Tag Archives: sell bhph notes
American Car Center issues third nonprime lease securitization
NMAC wins $2.5m in floorplan fraud case
A federal judge has ruled in favor of Nissan Motor Acceptance Corp. after it was determined a used-car dealership defrauded the captive on its floorplan loan by selling vehicles out of trust.
Helena, Mont.-based Robert Allen Nissan owes NMAC $2.5 million, plus attorneys fees and costs incurred by NMAC to date, according to a Nov. 5 filing with the U.S. District Court of Montana, Helena Division.
NMAC has initiated the process of collecting and disposing of the 90 vehicles in question — valued at $2.8 million — per a court order in July. The remarketing sales proceeds, minus expenses and costs, will be applied to the outstanding balance owed by Robert Allen Nissan, the documents noted.
According to a Feb. 22 complaint filed by NMAC, the dealership sold vehicles out of trust for months by keeping the proceeds – totaling $795,584 for 25 vehicles – and failing to pay them to NMAC.
Carvana posts triple-digit origination growth YOY
Carvana’s originations hit $1.9 billion in the third quarter, a 115% year-over-year increase.
Third-quarter revenue increased 105% to $1.1 billion, marking the used-car retailer’s 23rd straight quarter of triple-digit revenue growth. Carvana sold 46,413 retail units, up 83% from the prior-year period.
The business of buying cars from customers, an area of focus for the Tempe, Ariz.-based company, shot up 249% year over year. “Growth in vehicles acquired from customers also fed our retail inventory, diversifying our selection and improving acquisition prices,” Chief Executive Ernie Garcia noted in a letter to shareholders. Overall, 31% of retail units sold were sourced from customers, up from 16% in the prior-year period.
The car-buying operation is “nearly 70% as large as our core business in transaction volume,” Garcia noted, adding that the growth of the business “exceeded our expectations, which led to some operational constraints and required additional investments.”
To that end, Garcia revealed that Ally Financial increased Carvana’s floorplan line of credit last quarter to $950 million from $650 million. The boost added “significant flexibility to expand [Carvana’s] inventory selection and buy more cars from customers,” he added.
Meanwhile, Carvana continues to expand geographically, opening in nine markets last quarter and bringing its total to 146 markets. The lender also built four vehicle vending machines, for a total of 22.
AFS 2019: HyreCar exec pinpoints subscription service challenges and opportunities [Video]
What do delivery pizza and automotive subscription services have in common?
HyreCar’s SVP of Strategic Partnerships Brian Allan made the case at the Auto Finance Summit that vehicle subscription services could unlock the potential for consumer adoption with a seamless mobile app, just as Domino’s achieved with pizza delivery 10 years ago.
“Domino’s changed the world of pizza,” Allan said. “They made it easier to order pizza, because it was cumbersome to do over the phone.”
Still, even with a smooth user interface and mobile presence, the subscription service space faces a challenge, outside of technology.
“Ridesharing is often confused with ride-hailing; carsharing is different entirely from Uber,” Allan said. “The semantics are confusing. and when consumers are confused, that’s where there’s less adoption.”
Allan was joined by panelists Robert McDonald, managing director at Stabilis Capital Management, and Bernie Moreno, president of DriveOptions.
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