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ON THE WEB: Boston Becomes First City to Team with CFPB
The Consumer Financial Protection Bureau and the City of Boston announced a partnership to connect consumers with the CFPB to ask questions and submit complaints about financial products and services. Boston residents who call the Mayor’s hotline with a question or complaint about consumer financial products or services will be transferred directly to the Bureau, which can answer these inquiries.
IHS Signs Agreement To Buy Polk, Carfax
Diversified market data provider IHS Inc. has signed a definitive agreement to acquire R.L. Polk & Co. The $1.4 billion transaction will be funded with 10 percent equity and the remainder with cash on hand, cash from an existing revolver and a new bank term loan. The acquisition is subject to customary closing conditions. R.L. Polk consists of two divisions - market data provider Polk and vehicle history provider Carfax.
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Auction Expansion Ready to Move Ahead By Sheila McGrath
After clearing a costly hurdle unexpectedly thrown in their path, owners of the Central Pennsylvania Auto Auction are hoping to get the go-ahead this summer to start a major expansion project next year. Grant Miller started the auction in Lock Haven, Pa. in 1987, and was joined in the business two years later by his son, Doug, who learned the business from the ground up. The Millers made a few cosmetic changes to their operation over the years, but it wasn’t until they started running out of space for their customers and staff that they started making plans for expansion. The five-lane facility handles about 700 units each Thursday, and they noticed that on auction day people were practically tripping over each other, Doug Miller said. “We just got to the point where we needed to expand our operations,” he said. Last year, the company went to the local township government to get the necessary permits. But their
LOOKING FORWARD: Grant Miller, left, and his son Doug look out on their soon to be expanded auction in Lock Haven, Pa. The pair had to overcome numerous concerns about the impact on the environment before getting the green light to start building.
forward progress came to a halt when Pennsylvania’s Department of Environmental Protection decided a major storm water management system was needed at the site. The move was deemed necessary because runoff from the buildings and parking areas on the 60-
acre lot drain into a sinkhole behind the building. Since then, they’ve been working with engineers, architects, and the area conservation district to get the plan in place. “We have spent nearly $60,000 with our engineers to design a storm water management plan and
haven’t even turned a shovel full of dirt over,” Miller said. He estimates the added expense when they begin the work will be $200,000 to $250,000 for the storm water management project alone. But there’s a light at the end of the tunnel. Continued on page 15
Rush - Dated Material
Auto Finance ABS Continues to Get Upgrades Standard & Poor’s issued 50 upgrades for subprime auto asset-backed securities last year, an all-time record that the ratings agency is already on pace to top this year. There have been 36 upgrades through the first five months of 2013, S&P structured finance director Amy Martin told attendees of the recent National Automotive Finance Association conference. Still, there are signs the impressive rise of auto finance is coming down to earth. “This is part of the normal ebb and flow of consumer financing,” Martin said. She said the ratings agency is paying special attention to
the firms that debuted following the downturn. “It’s easy to start an auto credit company in the middle of a crisis when nobody is lending and look good,” she said. There has been some concern about the growth in auto lending this year, that it might lead to some practices that create problems for the industry. One of those concerns is the growth in term length. Creditors keep extending the contracts, but this increases the risk of something going wrong during the life of the deal. Martin said tern length had little effect, as long as the contract doesn’t outlast the car.
How two guys went from writing software to re-writing the rules of used car selling. See back cover. ©2013 Ally Financial. All rights reserved.
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