A fight is brewing in the Michigan state legislature over whether to allow auto title loans (pictured above in California). This type of lending allows people to borrow against the value of their car while they keep driving it, but the money often comes with astronomical interest rates. Critics allege it's a form of predatory lending, but Michigan Senate Majority Leader Randy Richardville (R-Monroe) disagrees.
"Dealers have to discount those rates to be competitive. The current system saves customers money. Period." – Forrest McConnell
Longer loan terms and favorable interest rates are tempting consumers into pricier and more feature-laden vehicles, consequently driving average transaction prices up about three percent since 2009, according to a new report by Automotive News.
Unlike a house, where it can take months or years to evict owners behind on their payments, some subprime lenders can now simply switch off a late borrower's car.
The auto industry in the US is doing great in 2014. According to our latest By The Numbers report, the Seasonally Adjusted Sales Rate climbed in August to about 17.5 million units, the highest figure since 2006. However, when you scratch underneath the positive surface, the rosy situation might not be as good as it seems. There continues to be a concern among insiders and analysts that while sales are strong now, they
Is there a point in the US auto industry where companies should start considering the welfare of their customers ahead of selling more cars? American Honda Executive Vice President of Sales John Mendel thinks that level exists, and we may be getting very close to it.
The auto financing company First Investors Financial Services Group was fined $2.75 million on Wednesday by the Consumer Financial Protection Bureau for reporting incorrect information to credit agencies that affected thousands of customers.
Car rental agencies operating at Denver International Airport are reporting tourists with extra pot are frequently handing it off to their employees or stashing their stash in the cars before they return them.
The industry is on pace to sell more than 16 million cars this year ... but don't break out the party hats and champagne just yet.
More subprime borrowers defaulted on their car loans in the years following the Great Recession than during or before the crash.
A medium-income household can afford the average-priced new vehicle in just one of the 25 largest U.S. metro areas, according to a report from Interest.com.
It may seem like a drop in the bucket compared to the approximately $1 billion in liabilities bankrupt automaker Fisker Automotive has against it, but every bit helps. In this case, it's a smidgeon less than $5 billion. That's how much the maker of the Karma extended-range plug-in is getting ap
Ally Financial has agreed to pay a $98-million fine to settle an investigation into unfair lending practices overseen by the Justice Department and the Consumer Financial Protection Bureau (CFPB). In an investigation of lending practices in the year after April 2011, the government agencies determined that Ally Financial and Ally Bank charged roughly 235,000 Asian/Pacific Islander, Black and Hispanic borrowers higher interest rates than their credit profiles warranted and higher rates than white
Since the US government shut down early this morning, more than 800,000 federal employees could be furloughed without pay until a deal is reached to start the government back up. To help affected employees cope with the temporary layoffs, Hyundai is expanding its Assurance program to defer all of their auto loan or lease payments until they're called back to work.
When dealers allow cars to roll off lots when financing isn't complete, customers can be on the hook for hundreds in extra fees or have their cars repossessed if loans don't come through.
US auto loans are at their highest level since before the start of the great recession, according to a report from Automotive News. Originations increased 11 percent during the second quarter of 2013, to a combined $91.8 billion for all credit tiers, while overall sales were up nine percent overall.
In the "lightning strikes twice" department, another California company in the green transportation field has said it paid off its federal government loans ahead of schedule. In this case, San Diego-based Sapphire Energy, which specializes in converting plant algae to crude oil, says it has paid off its $54.5-million loan, originally granted by the US Department of Agriculture, ahead of schedule.
The length of car loans in the US keeps on growing as more and more consumers look for ways to save money every month to pay off obligations and necessities. Extremely low interest rates and more durable automobiles have become key factors in driving these new longer-term car loans, which can last anywhere from six to 10 years.
We've heard all about the wildfires that have been raging in the western US, and the lengths that normal citizens are going to to fight them. Now, Congress is finally stepping in to deliver some aid of its own. The funds, though, could come at the expense of the auto industry.
In the "it may be broke, but we ain't fixing it" department, the US government has decided not to shutter the $25 billion Department of Energy loan program geared to accelerate advanced-powertrain technology development, the Detroit News reports. Given the opportunity to cut a mere $6 million in funding earmarked specifically to oversee the $25 billion Advanced Vehicle Technology Manufacturing program, the US House declined and the O
