Floorplan finance fraud on the rise; CUs lean into auto
from Auto Finance News Podcast Hosted by Auto Finance News
As fraudulent activity picks up across the automotive industry, floorplan financiers are also seeing an uptick in dealers disappearing with vehicles or submitting false documents. Floorplan lenders such as NextGear Capital and Westlake Flooring Services in recent months saw a rise in the volume of fraud and more dealers defaulting on their lines of credit. Supporting dealers is a top priority for Ford Credit Chief Financial Officer and Vice President of Strategy Eliane Okamura in the second half of the year, alongside portfolio health and technology advancement, she told Auto Finance News. Meanwhile, credit unions have gained market share as they lean back into auto as consumer demand for used vehicles increases amid affordability challenges. In powersports, motorcycle dealers saw mixed sales in July as lenders tightened standards, with dealers also scaling back supply. Prices remain high across the industry, with the average selling price of boats up 10% in July. In this episode of the “Weekly Wrap,” Auto Finance News Editor Amanda Harris, Senior Associate Editor Truth Headlam and Associate Editor Aidan Bush discuss trends across fraud, affordability, sales and powersports for the week ended Aug. 22.
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