Used Auto Loan – Chip And Todd http://chipandtodd.com/ Tue, 22 Nov 2022 20:11:07 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://chipandtodd.com/wp-content/uploads/2021/06/icon-3-150x150.png Used Auto Loan – Chip And Todd http://chipandtodd.com/ 32 32 Research: Rating Action: Moody’s Assigns Final Ratings to Mercedes-Benz Auto Receivables Trust Notes 2022-1 https://chipandtodd.com/research-rating-action-moodys-assigns-final-ratings-to-mercedes-benz-auto-receivables-trust-notes-2022-1/ Tue, 22 Nov 2022 19:32:59 +0000 https://chipandtodd.com/research-rating-action-moodys-assigns-final-ratings-to-mercedes-benz-auto-receivables-trust-notes-2022-1/ No related data. © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved. THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS, INDEBTEDNESS OR SECURITIES ASSOCIATED WITH INDEBTEDNESS, […]]]>


No related data.

© 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

THE CREDIT RATINGS ISSUED BY MOODY’S CREDIT RATINGS AFFILIATES CONSTITUTE THEIR CURRENT OPINIONS ON THE RELATIVE FUTURE CREDIT RISK OF THE ENTITIES, CREDIT COMMITMENTS, INDEBTEDNESS OR SECURITIES ASSOCIATED WITH INDEBTEDNESS, AND THE DOCUMENTS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, THE “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY FAILURE TO MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS WHEN DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE THE APPLICABLE PUBLICATION OF MOODY’S RATINGS SYMBOLS AND DEFINITIONS FOR MORE INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS COVERED BY MOODY’S CREDIT RATINGS. THE CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISKS, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“RATINGS”) AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACTS. MOODY’S PUBLICATIONS MAY ALSO INCLUDE MODEL-BASED QUANTITATIVE ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS ARE AND DO NOT PROVIDE ANY RECOMMENDATION TO BUY, SELL OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, RATINGS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF ANY INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE CARE AND UNDERSTANDING THAT EACH INVESTOR WILL CAREFULLY MAKE HIS OWN RESEARCH AND EVALUATION OF EACH SECURITY THAT IS CONSIDERED FOR PURCHASE, HOLDING OR SALE.

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What are bad auto loans and what to watch out for https://chipandtodd.com/what-are-bad-auto-loans-and-what-to-watch-out-for/ Wed, 16 Nov 2022 22:27:21 +0000 https://chipandtodd.com/what-are-bad-auto-loans-and-what-to-watch-out-for/ Simply, a bad credit auto credit is a financing solution suitable for drivers with lower credit ratings. To get the best rate when taking out a car loan with bad credit, look for a lender that offers competitive loan terms to borrowers who have had credit issues in the past. It’s equally important to avoid […]]]>

Simply, a bad credit auto credit is a financing solution suitable for drivers with lower credit ratings. To get the best rate when taking out a car loan with bad credit, look for a lender that offers competitive loan terms to borrowers who have had credit issues in the past. It’s equally important to avoid the costly but common pitfalls of bad credit car loans.

A bad credit car loan is a car loan given to borrowers with a low credit score. Drivers with credit scores around 580 or lower generally have a history of financial hardship. They are considered to have a higher risk of default and lenders may be reluctant to offer a car loan on favorable terms for borrowers.

You can still qualify for an auto loan when you have bad credit. And in many ways, car loans for bad credit work much the same as car loans for drivers of any other credit bracket.

The lender will consider your credit score, income, current debt and financial situation as well as the make, model, age and condition of the vehicle you are interested in. Based on this information, the lender will determine the maximum amount you are approved for. to borrow. They will also calculate the monthly payment based on the interest rate you qualify for.

how much can you borrow

Your credit score can have a significant impact on how much you can borrow. Because lenders view borrowers with lower credit scores as riskier, they are often less likely to approve larger loans.

If you’re looking to get a premium vehicle but can’t get approved for the full amount, try checking out older model years. Purchase certified pre-owned can eliminate some of the risks of buying used.

A lower credit score doesn’t mean you can’t get a car loan. Try these steps to improve your chances to get the best deal available.

1. Improve your credit score

Your credit score plays a huge role in determining the type of loan you can get – and the higher your credit score, the better the terms of your loan.

If you can afford to delay buying your car, take small steps to improve your credit. Paying off existing debts and updating overdue accounts can make your credit score more favorable to lenders.

Don’t forget that you can check your credit report for errors and file disputes with the major credit bureaus – Experian, TransUnion and Equifax – to have them corrected. Corrections can take up to 30 days, so it’s worth checking well before you’re ready to buy.

2. Shop

Don’t just limit yourself to car dealer for car loan financing. Apply for pre-qualification with the lenders you find and compare the rates offered and the total amount of interest you will pay. Go to your local banks and search for lenders online. If you are a member of a credit union, make an appointment with a banker from your credit union to discuss your situation and see if they would accept ready to lend to you based on your existing relationship.

Make “buy here, pay here” dealers and bad credit dealers your last resort. They generally offer less favorable conditions than other types of financing.

3. Be prepared to pay more

Low credit scores come with a higher interest rate. On average, consumers with bad credit pay 12.84 and 20.43 percent interest for new and used auto loans, respectively, according to Experian’s latest report on the state of the auto finance market. This amount drops to 4.03 and 5.53% for borrowers with good credit.

4. Consider adding a co-signer

If you can find a friend or relative with a good credit score to co-sign a car loan for you, the cost savings will likely be substantial since you will have access to better loan terms. You’ll also have a better chance of approval when shopping around for a car loan.

Remember that the cosigner will be responsible for auto loan payments if you fall behind, which could negatively impact their credit rating and financial health. Only enter into a co-signer agreement if you are confident that you can keep your part of the agreement and make loan repayments in a timely manner.

5. Take your time

Taking your time is also important when buying your car. Look for current listings and compare prices at different dealerships to ensure you’re getting the best deal.

Even if the market starts to slow down, it is still difficult. You may not be able to immediately find your ideal car at a great price. It may be worth extending the process of buying a car. Most pre-approvals last 30 days, so you can take your time.

The best way to avoid the pitfalls of a car loan with bad credit is to do some research and determine how much car you can afford before even going to a dealership. Be honest with yourself about your budget and make sure you can afford the payments.

Don’t assume you’ll qualify for the best interest rate

The most desirable rates are reserved for borrowers with excellent credit ratings. You’ll face much higher rates if you have a credit score in the 500s. If you can put off buying a car, you might be better off working on improving your credit to qualify. a lower interest rate.

Don’t assume every dealership will offer a bad credit auto loan

Some dealerships will refuse to sell you a vehicle if you have bad credit. And don’t count on the fact that all dealerships offer the same financing options: some will have more flexible options than others. And if you come in with a pre-approved auto loan, they may be willing to match or beat the other lender’s offer to win your business.

Don’t take the longest term available, if you can help it

A longer term results in a lower monthly payment, but it also means a more expensive loan overall. Also, some lenders will charge you a higher interest rate if you opt for an extended repayment period. It may therefore be worth choosing a shorter loan term if you can afford the higher monthly payment.

The bottom line

If you’re looking to buy a vehicle, understanding your credit and what you can expect to qualify for is essential. But it’s not just your credit score that will determine whether you get a loan. The financing options available vary and it is important to shop around.

Learn more

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Why investors jumped off the Carvana train https://chipandtodd.com/why-investors-jumped-off-the-carvana-train/ Sat, 12 Nov 2022 13:00:01 +0000 https://chipandtodd.com/why-investors-jumped-off-the-carvana-train/ Ernie Garcia, CEO, Carvana Scott Mlyn | CNBC DETROIT – Last year, carvana CEO and co-founder Ernie Garcia took a lap of honor. He touted the company’s “historic” second quarter results on August 5, 2021, which included used car retailer’s first-ever quarterly net profit. He went on to discuss the rapid growth of “a group […]]]>

Ernie Garcia, CEO, Carvana

Scott Mlyn | CNBC

DETROIT – Last year, carvana CEO and co-founder Ernie Garcia took a lap of honor.

He touted the company’s “historic” second quarter results on August 5, 2021, which included used car retailer’s first-ever quarterly net profit. He went on to discuss the rapid growth of “a group of ambitious kids with a shocking amount to learn” at a Fortune 500 company.

It is now clear that business leaders have even more to learn. Carvana’s fairytale rise has since turned into a nightmare for investors amid rising interest rates, inflation and self-inflicted hurt.

Since Garcia’s comments last year, the company’s shares have fallen from an all-time high of nearly $377 per share, reached in August last year after that remarkable quarter, to as low as $6.50 per share this week – a reduction of 98%. Carvana fell from a market capitalization of $60 billion to $2.2 billion after a small rally that ended this week.

The stock gained more than 30% on Thursdayfollowed by a 19% rise to $11.88 per share on Friday amid a broader market rally and possible squeeze from short sellers.

But there has been a steady streak of bad news and financial results since the headline peak, stirring investor concerns on the company’s long-term trajectory. It also has little cash and $6.3 billion in debt, including $5.7 billion in senior notes.

Carvana has constantly borrowed money to cover losses and growth initiatives, including $2.2 billion all-cash acquisition earlier this year of ADESA’s physical auction activity in the United States KAR global.

“We believe CVNA is far from out of the woods as even when the industry bottoms out, we don’t see a V-shaped recovery,” JPMorgan analyst Rajat Gupta wrote in a note to the media. investors on Tuesday. The company reduced its earnings and free cash flow projections for the business.

Morgan Stanley last week removed its rating and price target for stocks. Analyst Adam Jonas cited the deteriorating used-car market and a volatile financing environment for change.

Management errors

Debt

And then there’s Carvana’s debt.

The company’s bonds hit all-time lows this week as it burns cash and faces rising borrowing costs.

The Wall Street Journal reported Wednesday that the company’s long-term bonds have fallen to distressed levels, with some now trading as low as 33 cents on the dollar. The yield on their 10.25% notes was over 30% on Tuesday, according to MarketAxess, a sign that Carvana would currently find it difficult to borrow in the bond markets.

Morgan Stanley cited the company’s debt and uncertain funding outlook to pull its rating and price target for the stock. Jonas said “a deterioration in the used car market combined with a volatile interest rate/funding environment” posed a “significant risk” to the company.

Jonas issued a new base case range for Carvana of between $1 per share and $40 per share over the next 12 months.

Price pressures

The used car market is on track to end the year down more than 12% from the 40.6 million used vehicles sold in 2021, according to mid-October estimates from Cox Automotive. Carvana’s sales in the third quarter of this year were up 4% from 2021, but were much less profitable than a year earlier and were lower quarter over quarter.

Carvana’s third-quarter sales were down 8% from a year earlier, while earnings per vehicle sold fell 25% to $3,500. CEO Garcia described the end of the third quarter as the “the most unapproachable point of all time” for customers who finance the purchase of a vehicle.

“Carvana has succeeded in disrupting the automotive industry with a proven e-commerce model serving millions of happy customers, and although the current environment and market have brought short-term attention, we have continued to win. market share in the third quarter and we remain focused on our plan to drive profitability, while making the best car buying and selling experience even better,” a company spokesperson said in a statement. .

Used car prices down 2.4% since last month

The declines came amid falling wholesale prices for new vehicles. The Manheim Used Vehicle Value Index, which tracks the prices of used vehicles sold at its wholesale auctions in the United States, fell 15.4% this year through October after peaked in January, including a 2.2% drop from September to October.

Retail prices traditionally follow the evolution of wholesale prices. That’s good news for potential car buyers, but not for companies like Carvana who bought the vehicles at record prices and are now trying to sell them for a profit.

Used vehicle prices have held steady so far, but that may not last long as wholesale costs continue to fall.

“They don’t want to sell at low prices,” said Chris Frey, senior industry intelligence manager at Cox Automotive. “That’s why we don’t see prices dropping that much at retail.”

Affordability

Frey noted that vehicle affordability continues to decline, with auto loan rates hitting a 15-year high, even as prices have fallen slightly. The average listing price for a used vehicle is stabilizing but still near record highs of over $28,200, according to Cox Automotive.

“We’ve seen a drag effect in retail sales, and a lot of that has to do with affordability,” Frey said. “The affordability, married to those higher prices, is starting to have an effect on sell rates.”

The competition is also catching up with Carvana. During the coronavirus pandemic, franchise vehicle dealerships such as AutoNation were forced to start selling vehicles online as showrooms closed and consumers stayed away from dealerships. Carvana’s traditional rivals have started delivering on their same promise of hassle-free online car buying.

“They took a lot, almost all, of the air from the balloon for Carvana,” Frey said.

– CNBC’s Michael Bloom contributed to this report.

Here's what's behind the Carvana crash
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After the Bell: High Auto Loan Rates; latest Twitter drama; winning Powerball numbers; Diamond ‘Fortune Pink’ – WISH-TV | Indianapolis News | Indiana Weather forecast https://chipandtodd.com/after-the-bell-high-auto-loan-rates-latest-twitter-drama-winning-powerball-numbers-diamond-fortune-pink-wish-tv-indianapolis-news-indiana-weather-forecast/ Wed, 09 Nov 2022 00:59:00 +0000 https://chipandtodd.com/after-the-bell-high-auto-loan-rates-latest-twitter-drama-winning-powerball-numbers-diamond-fortune-pink-wish-tv-indianapolis-news-indiana-weather-forecast/ INDIANAPOLIS (WISH) — Transunion tracks 81 million auto loans and says 1.65% of them are 60 days past due. This is the highest rate for more than a decade. Several housing loan programs set up during the pandemic have also ended recently. The average price of a new vehicle is currently over $47,000. The average […]]]>

INDIANAPOLIS (WISH) — Transunion tracks 81 million auto loans and says 1.65% of them are 60 days past due.

This is the highest rate for more than a decade.

Several housing loan programs set up during the pandemic have also ended recently.

The average price of a new vehicle is currently over $47,000. The average used car costs over $30,000.

Latest Twitter Drama

Elon Musk talks about putting the whole platform behind a paywall. Reports say that’s unlikely to happen, but it shows he’s looking for new ways to generate money.

Twitter has already lost significant revenue as advertisers hit the “pause button” on spending.

Win Powerball lottery numbers after 10 hour delay

After 10 hours of delay, the winning Powerball lottery numbers were drawn with someone winning in California.

Only one winner matched all numbers. $2.4 billion. The lump sum payment is $997 million.

The ‘Fortune Pink’ diamond goes up for auction on Tuesday

A huge diamond was auctioned off today.

This is called the “Fortune Pink” diamond. He went into action in Geneva, Switzerland on Tuesday.

It sold for $28.5 million to a private Asian collector.

It weighs 18.18 carats, the largest “fancy vivid pink” pear-shaped diamond ever sold at auction.

This is not the world record for a pink diamond.

In 2017, the pink star was sold in Hong Kong.

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Who are the biggest winners and losers when prices go down? https://chipandtodd.com/who-are-the-biggest-winners-and-losers-when-prices-go-down/ Sat, 05 Nov 2022 19:00:24 +0000 https://chipandtodd.com/who-are-the-biggest-winners-and-losers-when-prices-go-down/ AdrianHancu/Getty Images With food prices continue to riseat least consumers are seeing relief in one spending category: the price of used cars is falling in line with rising interest rates and falling consumer demand. See: States with Failing Economy vs. States with Thriving EconomyTo find: 9 bills you should never put on automatic payment AutoNation […]]]>

AdrianHancu/Getty Images

With food prices continue to riseat least consumers are seeing relief in one spending category: the price of used cars is falling in line with rising interest rates and falling consumer demand.

See: States with Failing Economy vs. States with Thriving Economy
To find: 9 bills you should never put on automatic payment

AutoNation released its third-quarter results on Oct. 27, which showed the stock price rose, but not as much as analysts had estimated. Revenue rose just 4%, which Bloomberg said was “about in line with the average of Wall Street projections.”

AutoNation has the largest car dealership chain, according to Bloomberg.

Hertz Global Holdings also said earnings suffered as used cars depreciated as dealer inventories rose and interest rates rose. Car rental companies gain when the value of used cars doesn’t depreciate as quickly, and more so when they appreciate (as they did last year). In addition to leasing cars, Hertz auctions used cars from its inventory.

“Depreciation will increase due to the net effect of lower used car prices,” Hertz CEO Stephen Scherr said in an Oct. 27 interview with Bloomberg.

Hertz reported third-quarter adjusted earnings of $1.08, up from $1.20 at the same time last year and slightly above analysts’ forecasts, according to Bloomberg.

Consumers can benefit from lower prices on used cars

Although lower profit margins on used vehicles could mean bad news for car dealerships and car rental companies, consumers can rejoice. If you can afford to pay cash for a used car or get 0% financing with a good credit score, you’ll benefit from lower prices without being charged higher interest rates. And, as a secured loan with the vehicle as collateral, auto loans generally have lower interest rates than unsecured debt, such as credit cards.

In October 2022, US News reported that the average interest rate for a used car loan (if you have a credit score of 750 or higher) is 9.23%. You can save on your monthly payments and interest charges by putting down more money.

Falling used car prices are also good news for the US Federal Reserve, which has been steadily raising interest rates in hopes of slowly curbing inflation without sinking the US. in a recession.

Take our poll : Have you created an emergency fund?
Live Updates: November Food Stamp Benefits

Americans may see the price of other consumer goods fall ahead of the holidays, especially as economists predict the Fed will hike rates another 75 basis points at its meeting on November 2, 2022, a reported Reuters.

More from GOBankingRates

This article originally appeared on GOBankingRates.com: Used car market: who are the biggest winners and biggest losers when prices fall?

]]> Cox Automotive warns of decline in car leasing options https://chipandtodd.com/cox-automotive-warns-of-decline-in-car-leasing-options/ Thu, 03 Nov 2022 15:03:46 +0000 https://chipandtodd.com/cox-automotive-warns-of-decline-in-car-leasing-options/ A new report from Cox Automotive concludes that leasing has “significantly declined” since the pandemic and that this trend could have long-term consequences. His to research led the company to cut its rental share forecast for 2022 to 19%, with the company warning it could fall even lower based on current trends. He warns that […]]]>

A new report from Cox Automotive concludes that leasing has “significantly declined” since the pandemic and that this trend could have long-term consequences.

His to research led the company to cut its rental share forecast for 2022 to 19%, with the company warning it could fall even lower based on current trends. He warns that fewer rental options could have potential impacts for consumers, reducing affordable ways to use a car.

Leasing new cars usually means a cheaper monthly payment than having a purchase financed with a loan. Cox says that means leasing provides an affordable “gateway” to new vehicles for people who can’t purchase the vehicle directly. It is also a better option for motorists who want to change cars regularly and who do not want to subscribe to a contract for more than three years.

Previously, according to the report, almost 30% of all retail sales between 2015 and 2019 were rented, peaking at 34% in 2019, before Covid-19 caused a steady decline. Low financing offers at the start of the pandemic, as well as low inventory levels due to supply shortages, contributed to the decline in the number of consumers choosing to lease vehicles.

Cox Automotive suggests three main reasons for declining leases. Rising vehicle prices and interest rates have driven many buyers out of the rental market. He revealed that the average lease payment of 2022 equals the average new vehicle loan payment of 2020.

Returning customers have not always returned. Usually, these customers return their keys at the end of the contract and replace a vehicle with a new leased vehicle, Cox says, this “virtuous circle” has been interrupted. Because the value of the vehicles has increased over the last two years, rather than taking out a new lease contract at a higher price, they are opting instead to purchase the vehicle outright.

The third reason, according to Cox, is that rental offers are not compelling this year. OEMs do not support leasing because they prefer to sell a new vehicle. There have been fewer incentives for customers and dealers to lease.

The report also analyzes the potential implications of a decline in rental market share. He said the short-term implication of a drop in rental is that consumers are likely to face higher prices because rental payments are normally lower than purchase costs. Fewer leasing options limit the pool of new vehicle buyers, which shrinks as vehicle prices rise and interest rates rise.

The longer-term implications could mean that fewer non-lease or “moderate use” vehicles will become available in the very near future. These vehicles often make up the Certified Pre-Owned vehicle market and are popular with consumers who cannot afford a new vehicle but want a quality product with a warranty.

Prior to the pandemic, a buoyant new vehicle period meant that there are now many good quality non-lease vehicles available for purchase. From 2023, this could change, impacted by the post-pandemic slowdown in new vehicles. This will impact the supply of used vehicles by 2025. Cox Automotive says the number of lease expirations from 2023 to 2025 is expected to be 2.5 million less than the total expirations between 2020 and 2022. By As a result, current high used car prices could last longer than expected, especially as demand slows due to rising interest rates.

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Leverage data insights to improve customer engagement https://chipandtodd.com/leverage-data-insights-to-improve-customer-engagement/ Mon, 31 Oct 2022 11:50:37 +0000 https://chipandtodd.com/leverage-data-insights-to-improve-customer-engagement/ Today’s major dealers are watching closely for interest rate hikes from the Federal Reserve and what it means for the auto market. In September alone, the average auto loan rate increased by about two percentage points. This indicates that expensive new cars are out of reach for many consumers. And lenders are hesitant to take […]]]>

Today’s major dealers are watching closely for interest rate hikes from the Federal Reserve and what it means for the auto market. In September alone, the average auto loan rate increased by about two percentage points.

This indicates that expensive new cars are out of reach for many consumers. And lenders are hesitant to take out subprime loans. The good news is that with limited vehicle production continuing, consumer demand for new vehicles has not diminished. This means you can still show significant revenue and hit your sales goals. But you can’t use the same old strategies like buying more leads.

Let’s explore what top dealerships are doing to find quality buyers, engage with the right messages, and choose the right communication channels to maintain sales and profits during this tumultuous time.

Take stock mining to the next level

Stock mining is the most well-known tactic for finding new opportunities with sales and service customers. This is especially useful if you’re not securing the volume of high-quality leads you want from your website and marketing efforts. Your CRM should facilitate the creation of targeted marketing and sales lists based on customer profiles.

Top dealerships dig deeper using stock mining tools equipped with propensity-to-buy intelligence that provides a predictive high, medium, or low score to indicate a customer’s likelihood to purchase a vehicle . Using artificial intelligence and business insights such as lifetime sales transactions, days left on lease, or number of payments made, propensity to buy helps limit sales and marketing efforts to the best prospects.

The same technology can be used to predict what type of vehicle should be recommended to a customer – instead of just suggesting a newer version of the current vehicle. This fits well with the industry’s push towards a more consultative sales experience for customers. Armed with this information, a salesperson becomes a trusted vehicle expert who can speak intelligently about the best-suited vehicles.

Please feel free to order and send messages in transit.

During the pandemic, lack of inventory affected dealership engagement behavior. A 2021 study of mystery shoppers from nearly 4,000 dealer groups of a particular OEM who together account for 90% of that OEM’s sales in all major markets, found that online prospect responses have changed dramatically during the pandemic.

For example, in May 2021, 25% of sales reps addressed vehicle availability when responding to leads online. Only 6% did so last September. Also in May 2021, 31% of sales staff invited customers into the dealership. That number plunged to 2% last September.

Why? Staff were afraid to answer inventory questions and were unprepared to sell through the ordering process that is the reality of today.

The best dealers are quick to talk about out of stock. They explain how customers can order a custom vehicle and/or how vehicles are in transit every day, and there is a waitlist process.

Leverage your CRM’s customizable templates to create lead response messages that highlight all vehicle purchase opportunities. The approaching model year turnover makes this an opportune time to reach out to quality prospects and explain all of the options available to get them into a new vehicle.

Adjust cadences and CRM communication channels.

Now is not the time to set CRM communication triggers and forget about them. A customer interested in vehicles in transit may need twice the communication of a prospect who won’t buy now. Consider each customer’s needs and set reminders accordingly.

The best resellers also rely on A/B testing. Create different messages using different channels to see what gets results. Sales reps need customizable templates for email, text, and chat.

The bottom line is that interest rates are rising, but the winning dealerships in today’s market aren’t using the same old cookie-cutter commitment tactics to find buyers. They don’t spend money on high-funnel leads. They spend time and money where it counts – on technology and communications to find and talk to quality buyers with a propensity to buy.

Michael Biasco (photo, top left) is a Product Marketing Manager at Elead/CDK Global with over nine years of experience in automotive retail sales, marketing and operations.

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Complete Car Warranty Guide (2022) https://chipandtodd.com/complete-car-warranty-guide-2022/ Fri, 28 Oct 2022 20:15:00 +0000 https://chipandtodd.com/complete-car-warranty-guide-2022/ Automobile warranties of all kinds provide valuable protection to vehicle owners. But even with the most reputable warranty providers, there are still things to look out for. Most warranty plans include important disclaimers and exceptions in the fine print. Waiting time It’s common for an auto warranty to come with a waiting period, especially if […]]]>

Automobile warranties of all kinds provide valuable protection to vehicle owners. But even with the most reputable warranty providers, there are still things to look out for. Most warranty plans include important disclaimers and exceptions in the fine print.

Waiting time

It’s common for an auto warranty to come with a waiting period, especially if it’s an extended warranty. This period, which is usually around 30 days and comes with a minimum mileage, exists to prevent people from using warranty coverage on pre-existing issues. During this period, you will not be able to use your coverage.

Coverage period

Vehicle maintenance contracts come with terms that define the length of coverage available. This is usually defined by both mileage and age, for example 3 years/36,000 miles. Coverage generally ends on the first occurrence.

Exclusions and Limitations

Even so-called bumper-to-bumper warranties come with limitations and exclusions. Here are some of the most common:

  • Wear Items: Most warranties do not cover items that need to be replaced regularly, such as brake pads and bulbs.
  • Repairs resulting from misuse: Automobile warranties are intended to protect your vehicle during regular use. If you use your vehicle in a way that is not recommended by its manufacturer – such as towing something outside of its capability – your supplier may deny your warranty claim.
  • Damage following a car accident: Repairs required due to collisions are the responsibility of you or your auto insurance company, depending on your policy. This means that you cannot use your warranty to repair items damaged in an accident, even if you do not have adequate insurance coverage. The same goes for things like vandalism and flooding.
  • Pre-existing damage: When you sign your warranty contract, you agree not to use the coverage to repair existing damage. Even if you exceed the waiting period, you are technically not entitled to have pre-existing problems repaired under your warranty coverage.

Eligibility for coverage

Not all vehicles are eligible for warranty coverage. Many providers place age and mileage limits on their coverage plans, and cars that do not meet these limits are not eligible. This means that it can be difficult to find a used car warranty on an older, higher mileage vehicle.

Additionally, some providers will not cover high-end luxury or exotic vehicles due to high repair costs. However, some warranty companies offer specialized plans for older or more expensive vehicles.

Cancelation

It’s not uncommon for people to decide they don’t want their car warranty after all. Most providers allow you to cancel coverage and get a full or prorated refund, depending on how long you have it. Suppliers have different cancellation policies, so check your warranty agreement to find out how.

Transferability

Many VSCs are transferable – they follow the car, not the driver. So, if you want to sell your car, the new owner can benefit from the protection plan you purchased.

Having a warranty can increase the value of your used car when you sell it. While it’s common for car warranties to be transferable, many providers charge a small fee to do so. Your warranty contract will outline the requirements to transfer your coverage.

Scams

Unfortunately, the warranty industry has been plagued by phone and email scams in recent years. The Federal Communications Commission (FCC) warned consumers that scammers call people and pretend to represent warranty companies. These callers request personal information that can be used to steal someone’s identity or commit other types of fraud.

These scams have influenced consumer opinion even on the most reputable extended car warranty companies. To protect yourself, do not give information to anyone calling you. If you want to buy coverage, find the phone number or website of the provider you want to reach. Even if the caller who reaches you is perfectly legitimate, you have nothing to lose by hanging up and calling the phone number you found.

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Refinancing my car was worth it to save over $2,700 https://chipandtodd.com/refinancing-my-car-was-worth-it-to-save-over-2700/ Tue, 25 Oct 2022 13:00:17 +0000 https://chipandtodd.com/refinancing-my-car-was-worth-it-to-save-over-2700/ Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page. I had terrible credit for years. I was finally able to […]]]>

Insider experts choose the best products and services to help you make informed decisions with your money (here’s how). In some cases, we receive a commission from our our partners, however, our opinions are our own. Terms apply to offers listed on this page.

  • I had terrible credit for years. I was finally able to buy a car by co-signing with my father.
  • I worked hard to increase my score and bought a new car on my own, but my interest rate was 10%.
  • Once I had gotten my score even higher, I refinanced for a lower rate and lower monthly payments.

My credit has been terrible for most of my life, which means I could never even consider getting a reasonable loan on a new or used car. After getting sober in 2012 and getting my license back, I basically found $500 cars on Craigslist and drove them until they broke down. I would deal with the stress of that until I found another threshing car, and then I would start that cycle all over again.

Finally I repaired my credit to a point where I was able to buy a car by co-signing with my father. For two consecutive years, I have never missed a payment on this car. After a few years, I was able to repair my credit enough to get another car without a co-signer.

I bought this new car just before the COVID-19 shutdowns; when the pandemic hit, I started working from home like millions of other Americans. Besides not being able to drive it, I was paying way too much for the car and I didn’t even realize it.

I was able to get the car for around $23,000. Due to my credit score being in the mid-500s, I received a subprime loan with 10% interest. I wanted the lowest repayments possible, so I opted for an 84 month loan.

By the time I paid for the car, it would have cost me over $9,000 in interest.

I worked hard to fix my credit – and it paid off

Last year, I went on a mission to repair my credit, and I increased my score by more than 100 points since. One of the best things I did was start reading books and learning about personal finance, and the best book I read was “I’ll Teach You How to Be Rich” by Ramit Sethi . His book taught me so many.

In addition to helping me repair my credit, the book taught me that when buying a car, you should prioritize a low interest rate. Most of us make the mistake of prioritizing monthly payments, but as you saw the interest was going to make my car cost $9,000 more than I bought it for. . Sethi also taught me what is refinancinghow it helps and what motivates banks to do it.

My original lender got me more than a barrel. I had a low credit score so it was almost like they were doing me a favor by lending me money which meant they could charge me high interest. But when I fixed my credit, I had more options.

In fact, I wasn’t even considering refinancing at first. My dealership kept sending me letters asking to buy my car back because due to the global chip shortage and other factors, it was in high demand and had increased in value by thousands of dollars. But my seller was unstable, so I decided to just refinance instead of letting them buy the vehicle back.

My main credit card is with Capital One, so I started researching and found out they do car loans. Since I have never missed a credit card payment and have been with them for years, I asked them about refinancing. Originally they sent me a quote for 7.5% interest, but I knew I had leverage. I explained how I was a loyal and responsible customer for years and negotiated them down to 7.03% interest.

The original bank couldn’t match this, so I went through the refinance process with Capital One. There was a lot of paperwork emailed, notarized, and mailed to do this, but it was worth it.

My car payments have gone from $450 a month to around $350, and I’ll save $1,700 over the life of my loan.

I got money back after refinancing

One day I received a check in the mail from my old lender for $486.76. I thought that was a mistake. A few weeks later I received another check for $613.66.

I thought that must have been a mistake too, and any day they were going to call and ask for the refund. But after a Google search for “money back after refinancing” I learned that since my car had gone up in value, there was positive equity they had to pay me when my new bank bought out my loan. .

After all, I saved money on my monthly payment and the entire loan, and even made over $1,000. This was all due to my training in credit repair and the benefits of refinancing, and now I love sharing that knowledge with others.

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Bolivian protest against census date turns deadly https://chipandtodd.com/bolivian-protest-against-census-date-turns-deadly/ Sat, 22 Oct 2022 23:56:38 +0000 https://chipandtodd.com/bolivian-protest-against-census-date-turns-deadly/ Blocked street in Santa Cruz, part of a protest demanding that the government speed up a population census scheduled for 2024 AIZAR RALDES Text size Supporters of the Bolivian government and protesters who want the 2024 national census brought forward by a year clashed in the country’s economic hub of Santa Cruz on Saturday, killing […]]]>

Blocked street in Santa Cruz, part of a protest demanding that the government speed up a population census scheduled for 2024

AIZAR RALDES

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