To help dealerships establish a blog and consistently publish content centered around the community, DealerFire shared a trio of recommendations so stores can build stronger connections with customers.

DealerFire began by emphasizing that blog posts can be a powerful tool to communicate a dealership’s commitment to local causes and initiatives.

“Sharing stories and updates on charitable efforts and sponsorships allows potential customers to learn about the dealership’s values and fosters a sense of connection with those who share similar values,” the company said.

Next, DealerFire noted engaging blog previews of upcoming charity drives, sponsorships or volunteer opportunities can generate excitement and encourage participation within the community.

“Sharing this content on social media expands the dealership’s reach, raising awareness among potential customers who might not have known about the dealership’s involvement,” DealerFire said.

Furthermore, DealerFire pointed out that localized blog content focused on community events and initiatives can attract website visitors who are specifically interested in the dealership’s role within the community.

“Sharing event wrap-ups with photos and testimonials keeps the community engaged and builds a portfolio that showcases the dealership’s positive impact. This strategy allows the dealership to tell the story of their community involvement and the lasting difference they’re making,” DealerFire said.

“By leveraging a well-maintained blog, dealerships can cultivate deeper relationships with existing customers, attract new customers who share their values and solidify their position as a valued community partner,” the company went on to say.

To get more assistance with blogs or other parts of store advertising from DealerFire, call (888) 655-1435 or send a message to Contentleaders@solera.com.

The post DealerFire shares 3 tips for stores to publish community-focused blogs appeared first on Auto Remarketing.

We begin the series with an interview of Stephanie Compton, vice president of asset remarketing at Exeter Finance and CMG’s 2023 National Remarketing Executive of the Year, who chatted with senior editor Joe Overby during April’s Auto Intel Summit + National Remarketing Conference in Cary, N.C.

Listen to the conversation in the window below and stay tuned for a print feature story with Compton in Auto Remarketing magazine.

The post PODCAST: Stephanie Compton of Exeter kicks off ‘Consignor Conversations’ series appeared first on Auto Remarketing.

Analysts reported on Thursday that performance continues to weaken, with delinquencies and losses trending higher and recovery rates falling.

“Delinquency and net loss metrics typically improve between January and April as borrowers use tax refunds to cure loan delinquencies,” Fitch said in a news release. “However, the seasonal boost this year has not been as strong as in previous years due to continued economic pressures on borrowers and greater outstanding ABS balances from weaker performing vintages and lenders with weaker collateral.”

Fitch backed up its assertions about how muted seasonal improvement in recoveries and losses were with these figures.

Analysts explained the 1.58% decline in the annualized net losses to 7.90% in April from 9.48% in February was smaller than the nine-year average decline of 1.98%.

Furthermore, Fitch indicated the improvement in recoveries over the same timeframe to 43.03% from 35.82% is much smaller at 7.22%, compared with the 12% average, leaving the 2024 recovery rates at their lowest in the past eight years, with the exception of 2020.

Analysts did acknowledge that the subprime auto delinquency rate declined to 5.23% in April, consistent with the nine-year average seasonal decline, from the all-time high for Fitch’s Subprime Auto Index of 6.39% in February.

“Nevertheless, 2024 delinquencies are tracking higher than during the past 20 years,” analysts added.

Fitch projected further performance deterioration to be tempered by the impact of tighter underwriting and low unemployment, which should increase only modestly to 4.1% at year-end.

Although performance deterioration has affected transactions across all vintages, analysts went on to mention the 2022 vintage has exhibited by far the worst of the recent underperformance.

Fitch explained the 2022 vintage transactions are comprised largely of contracts originated in late 2021 and 2022 when used-car prices peaked, and FICO was inflated due to pandemic era stimulus and excess savings.

What do all of the movements mean? Here’s how analysts wrapped up their latest update.

“While Fitch’s index reflects generally weaker performance across transactions, some of the negative trend is attributable to changes in the composition of the index over time. Newer and smaller lenders’ increased ABS volume has made them a larger portion of the index, and delinquency rates for these lenders have climbed faster than longer-tenured lenders following the pandemic,” Fitch said.

“Just as the composition of the index has contributed to deterioration in trends, we expect that composition changes will have a positive influence over time as weaker vintages pay down, increasing the weighting of more recent originations with tighter underwriting,” analysts continued. “Subprime lenders began to tighten underwriting guidelines in late 2022. As a result, 2023 and 2024 vintage transactions generally outperform 2022 vintage transactions, although they remain weaker than pre-pandemic vintages.

“Despite weaker performance, Fitch expects subordinate subprime auto ABS tranches to continue to be upgraded as transactions have robust structures that are deleveraging and building credit enhancement,” analysts went on to say. “In addition, our ratings reflect a rating case loss proxy that is based on a through the cycle analysis. This is in contrast to Fitch’s base case loss expectation, which is a point-in-time estimate of losses based on Fitch’s current economic outlook.”

The post Fitch: Subprime ABS performance suffers from soft tax-refund bounce back appeared first on Auto Remarketing.

Overall wholesale values last month came in at $14,559, down 11.7% from the April 2023 average of $16,468, according to the report. Prices were down 0.3% from March, when wholesale values averaged $14,603.

For the week ending May 19, the average wholesale price dipped to $14,540, the report noted.

“Wholesale prices were slightly down in April, indicating a plateauing spring market that has continued into May,” Kontos said in the report.

“Prices for late-model vehicles have generally held up better than overall prices, as dealers seek to find affordable substitutes for expensive new vehicles on behalf of their customers.”

Average late-model vehicle prices came in at $24,901 for April, according to the ADESA report, and moved upward to $25,762 for the week ending May 19.

Kontos explains that late-model vehicle values had a more rapid rise than the overall market through March as well as a steeper descent in April.

But their prices have “firmed” this month, he said.

On the retail side, J.D. Power said in data released Thursday that used-car prices have averaged $28,470 this month. That’s down 5.4% year-over-year.

“The decline in used-vehicle values is translating to lower trade-in equity for owners, now trending towards $7,866, which is down $1,438 from a year ago,” said Thomas King, president of the data and analytics division at J.D. Power, in a forecast.

The post How used-car prices are faring this month in wholesale, retail markets appeared first on Auto Remarketing.

Automotive photo, video and data collection company Redline decided to find out, and its recent survey showed consumers believe it’s very important.

The survey of 372 adults — including respondents who indicated they had shopped online for a vehicle in the past three years — found 95% of the respondents believe professional-looking photographs of vehicles on a dealership’s website significantly increase the perceived value of the vehicles.

The survey also showed 87% of consumers would click on a vehicle with a clear, well-lit, well-framed photo over one with a blurry, poorly lit or poorly framed photo. And 57% of car shoppers think a dealership featuring professional images would need to engage in less price negotiation.

Redline said those perceptions indicate “high-quality images attract potential buyers and empower dealerships to maintain their pricing integrity, leading to improved profit margins.”

According to Redline’s study, 94% of respondents expressed a preference for clicking on professional-looking photos first when browsing online inventories, which the company said shows “the critical role” of visual in capturing consumer attention in the competitive digital marketplace.

“Our survey demonstrates professional vehicle photography is not just about aesthetics. It directly influences consumer trust, confidence and ultimately a dealership’s bottom line,” Redline CEO Mike McGlade said in a news release. “By investing in high-quality images, dealerships can enhance their online presence, attract more serious buyers and achieve higher profit margins.”

The post Survey finds consumers more likely to click on vehicles with high-quality photos appeared first on Auto Remarketing.

The automotive technology company announced it’s expanding its partnership with GM by joining the automaker’s equity mining program.

DAS said its consumer data and experience platform, CDXP Complete, includes equity mining capabilities such as matching customers with equity or nearing an equity position on their current vehicle and tracking engagement with its automated communications. The platform also offers integrations with many DMS and CRM systems.

The company said CDXP Complete, which is available to GM’s 4,000-plus U.S. dealerships, enables identity resolution within consumer data between the CRM and DMS, integrates advanced vehicle analytics and provides “additional proprietary features that target the right communication to the right consumer at the right time.”

DAS Technology’s relationship with GM dates to 2013, when the OEM named DAS as its first approved reputation management technology affiliate. Other DAS products that have since been approved for GM’s in-Market Retail co-op funds program include AI chat, real-time lead-quoting/nurturing SaaS and social media engagement technology.

GM has also approved DAS Technology’s CDXP Complete SaaS for IMR funds as a turnkey equity mining solution.

“We are honored that General Motors continues to recognize the value of our technology solutions,” DAS Technology co-founder and CEO Alexi Venneri said in a news release. “Dealers appreciate how innovative we are, continually evolving new SaaS solutions to improve the customer experience and leverage data at every step, which results in more satisfied consumers choosing to buy and service with GM dealers.”

The DAS team has joined GM on a 14-city Convert More Leads Workshop tour for dealers, which began in Detroit this week and will end in November on the West Coast. CDXP Complete and DAS Technology’s consumer engagement products will be displayed in each city’s vendor village.

“General Motors recognizes DAS Technology’s value that its suite of solutions provides to GM dealers across the country,” GM lead management equity mining and BDC manager John Kraemer said. “Equity and data mining are crucial for auto dealerships because, when combined, they can analyze insights and convert them into actionable communications targeting consumers with the right message at the right time.

“It helps our dealers unlock the untapped potential within their data in existing systems — driving increased sales, improved service results, customer loyalty and profitability.”

The post DAS Technology’s relationship with GM gets deeper appeared first on Auto Remarketing.

With newly enhanced GPS tracking and monitoring tools, alongside robust connected vehicle technology, Safepoint dealerships can take advantage of the following benefits:

—A direct communication channel between the dealer and the customer via on-board diagnostic and service scheduling alerts to recapture service appointments.

—100% visibility across lot inventory for low battery and fuel alerts, reducing waiting time for customers and decreasing time to sale.

—A three-click service scheduling process, reducing the dropout rate of lost service appointments by half. (Industry rates sit at between 14 and 21 clicks to an appointment, according to SafePoint.)

—The ability to manage inventory across multiple lots and thwart stolen vehicles through monitoring, alerts and tracking.

—Up to $100,000 additional gross per month through resale of SafePoint vehicle safety monitoring, vehicle tracking and recovery, and vehicle health monitoring devices.

Troy Duhon is the owner of Premier Automotive Group and described his experiences with the tool through a news release provided by SafePoint.

“Since installing SafePoint to manage and monitor our lot inventory we’ve generated an additional $80k-$100k per store, per month, in gross profit and have seen a continued increase in booked service appointments,” Duhon said. “But the biggest benefit of all is the connected car technology and using the diagnostic alerts to recoup our own service customers and bring them back to our bays.”

While continuing to eliminate disruptions to the sale through tracking features like low battery, fuel and theft alerts, SafePoint highlighted the company recently unveiled a connected car feature that pushes diagnostic information to the driver and encourages them to make a service appointment.

In this way, SafePoint said the tool can open a crucial line of communication between drivers and their local dealer by encouraging the scheduling of a service appointment.

“We created SafePoint to eliminate as many roadblocks that disrupt the road to sale as we could,” SafePoint founder Dean Powery said. “We monitor lot inventory management issues by providing low fuel and battery alerts, we increase communication with drivers by pushing diagnostic information to them and enabling them to easily schedule an appointment. We bring customers back to the dealership’s own service department and keep the line of communication open between customers and their dealership in order to increase retention.

“Think of SafePoint as your one stop shop to monitor, track, communicate and retain customers across dealerships,” Powery added.

For more information on SafePoint and its suite of tracking, monitoring, and connected vehicle solutions, watch this video or visit www.safepointgps.com.

The post 5 capabilities of SafePoint’s enhanced vehicle monitoring tool appeared first on Auto Remarketing.

Canadian Black Book’s weekly Market Insights report for the week ending May 18 showed another decrease in Canadian wholesale prices, with an overall drop of 0.38%.

Two segments fell more than 1% in value in a week — compact vans (down 1.26%) and sub-compact cars (down 1.19%) — to lead the trend. Other notable drops were recorded by compact cars at 0.90%, full-size pickups (0.75%), subcompact crossovers (0.74%) and full-size crossover/SUVs (0.72%).

The only segment to record a gain in value for the week was full-size luxury crossover/SUVs, which were up 0.15%.

The truck/SUV category as a whole declined 0.40%, while cars were down 0.35%.

CBB analysts noted many of the same trends as in recent weeks but did spot a wider range in conversion rates with sell rates as low as 12% and a high end of 68%. The average of 20-40% was down from 25-45% the previous week.

The 14-day moving average retail listing price for used vehicles fell by $100 to $33,800, based on approximately 220,000 used vehicles listed for sale on Canadian dealer lots.

CBB also noted the annual inflation rate in Canada dropped to 2.7% in April, down from 2.9% in March and the softest rate of consumer price growth since March 2021.

The decline of vehicle prices in the U.S. market accelerated last week, with all but two segments reporting a decrease in value. Overall, values were down 0.24% compared to 0.11% the previous week and 0.16% in the same week of 2023. Truck segments declined 0.29% while cars were down 0.09%.

“Although there was some reduction in auction inventory,” CBB analysts said in the report, “the volumes being sold by the larger sellers, especially in the OEM lanes, are reminiscent of those seen pre-COVID.”

The post Another week, another decline for Canadian wholesale values appeared first on Auto Remarketing.

The near- and non-prime market share has reached a five-year low.

Open Lending highlighted that in 2019, near- and non-prime consumers represented 20% of new, newly registered vehicles. By the end of 2023, researchers found those consumers represented 14%.

For used vehicles, Open Lending said near- and non-prime consumers represented 42% of the market in 2019 but decreased to 35% in 2023.

“Despite some easing of new-car and used-car interest rates in late Q4, we have yet to witness any increase in volumes or market share in this credit tier,” Open Lending said in the report.

Open Lending surveyed senior leaders across banks, credit unions, insurance companies, and more to understand how macroeconomic factors shape automotive financing challenges and identify opportunities for success through lending enablement solutions (LES).

Despite more financial institutions using LES, Open Lending learned that many finance companies still rely primarily on traditional credit scores to measure creditworthiness.

“This report reveals why quick, comprehensive loan decisions are necessary to build a resilient portfolio and increase yield on existing assets,” Open Lending said in a news release.

Researchers said traditional methods of assessing applicants’ creditworthiness are exposing automotive finance companies to risk and volatility as delinquencies rise.

Three other key findings from the study included:

Three in five finance companies are seeing rising delinquencies, with prime consumers driving them.

When asked about the credit tiers’ impact on driving delinquencies, Open Lending reported an 8-percentage-point increase in the “mostly prime/+” category and a 12-percentage-point decrease in the “mostly near- and non-prime” category year-over-year.

“This shift illustrates the need for alternative data to give a more clear and accurate picture of borrower risk beyond traditional credit scores alone,” researchers said.

There is a positive trend in the adoption of alternative credit data, but there is still room to grow.

“Low credit score” is financial institutions’ top reason for denying credit applications, according to the Open Lending study, with only 40% using alternative credit data for underwriting decisioning.

While this figure is up from 34% in 2023, “it still shows a concerning oversight given heightened delinquency rates,” Open Lending said.

Slow contract decisions are costing businesses crucial opportunities.

Open Lending determined only half of finance companies provide credit decisions with rates within minutes after application submission.

“The lenders who don’t may find that their prospective borrowers will seek and obtain loans from institutions that provide faster decisions,” Open Lending said.

Open Lending senior vice president of marketing Kevin Filan summarized the entire report this way.

“Cautious automotive lenders are focusing their lending strategies on prime borrowers, but this approach is not protecting their portfolios in the way they’re hoping,” Filan said. “This is because credit scores fail to capture the full picture of a borrower’s ability to pay. By reserving approvals for prime applicants, lenders may be filtering out perfectly worthy near- and non-prime borrowers while giving riskier prime borrowers a pass. This phenomenon may explain the uptick in delinquencies over the past year.

“Delivering quick, comprehensive decisions is table stakes for automotive lenders who want to remain competitive,” Filan continued. “Our research found that many lenders still take hours or even days to return loan offers and counteroffers. That’s plenty of time for a worthy applicant to accept a deal from a speedier competitor. Meanwhile, those slower lenders may find themselves stuck with less desirable applicants and rate-shoppers — borrowers who are likely contributing to heightened delinquency rates among lenders who can’t return decisions quickly.”

The post Bottom line from Open Lending’s new benchmark report about near- and non-prime consumers appeared first on Auto Remarketing.

The organizations said the alliance “merges automotive innovation with Canadian sports excellence” and “aims to elevate Canadian cricket for fans across the country.”

“Nissan has been a proud supporter of cricket on a global level for many years, and we’re thrilled to expand the wonderful relationship with Cricket Canada and our national teams,” Nissan Canada director of marketing Ken Hearn said in a news release. “We look forward to cheering on Team Canada as we take on the world’s top cricket teams at the ICC World Cup this summer.”

The partnership includes a prominent place for Nissan branding on the back of the men’s and women’s national team jerseys, providing widespread visibility and solidifying Nissan’s position as a key supporter of Canadian cricket, Nissan said.

“Nissan is about innovation, accuracy and performance — similar to world-class cricket,” Cricket Canada president Amjad Bajwa said. “We are delighted to welcome Nissan Canada as our partner, an iconic brand with a longstanding connection to cricket.

“With Nissan’s logo proudly adorning the backs of our national team players as they make their mark on the global stage, we are confident that together we will drive Canadian cricket to new heights of success and visibility.”

Cricket Canada said Boundaries North, a core partner of the organization, facilitated the partnership.

“We often look to brands that uphold core values of precision and performance,” Boundaries North CEO Rahul Srinivasan said.

The men’s national team is scheduled to participate in several global events in 2024. That includes Canada’s first appearance in next month’s ICC Men’s T20 World Cup, with matches to be played in Dallas, New York and South Florida.

The team also has scheduled against the Netherlands, U.S., Oman and Nepal in August and September.

The post Nissan Canada partners with Canada’s national cricket teams appeared first on Auto Remarketing.

And although there’s room for improvement, dealers are improving the customer experience in the service department.

Both are good signs, given what S&P Global Mobility discovered about the average age of vehicles on the road.

At 12.6 years, the average age of vehicles in the U.S.  in 2024 is at an all-time high, the company said Wednesday.

What’s more, the population of vehicles in the 6- to 14-year-old age group — which S&P Global Mobility called the “sweet spot” for vehicle service — is expected to climb, while numbers for vehicles newer than 6 years old have slowed.

“With average age growth, more vehicles are entering the prime range for aftermarket service, typically from 6 to 14 years of age,” said Todd Campau, aftermarket practice lead at S&P Global Mobility, in a news release.

“With more than 110 million vehicles in that sweet spot — reflecting nearly 38 percent of the fleet on the road— we expect continued growth in the volume of vehicles in that age range to rise to an estimated 40 percent through 2028,” Campau said.

In January, there were 286 million vehicles in operation in the U.S, versus 284 million a year ago.

Less than 90 million of those 286 million are younger than 6 years old, S&P Global Mobility said. It will likely be 2028 before that age group hits that mark again, the company said.

That’s quite a change from pre-COVID times, when there were 98 million vehicles less than 6 years old in the U.S. vehicle population in 2019.

But those “historically high volumes” of younger vehicles have gone in reverse thanks to the COVID-induced supply chain impacts, the company said.

S&P Global Mobility anticipates that for the next five years, about 70% of the vehicle population will be at least 6 years old.

The aging vehicle fleet was also evident in trade-in data from Edmunds.

“How do we know that consumers have made a return en masse? Look no further than an increase in average trade-in ages,” Edmunds director of insights Ivan Drury said in an analysis last week.

“In 2022, new-car inventory constraints forced many would-be buyers with prospective older trade-in vehicles to sit out the market and even had some traditional new-car buyers resorting to used. But as 2024 resembles a more familiar market, trade-ins of older vehicles have begun to return,” he continued.

“In Q1 2024, the average trade-in age for new vehicles climbed to 6.1 years compared to 5.3 years in Q1 2022. The average trade-in age for used vehicles increased to 9.4 years in Q1 2024, compared to 7.9 years in Q1 2022,” Drury said.

Older vehicles have seen growth in the auto auction lanes, as well.

While sales of 1-3-year-old vehicles last month climbed 15% from April 2023, all age bands climbed double-digit percentages year-over-year, according to AuctionNet data from the National Auto Auction Association.

The scope of that growth included a 17% year-over-year gain for vehicles 11 years and older down to an 11% hike for 4-6-year-old vehicles.

The post In good sign for service departments, age of vehicle population hits all-time high appeared first on Auto Remarketing.

The dealership in Davie, Fla., was presented with the Honda President’s Elite Award for the 16th consecutive year, the most ever for a volume Honda dealer.

The award is based on the overall dealership performance, including volume, operational excellence, customer satisfaction and facility. President’s Award status is awarded to about 15% of Honda dealerships annually.

“These accolades are a testament to the commitment and dedication of our 400 associates, and I am so proud of all that they have accomplished as a great team,” Rick Case Automotive Group president and CEO Rita Case said in a news release. “I appreciate our loyal customers, and we look forward to earning this recognition next year.”

The dealership was recognized as the most awarded volume Honda dealer in American Honda history and the largest U.S. volume dealer in 2024 at a celebration led by Rita Case.

The attendees, which included 400 associates and 12 America Honda Motor Company executives from across the nation, were welcomed by the Cypress Bay High School marching band and dance team.

Case’s family has a long association with Honda. Her father was the first Honda dealer in the U.S. and her late husband Rick was the world’s largest Honda motorcycle dealer in the 1970s.

“I think I can safely say that the Rick Case Automotive Group has sold more Honda products than anyone in America,” Rita Case said.

Naderi acquires California Toyota store

Kevin Naderi has acquired Gosch Toyota in Hemet, Calif., from Gosch Auto Group, according to Kerrigan Advisors, which represented the seller in the transaction.

The dealership is located in the Hemet Auto Mall, an area developed in part by Jack Gosch, who founded Gosch Auto Group in 1964. The family-owned business continues to operate dealerships in Hemet and Temecula.

“In 1972, following the success we saw with our Ford dealership, we added Gosch Toyota to our group, and over the years we’ve created a long and successful relationship with Toyota,” said Marc Gosch, co-owner and Jack’s son, in a release. “While it is difficult to part with a dealership that has been a part of our family for decades, we are pleased to continue serving the Hemet community with our Ford, Chevrolet and Hyundai brands.”

The post Dealer news: Rick Case Honda hits unprecedented milestone; California Toyota store changes hands appeared first on Auto Remarketing.

The Wisconsin-based dealership group, which operates more than 45 locations in the Midwest, has joined other Wisconsin Ford dealers in contributing $1 million toward the training of future automotive technicians through the Wisconsin Automobile and Truck Dealers Association Foundation.

Kunes is an active member in WATDA: CEO Gregg Kunes is a member of the WATDA board and many Kunes service technicians work directly with the foundation by offering training and mentorship.

One of Kunes’ techs — Russ Kellom, a service technician at Kunes Buick GMC of Stoughton (Wisc.) — was recently honored by General Motors with the designation of World Class GM Technician. To achieve that status, Kellom received extensive training in everything from engine repair to brakes to heating systems and aced his final exam in Dallas.

“We’re proud of Russ for achieving this gold medal of automotive service and are excited to offer his expertise to the Stoughton community,” Gregg Kunes said. “His commitment to continue growing in an ever-changing field keeps Kunes ahead of the curve.”

The dealer group is also offering first aid training to employees after one of its technicians, Christopher “Ty” Downing, suffered a fatal heart attack on the job last fall. Kunes has since installed AED defibrillators at all stores to honor Downing.

“While it’s unclear whether the presence of defibrillators would have saved Ty’s life, we want to equip our employees with the training and supplies they might need should a similar situation arise,” chief operating officer Scott Kunes said. “We hope Ty’s family will see this as something positive that came from their terrible loss.”

Kunes added that Downing’s colleagues responded quickly and did all the right things, calling 911 and offering CPR.

Firelands adds to its Ohio holdings

Firelands Auto Group, headed by Patrick O’Brien, has acquired two dealerships in Wooster, Ohio, from Dave Hill, according to Tim Lamb of Tim Lamb Group, which brokered the sale.

With the addition of Toyota of Wooster and Volkswagen of Wooster — now known as Firelands Toyota of Wooster and Firelands Volkswagen of Wooster — the Sandusky, Ohio-based dealership group now operates seven stores in the state, as well as a collision center.

The sale also includes an off-site body shop that will undergo renovations and be converted to additional service stalls and lifts. In all, the acquisitions cover three separate buildings and 26,000 square feet of facility space on three acres of land.

Hill, who acquired the dealerships in 2011, continues to operate a used vehicle dealership in Wadsworth, Ohio.

The post Dealer news: Kunes goes all in on service; Firelands acquires Ohio dealerships appeared first on Auto Remarketing.

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With a variety of sessions focused on compliance and other best practices, organizers also are planning an awards dinner and fundraiser for the Recovery Agents Benefit Fund (RABF).

Among some of the agenda highlights are:

A Claim’s Been Filed… Now What? Understanding the Claim Process

Boris Liffring, senior claims analyst with Rockville Risk Management Associates, will explain the claims process. The session will cover what agents should know when claims are filed against them, how to best assist yourself and your carrier and the long-term impact of claims on insurability.

Keying in on the Future of Locksmith Services in the Repossession Industry

Donny Seyfer, executive officer of the National Automotive Service Task Force (NASTF), will project the future of locksmith services in the repossession industry and how agents can set themselves up for success.

And the Verdict Is … Updating State Case Law

Michael Howk, director of education with Recovery Specialist Insurance Group, acknowledged legal terms such as wrongful repossession and breach of the peace are constantly evolving and are defined through changes in case law. With an abundance of litigious debtors and their attorneys, this session will reinforce why it’s crucial to understand how judges, juries and states are responding.

An Independent Contractor May Not Grant You Independence

Taishun Harrington, a stakeholder liaison with the Internal Revenue Service, will host a session since recent changes to the definition of and testing for independent contractor status can greatly impact the repossession industry.

Emerging Challenges of EVs on the Repo Industry

Because of how complex the vehicles are, Dalan Zartman with the Energy Security Agency will share valuable information about how to repossess electric vehicles.

For more event details and to register, go to repo2024.net.

The post Compliance & EVs among topics for REPO 2024 appeared first on Auto Remarketing.

Experian unveiled these enhancements to more than 500 business leaders during its annual Vision conference in Scottsdale, Ariz., representing a significant evolution in streamlining business-to-business software solutions.

Experian highlighted its platform now brings together software tools for analytics, credit decisioning and fraud into a single interface — simplifying the deployment of analytical models and enabling businesses to optimize their practices more frequently, achieving greater efficacy with lower investment of time and money.

Key features and benefits of the platform include:

—Analytics and model development: Clients can access and harness Experian’s proprietary credit and expanded data attributes with powerful analytical tools for insights and explainable model creation.

—Rapid model deployment: Build, test and deploy models from a single interface in days rather than months, streamlining processes and enhancing customer experiences.

—Automated decisioning and risk mitigation: Enables secure, automated decisions and risk mitigation across the customer lifecycle, ensuring efficient operations and improved outcomes.

—Fraud and identity verification: Experian said its platform can stop fraudsters faster and streamline consumer experiences via a suite of software services powered by advanced AI analytics and comprehensive data assets across digital identity, device intelligence, behavioral analytics and credit insights. It delivers unrivaled identity verification and fraud risk detection to enable businesses to grow revenue through seamless consumer experiences and reduce fraud loss exposure.

—Expertise through managed services: While the platform offers automation and low-code functionality, clients can also access Experian’s expertise and top talent through managed services, democratizing advanced analytics techniques for lenders regardless of their resources or analytics experience.

—Continuous monitoring and feedback: Receive continuous monitoring and feedback to adapt strategies in real time and stay ahead of evolving challenges.

—Unparalleled security: The platform is fortified with encryption, robust access controls and proactive threat detection — while maintaining high availability and enterprise-grade performance.

Experian said these platform updates represent a notable milestone — fueled by Experian’s significant investments in innovation over the last eight years as part of its modern cloud transformation.

Experian’s platform is available now in regions including North America, Brazil and the United Kingdom. The enhanced platform is being leveraged by more than 1,500 clients globally, processing 14 million credit reports daily and billions of credit and fraud transactions per year.

In North America alone, more than 8,000 registered users from 80 clients access over 12 petabytes of data weekly for analytical purposes, according to the company.

“Our mission is to develop world-class software and support organizations around the world on their journeys toward more sophisticated fraud prevention, marketing and credit strategies,” said Alex Lintner, who is CEO of Experian Software Solutions. “The evolution of our platform reaffirms our commitment to drive innovation and empower businesses to thrive.

“Its capabilities are unmatched and represent a significant leap forward in lending technology, democratizing access to data in compliant ways while enabling lenders of all sizes to seamlessly validate their customers’ identities with confidence, help expand fair access to credit and offer awesome user and customer experiences.”

The enhanced Experian Ascend Technology Platform now can reduce time to install and offers streamlined access to many of Experian’s award-winning integrated solutions and tools through a single sign-on and managed via a user-friendly dashboard.

The platform also can leverage generative AI to make it easy for clients from organizations of varying sizes and experience levels to pivot between applications, automate processes, modernize operations and drive efficiency.

In addition, existing clients using Experian solutions can now add new capabilities through the platform to enhance business outcomes.

For example, Lendr, a specialized fintech offering contemporary financing solutions for small businesses, is harnessing the power of the platform to enhance competitiveness and informed decision-making.

“Utilizing Experian Ascend Technology Platform has significantly bolstered our agility and competitive edge, empowering us to execute more informed, data-driven credit decisions while substantially reducing our time to market,” Lendr CEO Daniel DeMeo said in the news release from Experian.

“Experian’s platform helps deliver the scalability we need to be nimble, compete effectively and mitigate losses — ultimately helping us double our business over the past year.”

Experian reiterated four points about why this new development matters:

—The world’s top technology companies have set the standard for seamless user experiences and integrations between software components through single sign-on, data portability, and sophisticated no-code or low-code functionality.

—Historically, this type of synchronized experience has been unattainable to many businesses, especially those in the financial services sector.

—Typically, organizations buy software solutions from many different vendors, leverage a variety of tools and applications across different cloud environments, and go through rigorous and time-consuming processes to stitch everything together.

—This fragmented approach stretches timelines unnecessarily, raises security concerns and creates operational challenges. It also increases costs and the likelihood of errors or downtime because such setups are only as strong as their weakest link, perpetually causing issues when any single component fails.

“IT services companies are increasingly delivering their software portfolios as pre-integrated platforms that deliver scale, efficiency, productivity,” said Raymond Pucci, who is IDC research director with Worldwide Lending Digital Strategies.

“For lenders, enterprise architectures like Experian’s Ascend Technology Platform can enable faster credit-decisioning velocity, higher loan quality, and stronger risk management, expanding customer relationships and increasing business growth,” Pucci went on to say.

For more information about Experian’s platform, visit https://www.experian.com/business/products/ascend.

The post 7 enhancements of Experian Ascend Technology Platform appeared first on Auto Remarketing.

The company highlighted Scalability in Alfa Systems 6 can apply to providers looking to expand within their current markets, or breaking into new regions and business lines, but who need to maintain high levels of flexibility while minimizing capital expenditure.

Building on Alfa Systems’ stable, platform, long-term investments by Alfa have delivered the Scalability pillar, equipping finance providers with:

—Optimize and flex resource expenditure: Alfa Cloud’s adaptable resource model offers automated deployments, serverless databases, and SOC1-certified processes — as and when required.

—Onboard new portfolios: Powerful new tooling makes the transfer of acquired portfolios onto Alfa Systems 6 quick and painless.

—Expand into new markets: Through business rules and advanced configuration management, Alfa Systems 6 gives you the power to roll out operations with flexibility and speed. Use the same configuration in multiple countries, or as a seed for rollouts in new regions or business lines.

—Harness true 24/7 operation: New ‘rolling close’ capabilities deliver uninterrupted round-the-clock operations and superior performance. Portfolios can progress smoothly to the next day with zero downtime, enabling always-on digital self-service for all operations (not just quoting).

Alfa head of product Emily Hammond said, “Scalability, the fourth pillar of Alfa Systems 6, allows finance providers to plan efficiently and confidently for extensions to their operations, without worrying about increased capital spend. This allows them to make use of economies of scale and mitigate the risk of higher cost bases.”

To find out more about how Alfa Systems 6, visit alfasystems.com/6.

The post Scalability now available for Alfa Systems 6 appeared first on Auto Remarketing.

Chair Lina Khan appeared before the U.S. House Appropriations Subcommittee on Financial Services and General Government to discuss the agency’s 2025 fiscal year budget request and ongoing work.

“The FTC’s statutory mandate places it on the front lines of some of the most significant hardships confronting American consumers, workers, and small businesses. I am endlessly impressed by the commitment and ingenuity of the agency’s staff, whose hard work and fidelity to that mandate protect Americans’ pocketbooks and their economic liberty,” Khan told lawmakers before recapping seven of the regulator’s most significant accomplishments since seeking Congressional funding last April.

“Funding increases in recent years have contributed meaningfully to our ability to achieve these accomplishments, and they represent only a small slice of the good work of this small-but-mighty agency, which has notched these wins for everyday Americans in spite of opponents who often have near-infinite resources to deploy against us,” Khan continued.

According to her 35 pages of opening testimony, the FTC currently has approximately 1,320 full-time employees, which absorbs about 70% of its annual budget. Khan pointed out the FTC has almost 400 fewer employees than it did in 1980, “when the agency had over 1,700 (full-time employees), even though the nation’s GDP has increased six-fold since that time.”

Khan asked Congress to give the FTC an annual budget of $535 million to employ 1,443 full-time workers, representing an increase of $109 million and 55 employees.

Khan told Congress that this adjustment would fund mandatory and anticipated pay increases and other inflationary non-pay expenses, as well as “critical” IT investments needed for the commission to continue its enforcement work in an “era of big data” and a possible move.

“IT investments are necessary to address the large amounts of data we receive in certain cases, which far exceed the FTC’s hardware, software, and personnel capacity,” she added.

Khan also mentioned the FTC is “exploring ways to reduce facility costs, although savings from these efforts will likely not be realized before the end of (fiscal year) 2025.”

Khan concluded her prepared testimony emphasizing that the budget request “positions us to continue delivering material returns to the American people.

“The FTC continues to seek to fulfill its broad mission on behalf of consumers, workers, and honest businesses using the range of tools and resources Congress has afforded us. We urge you to support the agency’s critical needs in FY 2025 so that the agency can continue delivering on its mandate,” she went on to say.

The post FTC seeks additional annual funding for employees & IT resources appeared first on Auto Remarketing.

The award-winning fintech company that leverages artificial intelligence to successfully underwrite and extend contracts to credit invisible customers said JPMorgan acted as the lead structuring agent with Barclays serving as joint bookrunner and Fifth Third Securities as co-manager.

Tricolor mentioned the Class A, Class B, Class C, Class D, Class E, and Class F were rated by Kroll Bond Rating Agency and Moody’s and were placed with a diversified mix of 27 institutional investors in a private offering pursuant to Rule 144A under the Securities Act of 1933, as amended.

The company noted the transaction was oversubscribed by nearly 6.5 times on available classes, and the Class E and Class F tranches were pre-placed.

“For more than 16 years, Tricolor has developed leading technology alongside a best practice discipline to help America’s most underserved communities overcome systemic financial and mobility challenges,” Tricolor founder and CEO Daniel Chu said in a news release.

“Investors are increasingly embracing double-bottom line models like ours that provide both meaningful value for customers and consistent returns over time. We will continue to aggressively scale in support of our mission to help our customers achieve their American Dream,” Chu continued.

The Tricolor Social Bond is collateralized with contracts that provide access to financing the purchase of a vehicle to low-income borrowers with no FICO score.

Tricolor has secured a second party opinion (SPO) from S&P Global Ratings to provide an opinion on the social benefits of this framework as well as the alignment to the International Capital Markets Association (ICMA) Social Bond Principles.

Tricolor said it has now completed 13 ABS transactions and is the only issuer in all of subprime auto ABS to be certified by the US Treasury as a Community Development Financial Institution (CDFI).

The company issued its first securitization in July 2013.

The post Details of Tricolor’s latest bond to provide auto financing to Hispanics appeared first on Auto Remarketing.

And that’s to be expected, says Cox Automotive.

The company said in a Data Point report last week that independent and franchised dealers combined to sell 1.45 million used vehicles last month, which beat April 2023 by 4.8% but was a 7.0% month-over-month decrease.  The sales estimate is based on Cox Automotive’s vAuto Live Market view data.

What’s more, the past five Aprils have had average sales volumes of 1.56 million, Cox said.

Through four months of the year, there have been 5.72 million used-car sales by dealers, compared to 5.63 million through April 2023.

“As tax refund season winds down, it’s normal to see consumer demand for used vehicles back off in April, and that’s what we experienced this year as well,” Jeremy Robb, who is Cox Automotive’s senior director of economic and industry insights, said in a news release. “With interest rates remaining elevated, consumers need a bit more of a push to buy at this time of year.

“While prices were lower against 2023, it was enough to attract more buyers from the sidelines at this point,” Robb said. “Used retail sales were higher against last year’s levels, but tight inventory and affordability issues continue to be a challenge for the industry.”

CPO sales sluggish

The certified pre-owned segment of used-car retail was also a challenge.

Cox estimates there were 209,265 CPO sales in April, which is down from 214,684 certified sales in April 2023 and 231,927 CPO sales in March. That represents a month-over-month decline of 9.8% and a year-over-year slowdown of 2.5%.

Through four months, year-to-date CPO sales are up 0.2%, Cox said.

Used-car supply trends

Cox provided further details on the used-car supply picture in a separate Data Point report Friday.

As of May 2, there were 2.27 million used vehicles on dealership lots, which beat prior-year figures by 6%. It also beats the 2.22 million at the beginning of April.

Days’ supply of used vehicles was at 46 at the beginning of May, compared with 45 to begin April and even with year-ago figures, Cox said.

And while used-vehicle prices have trended downward this year, the lowest-priced vehicles are the hardest to find, the company said in the report.

“Used cars below $15,000 continue to show constrained availability with only 36 days’ supply, 22% less than all other price ranges. Affordability remains challenging for consumers, and supply is more constrained at lower price points,” Cox said.

Vehicles are also turning more quickly. In its Market Insights report released Tuesday, Black Book said retail used vehicles are currently turning in about 40 days. Earlier this year and late last year, used-car turn rates had eclipsed the 60-day mark at certain points, the data shows.

The post Used-car sales beat year-ago figures, but slow down after tax season appeared first on Auto Remarketing.

The topic surfaced again on Tuesday when Black Book discussed how wholesale prices dropped another 0.24% last week; an amount more than double what lane watchers recorded a week earlier.

“The wholesale market experienced a downtrend for most vehicle types last week, except for full-size car and sporty car (segments), which continued to increase,” Black Book said in its latest installment of Market Insights.

“Another trend that we have noticed is a small decline in auction inventory and noticeably in the dealer lanes,” analysts continued in their report. “This could happen because dealers are keeping more of their trade-ins rather than bringing them to the auction.”

Older trade-ins are what Edmunds director of insights Ivan Drury said could be key to helping dealers cater to potential buyers looking for more affordable transportation.

Affordability is also what Angelica Jeffreys of Equifax noted as primary component to what could make for a successful or challenging summertime sales season that’s set to begin with Memorial Day weekend straight ahead.

Furthermore, Satyan Merchant of TransUnion pointed to affordability as a primary headwind that’s kept auto-finance portfolios from growing more rapidly.

As a result, perhaps dealers are procuring inventory elsewhere or standing pat with what’s already on their lots because Black Book reported the average auction sales rate last week dropped to 56%, dipping 1% from the previous week.

“Although there was some reduction in auction inventory, the volumes being sold by the larger sellers, especially in the OEM lanes, are reminiscent of those seen pre-COVID,” analysts said.

No matter the consignor type, the ones that sent sports cars down the lanes saw prices rise another 0.20%, representing the eighth consecutive week of gains for those summertime rides. Black Book computed that the segment has generated a weekly increase of 0.32% during that stretch.

But those sports cars might be for buyers with more disposable income and financial resources. Black Book returned to the affordability conversation when continuing its analysis of the car space, mentioning that values for subcompact cars decreased another 0.41% last week.

That movement marked the sixth week in a row of declines for subcompact cars, with an average weekly drop of 0.37%, according to Black Book tracking.

“Although these vehicles are considered ‘affordable,’ the segment witnessed only four weeks of increases in April,” analysts continued about sub-compact cars. “In contrast, its larger counterpart, the compact car, experienced a streak of 17 consecutive weeks of growth before seeing a slowdown.”

Meanwhile, in the truck department, Black Book watched all 13 segments soften for the first time since the middle of January, dropping 0.29% overall.

Caught up in that situation were full-size crossover/SUVs, as analysts said their 10 straight weeks of value rises ended with a 0.29% decrease.

Black Book elaborated about what’s happening with vans.

“Full-size vans have consistently depreciated over the past seven weeks, with an average weekly decline of 1.00%,” analysts said. “Although the compact van segment has also been depreciating, it has been doing so at a slower pace. Nevertheless, last week saw an increase in the rate of decline for compact vans, falling by 0.62%, a notable increase from the previous week’s decrease of 0.13%.”

With the industry moving toward a holiday weekend and dealers trying to satisfy customers, Black Book reiterated “as always, our team of analysts is focused on keeping their eyes on the market for developing trends and gathering insight.”

The post Lane watch: Developments connected to affordability surface at auctions, too appeared first on Auto Remarketing.

The company’s technology allows automakers, dealers and rental car companies to provide vehicle usage models like car subscriptions and micro-leasing. Porsche, Subaru, Polestar and SIXT are among the companies to which it provides mobility management software.

The round includes funds from existing investors Upswell, Common Sense Ventures and Luxem, plus new investors AeroCorp, a major AVIS licensee, and RAC venture capital arm BetterLabs.

Its network includes more than 55,000 vehicles.

“Car subscription is already financially attractive for consumers, particularly consumers who prioritize flexibility,” co-founder Michael Higgins said in a news release. “As automakers refine their pricing models, we anticipate further reduction in costs.”

He later added: “The automotive industry is undergoing rapid innovations with electric and autonomous vehicles. The next significant breakthrough will be in transforming the car ownership experience, especially as vehicles increasingly incorporate advanced technology.”

Higgins contends that consumers are starting to find vehicle access more attractive than vehicle ownership.

“We are confident that flexible ownership alternatives will soon be the default choice for hassle-free, affordable vehicle access,” he said.

The post Australian mobility software provider raises $3.95M to expand to US appeared first on Auto Remarketing.

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In a news release, DAA said Swofford, who most recently served as America’s Auto Auction senior vice president, brings a strong focus on operational efficiencies, staffing accountability and safety, and “has demonstrated exceptional leadership and strategic acumen” throughout his 30-plus-year career in the auto auction industry.

During his tenure of almost 14 years with America’s Auto Auction, DAA said, Swofford spearheaded initiatives that led to significant revenue growth, operational excellence and the cultivation of top industry talent, including overseeing the design and construction of a greenfield site in Houston. He also served as general manager of America’s Auto Auction Austin (Texas), where, DAA said, he significantly increased auction sales and revenue.

John Swofford

He previously served in management positions with several Manheim auctions and helped that company open its first location in China.

DAA CEO David Andrews said Swofford’s “proven leadership, strategic vision and wealth of experience in the automotive industry will undoubtedly elevate our operations. With John at the helm, we look forward to achieving new heights of success and delivering unparalleled value to our customers and clients.”

The post DAA adds former America’s Auto Auction exec Swofford as new VP appeared first on Auto Remarketing.

That’s sugar as in Sugar Ray, the rock band that charted four top 10 songs in the late 1990s and early 2000s, which will be the headline act for the annual event, set for July 17-18 at the auction in Spokane, Wash.

DAA Northwest general manager Collin McConkey said the band “brings a great summer vibe to this year’s Rock & Roll Sale. Sugar Ray sets the stage for our customers to come together and do business in a fun, relaxing environment.”

Over the years, Sugar Ray has shared the stage with The Rolling Stones and KISS, collaborated with Run-DMC and has been sampled by Post Malone. Rock & Roll Sale attendees will hear Sugar Ray’s hits “Fly,” “Every Morning”, “Someday” and “When It’s Over” during the band’s July 17 performance. Tickets are required for the concert.

The event also includes auctions on Wednesday and Thursday mornings. For information visit magauctions.com/rockandroll.

The Rock & Roll Sale has been a hit for DAA Northwest and its parent company, McConkey Auction Group, since Jerry Lee Lewis played the first sale in 1996. Since then, the private event for customers and guests has hosted Chuck Berry, The Doobie Brothers, Heart, Barenaked Ladies and many more.

The post Sugar Ray to headline DAA Northwest’s Rock & Roll Sale appeared first on Auto Remarketing.

The automotive digital retail software provider announced it has joined the Amazon Web Services Partner Network (APN) as a software partner.

The APN is a global community of AWS partners that leverage programs, expertise and resources to build, market and sell customer offerings. CarNow said membership in the APN enables it to provide technology to streamline automotive dealership operations and facilitate seamless transactions between dealers and their clients.

Through the APN, CarNow will have access to AWS’s generative artificial intelligence tools. The company said it will initially focus on incorporating that AI capability to create an enhanced customer experience, using machine learning to optimize business operations for clients and helping customers increase productivity.

“There’s an accelerating need for technologies that can help businesses streamline their operations, perform more efficiently and improve the overall customer experience while boosting the bottom line,” CarNow vice president of applications Chelsea Beerse said in a news release. “The number of companies that claim to be able to deliver high-value technology solutions has proliferated at a breakneck pace. AWS created its partner network to ease the process of finding a trusted technology partner.

“Further, our joining the APN communicates to our current and potential customers that we are enhancing our solutions by incorporating technologies such as generative AI that add profound value across the board.”

CarNow joins a global network of 100,000 partners from more than 150 countries working with AWS to provide innovative solutions, solve technical challenges, win deals and deliver value to mutual customers.

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Much like in recent years though, affordability remains a key issue as the industry faces challenges in maintaining sales volumes due to high prices and interest rates. While there are some signs that affordability pressures may ease as summer begins, dealers need to maximize every opportunity this Memorial Day weekend to get a jump on the summer selling season.

In the fiercely competitive automotive landscape, understanding a consumer’s financial capacity to absorb affordability challenges is paramount for dealerships seeking to thrive. With the evolution of technology, data has become the cornerstone of marketing strategies, enabling businesses to pinpoint potential buyers effectively. However, the choice between using precise, measured data and traditional survey data can significantly impact the effectiveness of marketing efforts.

Let’s delve into the importance of these approaches in identifying in-market consumers who can afford to buy cars.

The shift toward data-driven marketing

Gone are the days when marketing decisions were based solely on generalized demographics. Today, data-driven insights reign supreme, allowing auto dealerships and OEMs to target their efforts with surgical precision. Whether it’s understanding purchasing patterns, income levels, or creditworthiness — data serves as the compass that guides dealerships toward their target audience.

More data drives better decisions, and marketers have access to valuable insights including detailed financial characteristics, aggregated credit scores, and purchasing behaviors of potential customers. This wealth of information enables dealerships to identify individuals actively in the market for a vehicle and, more importantly, those who have the financial means to make a purchase.

Precision marketing: Measured versus survey data

Measured data provides dealerships with tangible insights. Instead of relying on assumptions or estimates, dealers can make informed decisions based on accurate information. This not only enhances the effectiveness of marketing campaigns, but also minimizes wastage of resources by targeting individuals most likely to buy.

While surveys have traditionally been used to gather consumer insights, they come with inherent limitations. Survey responses may be biased or inaccurate, leading to skewed results. In the fast-paced world of automotive retail, relying solely on survey data may result in missed opportunities and ineffective marketing strategies.

When comparing precise, measured data with survey data, the advantages are clear. Real-time, comprehensive insights can be utilized to more effectively reach consumers, enabling dealerships to tailor their marketing efforts accordingly. From identifying high-potential leads to customizing messaging based on financial profiles, dealerships can maximize their return on investment and stay ahead of the competition.

In an industry driven by competition and evolving consumer preferences, leveraging precise, measured data is no longer optional — it’s essential for success. A data-driven approach provides marketers with a strategic advantage, enabling them to identify in-market consumers who can afford to buy cars with unparalleled accuracy. By embracing measured data solutions, dealerships can unlock new opportunities, streamline marketing efforts, and ultimately drive growth.

Dealers, OEMs and agency partners can enhance their creative campaign investments by identifying the right customers who have spending power now, ensuring that the holiday weekend serves as a launchpad for a successful summer car sales season in an increasingly competitive market.

Angelica Jeffreys is vice president sales, enterprise alliance – automotive for Equifax.

The post COMMENTARY: How will dealers overcome affordability challenges to maximize Memorial Day sales opportunities?  appeared first on Auto Remarketing.

With that rise in mind, Moneywise recently analyzed 11 factors to determine which states contain elderly U.S. citizens — individuals over age 65 — with the greatest risk of bankruptcy.

Perhaps not surprising to some, Moneywise pinpointed California as the state where elderly individuals face the greatest risk of bankruptcy and Iowa as having the least amount of risk.

The study determined each state’s risk of bankruptcy by assigning each state a risk score out of 100 based on factors such as poverty rates, debt-to-income ratios, healthcare expenses, and overall cost of living.

In the study, Moneywise said bankruptcy is defined as a situation in which an individual’s income and assets are insufficient to cover their expenses or repay their debts.

Moneywise said California poses the greatest danger to the financial health of its elderly population, with a total risk score of 69.72.

In the country’s most populous state, Moneywise discovered one out of every five elders has an annual income below 150% of the federal poverty line, which the Department of Health and Human Services has currently set at $15,600 per individual, $20,440 per couple and $31,200 per family of four.

In addition to low earnings, Moneywise pointed out the whole state population encounters high everyday costs, which contribute to great financial risk.

According to MERIC data, California faces 27% higher average utility costs, 26% higher average transport costs, 12% higher average grocery costs, and 99% higher average housing costs than the national standard.

Further highlighted by its average debt-to-income ratio, which stands at 1.75 as of 2022, the average healthcare cost per person is $10,200, according to Moneywise.

Meanwhile, Iowa was found to be the safest state, with a final risk score of 19.95.

Moneywise said only 1.4% of the elderly population are below the 150% poverty line, with access to relatively affordable everyday expenses.

Researchers found that housing costs are 26% cheaper than the national average, utility costs are kept 4% lower, and grocery costs are 3% more affordable.

The study also showed the average healthcare cost per person is $9,700, 5% cheaper than California’s average. The state also maintains an average debt-to-income ratio of 1.24.

After California, the states where the elderly are most vulnerable to filing for bankruptcy include Alaska, Massachusetts, Hawaii and Maine.

After Iowa, the states where the elderly are least vulnerable to filing for bankruptcy include Nebraska, Wisconsin, North Dakota and Kansas.

“The dream of a secure retirement can quickly become a nightmare for seniors facing overwhelming debt. Unaffordable mortgages, overspending, and rising healthcare costs can all contribute to a financial crisis,” Moneywise vice president of marketing and product Kris Bruynson said in a news release.

“But for older adults, bankruptcy can be especially devastating, instantly wiping away a lifetime of savings. The vulnerability of elderly debtors is particularly concerning,” Bruynson continued. “As people age, their ability to earn income often decreases, while healthcare expenses can skyrocket. This can leave retirees with a crushing burden of debt and few options for managing it.

“Seniors make up 8% of bankruptcy filers, with the trend only increasing. This highlights the urgent need for a more stable retirement system, where each state should consider implementing programs and policies that protect older adults from further financial hardship,” Bruynson went on to say.

For more details about the study, go to https://moneywise.com.

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Retail automotive advisory firm Dave Cantin Group has launched an AI-powered data-mining software designed to provide data-driven valuations for U.S. new-car dealerships, regardless of brand, location or direct input from the dealership.

DCG said its proprietary software takes in more than 250 million data points and processes billions of data points to create real-time profiles of the more than 18,000 franchise dealerships nationwide.

The AI-powered software uses that data to establish financial information, performance data and an overall valuation for each franchise dealership. It also includes a tool to compare any subset of dealerships real time, the company said.

“Our proprietary Jump IQ software provides a significant advantage to automotive dealers who work with the Dave Cantin Group,” DCG founder and CEO Dave Cantin said in a news release. “With Jump IQ, Dave Cantin Group owns accurate, reliable real-time data that directly improves our ability to secure successful M&A outcomes for our clients.”

DCG said it began developing the software in late 2022 and has been testing it with industry stakeholders for the past six months. The company will begin widespread use of Jump IQ in its core M&A acquisitions business next month June, with the expectation it will most benefit dealership automotive groups actively seeking to acquire dealerships that are not listed for sale.

“More than half of the deals done in retail automotive are initiated by a buyer looking for a targeted acquisition,” Cantin said. “With Jump IQ, when we sit down with a buy-side client, we can model and pull up information with respect to any dealership on a big screen and strategically identify top targets based on geography, brand, revenue, performance or any number of other criteria.

“When we use that data to engage a target dealership’s principal to gauge interest in a possible divestiture, we’re informed and can engage with the assurance that our buyer’s interest is truly qualified.”

DCG is introducing a fee-for-service advisory model in conjunction with the rollout of Jump IQ that will allow dealership groups to use Jump IQ for strategic platform management.

The company said it will expand its advisory offerings later this year to include a Jump IQ-powered service that will allow it to look at more than 40 dealership key performance indicators and advise clients about the greatest opportunities for optimizing performance for enterprise value.

Data outcomes have been tested against actuals from cooperating dealers, with Jump IQ testing within a 1-9% variance across all key financials and KPIs, DCG said, adding those outcomes will continue to improve as use of Jump IQ increases.

The post DCG launches AI data-mining software for dealership valuations appeared first on Auto Remarketing.

In his new role, Boshell, who joined AutoIMS in June, will take on comprehensive responsibility for the entire client-facing team, including solutions client support, and marketing.

“Bo joined us just a year ago and hit the ground running,” CEO Venkat Krishnamoorthy said in a news release. “It has been remarkable to see how quickly he learned about our products, processes, employees, clients and the industry. He is an excellent listener and always strives to understand where a customer is coming from before thinking of strategic solutions to help them.

“I am glad he joined us, and we look forward to his important contributions to the future of AutoIMS, our customers and the industry.”

Boshell came to AutoIMS in June 2023 as senior director of client success, overseeing solutions and marketing, after 18 years in a variety of roles with DataScan — most recently as AI support and logistics manager.

“We have a clear mission at AutoIMS to connect the remarketing industry and add value to our clients however we can,” he said. “The AutoIMS team has deep industry expertise and a truly innovative culture to complement our products and services.

“We will maintain and reinforce our strong commitment to our clients, employees and stakeholders, and help consignors improve efficiency and reduce risk. Building on our unique voice in the marketplace, we will celebrate employee milestones and industry relationships.”

The post AutoIMS promotes Boshell to VP of client success appeared first on Auto Remarketing.

The dealership software provider has established the Automotive Amplifiers Contest, open to individuals or groups of automotive dealership employees to highlight “inspirational and collaborative ideas” they’ve developed to advance the industry.

Entrants will compete in three categories: fixed operations, variable operations and community impact. Three finalists in each category will be selected to share their ideas at the annual Reynolds Retail Summit in August to vie for one of three $5,000 prize donations to the charity of their choice.

The nine finalists will have five minutes to show off their entries to the judges and attendees, with winners being selected and presented their awards during the event.

“The automotive industry is full of incredible people making a major difference at their dealerships and in their communities, all over the country,” Reynolds and Reynolds president Chris Walsh said in a news release. “We want to recognize and celebrate the individuals who are making those positive impacts and help them share their stories.”

All submitted contributions will be published this fall in a new Reynolds publication, Amplify Automotive Magazine. The nine finalists will receive a VIP ticket to the Reynolds Retail Summit: Amplify 2024, which includes flight, meals, accommodation and full access to the event.

Entries will be accepted through mid-July and will be judged by experts in the automotive field.

“If you are a dealership employee, or group of employees, this is your opportunity to show what you’ve done to amplify automotive at your dealership or in your community,” Walsh said. “We hope you seize this moment to inspire the industry.”

For more information and to submit a best practice, visit www.reyrey.com/amplifierscontest.

The post Reynolds and Reynolds creates contest to celebrate Automotive Amplifiers appeared first on Auto Remarketing.

Mine is The West Wing. The writing is phenomenal. The acting is outstanding. And, as you might know, I love politics.

An episode titled “Constituency of One” follows deputy chief of staff Josh Lyman after he is dubbed the “101st Senator” because of his success in convincing politicos in Washington to see things his way. Legend has it Lyman once sent a congressman a dead fish to help motivate him.

Lyman downplays the hubbub, telling West Wing staffers they serve a constituency of one, that being the President of the United States. One staffer immediately pushed back and said she also serves a constituency of one — herself.

I have thought about the meaning of “constituency of one” over the course of my career.

I have worked for politicians, engaged politicians in professional and personal settings, and may have even been considered a politician at one point in time.

After decades of meetings with individuals and entities while in government service and while representing individuals and entities before government bodies, I have come to the same conclusion that fictional White House staffer did. Ultimately, we are all constituencies of one, to ourselves and our businesses.

Think about the idea of your business being a constituency of one. What does that mean to the dealership? Why is that important? What should you do to represent your constituency of one?

Being a constituency of one means you each have a story to tell.

You know your business. You know your business’s impact on your employees, on the economy and on your community. You know the day-to-day challenges dealerships face. You know how your dealership fits into the larger automobile retail industry.

Who better to tell this story — your story — than you?

I can assure you government officials want to hear from you. They need to hear from you. Think about the litany of issues your city council members, county commissioners and congressional representatives have on their plate at any given time.

When you think about the number of issues they face, their knowledge is often a mile wide and an inch deep. They need you to provide the substance of understanding.

Perhaps you’re wondering if your engagement will make a difference. Let me share a few examples of how the voice of the dealer has made a difference over the years.

It’s the dealer voice that has repeatedly pushed back against proposed legislation that would prohibit the sale of vehicles with open recalls.

It was the dealer voice that led to the revocation of the Consumer Financial Protection Bureau’s flawed guidance on dealer-assisted financing.

It was the voice of the dealer that led Congress to revoke the CFPB’s ill-conceived, anti-consumer arbitration rule.

It was the voice of the dealer that kept 100% deductibility of floorplan interest expenses in the Tax Cuts and Jobs Act.

It was the voice of the dealer that helped defeat overreaching buy here-pay here legislation in Oregon.

And more recently, it was the voice of the dealer that convinced federal, state and local governments that automotive sales and service were essential businesses to remain open during the pandemic.

This is far from a complete list, but these things don’t happen without you telling your story.

How do you get started? Reach out to your local, state and federal elected officials. Invite them to come by the dealership and see first-hand what you do and how you do it.

I would also encourage you to get involved in your dealer associations. Consider contributing to their political action committees, which support candidates for office who will champion our industry.

One final piece of advice — leave the dead fish at home.

Shaun Petersen, executive vice president and chief legal officer of Buckeye Dealership Consulting, is a former Ohio senior deputy attorney general who has previously served the auto industry as an attorney representing dealers and as senior vice president of legal and government affairs for the National Independent Automobile Dealers Association.

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The vice president of product management at Experian explained his reasons during this episode of the Auto Remarketing Podcast recorded at this year’s Auto Intel Summit + National Remarketing Conference in Cary, N.C.

Listen in the window below.

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Those are two of the top findings from the study titled “Consumer Trends Driving the Future of Loan Payments,” recently released by PayNearMe, which added consumers’ expectations for convenience are leading to more dissatisfaction with traditional loan repayment processes.

PayNearMe said its study also revealed other challenges in the repayment process that can create poor payment experiences and jeopardize customer loyalty and potential future revenue.

The study, based on a March online survey of 1,574 U.S. consumers aged 18 and older, showed:

—42% of respondents say they feel disorganized when repaying loans; up 75% from a previous report published three years ago, indicating a critical area for improvement in the repayment process. PayNearMe noted this metric stood at 24% in 2021.

—76% more respondents report experiencing stress and anxiety when managing and making loan repayments compared to three years ago, as it came in at 51% in 2024 and 29% in 2021.

—61% of those surveyed say they wish managing and repaying loans was easier, reflecting a strong desire for user-friendly payment experiences (a 39% increase).

—Preference for digital wallets as available loan repayment options is growing for survey respondents. For instance, 54% prefer PayPal as an option compared to 43% in 2021 (a 26% increase), and Cash App has jumped 95% in preference, from 22% to 43%.

—69% of respondents appreciate a personalized payment experience and 80% would like their payment screen dynamically populated with their contract details.

—82% of those surveyed say a poor repayment experience, such as limited payment options, would influence their decision to work with a different finance company for future financing.

“The industry has reached a tipping point, as evidenced by the overwhelming responses that indicate the critical importance of payment experiences in shaping customer satisfaction,” PayNearMe executive vice president and chief marketing officer Anne Hay said in a news release.

“The gap between consumer payment preferences and the payment experience that lenders currently provide continues to widen,” Hay continued. “It’s clear that the personalization of payment experiences could alleviate the current stress and dissatisfaction associated with traditional loan repayment processes, and choice of payment options is key to personalization.”

The study also showed payment preferences continue to increase for alternative payment methods, specifically digital wallets, as evidenced by survey respondents reporting the following options as being important or very important:

—54% say PayPal (up from 43% in 2021 – a 26% increase)

—44% say Venmo (up from 27% in 2021 – a 63% increase)

—43% say Cash App Pay (up from 22% in 2021 – a 95% increase)

Additionally, 38% of survey respondents noted that having the ability to use a stored balance on a digital wallet such as PayPal, Venmo or Cash App Pay would make paying loans easier.

According to the study, one in four survey respondents said not having their preferred payment types available makes loan repayment difficult.

“Expanding payment types and channels is no longer optional for lenders. The data underscores a clear trend toward the increasing importance of digital wallets for loan repayment,” Hay said. “If lenders want to create the customer experience consumers desire, payment choice and convenience are critical factors,” she continued.”

Hay also mentioned the study sheds light on consumer preferences and frustrations with the repayment process and sets the stage for finance companies to innovate and adapt in ways that can lower the overall cost of accepting payments.

Nearly one in five survey respondents (19%) regularly call customer service to pay their contract, which can lead to overburdened agents and higher costs for finance companies.

“When lenders drive their customers to personalized, self-service channels, they ultimately lower their operational costs while freeing up their staffs’ time to focus on other tasks,” Hay said.

“Consumers expect loan repayment to be as effortless as placing an order on Amazon,” she continued. “With reminders that include a personalized payment link, PayNearMe is enabling lenders to deliver what consumers ultimately want—an easy, click-and-pay self-service experience.

“The industry has reached a tipping point, as evidenced by the overwhelming responses that indicate the critical importance of payment experiences in shaping customer satisfaction,” she went on to say. “With nearly eight in 10 respondents (79%) expressing a likelihood to stick with the same lender in the future following an exceptional payment experience, it’s clear that a quality experience has become an important factor in consumer decision-making. For the borrower, the payment experience is the customer experience.”

Hay elaborated about the study findings even more during an episode of the Auto Remarketing Podcast. Hay also addressed a question she said she gets regularly about whether traditional cash payments will ever go away.

Listen to the conversation in the window below.

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MPH.com said the partnership is designed to build consumer trust, increase quality leads for dealers and accelerate transaction times.

The integration of CARFAX reports into the marketplace, MPH.com said, promotes transparency in the vehicle purchasing process by providing potential buyers with extensive history information on exotic vehicles, including any previous reported accidents, service records and details about ownership history.

Listings that include CARFAX reports will be identified by a logo and descriptive text accompanying the listing.

MPH.com executive vice president Mackenzie Valk said the integration “not only enhances transparency but also fosters consumer confidence within our platform. This represents a significant advancement in our ongoing commitment to providing an unparalleled online shopping experience and establishing our platform as the premier destination for luxury automotive purchases.”

MPH.com features exotic, hypercars and supercars, facilitating connections between clientele and luxury dealerships across the U.S. and Canada.

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Zeigler Auto Group and Hendrick Automotive Group were selected for Glassdoor’s inaugural list of Best-Led Companies, a new award that “honors employers with best-in-class leadership … based on what we know matters most to workers.”

The 50 businesses on the 2024 list were selected through Glassdoor’s ratings of CEO approval ratings, senior management ratings and senior leadership sentiment. The leadership approval ratings are determined based on the quantity, quality and consistency of reviews from March 1, 2023, to Feb. 29, 2024. Companies must have more than 1,000 employees and at least 100 ratings on CEO job performance and senior management to qualify.

Hendrick ranked 13th, while Zeigler was No. 30 on the list.

“This award to me is all about our amazing teams and leaders,” Zeigler Auto Group CEO and president Aaron Zeigler said in a news release. “We are fortunate to have a good group of strong leaders who are innovative and hard-working.”

Zeigler Auto Group has an overall 4.7-star rating among Glassdoor reviews, with a 96% “recommend to a friend” rating, based on 477 ratings at the time of publication. The Kalamazoo, Mich.-based company employs more than 2,000 and operates 35 franchise dealership locations, as well as a used-car store, three Byrider franchises, a massive powersports dealership/action park and more.

Zeigler was also among Glassdoor’s Best Places to Work for 2023 and 2024, and was cited by the Glassdoor Economic Research Center as sixth among the Top 10 U.S. Companies for Work-Life Balance.

Hendrick employs nearly 11,000 employees and operates 131 retail franchises in 13 states. It has an overall Glassdoor rating of 4.3 stars in more than 1,000 reviews, with 84% saying they’d recommend the company to a friend.

Glassdoor CEO Christian Sutherland-Wong said the new award “showcases those shining examples of companies where senior leadership is putting work-life and people first, according to the millions of ratings and insights provided by those who really know a company — employees.”

The full rankings are available here.

Howard Bentley Buick GMC earns 9th GM Dealer of the Year honor

Howard Bentley Buick GMC in Albertville, Ala., has been named a Dealer of the Year by General Motors for the ninth consecutive year.

The dealership, owned by Wayne Bentley and operated by general manager Taylor Bentley Conner, earned the award for outstanding performance in sales and providing an exceptional customer experience during 2023.

The annual award program honored just 22 of the 1,700 GMC dealers nationally.

“Our customers, employees and the local communities we serve are our biggest reward,” Wayne Bentley said. “We are proud of the recognition, and while we have evolved and grown, our unwavering commitment of providing service to exceed the customer’s expectation never goes away.

“We’ve created a dealership experience that is much more than transactional, and that has really made a difference. Thank you to my daughter, Taylor, for heading everything up at the dealership and to the entire team for such devoted work every single day.”

The third-generation family-owned and operated dealership has also been recognized for more than 20 years with the Buick and GMC Mark of Excellence awards.

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FordDirect is a joint marketing and advertising joint venture between Ford Motor Co. and its dealers that serves as the data hub connecting them. In that capacity, it collects data, including direct streams of incentives and digital content, that allows FordDirect to analyze consumer interactions.

The partnership integrates that data with DriveCentric’s CRM platform, which the company said combines automation, engagement tools and real-time insights to offer the dealers the capability to drive retail sales and strengthen brand loyalty.

In a news release, DriveCentric said its platform, enriched with FordDirect’s data feeds, provides “actionable insights, enhancing decision-making processes and offering in-the-moment coaching for sales teams.”

“At FordDirect, we strive to be an indispensable partner to Ford dealers and Lincoln retailers in new ways by offering choice with partners like DriveCentric,” CEO Dean Stoneley said in the release. “The dealers with DriveCentric love the product, which is why we decided to make it even more widely available to give new options for technology that helps dealers focus on their business and their customers.”

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The purchase of the four Greenway of the Shoals stores in the Muscle Shoals area on the Tennessee River — Honda, Nissan and Chrysler Dodge Jeep Ram FIAT dealerships in Florence and a Toyota location in Tuscumbia — raises ZT’s total to 13 locations in Texas, Florida, Georgia and now Alabama.

The Honda and Nissan stores are ZT’s first with those brands.

“ZT Automotive’s growth aligns with our strategic vision to expand our presence across the Southeast and diligently build a portfolio in areas where we’re poised for success,” CEO Taseer Badar said. “Our commitment to delivering top-notch service and optimizing operational efficiency has consistently driven revenue growth and enhanced profitability throughout our automotive business.”

The dealerships, which are expected to generate more than $195 million in annual revenues, will be renamed Singing River Toyota, Singing River Honda, Singing River Nissan and Singing River Chrysler Dodge Jeep Ram FIAT, which ZT said a news release “pays homage to the region’s rich musical and recording studio legacy.”

President and operating partner Zeeshan Shaikh said the dealerships’ staff will remain in place.

Chief investment officer Sheheryar Shah said ZT Automotive is focused on continued growth.

“This acquisition emphasizes our commitment to creating value for our customers, investors and talented team,” he said. “We plan to continue acquiring top-quartile and cash-flowing dealerships where we can leverage our operating strength to enhance business operations and profitability.

“Our automotive portfolio continues to deliver strong returns, and we are confident that the Alabama acquisition will yield similar results.”

Greenway Automotive, which still owns 30 dealerships throughout the South, sold the Shoals stores to reallocate capital in order to acquire dealerships in larger markets, according to Haig Partners, which represented the seller in the transaction.

Everett Hellmuth (right) accepts the Corporate Leader Award from Central Union Mission president Joe Mettimano. Photo courtesy of Passport Auto Group.

Passport Auto president honored by local charity

Everett Hellmuth, president of Passport Auto Group, was presented the Corporate Leader Award for his commitment to helping those in need at Central Union Mission’s 140th Anniversary Gala last month in Washington, D.C.

Hellmuth and Passport Auto Group have sponsored Central Union Mission for almost 10 years, providing donations to assist with food, shelter and programs.

“Everett Hellmuth and Passport Auto Group are critical partners for the success of Central Union Mission,” mission president Joe Mettimano said. “Not only is he one of our most generous donors, providing substantial cash support and vehicle donations, he also is a strategic partner, providing jobs for people the mission assists through our various programs.

“Everett’s work not only benefits the mission, it benefits the entire DMV community.”

Hellmuth has supported and sponsored various charitable organizations since founding Passport Auto Group in 1991. The group currently operates nine locations in the D.C. area.

“It is humbling to receive this award,” Hellmuth said. “I am honored to be able to make a small difference at Central Union Mission. They are the true heroes, helping transform lives in our nation’s capital.”

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To thrive in this competitive landscape, auto dealers must embrace technological advancements, particularly artificial intelligence (AI) and predictive modeling, to navigate inventory risks effectively and drive sustainable growth.

Q1 sales & inventory data

These advanced technologies are growing in importance because of the state of auto sales, as well as the need to better manage inventory risk.

Auto sales volume in April dropped for the first time in 20 months for carmakers, slipping 3.9% to 1.32 million on the month, compared with the same month last year.

The seasonally adjusted annual rate of sales in April was recorded at 15.7 million vehicles, near the bottom of the range of forecasts — 15.6 million to 16 million — according to projections from J.D. Power/GlobalData, Cox Automotive and S&P Global Mobility.

Dealers are slowly realizing that the days of easy profits have come to an end. Following the pandemic, the shortened supply of new vehicles put dealers in the drivers’ seat, controlling much of the pricing and profit on each transaction. However, with inventory levels now back to near-pre-pandemic levels, they are realizing they’ve lost much of this power.

What can dealers do to combat this? Smart retailers are turning to advanced inventory risk management technologies and reporting that give them never-seen-before insight and visibility at the vin-level of their inventory levels.

This sophisticated data is now packaged up and reported for use by dealers. As an example of this level of data, new vehicle inventory reached 80 days’ supply at the end of the first quarter. Forty-eight percent of new inventory was considered aged (ending over 45 days), with 50% of new carryover inventory during the quarter, 19% of new inventory sold with a markdown, and 63% of new inventory listed as unviewed online.

On the used side of the lot, inventory was just 40 days’ supply at the end of the first quarter. Forty-six percent of used inventory was considered aged, with 56% of used carryover inventory during the quarter, 35% of used inventory sold with a markdown, and 52% of used inventory listed as unviewed online2.

Greater insights into inventory risk management

Retailers now have access to monthly analytics that offer deep real-time data and insights visibility into the trends shaping OEM-specific and dealership inventory for both new and used vehicles, as well as key data on vehicle pricing and markdowns.

The data serves as a detailed comparative analysis that shows how each OEM is performing against industry benchmarks, so dealers can see where they rank amongst their competition. This approach not only highlights relative performance metrics but also demonstrates where buyer demand is. It also shows how their data has changed each month, month over month, and quarter over quarter.

This level of insight has never been available before because dealers now have access to comprehensive, market and competitive data for every vehicle on their lot, enabling dealerships to easily inform strategy and decision making for each VIN or vehicle segment (ex: condition, body style, model). The insights can answer questions about a dealer’s inventory down to the VIN level to help them make strategic decisions and seize new opportunities.

By leveraging this new level of reporting and staying informed on the trends shaping inventory, pricing, and markdowns, auto retailers can swiftly adapt and make informed decisions. This visibility enables agile responses to local and tier-two market changes, optimizing inventory management, pricing strategies, and ultimately, driving a distinct competitive advantage in the dynamic automotive market.

The role of inventory risk management in today’s auto dealerships cannot be overstated. In a rapidly evolving market characterized by shifting consumer preferences, intense competition, and economic uncertainties, effective inventory management is the backbone of dealership success. By embracing VIN-specific insights powered by AI and predictive modeling, auto dealers can gain a competitive edge by truly optimizing inventory assortment, mitigating risks, enhancing the customer experience, and driving sustainable growth. The future of auto retail belongs to those who harness this level of reporting and the power of AI to transform their inventory management practices and unlock new opportunities for innovation and profitability.

Jason Knight is the chief executive officer of Lotlinx, which offers an inventory platform that enables dealers to automatically adapt to market dynamics, mitigating inventory risk through VIN-specific strategies.

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In a 7-2 ruling, the Supreme Court said the bureau’s funding is constitutional, triggering an array of reactions from the regulator, industry associations and auto finance experts.

After the decision, the CFPB said, “For years, lawbreaking companies and Wall Street lobbyists have been scheming to defund essential consumer protection enforcement. The Supreme Court has rejected their radical theory that would have devastated the American financial markets. The court repudiated the arguments of the payday loan lobby and made it clear that the CFPB is here to stay.”

While the bureau might be cheering the decision, American Financial Services Association president and CEO Bill Himpler noted that many questions remain.

“While there may be CFPB staff breathing a sigh of relief over this ruling, this Supreme Court decision does nothing to bring clarity or transparency for consumers, the consumer credit marketplace or Congressional oversight,” Himpler said. “The result may well be continued confusion over unclear CFPB guidance, ongoing uncertainty with rulemaking by blog post and selective enforcement actions, and an agency not bound by robust congressional oversight.

“We remain committed to work with Congress, the Biden administration and the CFPB on clear policies and a regulatory process that both protects consumers and their access to the credit products to meet their financial needs,” he continued.

Consumer Bankers Association president and CEO Lindsey Johnson offered a similar reaction.

“CBA is heartened that this important legal question has been resolved. The Supreme Court’s holding in favor of the CFPB’s constitutionality, however, should not be considered a popular endorsement of the CFPB’s recent and seemingly political rulemakings, many of which have skipped important legal requirements and have raised concerns under the Administrative Procedure Act,” Johnson said.

“Any agency, even if its funding is constitutional, is unfortunately capable of engaging in rushed and ill-conceived rulemakings, as the CFPB has recently,” she went on to say. “CBA looks forward to continuing to work with the CFPB, as we have for nearly 13 years, to further a safe and competitive financial marketplace.”

Background of case

The case involved the CFPB against Community Financial Services Association of America.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, officials recapped that the CFPB receives its funding through requests made by the CFPB director to the Federal Reserve, subject to a cap equal to 12 percent of the Federal Reserve’s revenues, rather than through the Congressional appropriations process.

On Oct. 19, 2022, a unanimous three-judge panel of the U.S. Court of Appeals for the Fifth Circuit ruled that the CFPB’s funding mechanism violated the U.S. Constitution’s Appropriations Clause and the separation of powers principles on which it is based.

The CFPB filed a petition for a writ of certiorari with the Supreme Court, requesting a review of the Fifth Circuit’s decision. Oral arguments for the case were heard by the Supreme Court on Oct. 3.

CBA explained that central to the arguments were whether the CFPB’s historically unique funding structure, which is “doubly insulated” from the congressional appropriations process, runs afoul of the U.S. Constitutional requirement that “No Money shall be drawn from the Treasury, but in Consequence of Appropriations made by Law.”

The bankers association said commentators in favor of the constitutionality of the CFPB’s funding were concerned a holding that the CFPB’s funding structure was unconstitutional would threaten the validity of all past CFPB actions, risking severe market disruption.

But the CFPB claimed the judicial win.

“Congress created the CFPB to be the primary federal watchdog protecting consumers from predatory and abusive practices in the financial sector. Since the CFPB opened its doors in 2011, it has delivered more than $20 billion in consumer relief to hundreds of millions of consumers and has handled more than 4 million consumer complaints,” the CFPB said.

“Today’s decision is a resounding victory for American families and honest businesses alike, ensuring that consumers are protected from predatory corporations and that markets are fair, transparent and competitive,” the bureau continued.

“This ruling upholds the fact that the CFPB’s funding structure is not novel or unusual, but in fact an essential part of the nation’s financial regulatory system, providing stability and continuity for the agencies and the system as a whole,” the CFPB went on to say. “As we have done since our inception, the CFPB will continue carrying out the vital consumer protection work Congress charged us to perform for the American people.”

Impact on auto financing

Fueled by this Supreme Court decision, experts at F&I Sentinel cautioned finance companies and other product providers about the renewed zeal the CFPB might now have.

“The Supreme Court’s decision to uphold the CFPB’s authority is a milestone in the ongoing effort to protect consumers and maintain fair financial markets. For auto lenders, this is a crucial moment to take stock of their compliance practices and make necessary improvements. By doing so, they can not only avoid regulatory pitfalls but also contribute to a healthier, more transparent financial system that benefits everyone,” F&I Sentinel said through blog post after the decision surfaced.

“Auto lenders, the message is clear: it’s time to reassess and reinforce your compliance programs. The CFPB’s watchdog role is secure, and your commitment to compliance will be a cornerstone of your success in the evolving regulatory landscape,” the compliance firm continued.

To help finance companies get on the right path, F&I Sentinel reiterated four recommendations, including:

—Funding practices: F&I Sentinel said finance companies should ensure that their funding processes are transparent and in full compliance with regulatory standards.

“This includes clear disclosures to consumers about loan terms and conditions and having in processes in place to ensure funding practices aren’t allowing for bad conduct to occur,” experts said.

—F&I products: F&I Sentinel insisted there must be a more proactive approach taken toward the funding and servicing of F&) products, such as GAP waiver, extended warranties and service contracts.

“The days of funding all F&I products that are sent to a lender are over,” experts said. “More and more lenders are being held accountable for the content, marketing and sale of F&I products. Hence, auto lenders must take a dynamic compliance approach ensuring that only products meeting regulatory compliance standards are funded, and that cancellation processes as well as the disbursement of consumer refunds are made within the requisite time frames.

“Having an independent assessment process that is not tethered to the product administrator is best practice to ensure that you are staying on the right side of regulatory requirements,” they continued.

—Consumer complaints: F&I Sentinel offered a suggestion on how to handle this part of customer relations.

“With the CFPB’s proven track record in handling consumer complaints, auto lenders should prioritize responsive and effective complaint resolution mechanisms,” experts said. “Establishing a robust system for addressing consumer concerns can help mitigate risks and enhance trust.”

—Training and education: F&I Sentinel closed by saying regular training for staff on compliance requirements and consumer protection laws is essential.

“Keeping employees informed about regulatory changes and best practices can prevent violations and foster a culture of compliance,” experts said.

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Along with recommendations to boost communications between stores and credit providers, Huertas also explained how dealers and lenders can avoid misunderstandings about Hispanic car buyers.

To enjoy this episode of the Auto Remarketing Podcast, listen through the window below.

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The companies said in a news release the two-way API integration will “mutually benefit dealer customers of both Fullpath and VinSolutions.”

Fullpath — among this year’s Emerging 8 honorees — said the integration will allow for the seamless transference of data between platforms, allowing Fullpath’s CDP to pull data from the CRM and enabling the automatic update of customer records to include activities tracked by the CDP in real time.

CDPs are designed to consolidate the data sources used by car dealers into one central location through APIs, the companies said, making data usable for gaining insight into shopper behavior and dealership operations.

Fullpath product manager Avigdor Rosensweig said the integration “will allow dealers to use the most relevant and up-to-date data and interactions to create an excellent, personalized experience for every engagement. We are grateful to VinSolutions for its dedication to innovation and building dealer success.”

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The collaboration aims to provide “seamless and convenient” vehicle pickup and delivery services for U.S. Genesis customers.

HopDrive specializes in on-demand vehicle delivery for dealerships, independent service centers and fleet management companies.

The company — which was among the 2022 Emerging 8 honorees — said it “streamlines the concierge vehicle pickup and delivery process” for service appointments, test drives, vehicle purchases and more through its portal, real-time monitoring of vehicle movements and professional driver network.

“At HopDrive, we are dedicated to providing innovative solutions that meet the evolving needs of the automotive industry,” CEO and co-founder Nick Mottas said. “Our partnership with Genesis will enable us to deliver a superior service experience to Genesis customers while also helping retailers enhance their operational efficiency.”

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This week, Kinetic Advantage rolled out an enhancement to its floorplan financing for independent dealers.

Dealers enrolled in the provider’s monthly subscription service — Kinetic+ — now can request transportation anywhere across the United States with OAV Logistics.

The company officially launched Kinetic+ last June. Executives said the platform has since helped dealers take their accounts “to the next level,” offering the benefits of unlimited complimentary document handling, complimentary deferments (subject to existing guidelines) and unlimited full access to One Auction View (OAV).

OAV, a fully integrated online platform that allows users to easily search multiple digital and physical auctions to acquire inventory, has partnered with OAV Logistics to offer Kinetic+ subscribers the opportunity to request and purchase transportation.

Kinetic highlighted OAV Logistics features a vast carrier network, instant quotes, real-time status updates, a digital bill of lading (BOL), direct communication with transporters, competitive market-based pricing with no hidden fees and simple credit card payments.

“We are excited to see OAV deepen its value for independent auto dealers through the addition of cutting-edge, digitally enabled transport services,” Kinetic Advantage president and CEO Marty McFarland said.

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Consumer demand for electric vehicles (EVs) is losing its juice.

For the first time since the study’s inception in 2021, J.D. Power said new-vehicle buyer consideration has dropped from the previous year. This year’s study revealed that 24% of shoppers say they are “very likely” to consider purchasing an EV, down from 26% a year ago, while the percentage of shoppers who say they are “overall likely” to consider purchasing an EV decreases to 58% from 61% in 2023.

“As the industry inches toward mass consumer adoption, the main roadblocks to getting consumers behind the wheel of an EV are the continued shortage of affordable vehicles, charging concerns and a lack of knowledge regarding the EV ownership proposition, including incentives,” said Stewart Stropp, executive director of EV intelligence at J.D. Power.

“As understanding of EV incentives rises, so does the likelihood of consideration,” Stropp continued in a news release. “However, approximately 40% of shoppers say they do not have a solid understanding of such incentives. Prioritizing initiatives and efforts to educate consumers about the EV proposition — including available incentives and how they work — is vital to accelerating market growth.”

Stropp indicated that other factors contributing to waning EV demand include:

—Lower year-over-year fuel prices

—Stubborn inflation and high interest rates

—Underwhelming growth in model availability.

“In previous years, the number of viable EVs that met shoppers’ needs increased substantially year over year,” Stropp said. “This year, it’s been more incremental. Several automakers have deferred EV launch and production plans and have shifted more focus toward hybrids and plug-in hybrids, so we’re seeing a lot of shoppers who still haven’t found an EV that checks all the boxes.”

Four other key findings from the 2024 study included:

—EV consideration drops among Gen Z and Gen Y shoppers: The lack of affordable EV models is affecting the two youngest buyer cohorts, Gen Z and Gen Y, with “very likely” consideration down 2 and 5 percentage points year over year, respectively.

Still, J.D. Power indicated 24% of Gen Z and 32% of Gen Y shoppers say they are “very likely” to consider an EV, the two highest ratios among all the generational cohorts.

—Top five reasons for EV rejection mostly related to charging: Among shoppers who say they are “somewhat unlikely” or “very unlikely” to consider an EV, J.D. Power said 52% cite a lack of charging station availability as a reason for rejection — the highest proportion in the study.

Researchers noted this figure has increased 3 percentage points year-over-year, a sign that concerns about public charging infrastructure are only getting worse.

Other reasons for rejection include purchase price, limited driving distance per charge, time required to charge and inability to charge at home or work, according to J.D. Power.

—Drivers with longer commutes less inclined to consider EVs: J.D. Power said previous studies noted that owners who drove more miles each day were more likely to consider an EV.

Now, with fuel prices coming down and charging anxiety on the rise, researchers discovered that trend has reversed.

Among shoppers whose daily commute is 46-60 minutes each way, J.D. Power found only 24% said they are “very likely” to consider an EV — down 13 percentage points from 2023.

—Role of pending vehicle influences consideration: Among shoppers who are looking to add another vehicle to their household, J.D. Power indicated 68% said they are “overall likely” to consider an EV.

Conversely, among those who will be relying solely on one vehicle for transportation, researchers determined only 47% said they are “overall likely” to consider an EV.

Without a second vehicle, J.D. Power acknowledged shoppers tend to be more critical of the logistics related to EV ownership.

The U.S. Electric Vehicle Consideration (EVC) Study is focused on gauging fully electric or battery electric vehicle shopper consideration, simply referred to as EVs in the study.

Study content included overall EV consideration by geography, demographics, vehicle experience and use, lifestyle and psychographics.

It also includes model-level consideration details such as “why buy” findings and analysis of reasons for EV rejection.

This year’s study measured responses from 8,179 consumers and was fielded from January through April.

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British Columbia-based OpenRoad Auto Group was named for the 12th consecutive year, placing it firmly in the award’s Platinum Club for businesses earning the designation for seven or more years in a row.

OpenRoad employs more than 1,700 associates at its 36 locations in B.C., Ontario and Washington state, and five collision centers.

Founder and CEO Christian Chia said the recognition “highlights the exceptional talent and dedication of our entire OpenRoad Group team,” and said his company “continues to stand shoulder to shoulder with many of our nation’s top businesses. This accolade inspires us to strive for even greater excellence in our commitment to redefining the automotive experience and beyond.”

HGregoire was selected as a Best Managed Company, its fourth consecutive honor. That lifts the company, which operates 31 locations in Quebec and the U.S., into the award’s Gold Standard for businesses maintaining their status four to six years.

“We are very proud of our achievements over the past year, both individually and collectively,” HGreg president John Hairabedian said, “and will continue to work diligently at continuously improving our customers’ shopping experience in an effort to stand out in our industry and among local businesses.”

The award adds to HGregoire’s list of honors, which includes the AutoTrader Best Price Dealer award and the CADA Laureat Award.

The Canada’s Best Managed Companies program, presented by Deloitte, has recognized excellence in private Canadian-owned companies with revenues of $50 million or greater for more than 30 years. Companies are evaluated on their leadership in the areas of strategy, culture and commitment, capabilities and innovation, governance and financial performance.

“Best Managed is a prestigious award that recognizes the significant and ongoing contributions within Canada’s business landscape,” said Deloitte’s Lorrie King, co-leader of the program. “Companies such as OpenRoad that attain this high standard of excellence demonstrate consistent adaptability, versatility and strategic acuity. Year after year, they thrive in a competitive, rapidly changing market and should be proud of their growth.”

For the complete list of winners, bestmanagedcompanies.ca.

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Overall, values declined 0.28% — significantly less than the 0.44% tumble the previous week — led by the truck/SUV segment, which was down 0.35%. Full-size pickups had the largest fall, sinking by $341 for a 0.95% drop, as all truck/SUV segments were down.

The car segment dropped 0.20%, with compact cars down 0.72% and followed by mid-size cars down 0.62%. Two car segments posted gains — full-size cars (0.43%) and prestige luxury cars (0.03%).

“Most segments saw a change in average value of more than $120 this week, as the truck segments fell more than the car segments,” CBB analysts said in the report. “Conversion rates were less than last week, but some observed sell rates were still as low as 14% while the high end was up to 59%, and the average being between 25% and 45%.

“We also saw less sellers dropping floors last week, which has been contributing to more lanes with lower sell rates.”

As in previous weeks, CBB analysts reported supply is building with stable demand for vehicles at auction in both Canada and the U.S., and upstream channels continue to tap supply before it can become available to wholesale markets.

The average retail listing price for used vehicles was slightly down week-over-week, with the 14-day moving average at $33,900.

CBB described the current U.S. market as “stable, flat and unchanging as we observe a slow and consistent dip after what looks to be the end of the spring market period.”

While the market segment for 2-to-8-year-old cars remained unchanged, both newer used vehicles (0.03%) and the oldest model years (0.10%) were up slightly. The truck market, across all age categories, experienced slow declines.

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Having more used vehicles that can fit within parameters of tight family budgets might help to boost originations, which TransUnion said remain down as compared to 2019 across all risk tiers, with the largest declines seen among below-prime risk tiers.

“Affordability continues to pose a challenge for the used-vehicle market and, in particular, for below-prime consumers, who have seen a buying climate of higher interest rates, increasing lender pullback, and cross-wallet inflation,” said Satyan Merchant, senior vice president, automotive and mortgage business leader at TransUnion.

Ivan Drury of Edmunds highlighted that the average trade-in age for used vehicles increased to 9.4 years in Q1 2024, potentially creating the supply needed to meet the demand Merchant referenced.

According to the Q1 2024 Quarterly Credit Industry Insights Report (CIIR) from TransUnion, there were 5.8 million originations Q4 2023, which is in line with the total one year ago. (Originations are viewed one quarter in arrears to account for reporting lag.)

TransUnion reported the new-used split continues to trend back towards its pre-pandemic norm.

As we inventories continue to build back following the pandemic, TransUnion said leasing for Q1 2024 represented 24% of new-vehicle registrations, still well below the 30% seen in Q1 2020, however up from 19% in Q1 2023.

“While some brands continue to see lingering shortages, new-vehicle inventories continue to recover from their pandemic-era lows. This has given the leasing market a boost, although leasing still remains well below its pre-pandemic numbers,” Merchant continued in a news release.

Analysts added the average amount financed, monthly payment, and term length have all remained relatively flat for both new and used vehicles year-over-year.

Also of note, TransUnion point out the 60-day delinquency rate ticked to 1.33% in Q1 2024.

“Higher delinquencies are likely to further constrain loan availability, potentially keeping the market tempered until interest rates begin to see declines,” Merchant said.

Q1 2024 Auto Loan Trends

¹Note: Originations are viewed one quarter in arrears to account for reporting lag.

²Data from S&P Global MobilityAutoCreditInsight, Q1 2024 data only for months of January & February.

Looking at personal loans

Since many shops offer both auto financing and personal loans, let’s delve into that part of the TransUnion data.

Analysts reported total unsecured personal loan balances grew 9% year-over-year in Q1. TransUnion determined balance growth was led by super prime, the only tier with double-digit growth.

According to the report, the average account balance increased by nearly 5% year-over-year to $8,737. TransUnion said average balance growth was led by subprime, followed by super prime.

Analysts added balance per consumer also grew by nearly 5% year-over-year to $11,829.

However, unsecured personal loan originations slid to 5 million for Q4 2023.

Analysts explained contraction in originations was seen across all risk tiers with the exception of super prime, where originations grew by 12.6% year-over-year.

TransUnion said borrower-level 60-day delinquencies fell year-over-year in Q1 2024 to 3.75%. However, only subprime declined while all other risk tiers saw increases year-over-year.

On a vintage basis, analysts noticed the delinquency rate for Q1 2023 originations through January 2024 is much lower than for originations for Q1 2022 originations over the same performance period but remains elevated over Q1 2021 originations.

“Total balance growth has slowed slightly after three years, with the year-over-year increase of 9% representing the first quarter since Q4 2021 that saw only a single digit increase in total balances,” TransUnion senior vice president of consumer lending Liz Pagel said in the news release.

“Unsecured personal loan originations were down slightly year-over-year as lenders are maintaining tight underwriting standards, focusing on lower risk borrowers,” Pagel continued. “These tighter underwriting standards in recent quarters likely played a role in the year-over-year decline in overall delinquencies.

“The originations decline was most pronounced in the subprime segment, which fell nearly 5% year-over-year,” she went on to say.

Overall look at credit market

Overall, TransUnion said the consumer credit market continues to show resiliency in the face of a challenging economic environment, as consumers continue to turn to credit to help manage the higher costs they are facing.

Despite interest rates that remain persistently high relative to recent history, analysts indicated certain key credit card metrics have seen steady growth in recent years, including total number of bankcards, average new bankcard account credit lines, and the total number of U.S. consumers who carry a bankcard balance.

Among other findings from report:

—As of Q1 2024, consumers hold more than 543 million bankcards in their wallets, a growth of 20 million year-over-year and more than 88 million from just three years ago.

—And more consumers are using their available credit line, as the number of consumers who carry a bankcard balance has seen steady growth as well, up 2.2% year-over-year.

—Average new account credit lines saw year-over-year growth, up 3.8% to $5,628, in part due to a greater proportion of originations among super prime, for whom new account credit lines tend to be higher.

While average new account credit lines saw year-over-year growth, Michele Raneri, vice president and head of U.S. research and consulting at TransUnion, said it is worth noting that total new account credit lines were down 2.6% due to a tightening origination environment.

“Consumers’ access to credit has grown significantly in recent years and will provide them with credit to tap into when needed,” Raneri said. “Many of these consumers are choosing to take advantage of these products that can help them manage their rising monthly household expenses, despite the fact that these products may bring with them interest rates that are higher relative to recent history.

For these consumers, the short-term pressure of inflation poses a more pressing problem to solve than the potential impact of higher interest rate credit, which includes higher monthly debt service payments,” she continued.

Delinquencies continue to rise across a number of credit products, with increases seen in credit cards, mortgages, and auto, according to TransUnion. However, analysts noticed that decrease in unsecured personal loans, largely driven by a shift to lower-risk borrowers, with a year-over-year decline in borrower-level delinquency 60 days or more past due.

While last quarter saw delinquencies increase, Raneri also said it is worth noting that we have seen a slowing in the rise in credit card delinquency along with a decline in unsecured personal loan delinquency.

“We have seen delinquencies tick up in recent quarters, which is certainly something lenders need to follow closely. At the same time, the consumer credit market remains resilient given the compounding of relatively high interest rates and persistent inflation,” Raneri said. “The prevailing hope is that as long as unemployment figures remain relatively low, serious delinquency rates may stabilize.”

To learn more about the latest consumer credit trends, register for TransUnion’s Q1 2024 Quarterly Credit Industry Insights Report free webinar via this website.

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What could be most beneficial for dealerships of all stripes is getting a boost of older, more affordable vehicles. Drury cited a variety of positive data points as reasons why via his analysis of the first quarter.

“The return of holdout buyers should help bolster the supply of more affordable, older used vehicles. In Q1 2024, new car transactions had a trade-in 49% of the time on average, while used had a trade-in 31% of the time on average,” Drury said in this report Edmunds posted on Tuesday.

“Within this pool of trade-ins, we’re also seeing that the consumers with older trade-in vehicles have a preference for buying a newer used vehicle instead of an outright new one. Right around the vehicle trade-in age of 9 years, we observed a perfect 50/50 split in customers either buying a new vehicle or buying a newer used vehicle. Vehicles older than 9 years were more likely to be traded in for a used vehicle,” he continued.

Drury acknowledged consumers have been in “hibernation” for several years as the combination of high vehicle prices and interest rates kept potential buyers out of showrooms. But with cooling prices and increased new-vehicle supply, Drury emphasized the scene is getting better for used-car departments.

“How do we know that consumers have made a return en masse? Look no further than an increase in average trade-in ages,” Drury said.

“In 2022, new-car inventory constraints forced many would-be buyers with prospective older trade-in vehicles to sit out the market and even had some traditional new-car buyers resorting to used. But as 2024 resembles a more familiar market, trade-ins of older vehicles have begun to return,” he continued.

“In Q1 2024, the average trade-in age for new vehicles climbed to 6.1 years compared to 5.3 years in Q1 2022. The average trade-in age for used vehicles increased to 9.4 years in Q1 2024, compared to 7.9 years in Q1 2022,” Drury went on to say.

But not every single part of the used-car retailing scene is rosy.

Edmunds’ data showed average transaction prices for used cars retailed in Q1 came in at $27,113. While that’s down 4.5% year-over-year, it’s a whopping 33.9% above the reading in Q1 of 2019 when Edmunds pegged it at $20,247.

Still, Drury pointed out that the average days to turn for used vehicles dropped to 37 days in Q1; the same as Q1 of last year.

What does it mean for used-car sales? Drury put it this way.

“Consumers making their way back into the market after a number of years away are likely experiencing some sticker shock when shopping for new vehicles and therefore more thoroughly evaluating their purchase options,” Drury said. “But the majority of new vehicles are far less likely to appeal to these buyers — they’ve waited for years to make a move and are likely a bit more price-sensitive than the consumers who were willing to pay above MSRP at the height of the shortages.

“Until new-car incentives make a real comeback, used vehicles will continue to offer what new vehicles cannot: affordable transportation,” he went on to say.

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