September 2, 2013
www.usedcarnews.com
ON THE WEB: Auto ABS Losses Ready to Rise Following Lows
SEE OUR AD INSIDE ON PAGE 7
Auction Association Gathers in Indy
Losses on both prime and subprime U.S. auto ABS rose in July following lows seen earlier in the spring, according to Fitch Ratings. Auto ABS losses are likely to increase as the seasonally weak fall progresses. Dealers will begin discounting existing 2013 models to make way for new 2014 models, which typically impacts loss severity and drives loss rates higher.
AutoTrader.com Marks Mobile Milestone
Over 2.1 million unique visitors interacted with AutoTrader. com from a smart phone during July, which represents a 60 percent increase year-overyear. AutoTrader.com’s mobile properties include a mobile site and a car shopping app for iPhone and Android phones.
Odd Designs Need Time To Catch on with Public
Consumers’ preferences for products with odd designs depend on how many times they viewed the product.
Photo by Jeff Kowalsky TEAM OF RIVALS: Outgoing NAAA President Paul Lips, left, and incoming President Jack Neshe show off their hometown colors. The Indianapolis Colts and New England Patriots might be fierce rivals, but the two ADESA execs are old friends. See more on page 8.
The National Auto Auction Association has hosted its convention at some of the top destinations in the United States, such as New York, Chicago and Orlando, Fla. So what’s the deal with Indianapolis? “There’s going to be a lot of people who are going to
be pleasantly surprised,” said NAAA president Paul Lips about his hometown. Indianapolis has long had much to offer visitors. It is second only to Washington, D.C., in the number of war memorials, was named one of the best downtowns by Forbes and is home to one the top
sports venues in the nation – the Indianapolis Motor Speedway. According to a recent USA Today article, Indianapolis ranks 27th on the list of Top 50 convention sites in the nation. The JW Marriott hosting the NAAA is the largest hotel in the chain. It was built
for the 2012 Super Bowl. Lips recommends taking a stroll down to Massachusetts Avenue for attendees with free time. Of course, there may be little of that. The association has more educational sessions scheduled this year than ever before.
Regulators Look for Discrimination in Auto Finance Rush - Dated Material
By Ted Craig
Several federal agencies are on the look out for discrimination in indirect auto lending. Representatives of the Consumer Finance Protection Bureau, the Federal Reserve and the Justice Department spoke on a recent teleconference about the topic. The CFPB’s Patrice Ficklin said while the many dealers are exempted from the regulator’s oversight, the finance companies are covered. “(We) will use that authority wherever appropriate to ad-
dress discrimination,” Ficklin said. All credit applications other than those for mortgages are barred from collecting demographic data. But the feds said they will use proxies to look for patterns of discrimination. The proxies include geo-coding, which looks for discrimination based on the number of minorities who live in a specific area. This is sometimes called “redlining.” Regulators will also check databases for Hispanic last names and female first names for signs of discrimination. Continued on page 16
TD Auto Finance
The first step to helping you grow your business? Going to the back cover.
0002350_M3523_1C_V2.indd 1
6/27/13 12:59 PM
1
UCN_01.indd 1
Round
M3523-1C_V2.indd
8/26/13 5:11 PM