As Independence Day nears, both Toyota Financial Services and Lexus Financial Services are honoring the men and women in uniform and their families with a new program that waives remaining lease payments for Gold Star spouses and families.
Gold Star spouses and families are relatives of service members who die or are “catastrophically injured” in the line of duty.
Click here to read the full story.
Loans in American Honda Finance Corp.‘s latest securitization have the shortest original and remaining terms when compared with other issuers’ pools, according to a Moody’s Investor Services presale report. The $1.1 billion securitization is on track to be upsized to $1.3 billion based on investor demand.
Read more: American Honda Finance Dodges Class-Action Lawsuit
The loans backing Honda’s securitization — its third of the year — have a 62-month original term and a 49-month remaining term, on average. By comparison, the original and remaining terms were 66.4 months and 55.2 months, respectively, for Nissan Motor Acceptance Co., Toyota Financial Services, Hyundai Capital America, Ford Credit Co., and GM Financial, according to the report.
In fact, AHFC’s vintages from 2015 to 2018 all have cumulative net losses (CNL) hovering between 2% and 3%, the lowest rate compared with other companies’ vintage securitizations. Forecasted CNL for this securitization is 0.50%, the same as Honda Finance’s second securitization this year.
Read more: Honda Finance’s Late-Stage Delinquencies Rise
Meanwhile, AHFC’s auto portfolio increased 6.6% year over year in the second quarter, to $30.4 billion. Net losses increased 2 basis points, to 0.36 as a percentage of total outstandings.
Toyota Motor Corp. has struck a deal with Chinese startup Pony.ai to launch an autonomous vehicle program next month in Beijing and Shanghai, the companies announced on Monday.
Pony.ai will build its autonomous driving system into Toyota’s Lexus RX vehicles. The companies will start the pilot project as they “attempt to accelerate the development and deployment of self-driving vehicles,” according to a press release.
Pony.ai, which has raised roughly $300 million from investors, develops artificial intelligence solutions for autonomous vehicles. The partnership comes on the heels of Pony.ai’s announcement of its autonomous fleet PonyPilot, unveiled in April and launched within a geofenced area in Guangzhou, China.
PonyPilot is the company’s first attempt at autonomous vehicle ride-hailing available to the public in China. Check out the video below to see how it works.
Toyota Motor and its captive finance arm Toyota Financial Services have upped investments in the self-driving and mobility space as competition mounts. Last August, the OEM invested $500 million in Uber Technologies, which combined Uber’s autonomous driving system with Toyota’s Guardian technology.
Toyota Financial stepped into the autonomous space with the launch of a keyless carsharing technology pilot program with Getaround in January 2017 to see if it could enable car lessees to use the payments generated from Getaround to help pay their monthly bill.
Five Questions With is a monthly Q&A segment on AutoFinanceExcellence.org that offers a glimpse of what senior industry executives are thinking about outside the boardroom. Read on to find out.
Eighteen years at Toyota Financial Services has taught Carrie McNamara, national manager of consumer and dealer experience, that each hurdle encountered also represents an opportunity for growth.
“When faced with problems or difficult situations as a leader, it is important to recognize that the situation also presents an opportunity — which shapes you and makes you a more valuable leader and mentor,” McNamara told Auto Finance Excellence.
Since joining TFS in 2001, McNamara’s roles have spanned far and wide, and include positions such as customer retention advisor, vendor relationship manager, and sales operations manager, to name a few.
McNamara will be joining the speaker faculty at the 2019 Auto Finance Summit in Las Vegas to discuss how TFS is reframing operations to build an exclusive, customer-centric strategy.
Auto Finance Excellence asked McNamara five questions about her company goals, advice that helped her earn top management roles, and a surprising fact her colleagues would never suspect. What follows is an edited transcript of the interview.
Auto Finance Excellence: What are your company goals in 10 words or less?
Carrie McNamara: We’re transforming our business to create a customer-chosen experience.
AFE: What is the favorite piece of leadership advice you’ve ever received?
CM: Don’t be afraid to fail. Even in circumstances where you’re facing something you have never encountered, you can draw upon your experience and resources to work through it. So, when you are in the thick of developing solutions, take a moment to remember this is part of the process of building a better and stronger version of yourself. That can give you the energy and drive to persevere.
AFE: What do you think is the most underrated trend in lending practices?
CM: I feel there is a huge opportunity in the auto lending space to provide personalized lending experiences. On the servicing side of the equation, we’re working to identify customers’ preferred communication channels and then interact with them when they want and how they want. As lenders make even better use of data and analytics, we can make the origination process easier for customers too — in a compliant manner, of course!
AFE: What person has had the biggest influence on your career?
CM: Several years ago, I was searching for my next growth opportunity and found myself torn between leading my team through a major transition or relocating for a new opportunity in our sales organization. A mentor of mine talked through the options with me and provided such valuable guidance that I share this with others even today. Prior to taking on a challenge, I ask myself one question which makes the decision process much easier: Are you ready for a challenge? And if so, take it! There will always be reasons to stay in the area you know or remain in your comfort zone. If you’re up to the challenge, then say yes, and know that growth comes with being uncomfortable.
AFE: What’s something all your employees would be surprised to learn about you?
CM: I was raised by an extremely hard-working single mom for most of my childhood. My brother and I were on our own a lot and I looked up to him and naturally wanted to do everything that he did. Riding BMX, skating, climbing up and skiing down mountains, you name it, I was trying it. I’ve taken my share of spills and one time had to ride my dirt bike several miles through the desert with a broken leg, sprained hand, and concussion. I’ve since replaced my dirt bike with a mountain bike and a TRD Pro 4Runner, and every year, I pick a different mountain range to hike. Just a little more low-key!
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
Asbury Automotive has “amended and reinstated” its five-year, $1.45 billion syndicated senior credit facility, the company announced on Wednesday.
The syndicated facility will offer a $1.04 billion new-vehicle revolving floorplan facility, a $250 million revolving credit facility, and a $160 million used-vehicle floorplan facility.
American Honda Finance Corp., BMW Financial Services, Mercedes-Benz Financial Services, Nissan Motor Acceptance Corp. and Toyota Financial Services are part of the new credit facility, along with Bank of America, JPMorgan Chase, Mass Mutual Asset Finance, Santander Bank, SunTrust Bank, U.S. Bank and Wells Fargo.
The maturity date was extended to September 2024 from July 2021 and offers the option of expansion to $1.63 billion.
In addition, interest rates on all facilities were reduced from their previous rates. The new-vehicle floorplan rate is one-month Libor plus 110 basis points; the used-vehicle floorplan rate is one-month Libor plus 140 basis points, and the revolving credit facility will have interest in the range of Libor plus 100 to 200 basis points.
Duluth, Ga.-based Asbury Automotive operates 87 dealerships in nine states.
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
Inchcape Plc has agreed to sell its U.K.-based fleet leasing business, Inchcape Fleet Solutions (IFS), to Toyota Fleet Mobility for £100 million ($123 million) in cash. Toyota is IFS’s oldest OEM partner. The deal is set to close by year end.
IFS operates as a franchisee for BMW, Mercedes-Benz, Volkswagen, Porsche, Toyota and Lexus. The sale will add IFS’s 20,000-vehicle fleet to Toyota’s fleet of 12,379 vehicles, according to 2018 data compiled by FleetLeasing.
This acquisition is the latest in Toyota Financial Services’ increased investment into the UK market. In May, TFS invested an undisclosed amount into London-based ridesharing startup Faxi to scale its carpooling platform across Europe.
Inchcape’s sale of IFS will allow it to concentrate on core distribution activities, according to a release, and follows the sale of seven UK-based dealerships, six Australian dealerships and three Chinese dealerships. These sales, including IFS to Toyota, are expected generate £250 million ($307.6 million) in cash revenue for the company.
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
A trio of executives from GM Financial, Toyota Financial Services, and Veros Credit are set to discuss tips for creating a customer-centric strategy on Wednesday, Oct. 30, during the 19th annual Auto Finance Summit at the Bellagio in Las Vegas.
The panel will feature Bob Beatty, executive vice president of customer experience at GM Financial; Carrie McNamara, national manager of customer and dealer experience at Toyota Financial Services; and Mark Medrano, assistant vice president of loss recovery at Veros Credit.
The panelists will discuss best practices for building an exclusive customer journey, mitigating negative perceptions on the servicing side, and catering to the self-serving consumer.
Additional conference sessions will explore the latest on regulations and enforcement, tailoring servicing techniques to surpass customer expectations, and using fintechs to step outside of traditional lending.
For more information on the Auto Finance Summit, visit the event page at autofinancesummit.com. To register, click here.
LAS VEGAS – The Auto Finance Coalition, Carvana, Toyota Financial Services, Tricolor and U.S. Bank‘s John Hyatt are this year’s recipients of Auto Finance Excellence Awards, a mark of distinction within the industry for achievement in leadership, community service, and technology among other categories.
The Auto Finance Coalition, a subchapter of the Association of Financial Crimes Investigators, took home this year’s leadership award for its work fighting fraud since 2011. The AFC consists of 165 members from the auto finance industry and law enforcement.
The coalition estimates that it has prevented tens of millions of fraud losses for the auto finance industry, including initiation of two large-scale criminal investigations that resulted in $7 million of losses.
Tricolor Auto Group was awarded this year’s Auto Finance Excellence Award for technology. The award praises the buy-here, pay-here lender’s extensive use of technology to fulfill its commitment to credit-invisible Hispanic borrowers. The company is an acknowledged technology innovator, distancing itself from competitors by leveraging its strength in data and analytics. It is continually applying the power of AI, machine learning, software, digital marketing and other IT innovations.
These technologies are integrated throughout the company’s operations, demonstrating a mastery of machine learning and artificial intelligence, mobile-first auto buying experiences, and WhatsApp and Facebook Messenger integration to customer service and text platforms.
Toyota Financial Services’ efforts around raising awareness and donations that support HIV/AIDS efforts garnered the captive the Auto Finance Excellence Award for achievement in community service.
The captive has taken a unique approach to promoting corporate social responsibility with its donations to AIDS/LifeCycle — a 545-mile, 7-day charity bike ride from San Francisco to Los Angeles. Designed specifically to leverage its auto finance and remarketing expertise, TFS employed a strategy to raise awareness around HIV/AIDS, champion health and human rights, and grow a community of ambassadors. Thanks to its steady stream of off-lease vehicles, TFS loaned 64 vehicles to transport medical, media, safety and other volunteer and support teams for the AIDS/LifeCycle event.
Carvana won the Auto Finance Excellence Award for operational innovation for its revolutionary work within the auto finance industry. The 5-year-old company has brought a fresh approach to the industry with its unique business model and customer experience, which include vehicle vending machines, seven-day vehicle return policy and home delivery.
Tempe, Ariz.-based Carvana, in hyper-growth mode, operates in more than 130 markets and has generated nearly $1 billion of revenue last quarter. Carvana continues to grow significantly, doubling originations year over year.
U.S. Bank’s President of Dealer Services John Hyatt was awarded the 2019 Auto Finance Excellence Award for leadership. When Hyatt joined U.S. Bank’s ranks from Bank of America in 2015, U.S. Bank was originating $9 billion of auto loans and leases annually. It hit more than $14 billion last year, with auto finance outstandings approaching $40 billion. The portfolio growth is one example of Hyatt’s achievements at the bank.
However, Hyatt’s contributions far exceed U.S. Bank’s portfolio, with philanthropic efforts with organizations such as United Way, Habitat for Humanity and the Sulzbacher Center for the Homelessness.
Auto Finance Excellence Awards have annually since 2005 recognized executives and companies that have made great contributions to auto lending and leasing in the past year.
Chase Auto is looking to supplement its private-label financing venture with a “new business” focused on strategic partnerships that will leverage the private-label infrastructure, Chief Executive Mark O’Donovan said at the Auto Finance Summit.
Chase Auto Chief Executive Mark O’Donovan (right) sits down for a fireside chat at the 2019 Auto Finance Summit
“We had some unfortunate news that Mazda had let us know a little while ago they’re going to be moving their captive finance business to Toyota Financial, so that’s going to be a bit of a headwind,” O’Donovan said. “Our goal is to see how we help mitigate some of that.” Toyota Financial Services took over as Mazda’s private-label finance provider in August. Chase Auto had served as Mazda’s financial arm since 2010.
Already, O’Donovan said Chase is working on “five or ten” strategic partnerships, similar to Chase’s relationship with Vroom, that will complement the partnership business.
“The idea [with the Vroom partnership] is how do we bring branding, marketing, and our consumers to work with them to create a better customer experience that’s not pure retail but a more preferred framework overall,” O’Donovan said. “The reason we can do that reasonably efficiently because of the [private-label] business that we have.”
Chase Auto and Vroom announced in September the two companies would be expanding their partnership with the 2020 launch of a preferred-lender financing arrangement called Vroom Financial Services Powered by Chase.
Chase Auto provides private-label financing to OEMs Subaru, Jaguar, Land Rover, Maserati and Aston Martin.
Vipin Gupta, Chief Information Officer, Toyota Financial Services
Auto Finance News is thrilled to host Toyota Financial Services’ Chief Information Officer Vipin Gupta at the 5th annual Auto Finance Innovation Summit for a fireside chat on Tuesday, March 10.
The event will take place at the Omni San Diego on March 10-11, directly following the Auto Finance Sales & Marketing Summit. Check out the full agenda here.
Gupta was appointed chief information officer at the captive — which boasts a $92 billion portfolio — in 2018. In his role, Gupta leads all aspects of digital transformation and information technology to transform, grow and expand the business of TFS. He reports to company President and Chief Executive Mark Templin.
Before joining Toyota in 2018, Gupta served as executive vice president and CIO for Key Community Bank, a business unit of KeyBank, where he drove customer-focused digital transformation. Before KeyBank, he served as business information officer at PNC/National City Bank.
Gupta previously told AFN that his goal for TFS is to usher in a future of mobility services to the captive. He said TFS will drive innovation by focusing on three strategic objectives: agility, digital experiences and using data and analytics to deliver new services. Since joining TFS, Gupta has fostered a digital-savvy workforce via an internal learning program for employees and business partners called TFS Digital Academy.
Gupta’s fireside chat will be followed by sessions that explore new interactions in payments, streamlining loan servicing and collection practices, and data-driven approaches to improve operational efficiencies.
To learn more — or to register — for this year’s event, visit the Auto Finance Accelerate homepage here.
As Independence Day nears, both Toyota Financial Services and Lexus Financial Services are honoring the men and women in uniform and their families with a new program that waives remaining lease payments for Gold Star spouses and families.
Gold Star spouses and families are relatives of service members who die or are “catastrophically injured” in the line of duty. The program will allow the customer’s family to return the vehicle and TFS will forgive any remaining lease payments and waive any end-of-lease fees included in the lease contract.
Protection for Gold Star spouses and families has been a topic of import for lawmakers on Capitol Hill. In April, Senators Elizabeth Warren (D-Mass.), Rob Portman (R-Ohio), Jack Reed (D-R.I.), Kyrsten Sinema (D-Ariz.) and Thom Tillis (R-N.C) introduced a bipartisan bill that would expand financial protections for Gold Star spouses and families by allowing them to terminate a residential or motor vehicle lease within one year of the death or injury without a penalty or additional financial obligation. Currently, finance companies are not obligated by law to allow Gold Star families out of their auto lease in the event of death or catastrophic injury; financial institutions do so on a voluntary basis.
In addition to TFS’s new lease waiver program, the captive offers a $500 rebate for active duty service members and veterans within two years of discharge on new Toyota vehicles that are financed or leased through TFS.
Carrie McNamara, national manager, customer and dealer experience, Toyota Financial Services
Five Questions With is a monthly Q&A segment on AutoFinanceExcellence.org that offers a glimpse of what senior industry executives are thinking about outside the boardroom. Read on to find out.
Eighteen years at Toyota Financial Services has taught Carrie McNamara, national manager of consumer and dealer experience, that each hurdle encountered also represents an opportunity for growth.
“When faced with problems or difficult situations as a leader, it is important to recognize that the situation also presents an opportunity — which shapes you and makes you a more valuable leader and mentor,” McNamara told Auto Finance Excellence.
Since joining TFS in 2001, McNamara’s roles have spanned far and wide, and include positions such as customer retention advisor, vendor relationship manager, and sales operations manager, to name a few.
McNamara will be joining the speaker faculty at the 2019 Auto Finance Summit in Las Vegas to discuss how TFS is reframing operations to build an exclusive, customer-centric strategy.
Auto Finance Excellence asked McNamara five questions about her company goals, advice that helped her earn top management roles, and a surprising fact her colleagues would never suspect. What follows is an edited transcript of the interview.
Auto Finance Excellence: What are your company goals in 10 words or less?
Carrie McNamara: We’re transforming our business to create a customer-chosen experience.
AFE: What is the favorite piece of leadership advice you’ve ever received?
CM: Don’t be afraid to fail. Even in circumstances where you’re facing something you have never encountered, you can draw upon your experience and resources to work through it. So, when you are in the thick of developing solutions, take a moment to remember this is part of the process of building a better and stronger version of yourself. That can give you the energy and drive to persevere.
AFE: What do you think is the most underrated trend in lending practices?
CM: I feel there is a huge opportunity in the auto lending space to provide personalized lending experiences. On the servicing side of the equation, we’re working to identify customers’ preferred communication channels and then interact with them when they want and how they want. As lenders make even better use of data and analytics, we can make the origination process easier for customers too — in a compliant manner, of course!
AFE: What person has had the biggest influence on your career?
CM: Several years ago, I was searching for my next growth opportunity and found myself torn between leading my team through a major transition or relocating for a new opportunity in our sales organization. A mentor of mine talked through the options with me and provided such valuable guidance that I share this with others even today. Prior to taking on a challenge, I ask myself one question which makes the decision process much easier: Are you ready for a challenge? And if so, take it! There will always be reasons to stay in the area you know or remain in your comfort zone. If you’re up to the challenge, then say yes, and know that growth comes with being uncomfortable.
AFE: What’s something all your employees would be surprised to learn about you?
CM: I was raised by an extremely hard-working single mom for most of my childhood. My brother and I were on our own a lot and I looked up to him and naturally wanted to do everything that he did. Riding BMX, skating, climbing up and skiing down mountains, you name it, I was trying it. I’ve taken my share of spills and one time had to ride my dirt bike several miles through the desert with a broken leg, sprained hand, and concussion. I’ve since replaced my dirt bike with a mountain bike and a TRD Pro 4Runner, and every year, I pick a different mountain range to hike. Just a little more low-key!
Join us for Auto Finance Summit 2019, October 28-30 at the Bellagio Las Vegas. The summit continues to bring together the best and brightest executives in auto lending and leasing for unparalleled networking and education. Register now at www.autofinancesummit.com.
Vipin Gupta, Chief Information Officer, Toyota Financial Services
Auto Finance News is thrilled to host Toyota Financial Services’ Chief Information Officer Vipin Gupta at the 5th annual Auto Finance Innovation Summit for a fireside chat on Tuesday, March 10.
The event will take place at the Omni San Diego on March 10-11, directly following the Auto Finance Sales & Marketing Summit. Check out the full agenda here.
Gupta was appointed chief information officer at the captive — which boasts a $92 billion portfolio — in 2018. In his role, Gupta leads all aspects of digital transformation and information technology to transform, grow and expand the business of TFS. He reports to company President and Chief Executive Mark Templin.
Before joining Toyota in 2018, Gupta served as executive vice president and CIO for Key Community Bank, a business unit of KeyBank, where he drove customer-focused digital transformation. Before KeyBank, he served as business information officer at PNC/National City Bank.
Gupta previously told AFN that his goal for TFS is to usher in a future of mobility services to the captive. He said TFS will drive innovation by focusing on three strategic objectives: agility, digital experiences and using data and analytics to deliver new services. Since joining TFS, Gupta has fostered a digital-savvy workforce via an internal learning program for employees and business partners called TFS Digital Academy.
Gupta’s fireside chat will be followed by sessions that explore new interactions in payments, streamlining loan servicing and collection practices, and data-driven approaches to improve operational efficiencies.
To learn more — or to register — for this year’s event, visit the Auto Finance Accelerate homepage here.
