May 30, 2020

Employment status among auto lending hurdles during COVID-19

The COVID-19 outbreak dealt a major blow to large auto lenders’ first-quarter earnings as banks deferred auto loan payments and shifted resources to shield themselves from future losses. As lenders tighten credit access to mitigate the fallout of the coronavirus pandemic on their auto portfolios, finance-and-insurance managers are working overtime to get these customers approved for loans. The swift descent from one of the longest economic expansions in history to an economy now burdened with the highest unemployment rate since…

Negative equity on trade-ins jumps to record, Edmunds says

Consumers are upside down on trade-ins like never before, Edmunds said. A record percentage of trade-ins last month were worth less than what was owed, the company said in a statement, and the gap was the widest it’s ever been.The data shows that 44 percent of new-vehicle sales with a trade-in had negative equity in April, up from 33 percent in April 2019. The average amount owed on upside-down loans also hit a record high of $5,571 in April, compared…