Here are top 10 auto financing trends and events, according to Walter Cunningham, who tracks such things as president of BenchMark Consulting International:
- The number of national banks in indirect auto financing is stable.
- “Independent” auto financing institutions continue to grow.
- Credit unions expand into the prime auto-financing market “creating a competitive and brutal market.”
- Dealer application portals, such as Route One and DealerTrack, “continue to dominate the F&I desk.”
- Electronic processing continues to expand — “but slowly.”
- OEMs/captives continue to struggle with competition and credit ratings.
- Incentivized financing “just seems to keep on rolling.”
- Dealer reserve (and consumer education) gain priority through the efforts of the National Automobile Dealers Assn.
- Shifting of outsourcing/offshoring continues to evolve.
- Auto lease securitizations picked up steam in 2006, nearly doubling, from $7.5 billion to $14.3 billion.