$1.5m fine for Santander Consumer USA over accounting failures

The Securities and Exchange Commission has announced that Santander Consumer USA Holdings has agreed to settle charges stemming from its accounting for troubled sub-prime loans, in a deal which will see the lender pay a civil penalty of $1.5 million. According to the SEC’s order, Santander Consumer failed to calculate and report its credit loss allowance for certain impaired loans in accordance with Generally Accepted Accounting Principles for at least eight reporting periods. Santander Consumer failed to segregate the impaired loans when calculating its credit loss allowance, and improperly grouped the loans with the rest of its loan assets when evaluating them for impairment.

$1.5m fine for Santander Consumer USA over accounting failures

Jan 14, 2019

The Securities and Exchange Commission has announced that Santander Consumer USA Holdings has agreed to settle charges stemming from its accounting for troubled sub-prime loans, in a deal which will see the lender pay a civil penalty of $1.5 million. According to the SEC’s order, Santander Consumer failed to calculate and report its credit loss allowance for certain impaired loans in accordance with Generally Accepted Accounting Principles for at least eight reporting periods. Santander Consumer failed to segregate the impaired loans when calculating its credit loss allowance, and improperly grouped the loans with the rest of its loan assets when evaluating them for impairment.

Finance arms to remain separate as Volkswagen and Ford launch global vehicle alliance

Ford and Volkswagen have announced a broad vehicle alliance to develop commercial vehicles and pickups for global markets. The alliance is designed to provide scale and efficiencies through shared vehicle platforms, starting in 2022. The collaboration could extend to electric and autonomous vehicles and also mobility services, reflecting BMW and Daimler’s merger of their mobility divisions last year.

Finance arms to remain separate as Volkswagen and Ford launch global vehicle alliance

Jan 16, 2019

Ford and Volkswagen have announced a broad vehicle alliance to develop commercial vehicles and pickups for global markets. The alliance is designed to provide scale and efficiencies through shared vehicle platforms, starting in 2022. The collaboration could extend to electric and autonomous vehicles and also mobility services, reflecting BMW and Daimler’s merger of their mobility divisions last year.

Alphera launches new online portal for car finance customers

Alphera Financial Services, BMW Group’s independent motor finance division, has launched a new online portal for its UK car finance customers. Called My Alphera Finance, the platform gives customers a way to access information about their finance agreement and manage their account.

Alphera launches new online portal for car finance customers

Jan 14, 2019

Alphera Financial Services, BMW Group’s independent motor finance division, has launched a new online portal for its UK car finance customers. Called My Alphera Finance, the platform gives customers a way to access information about their finance agreement and manage their account.

EMEA

PSA Finance announces car subscription partnership with Drover

Dec 18, 2018

PSA Finance has announced its second car subscription partnership in a month after signing a deal with UK-based Drover. The pilot will enable drivers to subscribe to a variety of cars from PSA Group brands covering Citroen, Peugeot and DS. Earlier this month, PSA Finance announced a pilot partnership with subscription service Wagonex to offer the manufacturer’s cars on its own UK platform, allowing customers to sign up for flexible contracts that run from one month to two years.

Americas

Lease returns could boost 2019 car sales

Dec 20, 2018

Record lease returns are expected to boost vehicle sales in 2019 according to forecasts from car shopping specialist Edmunds, but soaring prices and rising interest rates could create an affordability crisis. New vehicle sales will continue to decline in 2019, continuing a trend started in 2017, with analysist forecasting that a total of 16.9 million new vehicles will be sold in 2019, compared to an expected 17.2 million vehicles in 2018. Despite this downward trend, experts predict in the Edmunds 2019 Forecast and Trends Report that auto sales will remain at a historically high level, because positive economic factors such as low unemployment, high consumer confidence and low gas prices are expected to persist through 2019, coupled with a surge in lease returns.

Asia Pacific

China’s growing cities fuel auto finance expansion

Jan 07, 2019

As China’s megacities continue to swell in size, there is booming demand for vehicles within a growing middle class that needs access to transportation. China already leads global vehicle demand, ahead of the US and EU, according to the latest data from ACEA, the European Automobile Manufacturers’ Association. However, according to J.D. Power’s 2018 China Consumer Auto Financing Sales Satisfaction Study, car finance is still an underdeveloped, but emerging, business in China.