Blinker President to Forecast Evolution of F&I at Auto Finance Innovation

Danny Martinez, president of startup Blinker, has joined the Auto Finance Innovation speaker faculty.

Blinker, a used-car buy-sell app with financing capabilities for private-party transactions, is trying to streamline the car-buying process, not overtake dealerships, Martinez said.

“Historically, the conventional dealership experience is a very sequential, rigid process, and for those who have purchased through a dealership, the customer satisfaction ratings leaves a lot to be desired,” he said while speaking at LendIt last week. “Think of us as a dealer intermediary but thinner, which helps sellers get more for their car than a conventional trade in, and buyers get better value all while having the same dealer-like tools.”

Technology has reached a “tipping point” that will allow Blinker to assist the consumers in whichever way they want to transact, he added.

At Auto Finance Innovation Martinez will speak at a session entitled “Emerging Mobility Startups.” Martinez and others from the startup scene will brainstorm on what’s next for the industry, in San Diego on May 17. For more information on the event, go to www.autofinanceinnovation.com, or to register, click here.

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Gateway One Lending & Finance Announces Executive Leadership Changes

ANAHEIM, Calif.–(BUSINESS WIRE)–

Gateway One Lending amp; Finance, LLC (Gateway One), a subsidiary of TCF National Bank and an indirect subsidiary of TCF Financial Corporation (TCF) (TCB), recently announced the appointment of Todd A. Pierson as president, Gateway One Lending amp; Finance and Andrew B. Sturm as executive vice president and chief operating officer. Pierson is responsible for managing all aspects of the Gateway One business and Sturm leads business operations. Pierson reports to Michael S. Jones, executive vice president, consumer banking for TCF. In conjunction with these appointments, Brian MacInnis, who previously served as chief executive officer of Gateway One, and David MacInnis, who served as president of the business, concluded their employment with TCF and have decided to pursue other endeavors outside of TCF.

“Todd is the ideal choice to lead Gateway One through its next chapter and formulation of a new strategy together with his leadership team,” said Jones. “Todd has been with Gateway One since its inception and has played a significant role in the growth and expansion of the business. TCF is committed to the auto finance business, which is a crucial contributor to TCF’s strategy of asset diversification, and we are excited about supporting Gateway One in its next stage of development. Together with Andrew Sturm and the entire Gateway One leadership team, I’m confident that Todd will help the business achieve its full potential. I also want to acknowledge the contributions of Brian and David MacInnis during their ten years of service to Gateway and, more recently, TCF. They led Gateway with integrity and character.”

Pierson added, “Gateway One has seen tremendous growth since it became part of TCF Bank in 2011 with originations reaching $3.6 billion in 2016. I am honored to have the opportunity to lead this outstanding organization and its dedicated team members. I look forward to building on Gateway One’s strong track record of outstanding service to both our dealer partners and our customers. In building a future strategy for Gateway One, we are actively seeking to contribute to all of TCF’s strategic pillars of diversification, profitable growth, operating leverage and core funding. Now that we have achieved significant growth, we will be shifting our focus toward stable profitability with a focus on efficiency and effectiveness.”

Todd Pierson joined Gateway One at its inception as chief operating officer and oversaw sale and credit among other responsibilities. As an 18 year veteran of the auto finance industry, Pierson served in a number of senior executive positions with Onyx Acceptance Corporation prior to joining Gateway One. His experience outside of auto finance includes various leadership roles at Ceridian Tax Services and Hewlett-Packard.

Andrew Sturm joined Gateway One in 2010, serving as executive vice president, loan servicing. He has more than 16 years of experience in the auto finance industry and his prior experience includes serving in senior leadership roles with Onyx Acceptance Corporation.

About Gateway One Lending amp; Finance
Gateway One Lending amp; Finance, LLC, a subsidiary of TCF National Bank, is an indirect automotive origination and servicing company that is headquartered in Anaheim and conducts business in all 50 states through its network of more than 11,400 franchise and independent dealer relationships. In 2016, Gateway One originated $3.6 billion in auto loans. For more information about Gateway One Lending amp; Finance, please visit gatewayonelending.com.

About TCF
TCF is a Wayzata, Minnesota-based national bank holding company. As of December 31, 2016, TCF had $21.4 billion in total assets and 339 branches in Illinois, Minnesota, Michigan, Colorado, Wisconsin, Arizona and South Dakota providing retail and commercial banking services. TCF, through its subsidiaries, also conducts commercial leasing, equipment finance, and auto finance business in all 50 states and commercial inventory finance business in all 50 states and Canada. For more information about TCF, please visit tcfbank.com.

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View source version on businesswire.com: http://www.businesswire.com/news/home/20170317005444/en/

How autonomous vehicles will forever change how we buy, own, and insure cars

“It still takes three hours or more to get all the paperwork in place when you buy a car, with all the insurance and DMV work,” Bauer tells Digital Trends. “It’s highly preventive and non-customer-centric. This customer-unfriendly process is going to change fundamentally.”

The key question, though, is what’s the new system going to be like?

“We have to completely reimagine the car-buying and ownership process,” Bauer insists. “For example, we could put together in one single monthly payment all the components of maintenance, insurance, parking, registration, fuel, and accessories. Today you have to schedule everything yourself, you have to pay separate bills and providers. It’s a completely antiquated process.”

But who’s going to change things? Not the people who make money off the current system, he notes.

More:The golden years: Why we’ll all love self-driving cars when we’re older

“There’s a lot of thinking going on, and it’s hard to predict who’s going to be able to capture the new ownership experience. The OEMs and the dealers have to start to rethink this completely, but at the same time, I’m concerned whether they have the speed and agility to really move this forward. It’s possible that external players will step in to make it a less cumbersome process.”

Enter the autonomous car

The inflection point that catalyzes fundamental change is likely to be the advent of the truly autonomous car in the next three to five years. Taken together with changes already happening in ride-sharing and mobility, autonomous cars are likely to accelerate changes in the traditional automotive economy.

“Paradigm shifts are never easy on those who dominate the markets, and that’s the automakers right now,” Bauer maintains. “With fully autonomous vehicles, over time the insurance situation will change completely. We’ll no longer see individuals being insured, but cars and automakers.”

Autonomous vehicles are also likely to spur the creation of new ownership models, with wide-ranging consequences.

More:Uber’s Pittburgh robotaxis amuse riders, still struggle with double parked cars

“There will be more traditional people who want to keep owning the car as they used to, and others who will be addressing new concepts like mobility-as-a-service,” Bauer says. “Mobility-as-a-service could mean a monthly payment or individual ride-sharing. I think we’ll see subscription-based models of ownership where you change and get out of one car and get into a new one at certain times, providing flexibility.”

Potential for disaster

As electric vehicles come to us in concert with autonomous technology, the paradigm shift becomes massive. The biggest disruptions happen when large numbers of people seriously question the need to own a car at all. At that point, we could see a collapse of the entire automotive economy, which is currently structured around designing and building a car, selling it to you, insuring you, charging you for parking and maintenance, producing fuel and selling it to you, and providing you customized accessories.

In terms of jobs, the impact will be staggering. Automakers will still produce cars, but the traditional car dealership will fail. The local car repair shop will go away too, not to mention the car stereo place, the tire dealer, and the independent collision repair business. Look further ahead, and the corner gas station and the oil company behind it go away, as gasoline trends out of use in favor of electricity. With an autonomous car, the insurance industry doesn’t get to clip you for several hundred dollars a month, and even the local cop won’t be handing out tickets for speeding any more.

Even with all that economic disruption, this scenario could be optimistic. That’s because any artificial intelligence that is smart enough to drive a car may also be smart enough to take over your job, or mine.

The end of traditional auto finance

There’s one more implication of autonomous cars and new mobility. The traditional auto finance portfolio is going to go away — and that’s a huge amount of money.

“Right now there’s $1.1 trillion in auto finance loans, and another $400 billion in the ecosystem when you add maintenance and extended warranty and insurance,” Bauer says. “It’s a huge pie. The banks and the captive auto finance companies are going to have to get their act together or see this huge pie eaten by creative players.”

Captive auto finance companies are those like GMAC and Ford Credit, which are owned by the automakers, and exist to loan you the money to buy a GM or Ford vehicle. Honda, Toyota, Nissan, and all the other automakers have captive finance organizations, too.

Capital One® And Car Designer Chip Foose To Discuss New Ways Of Buying And Financing Cars At 2017 DFW Auto …

DALLAS, March 16, 2017 /PRNewswire/ — Capital One, one of the title sponsors of the 2017 DFW Auto Show, March 22-26, will provide attendees with the opportunity to meet with well-known car designer, Chip Foose, at their Capital One Auto Navigator Garage. The Garage is a specially-constructed interactive space that will also feature one of Fooses custom-designed cars throughout the duration of the show. Known for his expertise in car design and restoration, Foose will talk about the latest trends in the car industry. In addition, Adrienne Janic, TV host, model and car enthusiast, will also be available to meet with attendees.

  • Meet and Greet with Chip Foose: March 25-26, 11 am-3 pm
  • Meet and Greet with Adrienne Janic:
    • March 22, 6 pm-8 pm
    • March 23, 3 pm-9 pm
    • March 24, 3 pm-9 pm
    • March 25, 11 am-3 pm
  • March 22, 6 pm-8 pm
  • March 23, 3 pm-9 pm
  • March 24, 3 pm-9 pm
  • March 25, 11 am-3 pm

The Capital One Auto Navigator Garage will offer an immersive experience where attendees can interact with Auto Navigator, a website that simplifies the car buying process. Consumers are looking for a more streamlined way to buy and finance a car. With Auto Navigator, were giving them just that, so they feel confident and ready to buy when they visit a dealership, said Ian Forrester, Senior Vice President, Capital One Auto Finance. We look forward to sharing this tool with attendees at the DFW Auto Show, and discussing the latest in car buying and financing with Chip Foose.

Im thrilled to be joining Capital One at this years DFW Auto Show, said Foose. In my more than 45 years in the auto industry, styles, models and technology have constantly evolved. So too has the way we find and finance cars – the Capital One Auto Navigator website is a great example of that.

Car buyers spend an average of nearly nine hours on different online sites shopping for cars. With Auto Navigator, consumers can pre-qualify for auto financing in minutes with no impact to their credit score. They can also search over three million cars from over 12,000 participating dealers. They can see their personalized APR and monthly payment on each car once they pre-qualify for financing, and customize their offer based on factors such as down payment amounts and different term lengths. In addition, they can get dealer ratings and car reviews, and even access car history reports. To check out Auto Navigator, and find and finance the car of your dreams, visit capitalone.com/cars.

The Capital One Auto Navigator Garage will be located in Hall F, and in addition to Fooses car, will feature an interactive photo booth, where attendees can take pictures with sketches of Fooses custom cars. The space will also feature other fun activities and swag.

For more information and for DFW Auto Show tickets, visit the DFW Auto Show website.

About Capital One
Capital One Financial Corporation (www.capitalone.com) is a financial holding company whose subsidiaries, which include Capital One, NA, and Capital One Bank (USA), NA, had $236.8 billion in deposits and $357.0 billion in total assets as of December 31, 2016. Headquartered in McLean, Virginia, Capital One offers a broad spectrum of financial products and services to consumers, small businesses and commercial clients through a variety of channels. Capital One, NA has branches located primarily in New York, Louisiana, Texas, Maryland, Virginia, New Jersey and the District of Columbia. A Fortune 500 company, Capital One trades on the New York Stock Exchange under the symbol COF and is included in the Samp;P 100 index.

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/capital-one-and-car-designer-chip-foose-to-discuss-new-ways-of-buying-and-financing-cars-at-2017-dfw-auto-show-300424570.html

Nominations sought for The CEO Issue

CARY, NC –

Chief executive officers flourishing in the subprime auto finance space juggle a host of responsibilities. They develop sensible strategies and lead teams to execute those plans, all the while remaining competitive and compliant with growing regulatory burdens.

In an effort to recognize the special individuals who hold these positions, SubPrime Auto Finance News is asking the industry to nominate the CEOs of finance companies and their critical support service providers to be included in the March/April print edition that’s being dubbed, “The CEO Issue.”

AG Rutledge Files Lawsuit Against NWA Auto Dealers

LITTLE ROCK, Ark. – Attorney General Leslie Rutledge filed a lawsuit on Tuesday against multiple automobile dealerships in Northwest Arkansas.

The dealerships include Automatic Auto Finance, Jorja Trading Company andCashfish Motor Pawn. The AAF/Jorjacompanies are a group of buy-here-pay-here dealerships, Rutledge said.

The attorney general accused them of financing used vehicles and then using prohibited collection methods against customers.

A buy-here-pay-here dealership is one that offers vehicles for sale along with in-house financing, Rutledge said. Many consumers who are unable to obtain traditional financing from banks or credit unions are often forced to consider the credit options of a buy-here-pay-here dealership because of limited financial resources and poor credit ratings.

Rutledge accused the dealerships of selling and financing low-value vehicles at inflated prices to customers who are likely to default on the contract, reselling repossessed vehicles in a commercially unreasonable sale to create a significant deficiency balance, using prohibited collection practices to collect on that deficiency balance and then reselling vehicles to other customers to repeat the scheme.

The attorney generals office has identified 2,252 cases of prohibited collection practices by businesses since 2010, officials said.

Rutledge has asked a judge to impose civil penalties, restitution and other relief against the dealerships.

Copyright 2016 Nexstar Broadcasting, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Carvana secures additional credit to expand

This extended credit line represents financing for 7,100 vehicles, up from 3,400 vehicles.

The credit line will support Carvana’s floorplan financing as the startup pursues expansion plans this year.

“The way consumers shop, buy and finance vehicles continues to evolve as the industry responds to consumer preferences toward a digital experience,” Ally President of Auto Finance Tim Russi said in a statement. “As a leading finance provider in the industry, Ally is positioned to support this evolution and is pleased to expand our relationship with an innovative company like Carvana.

Carvana seeks to disrupt the traditional auto-buying experience with its online platform.

“Our goal is to create a better way to buy a car by putting the consumer back in control of the buying process,” Carvana co-founder and CEO Ernie Garcia III said in a statement. “We’re using technology and transparency to revolutionize car buying, and as we look to expand to new markets this year, our relationship with Ally will help to provide us with the resources and financial flexibility that we need to continue with our exciting, rapid growth.”

Besides Atlanta and Dallas, where the company has a distribution center, Carvana also operates out of Nashville, Charlotte, Birmingham, Raleigh, Houston, San Antonio and Austin. Six of those markets opened in 2015.

Garcia said the company’s target is to eventually be in 100 cities across the country.

Ally Financial Doubles Floorplan Credit Line for Online Auto Retailer Carvana

Ally Financial Doubles Floorplan Credit Line for Online Auto Retailer Carvana

Extended credit to support the growth of Carvana’s online auto sales platform
February 08, 2016: 09:00 AM ET

DETROIT, Feb. 8, 2016 /PRNewswire/ — Ally Financial announced today that it has extended its financing relationship with online auto retailer Carvana, increasing its floorplan credit line from $60 million to $125 million, representing financing for approximately 7,100 vehicles, up from 3,400 vehicles. The credit line is to support floorplan financing as Carvana pursues expansion plans this year.

“The way consumers shop, buy and finance vehicles continues to evolve as the industry responds to consumer preferences toward a digital experience. As a leading finance provider in the industry, Ally is positioned to support this evolution and is pleased to expand our relationship with an innovative company like Carvana,” said Ally President of Auto Finance Tim Russi

Carvana, which launched in 2013, offers a unique online car buying experience that lets customers browse a large selection of used vehicles, secure financing and complete a car purchase, all from its easy-to-use website. After purchase, customers can opt for home delivery, or pick up their vehicle from one of the company’s car vending machine locations in Atlanta or Nashville. Carvana was named No. 5 on the Forbes “America’s Most Promising Companies” list in 2015.

“Our goal is to create a better way to buy a car by putting the consumer back in control of the buying process,” says Ernie Garcia, Carvana founder and CEO. “We’re using technology and transparency to revolutionize car buying and as we look to expand to new markets this year, our relationship with Ally will help to provide us with the resources and financial flexibility that we need to continue with our exciting, rapid growth.”

Ally and Carvana are also exploring other opportunities to expand their relationship. Ally offers a full spectrum of financial products and services, such as retail financing, leasing, insurance and remarketing.

About Ally Financial Inc.
Ally Financial Inc. (NYSE: ALLY) is a leading automotive financial services company powered by a top direct banking franchise. Ally’s automotive services business offers a full spectrum of financial products and services, including new and used vehicle inventory and consumer financing, leasing, vehicle service contracts, commercial loans and vehicle remarketing services, as well as a variety of insurance offerings, including inventory insurance, insurance consultative services for dealers and other ancillary products. Ally Bank, the company’s direct banking subsidiary and member FDIC, offers an array of deposit products, including certificates of deposit, savings accounts, money market accounts, IRA deposit products and interest checking. Ally’s Corporate Finance unit provides financing to middle-market companies across a broad range of industries.

With approximately $158.6 Billion in assets as of Dec. 31, 2015, Ally operates as a financial holding company. For more information, visit the Ally media site at http://media.ally.com or follow Ally on Twitter: @Ally.

About Carvana
Founded in 2013 and based in Phoenix, Ariz., Carvana is the first complete online auto retailer offering vehicle purchase in as little at 11 minutes, with an average savings of $1,681. Additionally, Carvana launched the world’s first-ever, fully-automated, coin-operated car Vending Machine, in Nashville, Tenn. With Carvana, you can shop for, finance, purchase and trade-in a car entirely online, while also receiving as soon as next-day vehicle delivery or pick-up at the nation’s first vehicle vending machine. Carvana cars come with an accident-free guarantee, undergo a rigorous 150-point inspection and come with a 100-day/4,189 mile bumper-to-bumper warranty, as well as a 7-Day Test Drive and No-Questions-Asked Return Policy. Carvana is revolutionizing the car buying process through technology, transparency and exceptional customer service.  

For further information on Carvana please visit www.carvana.com, or connect with us on Facebook, Instagram or Twitter.

Media Contacts:

Sari Martin
Ally
646-781-2539
sari.martin@ally.com

Carvana
carvana@olson.com

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/ally-financial-doubles-floorplan-credit-line-for-online-auto-retailer-carvana-300216328.html

SOURCE Ally Financial

 

Car veers off road in Rusk, strikes multiple vehicles

Emergency crews responded to a call at 1:15 pm, of an accident at East Texas Auto Finance, in the 400 block of North Dickinson Drive (US Highway 69).

A Crown Victoria sedan driven by Jones was traveling southbound along the highway when it “hit a curb, went airborne, struck three cars (in the dealership lot), then continued traveling and struck the trailers of two tractor-trailer rigs parked beside East Texas Auto Finance,” George said.

The accident remains under investigation.

Subprime auto loans, delinquencies up: Experian

The percentage of auto loans to buyers with the poorest credit ratings is growing faster than the rest of the auto finance market, according to a new report.

Experian Automotives analysis of open auto loans in the fourth quarter raises more questions about the health of the American consumer.

In addition to the growth in subprime and deep subprime auto loans, the report also shows a slight decrease in auto loans one month past due but an increase in auto loans at least 60 days delinquent. In the fourth quarter, 0.77 percent of all auto loans were at least two months past due.