Auto Loans News

Gavel and handcuffs
May, 3, 2012
United States Attorney William N. Nettles sentenced six individuals from South Carolina for an auto loan scheme that Nettles claimed was an attempt to commit bank fraud. Those sentenced for conspiracy to commit bank fraud were William Brian Toadvine, Donald Toadvine, Floyd Hargrove, Daniel Kosmer Jr., Joyce Pozniko, and Elizabeth Donnelly. All six are accused of providing false statements on auto loan applications, according to ABC News. A seventh individual, Colin Slaven, was also involved, but he pled guilty and is now awaiting sentencing.
Young woman with keys
May, 2, 2012
Lenders in the car loan business are now issuing vehicle financing to borrowers with less-than-perfect credit scores. In fact, they’re lending to borrowers with even less-than-average credit ratings, prompting some experts to say that the auto financing industry has finally reached pre-recession levels again. Before the economic collapse of 2008, lenders were very relaxed with their standards. “They were pretty much lending to anyone with a pulse,” said Jesse Toprak, an industry analyst with Truecar.com, to CNN Money.
Fisker Logo
Apr, 19, 2012
Fisker Automotive, the vehicle manufacturer that is responsible for creating the futuristic-looking Fisker Karma, is reported to have laid off dozens of employees who formerly worked at their automotive plant located in Delaware, reported the New York Times. The layoffs occurred shortly after the U.S. Department of Energy (DOE) put a freeze on the company’s government-sponsored auto loans. The DOE has been the authority on determining eligibility for government auto loans meant to fund automotive companies’ endeavors to create energy efficient vehicles.
Crowd holding up a trophy
Apr, 9, 2012
Volkswagen, the German car manufacturer most famous for its uniquely styled Beetle, has come a long way since producing its stubby, round, insect-influenced vehicle that’s now highly sought surfers, vintage lovers, and hobbyists. While the foreign automaker continues to make uniquely styled vehicles, they’ve proven themselves as one of the top manufacturers, winning the World Car of the Year competition in three of the last four years. This year, the World Car of the Year award went to the Volkswagen Up!. What’s Up! With This Car?
Money-scam
Apr, 6, 2012
The Federal Trade Commission (FTC) filed charges against two California-based auto loan modification operations. The FTC claimed that “Hope for Car Owners” and “Auto Debt Counseling” made false promises that they could reduce consumers’ monthly auto loan payments in return for hundreds of dollars in up-front fees. The two organizations also advised consumers to stop paying their auto lenders, which led to at least one consumer’s car being repossessed. Other consumers reported the organizations told them to “hide [their] car[s] to avoid repossession,” reported the FTC in a release.
Picking car over house
Mar, 29, 2012
Believe it or not, a current study reveals consumers are more likely to pay back their auto loans than they are their mortgages. Even credit cards are favored over home payments, as consumers are losing faith in the value of a mortgage.  “The auto loan is seldom the first choice when a consumer has to decide which payment to miss,” said Ezra Becker, vice president of research and consulting at TransUnion, according to a MarketWatch. Indeed in over 4 million people surveyed by TransUnion, over 40 percent of people who fell behind on their mortgage kept their auto loan and credit card payments current.
Broke Car Salesman
Mar, 27, 2012
The website TrueCar.com surveyed people how much they thought dealers made on a $40,000 car. The responses were mostly in the range in the $3,000 to $5,000. Needless to say, they, along with most other auto loan borrowers, would be very surprised to learn that auto dealers actually make hardly anything on each car they sell. In fact, in 2011, car dealers made an average of $23 per car sold, according to the National Automobile Dealers Association. For many, that doesn’t even pay the gas bill (especially at today’s prices) to get to and from work.
Car Salesman
Mar, 16, 2012
We’ve all seen the commercials: a schmoozey car salesman dressed in a nice suit, maybe wearing some sort of patriotic accessory, just begging viewers to come in to his lot because he wants to “give” away his vehicles. A growing trend in those commercials is the dealership’s promise to pay off existing car loans on old vehicles if consumers are willing to trade them in for a new vehicle. But such promises are little more than veiled scams that have drawn the ire of the Federal Trade Commission (FTC).
Energy efficient car
Mar, 14, 2012
At an Energy and Natural Resources Committee hearing, several senators voiced their harsh opinions about the Energy Department’s handling on their $25 billion auto loan program. Calling the program “virtually dormant,” many were unafraid to voice their honest opinions about the Energy Department’s recent decisions regarding the allocation (or lack thereof) of their allotted money for auto loans meant to help private companies go “green.”
Thumbs down
Mar, 8, 2012
Carbon Motors Corp., a business who had the intentions of creating fuel-efficient diesel police cars, is the most recent applicant to be rejected by the Department of Energy (DOE) for an auto loan to fund their production. The DOE is sitting on a mountain of money meant for retooling the auto industry into a more energy-efficient production line. Under the Advanced Technology Vehicle Manufacturing (ATVM) program created in 2007 and funded by congress in 2008, the DOE has a total of $25 billion in energy auto loans to hand out to manufacturers it deems suitable.

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