The National Association of Minority Automobile Dealers (NAMAD), together with C Berman Associates (CBAmoney.com) will introduce the NAMAD Certified Vehicle Program during the NADA Convention in Las Vegas in February.

C Berman Associates, one of the largest F&I product and services companies, will produce and execute the program to the NAMAD Members.  The program will allow dealers the opportunity to certify their non-branded used vehicles just as they do with their franchise brand certification.  Program coverages will be produced for all major brands.

“We’re excited about this new relationship with C Berman and how this collaboration will give NAMAD members a value-added product to provide to its customers,” said Damon Lester, NAMAD president.

Used Financing Grows

December 06, 2019

Used vehicles are commanding a larger share of the U.S. automotive finance market, according to Experian’s Q3 2019 State of the Automotive Finance Market report. Used financing increased 2.4 percent year-over-year, reaching 55.15 percent, compared to 53.86 percent a year ago. The trend appears to be driven by a number of factors, including a higher percentage of prime customers financing used vehicles and an increased availability of late-model vehicles.

While used vehicle loans saw growth in the third quarter, the most significant shift was in the super prime segment, increasing 3.3 percent to reach 13.42 percent. As a whole, prime and super prime consumers make up 51.24 percent of used loans - the highest percentage since 2009. Even when financing used vehicles, consumers continue to lean toward longer payment terms, with used terms clocking in at 64.89 months, and average new vehicle loan terms reaching 69.28 months. Independent dealers saw an increase in prime and super prime financing, with both segments making up 37.92 percent of loans, compared to 34.87 percent a year ago. Independent dealers also saw an increase in average used loan terms, from 60.86 months in 2018’s third quarter, to 62.59 months this year.

The average credit score for a used vehicle risen 12 points, to 662, over the past four years.

New Car Loan Rates Drop

December 05, 2019

The average interest rate for a new vehicle loan dropped to its lowest level of 2019 - and lowest level seen since February 2018 - in November, according to the car shopping experts at Edmunds. The annual percentage rate (APR) on new financed vehicles averaged 5.5 percent in November, compared to 5.7 percent in October and 6 percent in November, 2018. Edmunds data reveals that 21.8 percent of shoppers who financed their vehicle purchases in November got an interest rate below 3 percent, compared to 18.6 percent of those who financed purchases in November 2018.

While interest rates declined, Edmunds experts note that new vehicle prices continued to rise in November. Edmunds data reveals that the average transaction price for a new vehicle climbed to an all-time high of $37,981 in November, compared to $37,188 last year and $33,282 five years ago.

Agora Data and Ignite Consulting Partners announced they have entered into an agreement where Ignite will provide compliance services in support of AGOR’s Certified Member Initiative.

The AgoraCertified program enables buy-here, pay-here auto dealers to create a more valuable portfolio. AgoraCertified works closely with dealers and their data, assisting them with valuations, the accuracy of data and best practices regarding loan files.

“Our program allows dealers to have their accounts examined to identify patterns and practices that may be holding back portfolio value,” said Chris Barry, Agora senior vice president, sales. “Sometimes that involves resolving compliance issues, so we’ve asked Ignite to work with us and our dealers in support of our program.”

Nearly 70 percent of Americans (69 percent) would be likely to consider a used vehicle for their next auto purchase, according to a survey from Ally Financial conducted online by The Harris Poll among more than 2,000 American adults.

Even though 69 percent of Americans would be likely to consider used vehicles for their next vehicle, they expressed concerns about their reliability and repair needs, the survey found.

According to the survey, consumers would be more likely to purchase a used vehicle over a new vehicle with the following attributes: Higher-quality used vehicles (40 percent); Vehicle certified by dealer or factory (39 percent); Detailed maintenance/repair history report of the vehicle (36 percent) and a vehicle service contract that extends the warranty or covers major repairs (34 percent).

Used car owners say they currently own used because: It was less expensive than a new vehicle (61 percent); they liked the brand/model of the used vehicle (40 percent) and they were able to get more car for their money (34 percent).

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