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Thinning margins spur Ford Credit downgrade
Citizens One ramps up CPO program
FICO launches smartphone app to gauge driver risk
Fair Isaac Corp. (FICO) has launched the newest version of its safe driving score this week with a smartphone-based application to assess driver risk.
“Our goal is to get the [safe driving] score to be the industry standard, which can be used by insurance companies to help with their decision process,” Rachel Bell, vice president of scores and analytics at FICO, told Auto Finance News.
The safe driving score app uses sensors in a smartphone to pick up acceleration, distraction, and breaking to get drivers to understand what they are doing that creates a “risky profile” and what they can do to improve their score, Bell said. “Similar to feedback a consumer receives about a credit score, the app will present feedback after every ride,” she said.
The app also helps fleet managers understand when drivers are “high risk” and, in turn, can help reduce fleet losses caused by collisions, Bell noted.
The enhanced app has an 18% improvement in predictive accuracy when determining if a driver is high risk. Additionally, it can determine drivers who are 30% more likely to be involved in future collisions.
Though, currently, consumers’ safe driving scores don’t factor into lender underwriting decisions, that scenario could change. “There needs to be a demand for it,” Bell said. “Do the drivers want it? Do lenders want it? Maybe someday.”
Don’t miss your chance to save on registration to the 19th Annual Auto Finance Summit returning to Las Vegas, October 28-30. Early registration ends Friday, September 13th. Register now at www.autofinancesummit.com.
CPS speeds funding with quicker verifications
Honda breaks sales record
American Honda posted the “best month of sales in company history” in August and set four different records, according to a release from parent Honda Motor Co.
Between the Honda and Acura brands, the company sold 173,993 units, a 17.6% year-over-year increase, which “smashes all-time monthly sales records for total vehicles and trucks,” the release said.
Looking closer, the Honda brand also had its best-ever month in vehicle sales, which rose 19.6% year over year to 158,804 units. That increase was driven by “record truck sales and robust passenger car sales,” which came in at 86,020 units and 72,784 units, respectively.
In addition, the CR-V also posted a record month in August, clocking in at 44,235 units, an increase of 27.8% compared with the prior-year period. The Accord and Civic models each topped sales of 30,000 units.
The OEM also noted that electric vehicles — which sold more than 6,000 units — are on track for a second straight record year and a double-digit year-over-year sales increase thanks to the strength of the Accord Hybrid and Insight sedans.
Don’t miss your chance to save on registration to the 19th Annual Auto Finance Summit returning to Las Vegas, October 28-30. Early registration ends Friday, September 13. Register now at www.autofinancesummit.com.
Westlake Financial enters Canadian market
Citizens One increases approvals for loans with mid-600 scores
Beneath the surface: The lurking cybersecurity threat
What a new Nevada spousal credit law means for lenders
Nevada recently amended its Equal Opportunity for Credit statute to give special rights to credit applicants who do not have individual credit histories because their accounts were established in their spouses’ names. (See Nevada SB311, effective October 1, 2019). The Nevada law applies to a creditor offering any credit product in Nevada, including a finance company that participates in the decision to extend credit as an assignee of an original creditor, which may include auto finance companies.
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