB-related news and insight, see pages
18 through 22.
Fron
t Cov
er H
oriz
onta
l
PRST STD
US POSTAGE PAID
E. GREENVILLE, PA
Permit No. 555
Cherokee Media Group | 301 Cascade Pointe Lane | Cary, NC 27513
Auto Finance News
January + February 2016 | Volume 11 | No. 1
FTC’s latest deceptive ad policy statement 5
TransUnion’s forecast should help subprime maintain sector strengths
3
6 takeaways from latest Underbanked Index 4
▼
▼
▼
3 drivers of change in processing & collections 17
▼
Online extra: Learn why spot delivery
can be tricky in this guest column from Rebecca Chernek of Chernek Consulting.
A collection of the industry’s heavy-hitters covers nearly every aspect of the financing business — from lenders, the repossession
and recovery worlds, rapidly advancing technological firms, dealer associations
and much more.
Page 7
D ATA D R I V I N G I N N O V AT I O N SM
Sponsored by
WASHINGTON, D.C. — Coving-ton — a law firm with a global foot-print and whose stable of profession-als includes former Attorney Gener-al Eric Holder, NFL Commissioner Paul Tagliabue and Homeland Securi-ty Secretary Michael Chertoff — creat-ed a new consumer financial services practice aimed at assisting clients with Consumer Financial Protection Bu-reau investigations, examinations and enforcement actions.
Leading this new practice will be co-chair Eric Mogilnicki, who has joined the firm as a partner in its Wash-ington, D.C., office. An-drew Smith, who served as a senior financial ser-vices lawyer at the Fed-eral Trade Commission prior to joining Cov-ington, will also lead the newly formed group.
Covington highlighted that Mo-gilnicki has the combination of four years’ experience at the center of some of the nation’s most critical public pol-icy debates as well as more than 20 years of experience advising and rep-resenting financial institutions. In ad-dition to his extensive experience in private practice, Mogilnicki previous-ly served as chief of staff to Sen. Ed-ward Kennedy when the CFPB was designed and has been a leader with-in the private bar on CFPB issues since its inception.
The firm also mentioned Mo-gilnicki’s CFPB experience includes
counseling clients facing informal re-quests for information from the bu-reau to providing financial institu-tions and other interested parties with product reviews, mock exami-nations and other guidance prior to the commencement of CFPB exam-inations, representing entities in re-sponding to CFPB civil investigative demands, negotiating consent orders with the CFPB, and assisting financial institutions in complying with CFPB consent orders.
“The combination of Eric’s very visible and successful CFPB enforce-
ment experience with Andrew Smith’s prom-inence on consumer fi-nancial services advisory and policy matters posi-tions Covington as an in-dustry leader in the con-sumer financial servic-
es space,” said John Dugan, chair of the firm’s financial institutions group and former U.S. Comptroller of the Currency.
“As the CFPB is coming of age, we now have critical mass of experience in significant CFPB enforcement and advisory matters in a very active area for financial services providers,” Du-gan continued.
Prior to entering private legal prac-tice, Mogilnicki served as Assistant At-torney General in Massachusetts from 1987 to 1991. During that time, he en-gaged in trial and appellate practice in federal and Massachusetts courts.
Covington creates new practice focused on CFPB investigations
Additional CFPB analysis: For more of the latest CFPB-related news and insight, see pages
18 through 22.
Sell cars without protecting your dealership this tax season? I don’t think so.
Spireon GoldStar GPS has your back.1-855-360-9427 | Spireon.com/tracker
12 SubPrime Auto Finance News Vol. 11 Issue 4
Digital auto retailing: The impact to F&I officeBy Joe Overby, Staff Writer
CARY, N.C. — The growth of digital retailing is broad-based in the auto business.
It runs the gamut from startups offering consumers peer-to-peer or direct-to-consumer online car-buying, to companies like Cox Automotive and CDK Global helping facilitate digital retailing at dealerships. And even certain pieces of the car-buying process are becoming more digi-talized — for instance, consumers being able to get a price on their trade online.
And as digital retailing continues to grow, it may have an effect on the F&I office, says Kelley Blue Book senior an-alyst Alec Gutierrez.
“I would honestly say, within two or three years, I wouldn’t be surprised to see a majority of dealers having at least a buy-it-now, shopping-cart, digital retailing solution integrated into their websites,” Gutierrez said during a con-ference call with the media on July 1.
“Now, with that said, just because there’s a button that says you can buy this thing online doesn’t mean you’re go-ing to find a ton of consumers willing to make that leap. I would say you’re going to see a minority of the market (go that route),” he said.
Gutierrez estimates that the proportion of consumers “willing to go point to point and finalize the deal” would be
5 percent or lower.However, he believes there will be “more and more will-
ing to at least start the process, apply for credit, get a real deal baked and perhaps just not sign on the dotted line, but at least walk into the dealership fully informed on what they should expect to pay.”
Gutierrez has spotted improvements in F&I and extend-ed warranty penetration among dealers his company works with that have implemented “more transparent pricing on-line, where they’re providing actual pricing to market to consumers.”
As such, the customer and dealer don’t spend 45 min-utes or an hour going back and forth on the price of the car or the value of the trade, he said.
“When you’re not focused on getting the right price on the purchase and trade, you’re a little bit more open to spending time on the test drive, understanding the values of the car and ultimately understanding how to protect that car by an extended warranty and some of the other products that are available in the F&I office,” Gutierrez said.
“As digital retailing takes more of a foothold as consum-ers are better informed in terms of what they should expect to pay at the dealership, what they should expect to receive for their trade before they walk in the door, I would suspect that you’re going to see the profit centers of the dealership shift more and more into the F&I office.”
4.71%
8.03%
12.23%
4.79%
7.81%
12.22%
New Franchised used Independent used
Average loan rates
Q1 2015 Q1 2016
Average loan rates are showing some increases but remain historically low
11.03%
15.25%
18.53%
6.57%
9.12%
11.83%
3.29%
4.60%
5.48%
Avg New
Avg Franchised used
Avg Independent used
Average loan rate by risk tier for Q1 2016
Prime Nonprime Subprime
“I would honestly say, within two or three years, I wouldn’t be surprised to see a majority of dealers having at least a buy-it-now, shopping-cart, digital retailing solution integrated into their websites.”
— Alec Gutierrez, Kelley Blue Book Source: Experian Automotive
䜀甀愀爀愀渀琀攀攀
䘀䰀伀伀刀倀䰀䄀一
愀甀琀漀甀猀攀⸀挀漀洀⠀㠀 ⤀ 㠀㜀㌀ⴀ㈀㤀 㜀
䘀漀爀 洀漀爀攀 椀渀昀漀爀洀愀琀椀漀渀 挀漀渀琀愀挀琀㨀
䘀䰀伀伀刀倀䰀䄀一September | October 2016 subprimenews.com 5
Avoiding subprime completely can make credit unions ‘elitist’By Nick Zulovich, Senior Editor
LAS VEGAS — Indiana Members Credit Union chief executive officer Ron Collier ex-plained how this segment of auto financing providers can become “elitist” if all they do is book vehicle installment contracts with con-sumers whose FICO scores are 800 or higher.
Perhaps credit unions aren’t originating contracts only with super-prime consum-ers, since the latest TransUnion data showed credit unions grew their auto membership by 9.8 percent year-over-year from the first quarter of this year compared to the first quarter of last year.
In addition, TransUnion indicated that in 2010, only 49 credit unions issued more than 10,000 auto loans during the year. In 2015, analysts determined 126 credit unions were issuing more than 10,000 auto loans annually.
TransUnion shared those data points in August from Las Vegas when the credit bu-reau hosted its annual credit union semi-nar, which included participants from lead-ing credit unions across the country. Tran-sUnion arranged for SubPrime Auto Finance News to speak with a couple of them — Col-lier, as well as Mike Long, who is executive vice president and chief credit officer from the University of Wisconsin Credit Union.
“The word subprime is kind of an unusu-al term for credit unions because we have members. I think we know our members a little bit better,” said Collier, who oversees an
institution of more than 115,000 members who mainly are employed in the medical and education fields based in Indianapolis.
“We still have kind of a traditional field of membership at our credit union. We know when negative things are happening in the med-ical or educational fields and allow for that,” Col-lier continued. “We try to strengthen a loan if a member has some bruised credit by getting a little bit more of a down payment or cosigner. That’s the method that we use. We look at the re-lationship they’ve had with us in the past.
“I’m not sure what the industry defini-tion of a subprime loan is, but I can tell you that we have tried very hard to help mem-bers with credit below what we used to,” he went on to say. “It has been a strategy of ours. You can kind of become an elitist lender if you’re not careful, only making loans to those with great credit when people who have run through a little bad times. If you look at the whole relationship and the entire person, you can probably help them if they’re willing to help themselves, too.”
Indiana Members Credit Union does not participate in indirect auto financing, but Collier estimated auto constitutes about 20 percent of the entire credit portfolio the or-ganization has — components that include mortgages and credit cards. Blossoming rela-tionships with Indianapolis-area dealerships as well as a partnership with Enterprise Car Sales fuels the auto origination pipeline for
CU Direct reaches mid-year milestoneONTARIO, Calif. — CU Direct has
reached a new milestone in auto loans, help-ing credit unions fund more than $16.1 bil-lion in loans at the halfway point of the year.
A provider of technology and automotive solutions for the credit union industry, CU Direct has helped its more than 1,000 cred-it union partners increase funded installment contracts by 24.5 percent year-over-year.
Officials highlighted credit unions fund-ed a record 529,000 contracts through CU Di-rect’s Lending 360 and CUDL platforms in the first half of 2016, a 16.4-percent increase above the mid-point of last year. As a result, CU Di-rect calculated that its credit union partners, as an aggregate, are the nation’s third-largest auto financer, experiencing higher loan origination growth than any auto lender ranked among the nation’s top ten.
CU Direct insisted credit unions experi-enced greater loan growth than Wells Fargo Dealer Services and Ally Financial, according
to AutoCount.The growth re-
flects credit unions’ continued appe-tite in auto financ-ing, growing mar-ket share from 19.7 percent year-end 2014 to 21 percent in June of 2016.
“CU Direct is ex-cited to help our partner credit unions increase auto lending scale and efficiency, improving overall market share and creating a better mem-ber experience,” CU Direct president and chief executive officer Tony Boutelle said.
“We are committed to delivering in-novative technology, products and servic-es that help credit unions make more loans and improve their members’ auto buying and auto lending experiences today and in the future,” Boutelle continued.
CREDIT UNION continued on page 9
Tony BoutelleCU Direct
www.routeone.com
You Control.We Support.
We deliver products that support your ability to meet your customers’ growing demands for greater flexibility
in sales and financing while leaving you in control of the profits and process.
1/4
Page
Hor
izon
tal
18 SubPrime Auto Finance News Vol. 10 Issue 5
DON’T IGNORE THE DATA
Recent reports show that over 30% of all auto loans originated are SUBPRIME!
To make sure you are getting your share of this profitable segment you need the experts.
Agents and Reps Needed
855-488-9925www.CreditMailExperts.com
Subprime Auto Credit Mail ProgramDaily Subprime Trigger ProgramWeekly Fresh Chapter 7 Bankruptcy ProgramDischarged Chapter 7 Bankruptcy ProgramOpen Chapter 13 Bankruptcy Program
We offer targeted programs for:Franchised dealersIndependent dealersBHPH dealersLendersOEMs
TOP 20
NEW
USED
LENDERSi n A u t o F i n a n c e 5.
92
5.4545
4.18
4.06
3.91
3.43
2.82
2.77
2.14
1.83
1.71
1.47
1.20
1.19
1.15
0.99
0.99
0.99
0.97
0.93
0%
1%
2%
3%
4%
5%
6%
7%
Top 20 lenders in the retail loan market
Top 20 lienholders among FranchisedDealers Used-Car Sales in 2014
Top 20 lenders with greatestshare of Used-Car Loans amongIndependent Dealers in 2014
Top 20 represent 48.1% of all retail loans
Top 20 represent 70.4% of all retail loans
Top 20 represent 38.8% of all retail loans
7.99
7.71
7.55
6.86
6.42
4.99
4.30
3.47
3.39
2.39
2.15
1.90
1.87
1.53
1.42
1.36
1.36
1.33
1.23
1.14
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
6.60
4.88
4.11
3.68
2.42
1.86
1.81
1.79
1.51
1.20
1.06
1.02
1.01
0.91
0.88
0.87
0.84
00.80
00.78
00.75
0%
1%
2%
3%
4%
5%
6%
7%
1. WELLS FARGO DEALER SERVICES 2. CAPITAL ONE AUTO FINANCE 3. ALLY FINANCIAL 4. CHASE MANHATTAN BANK5. TOYOTA MOTOR CREDIT CO. 6. SANTANDER CONSUMER USA7. BANK OF AMERICA 8. FIFTH THIRD BANK 9. HUNTINGTON NATIONAL BANK 10. GM FINANCIAL
11. USAA FEDERAL SAVINGS BANK12. CHRYSLER CAPITAL 13. SUNTRUST BANK 14. US BANK 15. BMW BANK OF NORTH AMERICA 16. FORD MOTOR CREDIT CO. 17. SECURITY SERVICE CREDIT UNION 18. NAVY CREDIT UNION 19. BMO HARRIS BANK 20. TD AUTO FINANCE
1. CARMAX AUTO FINANCE 2. WELLS FARGO DEALER SERVICES 3. SANTANDER CONSUMER USA 4. CREDIT ACCEPTANCE CO. 5. CAPITAL ONE AUTO FINANCE 6. WESTLAKE FINANCIAL 7. CHASE MANHATTAN BANK 8. DRIVETIME ACCEPTANCE CO. 9. ALLY FINANCIAL 10. CAR NOW ACCEPTANCE CORP.
11. GATEWAY ONE LENDING 12. USAA FEDERAL SAVINGS BANK 13. NAVY CU 14. AMERICAN CREDIT ACCEPTANCE 15. EXETER FINANCE CORP. 16. SECU 17. GFC LENDING 18. CONSUMER PORTFOLIO SERVICES 19. UNITED AUTO CREDIT CO. 20. TD AUTO FINANCE
The auto fi nance franchise is a formidable competitor with the associate expertise, customer relationships and fl exibility to adjust the changing dynamics. Results this quarter are another demonstration of it. The auto fi nance
franchise will continue to be a key focus and a cornerstone of our company. We have a strong heritage and expertise in this business and no plans to divert our focus. The adaptability we’ve demonstrated is quite powerful.
We are committed to providing consumers access to a broad credit spectrum of fi nancing through our network of dealers in all economic cycles. Wells Fargo Dealer Services has become a
leading auto lender through our long-term approach to growth, disciplined underwriting practices, ongoing customer feedback and strong relationships with dealers who share our commitment to the communities and customers we serve.
Jeffrey BrownAlly Financial
Natalie BrownWells Fargo
Source: Experian Automotive
Source: Experian Automotive
Source: Experian AutomotiveSource: Cross-Sell Reports, a division of Dominion Dealer Solutions
Source: Cross-Sell Reports, a division of Dominion Dealer Solutions
BaBannkkk34.72%34.72%34.72%34.72%34.72%
BHBHPPHHHHH7.15%7.15%7.15%7.15%7.15%7.15%CaCappttiivvvvvee
26.80%26.80%26.80%26.80%26.80%
CCrreeddiittUUUnnniiiooonnnn16.83%16.83%16.83%16.83%16.83%
FFiinnaanncecececece14.46%14.46%14.46%14.46%14.46%14.46%14.46%
Q2 2015 total loanmarket share
Source: Experian Automotive
18 SubPrime Auto Finance News Vol. 10 Issue 5
DON’T IGNORE THE DATA
Recent reports show that over 30% of all auto loans originated are SUBPRIME!
To make sure you are getting your share of this profitable segment you need the experts.
Agents and Reps Needed
855-488-9925www.CreditMailExperts.com
Subprime Auto Credit Mail ProgramDaily Subprime Trigger ProgramWeekly Fresh Chapter 7 Bankruptcy ProgramDischarged Chapter 7 Bankruptcy ProgramOpen Chapter 13 Bankruptcy Program
We offer targeted programs for:Franchised dealersIndependent dealersBHPH dealersLendersOEMs
TOP 20
NEW
USED
LENDERSi n A u t o F i n a n c e 5.
92
5.45
4.18
4.06
3.91
3.43
2.82
2.77
2.14
1.83
1.71
1.47
1.20
1.19
1.15
0.99
0.99
0.99
0.97
0.93
0%
1%
2%
3%
4%
5%
6%
7%
Top 20 lenders in the retail loan market
Top 20 lienholders among FranchisedDealers Used-Car Sales in 2014
Top 20 lenders with greatestshare of Used-Car Loans amongIndependent Dealers in 2014
Top 20 represent 48.1% of all retail loans
Top 20 represent 70.4% of all retail loans
Top 20 represent 38.8% of all retail loans
7.99
7.71
7.55
6.86
6.42
4.99
4.30
3.47
3.39
2.39
2.15
1.90
1.87
1.53
1.42
1.36
1.36
1.33
1.23
1.14
0%
1%
2%
3%
4%
5%
6%
7%
8%
9%
6.60
4.88
4.11
3.68
2.42
1.86
1.81
1.79
1.51
1.20
1.06
1.02
1.01
0.91
0.88
0.87
0.84
0.80
0.78
0.75
0%
1%
2%
3%
4%
5%
6%
7%
1. WELLS FARGO DEALER SERVICES 2. CAPITAL ONE AUTO FINANCE 3. ALLY FINANCIAL 4. CHASE MANHATTAN BANK5. TOYOTA MOTOR CREDIT CO. 6. SANTANDER CONSUMER USA7. BANK OF AMERICA 8. FIFTH THIRD BANK 9. HUNTINGTON NATIONAL BANK 10. GM FINANCIAL
11. USAA FEDERAL SAVINGS BANK12. CHRYSLER CAPITAL 13. SUNTRUST BANK 14. US BANK 15. BMW BANK OF NORTH AMERICA 16. FORD MOTOR CREDIT CO. 17. SECURITY SERVICE CREDIT UNION 18. NAVY CREDIT UNION 19. BMO HARRIS BANK 20. TD AUTO FINANCE
1. CARMAX AUTO FINANCE 2. WELLS FARGO DEALER SERVICES 3. SANTANDER CONSUMER USA 4. CREDIT ACCEPTANCE CO. 5. CAPITAL ONE AUTO FINANCE 6. WESTLAKE FINANCIAL 7. CHASE MANHATTAN BANK 8. DRIVETIME ACCEPTANCE CO. 9. ALLY FINANCIAL 10. CAR NOW ACCEPTANCE CORP.
11. GATEWAY ONE LENDING 12. USAA FEDERAL SAVINGS BANK 13. NAVY CU 14. AMERICAN CREDIT ACCEPTANCE 15. EXETER FINANCE CORP. 16. SECU 17. GFC LENDING 18. CONSUMER PORTFOLIO SERVICES 19. UNITED AUTO CREDIT CO. 20. TD AUTO FINANCE
The auto fi nance franchise is a formidable competitor with the associate expertise, customer relationships and fl exibility to adjust the changing dynamics. Results this quarter are another demonstration of it. The auto fi nance
franchise will continue to be a key focus and a cornerstone of our company. We have a strong heritage and expertise in this business and no plans to divert our focus. The adaptability we’ve demonstrated is quite powerful.
We are committed to providing consumers access to a broad credit spectrum of fi nancing through our network of dealers in all economic cycles. Wells Fargo Dealer Services has become a
leading auto lender through our long-term approach to growth, disciplined underwriting practices, ongoing customer feedback and strong relationships with dealers who share our commitment to the communities and customers we serve.
Jeffrey BrownAlly Financial
Natalie BrownWells Fargo
Source: Experian Automotive
Source: Experian Automotive
Source: Experian AutomotiveSource: Cross-Sell Reports, a division of Dominion Dealer Solutions
Source: Cross-Sell Reports, a division of Dominion Dealer Solutions
Bank34.72%
BHPH7.15%Captive
26.80%
Credit Union16.83%
Finance14.46%
Q2 2015 total loanmarket share
Source: Experian Automotive
Manheim.com | 866-Manheim | 3560 Early Rd, Harrisonburg, VA 2280 | 540.434.5991
MANHEIM HARRISONBURG »
ALWAYS THERE TO HELP MY DEALERSHIP SUCCEED.
ARI 9:30AM AUG. 3, 10, 17, 24 & 31CPS 9:30AM AUG. 10 & 24CREDIT ACCEPTANCE/VRS 9:30AM AUG. 3, 24 & 31DEALER SALE 9:30AM AUG. 3, 10, 17, 24 & 31ENTERPRISE 9:30AM AUG. 3, 10, 17 & 24EXETER 9:30AM AUG. 3, 17 & 31FISERV 9:30AM AUG. 3, 10, 17, 24 & 31MOBILE SALE 10:00AM AUG. 5, 12 & 19Berglund Group - Roanoke, VA
SELECT MARKETING 9:30AM AUG. 31SPECIALTY SALE 11:00AM AUG. 3, 10, 17, 24 & 31Motorcycles, boats, campers, medium & heavy duty trucks
TRA 9:00AM AUG. 3, 10, 17, 24 & 31Inoperable & drivable
WELLS FARGO 9:30AM AUG. 3, 10, 17, 24 & 31WHEELS 9:30AM AUG. 3, 10, 17, 24 & 314x4 TRUCK SALE 10:00AM AUG. 3 & 17
©2016 Manheim, Inc. All Rights Reserved. cv M logo is a trademark of Manheim, Inc.
Ad Sizes & Ad RatesIN PRINT
SubPrime Auto Finance News 7
Upload all artwork to sacommunications.com/ad-upload
September | October 2016 subprimenews.com 13 12 SubPrime Auto Finance News Vol. 11 Issue 5 September | October 2016 subprimenews.com 13 12 SubPrime Auto Finance News Vol. 11 Issue 5
Re3 Conference highlightsAssessments from Inside the Capitol Beltway
Nov. 16 at 8:15 a.m.By the time Chris Stinebert arrives at
Used Car Week, we will have elected a new president and new members of Congress.
� e American Financial Services Association president and chief executive o� cer will appear for the second consecutive year to provide an updates on AFSA’s e� orts to represent the auto � nance community in Washington, D.C.
“� e message AFSA is trying to convey to lawmakers, regulators and other important stakeholders inside and outside the Beltway is something that regulators do not think of when they are writing regulations for our industry. � at is, in order to enact all of these rules it takes money,” Stinebert said. “Unfortunately, more o� en than not, the unforeseen costs of overzealous regulations ultimately � ows to the customer and what they are paying for the cost of access to credit.”
Streamlining the Recovery ProcessNov. 16 at 9:15 a.m.A collection of a half dozen top executives from the leading forwarding and recovery providers in the
nation will gather for a candid discussion about how this part of the auto � nance lifecycle can improve.Each executive representing ALS Resolvion, Consolidated Asset Recovery Systems, Del Mar
Recovery Solutions, MBSi Corp., Millennium Capital and Recovery Corp., PAR North America and Primeritis Financial Services plans to o� er a unique perspective aimed at bene� tting � nance companies and other service providers of all sizes.
Financing AccoladePresented by Black Book Lender Solutions, the 2016 SubPrime Auto Finance Executive of the Year will be named during the fi rst full day of the SubPrime Forum. Last year’s recipient was Dan Ulatowski of Credit Acceptance.
Recovery HonorThe 2016 Re3 Executive of the Year will be handed out during the Re3 Conference by the sponsor of the award, Consolidated Asset Recovery Systems. Last year’s winner was Scott Phillips of Lendmark Financial Services.
Nov. 15 at 9:15 a.m.Digital Recognition Network chief executive o� cer
Chris Metaxas will be making one of the keynote presentations during this year’s SubPrime Forum, where DRN is the presenting sponsor for that segment of Used Car Week. He will highlight the prudent moves some auto � nance companies are making and the areas involving collections where some institutions could improve.
“� e key to e� ective commerce is knowing your customers. � at means you need to stay close to them
during their entire lifecycle experience with you,” Metaxas said. “� e mistake that lenders make is that they are reactive to a point in time,” he continued. “During origination, they scramble to get data to close the opportunity, and during collection they scramble to � nd you when the data was not up to date. � at’s why smart lenders are now deploying location intelligence data, like vehicle sightings from DRN, throughout the entire lifecycle of the loan, so they can stay close, communicate frequently and adapt with you to help avert payment challenges.”
presented by presented by
SubPrime Forum highlightsTraversing the Rocky Landscape: An In-Depth Look at the Subprime Auto Finance Market
Nov. 15 at 11:15 a.m.� roughout the years, automotive � nancing has seen some no-
ticeable changes, from rising vehicle prices and loan amounts, to monthly payments and loan terms extending out to record highs. As these trends continue, how will they a� ect the subprime auto lend-ing market moving forward? Will delinquencies remain low? Are the concerns of a subprime bubble real? In this session, Melinda Zabrits-ki, Experian’s senior director of automotive � nance, will examine several key areas of subprime auto lending, and provide an in-depth analysis of how current market realities are a� ecting the industry as a whole.
� e Role of Technology in the Consumer ExperienceNov. 15 at 1 p.m.Dealers must continue to evolve the experience they deliver
to consumers by understanding the technologies and tactics used. While new channels emerge, existing channels evolve but rarely dis-appear. RouteOne chief strategy o� cer Todd Mason says the key is building an integrated experience with technologies that best suit your organization’s individual strategies and provide customers with the end-to-end journey they are looking for. Mason’s discussion will be based on market trends overall and among tech-savvy, Gen Z buyers who are budget conscious and want the most value for their money. Does your strategy address the diversity of consumers’ needs and provide a compelling experience?
Unconventional Wisdom: Auto Repossession in the Data Age
Nov. 16 at 10:15 a.m.Recent data insights give us the power to stress test long
held beliefs about the best ways to maximize recovery and minimize liability. In an age of increasing technology inte-grations, we now have unprecedented access to cross func-tional data. � is empowers new insights into best practices and compliance management.
“For years, lenders and forwarders have struggled to in-spect all of the lots in their network on an annual basis. With hundreds of vendors and thousands of lots, this proved near impossible,” said MBSi’s Cort DeHart, who will explore in a session these powerful data connections and discuss how we can leverage them as an industry.
NOVEMBER 14-16, 2016SUBPRIME.AUTOREMARKETING.COM
PRESENTS
NOVEMBER 15-18, 2016NRC.AUTOREMARKETING.COM
PRESENTS
NOVEMBER 14-15, 2016CPO.AUTOREMARKETING.COM
PRESENTS
NOVEMBER 15-16, 2016RE3.AUTOREMARKETING.COM
PRESENTS
Value of Lenders Using Location-Based Data
Cort DeHartPhoto by Jonathan Fredin
Photo by Jonathan Fredin
Chris Metaxas Photo by Jonathan Fredin
Photos by Jonathan Fredin
Photo by Jonathan Fredin
Melinda Zabritski
Todd Mason
Chris Stinebert
JANUARY/FEBRUARY Ad Materials: 1/18
SubPrime 175: The Most Powerful Companies in the Industry Top Compliance Expectations and Enforcement Coming from the CFPB in 2017
MARCH/APRIL Ad Materials: 2/26
NADA / AFSA Convention Issue >> Bonus Circulation Top CEOs in the SubPrime Finance Industry Special Advertising Section: GPS + Tracking – latest trends
MAY/JUNE Ad Materials: 5/3
NAF / NABD / NIADA Issue >> Bonus Circulation Top CFPB, FTC and Governmental Compliance Actions. Special Advertising Section: Most Innovative New Products and Services in the SubPrime markets
JULY/AUGUST Ad Materials: 6/28
SubPrime Trailblazers, Innovators & DisruptorsMid-Year Intelligence Report Special Advertising Section: Compliance Technology + Services for Finance Companies and Dealers
SEPTEMBER/OCTOBER Ad Materials: 9/8
The Biggest Finance Companies in SubPrime Auto Finance – Franchise + Independents Used Car Week Preview
NOVEMBER/DECEMBER Ad Materials: 10/18
Used Car Week Special >> Bonus Circulation SubPrime and Repossession Executives of the Year DealerGroups and Focus on Finance Compliance Year in Review
INTERNATIONAL USED CAR INDUSTRY REPORTAd Materials: 10/11
■ Includes data and analysis covering every corner of the remarketing business
■ Sneak preview copy of the special edition will be delivered to all attendees of the Used Car Week onsite
Auto Finance News
May + June 2016 | Volume 11 | No. 3
5 findings from Black Book’s finance company survey
8
2 trends being watched by NAF Association 4What not to do when a regulator arrives 6
▼
▼
▼
Profile Series with Andrew Stuart, president and chief executive officer of TD Auto Finance
16
Tips to tracking subprime sales at your dealership
10▼
▼
CFPB & FTC ramp up regulatory activitiesBy Nick Zulovich, Senior Editor
CARY, N.C. — What likely will be a topic discussed in compliance meetings between fi-nance companies and their counsel for much of the rest of the year came to light in May. The auto finance industry has new terminology for what the Consumer Financial Protection Bureau re-fers to as arbitration — “contract gotchas.”
Ahead of a field hearing the bureau held in Albuquerque, N.M., the CFPB released its pro-posed rules that would prohibit mandatory ar-bitration clauses that the bureau said denies groups of consumers “their day in court.”
Meanwhile, one of the other major regula-tors that is involved with overseeing auto financ-ing — the Federal Trade Commission — made moves this spring, too.
The FTC issued an Enforcement Policy
Statement on Deceptively Formatted Advertise-ments, which officials explained as a statement describing the underlying consumer protection principles that guide the agency’s enforcement actions, advisory opinions, and other guidance addressing various forms of deceptively format-ted advertising, including advertising and pro-motional messages integrated into and present-ed as non-commercial content.
SubPrime Auto Finance News gathered de-tails from a wide array of sources to summarize the stances of regulators and legal experts so fi-nance companies have information they need to strengthen their compliance efforts.
More details of CFPB rule proposalThe bureau insisted many consumer finan-
cial products such as vehicle installment con-tracts, credit cards and bank accounts have
“contract gotchas” that generally prevent con-sumers from joining together to sue their bank or financial company for wrongdoing. The CFPB believes these widely used clauses leave consumers with no choice but to seek relief on their own — usually over small amounts.
With this “contract gotcha,” the CFPB con-tends that finance companies can “sidestep” the legal system, “avoid accountability” and contin-ue to pursue profitable practices that may violate the law and “harm” countless consumers.
The CFPB stressed that its proposal is de-signed to protect consumers’ right to pursue jus-tice and relief, and deter companies from violat-ing the law.
“Many banks and financial companies avoid accountability by putting arbitration claus-es in their contracts that block groups of their
“Many banks and financial companies avoid
accountability by putting arbitration clauses in their
contracts that block groups of their customers from
suing them.”
— Richard Cordray, CFPB
“The FTC continues to examine the complex system of automobile sales. And we are still asking whether consumers benefit from that system or if change is needed.”
— Edith Ramirez, FTC
REGULATORY continued on page 3
Photo courtesy of the CFPB.
Photo courtesy of the Internet
Education Foundation.
Sponsored by
Why 13.1% delinquency rise was ‘natural’ in Q1“We’ve been tracking for years on how lenders are expanding their credit to non-prime and subprime consumers. When you do that, you should naturally expect that the overall delinquency level for all consumers is going to go up, reflecting the change in mixture to add more subprime consumers.”
— TransUnion’s Jason LakyMore details on page 20
Online extra: Moody’s Analytics
discusses how vehicle lines of credit could help your subprime customers.
In association with the National Alliance
of Buy-Here Pay-Here Dealers
Learn more at bhphreport.com
6 SubPrime Auto Finance News Vol. 12 Issue 5
LOAN BALANCE RISK DISTRIBUTION YEAR-OVER-YEAR BALANCE CHANGE
MARKET SHARE OF TOTAL FINANCING(NEW/USED UNITS & LOAN/LEASE) MARKET SHARE OF NEW FINANCING
MARKET SHARE OF USED FINANCING
Source: Experian Public, State of the Automotive Market
Source: Experian
Source: Experian Public, State of the Automotive Market
Deep Subprime
Q2 2016
Super PrimeSubprime
Q2 2017
Nonprime Prime
2015 Q2 Deep Subprime
300-500
Bank
3.24% 3.43% 3.71%
15.70% 15.83% 15.97%
19.00% 19.09% 18.73%
42.51% 42.26% 41.97%
19.55%
8.07%
15.93%19.38%
5.08%
19.62%
6.38% 8.41%
2016 Q2Subprime
501-600
BHPH
2017 Q2Nonprime
601-660
Captive
Prime
661-780
Credit Union
Super Prime
781-850
Finance Co.
Source: Experian
Q2 2016 Q2 2017
Bank BHPH Captive Credit Union
Finance Co.
34.0
8%
32.0
3%
7.01
%
7.01
% 18.0
7%
20.0
3%
11.0
6%
11.0
6%
27.0
7%
28.0
6% 31.0
7%
0.02
%
28.0
8%
0.02
%
52.0
2%
11.0
4%
4.06
%
53.0
2%
12.0
7%
5.01
%
37.0
3%
13.0
0%
35.0
2%
12.0
9%
7.04
%
24.0
9%
17.0
5%
8.01
%
26.0
7%
17.0
0%
Q2 Industry Data Center PRESENTED BY
TOTAL OPEN AUTOMOTIVELOAN BALANCE
Source: Experian Public, State of the Automotive Market
2015 Q2 2016 Q2 2017 Q2
$1,1
00
$1,0
27
$932
BILLIONS
$1,500
$500
$0
$1,000
0
1%
2%
3%
4%
5%
6%
Percentage of Total Loan (new & used)
TOP 20 AUTO LENDERS FOR USED & NEW FINANCING
CHAS
E AU
TO F
INAN
CE
CAPI
TAL
ONE
AUTO
FIN
ANCE
ALLY
TOYO
TA F
INAN
CIAL
SER
VICE
SW
ELLS
FAR
GO D
EALE
R SE
RVIC
ESAM
ERIC
AN H
ONDA
FIN
ANCE
BAN
K OF
AM
ERIC
AFO
RD M
OTOR
CRE
DIT
NIS
SAN
INFI
NIT
I FIN
ANCI
AL S
ERVI
CES
GM F
INAN
CIAL
/AM
ERIC
REDI
TSA
NTA
NDE
R CO
NSU
MER
USA
TD A
UTO
FIN
ANCE
CRED
IT A
CCEP
TAN
CE C
ORP
CARM
AX A
UTO
FIN
ANCE
HUN
TIN
GTON
NAT
ION
AL B
ANK
CHRY
SLER
CAP
ITAL
USAA
FED
ERAL
SAV
INGS
BAN
K
US B
ANK
WES
TLAK
E FI
NAN
CIAL
SER
VICE
S
PNC
BAN
K
5.77%
4.76%
3.60%3.44%
3.18%
2.54%2.33% 2.28% 2.22% 2.18% 2.16%
1.49% 1.42% 1.42%1.17% 1.08% 1.08% 0.99% 0.98% 0.95%
USED CAR INDUSTRY REPORT
COVERING:
WHOLESALE CAR MARKET
RETAIL USED-CAR MARKET
FINANCE
REPOSSESSION/RECOVERY
I N T E R N A T I O N A L
Auto Finance News
Auto Remarketing®
Canada
Editorial CalendarIN PRINT
USED CARWEEK
2017
NOVEMBER 13-17 . LA QUINTA
. CA
This Year’s Honorees
For 26 years Automotive Personnel, LLC has been the nation’s leading executive search firm specializing in the subprime automotive finance industry. Only 5% of employees are actively looking for a position, to get to the other 95% someone needs to reach out to these passive candidates and bring the most qualified to your interviewing process. With over 15,000 resumes in our proprietary database, national network and understanding of your business, we will bring you qualified candidates you otherwise would not interview!
Need leaders in sales, credit, risk, recovery, collections, legal? — We will find them for you. Need C-Level executives, department managers, field sales representatives, credit buyers, etc.? We will bring the best to your interviewing process and we can conduct your search in complete confidentiality. We are a member of the National Automotive Finance Association and our CEO is a member of their Board of Directors.
Don Jasensky | 216-226-8190 | [email protected] | www.automotivepersonnel.co
American Credit Acceptance is an emerging credit automotive finance company providing financial solutions coast-to-coast. We start with a common sense lending approach for our dealer partners and end with an affordable payment program for our customers. Solutions include: Point-of-Sale Financing, Bulk Purchases and Lines of Credit. Bulk Purchases and Lines of Credit are offered through Spartan Financial Partners, a division of American Credit Acceptance, specializing in providing capital for BHPH dealers and Independent Auto Finance companies.
Contact our team for more information:866-202-6912
www.americancreditacceptance.comwww.spartan-partners.com
AC AUTOPAY www.autopay.comAce Motor Acceptance Corp. www.acemotoracceptance.comACI Worldwide www.aciworldwide.comADESA www.adesa.comAFS Acceptance www.afsacceptance.com Agero www.agero.comAllied Solutions www.alliedsolutions.netAlly Financial www.ally.comALS Resolvion www.resolvion.comAmerica’s Car-Mart www.car-martAmerican Credit Acceptance/ Spartan Financial Partners www.acacceptance.comAmerican Financial Services Association www.afsaonline.orgAmerican Motor Credit www.AmericanMotorCredit.comAmerican Recovery Association www.repo.orgAuto Credit Express www.autocreditexpress.netAuto I.D. www.autoidinc.comAutoIMS www.AutoIMS.comAuto Master Systems www.auto-master.comAutomotive Compliance Consultants www.compliantnow.comAutomotive Credit Corporation www.automotivecredit.comAutomotive Personnel www.searchpro1.comAutoPal Software www.AutoPalSoftware.comAutoTrader www.autotrader.comAuto Use www.autouse.comBenchmark Consulting International www.benchmarkinternational.comBillingTree Payment Solutions www.mybillingtree.comBlack Book www.blackbookauto.comCalAmp www.calamp.comCars.com www.cars.comCarFinance Capital www.carfinancecapital.comCAR Financial Services www.carfinancial.comCarHop www.carhop.comCarMax www.carmax.comChallenge Financial Services www.challengefinancialservices.comChase Auto Loans www.chase.comClarity Services www.clarityservices.comCompli www.compli.comConsolidated Asset Recovery Systems www.ez-recovery.comConsumer Portfolio Services (CPS) www.hityournumbers.comCredit Acceptance www.creditacceptance.comCredit Mail Experts www.creditmailexperts.comCrescent Bank www.cbtno.comCU Direct Connect www.cudirectconnect.comDealerSocket www.dealersocket.comDealerTrack Technologies www.dealertrack.comdefi SOLUTIONS www.defiSOLUTIONS.comDelMar Recovery Solutions www.delmarrecovery.comDigital Recognition Network www.drndata.comDriveTime Automotive Group www.drivetime.comEquifax www.equifax.comExeter Finance Corp. www.exeterfinance.comExperian Automotive www.experian.comF&I Express www.fandiexpress.comFactor Trust www.factortrust.comFICO www.fico.comFirst Investors Financial Services www.fifsg.comFinancial Network Inc. www.financialnetworkinc.comFinCo Management LLC www.fincomanagement.comFIS www.fisglobal.comFiserv www.fiserv.comFlagship Credit Acceptance www.flagshipacc.comFNI Incorporated www.myfni.comGlobal Lending Services LLC www.glsllc.comGM Financial / AmeriCredit www.gmfinancial.comGO Financial www.gofinancial.comGoldstar GPS, Guided by Spireon www.GoldStarGPS.comGuardian Portfolio Services Inc. www.guardianps.comGWC Warranty www.GWCwarranty.comHudson Cook www.hudco.comiMETRIK www.imetrik.comInovatec www.inovatec.ca
Insurance Auto Auctions www.iaai.comIntellaegis www.intellaegis.comInteractive Financial Marketing Group www.interactivefmg.comIntrix www.intrix.com/iRepo.com www.irepo.comIturan USA Inc. www.ituranusa.comJD Byrider www.jdbyrider.comKelley Blue Book www.kbb.comLexis Nexis www.lexisnexis.comLoan Portfolio Servicing www.lportsvc.comLobel Financial www.lobelfinancial.comManheim www.manheim.comMarkOne Financial www.mark1financial.comMcGlinchey Stafford www.mcglinchey.comMegasys Inc. www.megasys.netMicroBilt www.microbilt.comMillennium Capital and Recovery Corporation www.mcrc.bizMVTRAC www.mvtrac.comNAAA www.naaa.comNABD www.bhphinfo.comNADA www.nada.orgNADA UCG www.nada.com/b2bNAF Association www.nafassociation.comNational Creditors Connection Inc. www.nationalcreditors.comNationwide Acceptance LLC www.nac-loans.comNCM Associates Inc. www.ncm20.comNextGear Capital www.nextgearcapital.comNIADA www.niada.comNicholas Financial www.nicholasfinancial.comNorthland Auto Enterprises www.northlanddealers.comNowcom/DealerCenter www.DealerCenter.netOnlineBKManager.com www.onlinebkmanager.comPAR North America www.parnorthamerica.comPassTime USA www.passtimeusa.comPayNearMe www.paynearme.comPayment Assurance Technology Association www.patassociation.comPelican Auto Finance www.pelicanaf.comPeritus Portfolio Services www.peritusservices.com PRA Location Services www.portfoliorecovery.comPrestige Financial www.gopfs.comPrimeritus Financial Services www.primertius.comRecovery Database Network www.recoverydatabase.netRecovery Specialist Insurance Group (RSIG) www.rsig.comRegional Acceptance Corp. www.regionalacceptance.comReynolds and Reynolds www.reyrey.comRoquemore www.Roquemore.com RouteOne LLC www.routeone.comRSM www.rsmus.com/Santander Consumer USA www.sandtanderconsumer.com Security National Automotive Acceptance Corp. www.snaac.comSkopos Financial www.skoposfinancial.com Skypatrol www.skypatrol.comSouthern Auto Finance Company (SAFCo) www.GoSAFCo.comState National Companies www.statenational.comTax Refund Services www.taxmax.comTidewater Finance Company www.TidewaterFinance.comTurner Acceptance Corp. www.turneracceptance.comTransUnion www.transunion.comUsed Car University LLC www.greggoebel.comUnited Auto Credit www.unitedautocredit.netvan Wagenen Financial Services www.vanwagenen.comvAuto www.vauto.comVehicle Acceptance Corp. www.VACorp.com/SP Veros Credit www.veroscredit.comVictory Recovery Services www.vrs-corp.comWalz www.walzgroup.comWells Fargo www.wellsfargo.comWestlake ALPS www.westlakefinancial.com/additional-services/alps/ Westlake Financial Services www.westlakefinancial.comWisdom Financial www.eastcoastfund.comWolters Kluwer Financial Services www.wolterkluwerfs.com
During the Vehicle Finance Conference orchestrated by the American Financial Services Association this past January, Jennifer Reid shared a sentiment that not only summarized the feelings of Equifax Automotive, but also succinctly characterized why this publication annually highlights the best players of the subprime auto finance industry.
“We have to tell the positive stories because the industry is constantly improving itself. It’s a cornerstone of why the economy is where it is today,” Reid said.
Published within these next few pages are the finance companies, service and technology providers and other organizations that take the most risk and still flourish in vehicle financing that’s now growing to be a $1 trillion economic pillar. Members of the SubPrime 125 complete vehicle installment contracts with consumers with checkered credit backgrounds and help to support companies and dealerships with sound guidance and tools to navigate ever-changing regulatory demands and potential buyer tastes.
In summary, this feature is meant to highlight
the “good work” that’s being completed — a retort to the consumer zealots who offer sometimes disparaging assertions about what it means to flourish in subprime auto financing.
To the companies included, let this issue be a salute to each of you, your management teams, your representatives in the field and your support systems that go well beyond brick-and-mortar buildings and communications infrastructure.
Congratulations, and please keep in touch so this publication can keep telling the stories about your successes.
The Stars of the SubPrime Show
NICKZULOVICH
Advanced Lending & Portfolio Services (ALPS) can help you profit more quickly from loans currently being serviced in-house. Dedicated to your needs, ALPS has the right program to lower your operational overhead while increasing your profits. Money today is more valuable than tomorrow.
When you choose Westlake ALPS, you get instant cash flow while focusing your efforts on selling cars rather than collecting payments. In addition to portfolio acquisition, ALPS offers other portfolio services that allow you to receive upfront cash while maintaining control of your portfolio. Additionally, Westlake ALPS now offers revolving credit lines to help your business grow.
With more than 25 years of experience, Westlake is one of the country’s largest privately held auto finance companies. ALPS leverages Westlake’s size and financial strength to offer dealerships and other businesses a first-class portfolio services experience that is fast, friendly and flexible.
Best price, great service, quick funding. Contact Westlake ALPS at 1.888.778.3738 or www.WestlakeALPS.com.
Automotive Compliance Consultants Inc., provides a complete compliance program for automotive, RV and power sport dealerships, delivering its ONE Vendor solution for all Dealership compliance needs covering Privacy (GLB), F&I, Fair Lending, (TILA, ECOA, FCRA), OFAC, EEO/HR, and OSHA. The Automotive Compliance Consultants program provides training for all dealership employees based on role, establishment of compliance responsibilities, written procedures, compliance manuals, and quarterly onsite compliance reviews and audits of dealership practices, procedures, complaints and transactions.
Established in 2003 by automotive professionals and legal counsel, the ACC philosophy has always been that an effective dealership compliance partner has to spend time at the dealership! ACC professionals understand dealership dynamics and challenges, and work closely with dealership management and personnel to create a Compliance Management System specific to your dealership.
Automotive Compliance Consultants Inc. | Compliantnow.com | 866-301-0593
January | February 2016 subprimenews.com 9
As a growing and progressive finance company, AMC strives to be one of the top automotive financing businesses in the United States. We are currently providing our services to franchise and independent dealers in 26 states and counting…
We believe in a shift of focus from the regimented and strict guidelines to an emphasis on meeting the customer’s vehicle and payment needs.
Many in the subprime automotive finance industry rely on an automated underwriting process. American Motor Credit’s dedicated staff works with your finance managers to get the funding you seek in a timely manner.
Independent dealers can now reap the benefits that were once only offered to franchise dealers. AMC has a variety of programs for all credit types. We also have Warranty, GAP and other back-end options to secure your dealership and customers’ needs.
For more information, please contact us at 678-213-5626 or visit www.americanmotorcredit.com
ALS Resolvion is one of the largest and most advanced firms in the repossession management and skip tracing industry. We serve our client’s needs in both consumer and commercial/heavy equipment space. What separates us from our competition is our people, process and technology. Our ability to deliver industry leading performance and service all while keeping the highest levels of compliance standards and technology initiatives at the forefront of our process makes ALS Resolvion a leader in the repossession industry. Our broad service lines include forwarding, pre and post charge off skips as well as being a top provider of DNR License Plate Recognition “live” service. Today we service over 20K accounts monthly and proudly have a client base that boasts 25 of the top 50 auto lenders in the U.S. Allow us to deliver the best results at the lowest risk. For more information, please contact us at 704-935-5700 Ext 3111 or visit www.alsresolvion.com.
has been the nation’s leading executive search firm specializing in the subprime automotive finance industry. Only 5% of employees are actively looking for a position, to get to the other 95% someone needs to reach out to these passive candidates and bring the most qualified to your interviewing process. With over 15,000 resumes in our proprietary database, national network and understanding of your business, we will bring you qualified candidates you otherwise would not interview!
Need leaders in sales, credit, risk, recovery, collections, legal? — We will find them for you. Need C-Level executives, department managers, field sales representatives, credit buyers, etc.? We will bring the best to your interviewing process and we can conduct your search in complete confidentiality. We are a member of the National Automotive Finance Association and our CEO is a member of their Board of Directors.
Don Jasensky | 216-226-8190 | [email protected] | www.automotivepersonnel.co
the “good work” that’s being completed — a retort to the consumer zealots who offer sometimes disparaging assertions about what it means to flourish in subprime auto financing.
To the companies included, let this issue be a salute to each of you, your management teams, your representatives in the field and your support systems that go well beyond brick-and-mortar buildings and communications infrastructure.
Congratulations, and please keep in touch so this publication can keep telling the stories about your successes.
As a growing and progressive finance company, AMC strives to be one of the top automotive financing businesses in the United States. We are currently providing our services to franchise and
We believe in a shift of focus from the regimented and strict guidelines to an emphasis on
Many in the subprime automotive finance industry rely on an automated underwriting process. American Motor Credit’s dedicated staff works with your finance managers to get the
Independent dealers can now reap the benefits that were once only offered to franchise dealers. AMC has a variety of programs for all credit types. We also have Warranty, GAP and other back-end options to secure your dealership and customers’ needs.
For more information, please contact us at 678-213-5626 or visit www.americanmotorcredit.com
ALS Resolvion is one of the largest and most advanced firms in the repossession management and skip tracing industry. We serve our client’s needs in both consumer and commercial/heavy equipment space. What separates us from our competition is our people, process and technology. Our ability to deliver industry leading performance and service all while keeping the highest levels of compliance standards and technology initiatives at the forefront of our process makes ALS Resolvion a leader in the repossession industry. Our broad service lines include forwarding, pre and post charge off skips as well as being a top provider of DNR License Plate Recognition “live” service. Today we service over 20K accounts monthly and proudly have a client base that boasts 25 of the top 50 auto lenders in the U.S. Allow us to deliver the best results at the lowest risk. For more information, please contact us at 704-935-5700 Ext 3111 or visit www.alsresolvion.com.
Auto Finance News
January + February 2016 | Volume 11 | No. 1
FTC’s latest deceptive ad policy statement 5
TransUnion’s forecast should help subprime maintain sector strengths
3
6 takeaways from latest Underbanked Index 4
▼
▼
▼
3 drivers of change in processing & collections 17
▼
Online extra: Learn why spot delivery
can be tricky in this guest column from Rebecca Chernek of Chernek Consulting.
A collection of the industry’s heavy-hitters covers nearly every aspect of the financing business — from lenders, the repossession
and recovery worlds, rapidly advancing technological firms, dealer associations
and much more.
Page 7
D ATA D R I V I N G I N N O V AT I O N SM
Sponsored by
WASHINGTON, D.C. — Coving-ton — a law firm with a global foot-print and whose stable of profession-als includes former Attorney Gener-al Eric Holder, NFL Commissioner Paul Tagliabue and Homeland Securi-ty Secretary Michael Chertoff — creat-ed a new consumer financial services practice aimed at assisting clients with Consumer Financial Protection Bu-reau investigations, examinations and enforcement actions.
Leading this new practice will be co-chair Eric Mogilnicki, who has joined the firm as a partner in its Wash-ington, D.C., office. An-drew Smith, who served as a senior financial ser-vices lawyer at the Fed-eral Trade Commission prior to joining Cov-ington, will also lead the newly formed group.
Covington highlighted that Mo-gilnicki has the combination of four years’ experience at the center of some of the nation’s most critical public pol-icy debates as well as more than 20 years of experience advising and rep-resenting financial institutions. In ad-dition to his extensive experience in private practice, Mogilnicki previous-ly served as chief of staff to Sen. Ed-ward Kennedy when the CFPB was designed and has been a leader with-in the private bar on CFPB issues since its inception.
The firm also mentioned Mo-gilnicki’s CFPB experience includes
counseling clients facing informal re-quests for information from the bu-reau to providing financial institu-tions and other interested parties with product reviews, mock exami-nations and other guidance prior to the commencement of CFPB exam-inations, representing entities in re-sponding to CFPB civil investigative demands, negotiating consent orders with the CFPB, and assisting financial institutions in complying with CFPB consent orders.
“The combination of Eric’s very visible and successful CFPB enforce-
ment experience with Andrew Smith’s prom-inence on consumer fi-nancial services advisory and policy matters posi-tions Covington as an in-dustry leader in the con-sumer financial servic-
es space,” said John Dugan, chair of the firm’s financial institutions group and former U.S. Comptroller of the Currency.
“As the CFPB is coming of age, we now have critical mass of experience in significant CFPB enforcement and advisory matters in a very active area for financial services providers,” Du-gan continued.
Prior to entering private legal prac-tice, Mogilnicki served as Assistant At-torney General in Massachusetts from 1987 to 1991. During that time, he en-gaged in trial and appellate practice in federal and Massachusetts courts.
Covington creates new practice focused on CFPB investigations
Additional CFPB analysis: For more of the latest CFPB-related news and insight, see pages
18 through 22.
In association with the National Alliance
of Buy-Here Pay-Here Dealers
Learn more at bhphreport.com
Sell cars without protecting your dealership this tax season? I don’t think so.
Spireon GoldStar GPS has your back.1-855-360-9427 | Spireon.com/tracker
ticeable changes, from rising vehicle prices and loan amounts, to
8 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-upload
subprimenews.com
Website
Mobile
E-News
Custom Marketing
ON THE GO? STAY IN THE KNOW! Readers can access the nation’s leading publication in the SubPrime
Auto Finance industry on their computer, tablet or smartphone.
FILE REQUIREMENTSAUTOREMARKETING.COM
» File type: JPG or GIF. If fi le type is Flash, the advertiser must provide a static image for browsers that do not support Flash. File sizes below are Max.
» WEBSITE ADS
1. Leaderboard – fi le size: 40KB
2. Super Leaderboard – fi le size: 40KB
3. Medium Rectangle – fi le size: 40KB
4. Medium Rectangle In Content – fi le size: 40KB
5. Filmstrip – (static or animated gif) fi le size: 100KB
6. Horizontal Bar – Same as Leaderboard
7. Pushdown – (Must be created by ad agency – not S&A)
• Max initial fi le load size: 60KB
• Subsequent max polite fi le load size: 350KB for creative fi les
• Subsequent max user initiated fi le load size: 1MB
8. Page Takeover – See ad rep for details
9. Interstitial (static or animated gif) – fi le size: 80KB
» For more specialized ads (i.e. pushdown), IAB recommends 10 business days to assemble and test fi nal ad unit provided all assets are fully functional and built according to spec.
» All ads are IAB standard sizes. For ad demonstrations and other details, see the IAB guidelines here: www.iab.net guidelines/508676/508767/displayguidelines
» All rates are per 1000 impressions.
Digital AdvertisingONLINE
SubPrime Auto Finance News 9
Upload all artwork to sacommunications.com/ad-uploadAuto Remarketing Podcast
ONLINE
Your weekly dose of auto industry news and conversation with top executives, specifi cally tailored for the used-car side of the business. Subscribe today via iTunes or Google Play.
Verbal mentionat beginning andduring the podcast
1 Exclusive leaderboard ad on podcast delivery email
2
SPONSORSHIP OPPORTUNITY PER WEEK - $3,000
10 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-upload
DIGITAL EDITION SPONSOR PACKAGE INCLUDES:
Presentation Page to left of cover and Skyscraper to right.
Leaderboard ad, top, on digital edition delivery email
» Presentation Page (9.5” wide x 11.5” tall) is an ad
that runs to the left of the front cover of the digital
edition. Please submit a 300 dpi, CMYK, PDF for
all ads. If the ad is animated, please submit a SWF
fi le in addition to the PDF. Only Flash animation
is accepted. If animated, the fi rst frame of the ad
cannot be blank. Tracking URLs for Flash ads must
be embedded in the fi le. There is no maximum fi le
size, but the ad should be as small as possible for
optimal page loading.
» The skyscraper ad (120 pixels x 600 pixels)
displays in the right margin of the digital edition.
Skyscraper ads can be submitted as PNG, JPG,
GIF or SWF. If animated, the fi rst frame of the ad
cannot be blank. A static image must be submitted
with the animated fi le. Tracking URLs for Flash
ads must be embedded in the fi le. There is no
maximum fi le size, but the ad should be as small
as possible for optimal page loading.
» Exclusive leaderboard ad (728 pixels x 90 pixels)
on digital edition delivery email. Leaderboard ads
can be submitted as JPG or GIF. We cannot accept
Flash animation for this ad. If sending an animated
GIF, please be sure to create with desired number
of repetitions as well as a properly branded fi nal
frame. The fi rst frame of the animated GIF cannot
be blank. Maximum fi le size: 700KB.
Digital Magazine EditionONLINE
1
2
3
1 2
3
SubPrime Auto Finance News 11
Upload all artwork to sacommunications.com/ad-upload
HOME PAGE
4
1
3
CONTENT PAGE PAGE TAKEOVER
AVAILABLE WEBSITE ADS
AD UNIT SIZE RATES
1. Leaderboard 728 x 90 $100
2. Super Leaderboard 970 x 90 $150
3. Medium Rectangle 300 x 250 $100
4. Medium Rectangle (in content)
300 X 250 $100
5. Filmstrip (up to 5 slides)
300 x 600 per slide (up to 300 x 3000)
$150
6. Page Takeover See ad rep for details $1200/day
7. Interstitial See ad rep for details $750/day
INTERSTITIAL
6
6
6
Digital AdvertisingONLINE
7
5
5
2
*All rates are per 1000 impressions.
12 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-upload
TARGETED EMAIL NEWSLETTERS Email Newsletters allow Cherokee Media Group to put the most current automotive industry news and information in front of key audiences. Our newsletters are only sent to subscribers, so advertisers can be certain that their message is getting to the right consumers.
FILE REQUIREMENTS» Maximum fi le size is 700K for JPG or GIF.
» We cannot accept Flash animation in these ads.
» If sending an animated GIF, please be sure to create with desired number of repetitions as well as creating a properly branded fi nal frame.
» Please ensure that the fi rst frame for animated GIF email placements contains your branding message. In some email clients (such as Outlook 2007) only the fi rst frame of an animated GIF will come through. In order to reach audiences in all email clients, the fi rst ad frame must include this information.
» Please provide target URL.
AD UNIT SIZE (px) POSITION RATE
1. Horizontal Bar 728x90 Banner 1 $2,000 / Month
2. Medium Rectangle 300x250 In-Content $2,000 / Month
3. Horizontal Bar 728x90 Banner 2 $2,000 / Month
AD UNIT SIZE (px) POSITION RATE
1. Leaderboard 728x90 Top Banner $3,000 / Month
2. Horizontal Bar 728x90 Rotating Banners $2,250 / Month
3. Medium Rectangle 300x250 Rotating In-Content $2,500 / Month
SUBPRIME NEWS UPDATE
3
2
1SubPrime News Update brings readers the latest news in the subprime auto fi nance industry and links to autoremarketing.com/subprime.
It is delivered every Monday, Wednesday and Friday to almost over 20,000 subscribers.
» 1 Leaderboard
» 3 Horizontal Bars
» 2 Medium Rectangles
ROTATING BANNERS
Email NewslettersONLINE
AD UNIT SIZE (px) POSITION RATE
1. Horizontal Bar 728x90 Banner 1 $2,500 / Month
2. Medium Rectangle 300x250 In-Content $2,500 / Month
3. Bottom Leaderboard 728x90 Banner 2 $2,500 / Month
SUBPRIME EXTRA E-NEWSLETTER
The SubPrime Extra highlights major news stories in the SubPrime market as they develop. Readers can count on news they can use — without waiting for the next newsletter.
These high-interest bulletins are delivered at least two times a week to almost over 20,000 subscribers.
SUBPRIME EXTRA E-NEWSLETTER
3
2
1
3
2
1
3
2
1
3
2
1
REPO REPORTRepo Report covers this growing market with contributed content as well as news briefs. It is delivered every Wednesday to more than 17,500 subscribers.
AUTO FIN POSTAuto Fin Post covers how data and technology are impacting fi nancing and management. It’s distributed every Wednesday to over 25,000 subscribers.
THE LEGAL FILEThe Legal File keeps our reader in-the-know on regulatory and compliance developments shaping the auto industry. It’s delivered to over 25,000 subscribers every Monday.
SubPrime Auto Finance News 13
Upload all artwork to sacommunications.com/ad-upload
CUSTOM EMAIL MARKETING Let SubPrime Auto Finance News deliver your exclusive message to our subscribers.
Custom emails are a great alternative to direct ‘snail mail’ marketing as they are delivered in a timely, measurable manner.
» $4,500 per email
» Maximum of 80 characters for the subject line
» Format: HTML
» Maximum File Size: 200KB (html + images)
» Recommended width: 500-700 pixels
» Use inline CSS only
» All content must reside BETWEEN <body> and </body>
» Image formats allowed: GIF or JPG only
» All graphics must be 72 dpi
» Text: Maximum of 300 words
» If hosting the images on the S&A Cherokee Web server, be sure to provide all images
WHITE PAPERS
Your data-packed white paper will be delivered to our email subscribership of over 20,000. In addition to the custom email, we’ll provide advertising space on subprimenews.com to market your white paper. Let us help you put your data in the hands of decision makers in the subprime auto fi nance industry.
See your ad rep for details.
Custom Marketing & Other ServicesONLINE
MARKETING WEBINARSBy hosting an exclusive webinar, you provide the topic, presenters and presentation materials. Cherokee Media Group will manage the process and help promote the event. The cost is $6,500 for an exclusive webinar.
With an exclusive webinar, you receive the following:
» Custom marketing campaign
» 45-minute presentation with a 15-minute Q&A session.
» Full data on all registrations (not just attendees!). This includes names, company, title phone number, email address and questions attendees may have had during the webinar.
» Post event metric reporting on marketing campaign.
» Archived webinars on autoremarketing.com/subprime.
14 2018 MEDIA GUIDE
Upload all artwork to sacommunications.com/ad-uploadUsed Car Week Conference
IN PERSON
November 12-16 • The Westin Kierland Resort & Spa • Scottsdale, AZSAVE THE DATE
SubPrime Auto Finance News 15
Upload all artwork to sacommunications.com/ad-uploadUsed Car Week Conference
IN PERSON
20%
29%
15%
17%
12%
7%
ATTENDANCEBY TITLE
Manager 29%
Executive 20%
Senior VP 17%
Director 15%
Dealer / Principal 7%
Other 12%
1330+attendees throughout the entire week of Used Car Week and NAAA Convention
40+Hours ofNetworking
128 Speakers
18 Keynotes
33Workshops
11Panel Discussion
1ST BLOCK 2ND BLOCK
652 900
9%of attendeesattended thefull week
2016 Educational Opportunities
2016 Attendance
Attendance by Conference
Contact us to inquire about sponsorship and exhibiting opportunities.
Why Participate?
Data-Driven ContentBetter position your business and career with data-driven content that offers actionable solutions for addressing your pain-points. Take advantage of cross-learning opportunities that will arm
you with a 360° view of the used-car industry and the impacts of changing consumer behavior, new technologies, regulations and future forecasting.
Brilliant Speakers Connect with and learn from accomplished thought leaders and innovative industry disruptors who will engage you in conversations that will ignite your business engine and strengthen your data-
driven decision-making skills. Personalize your agenda by choosing from a variety of workshops, panel discussions, and keynote presentations.
Expand Your NetworkMeet with the used-car industry’s smartest and most powerful people and expand your professional network during daily
refreshment breaks, evening receptions, and celebratory social events such as luncheons, 5K Fun Run and the NAAA President’s Gala. And those are just a few of the scheduled networking opportunities on the agenda.
Celebrate Industry Excellence Recognize the remarketing and used-car professionals whose record-breaking accomplishments are inspiring the rest of the industry. Join in us in celebrating the
Used Car Awards, Women in Remarketing, Auto Remarketing’s 40 Under 40, Executives of the Year, and other outstanding individuals and companies.
Cutting-Edge Expo HallConnect your brand face-to-face with C-level leaders, decision-makers, and infl uencers who are the driving force behind the remarketing and used-car industry. The Expo Hall is the go-to spot for networking, featuring a curated and engaging experience with
today’s cutting-edge solution providers.
Auto Finance News
Amanda DunlapAssociate Publisher/[email protected], ext. 121
Jessica [email protected], ext. 144
CONTACT US:800-608-7500919-674-6020
919-674-6027 (FAX)
subprimenews.com
Cherise KlugMedia [email protected], ext. 130
Erin SayreSales Support and Media [email protected], ext. 118
Steve [email protected], ext. 156
Nick ZulovichSenior [email protected], ext. 137
Bill [email protected], ext. 117
SubPrime Auto Finance News Magazine is published by
301 Cascade Pointe Lane, Cary, NC 27513