Lenders keep losing on inflated residuals

Henry, Jim
August 2001
Automotive News;8/27/2001, Vol. 76 Issue 5945, p18
Trade Publication
Reports on the losses of banks from automobile off-lease residual values in the United States. Factors contributing to the banks' losses; Estimates on the number of off-lease automobile units returning to the market for 2001; Estimates on the average loss per unit.


Related Articles

  • The scales keep tipping. McReynolds, Rebecca // U.S. Banker;Mar99, Vol. 109 Issue 3, p38 

    Focuses on losses incurred by banks due to investments made in the automobile leasing operations in the United States. Comments from bank executives; Strategies used to tighten residual estimates on lease operations.

  • Banks in auto lease business slam into pileup of low-priced used cars. de Senerpont Domis, Olaf // American Banker;3/18/1999, Vol. 164 Issue 52, p1 

    Reports that banks in the United States have continued to see declining profits from auto leasing due to a lower market demand. Increase in the number of used cars; Projection that banks will continue to lose profits from auto leasing following expiration of existing leases; Need for banks to...

  • Banks' auto leasing problems caused by unsound marketing. Stewart, James W. // ABA Banking Journal;May81, Vol. 73 Issue 5, p188 

    Focuses on the problems of banks on automobile leasing in the U.S. Increase in the volume of returned vehicles; Effect of the Consumer Leasing Act; Calculation of the residual value of the automobile.

  • Auto Lease Biz Pushes Banks into Writedowns. Mandaro, Laura // American Banker;10/24/2000, Vol. 165 Issue 204, p1 

    Reports on the role of the demise of automobile leasing on the decision of several large regional banks in the United States to make huge writedowns. Difficulties experienced by the automobile leasing sector due to the decline of used car prices; Decision of Bank of America Corp. to take a $257...

  • 'Selling' the new federal tax law.  // ABA Banking Journal;Nov86, Vol. 78 Issue 11, p6 

    Reports the efforts of banks to compete under the conditions imposed by a federal tax law in the U.S. Elimination of tax deductibility of interest on most forms of consumer borrowing; Advantage of automobile leasing on the customers; Exception of home equity loans on the deductibility rule.

  • Lease Squeeze. Edgerton, Jerry // Money;Jul99, Vol. 28 Issue 7, p135 

    Focuses on the increased cost of leasing a new automobile in the United States as of July 1999. How banks lost money on car leasing; The amount lost by Bank One in 1998; Why banks are setting lower residual values on leases; Lease deals for the Chrysler 300 M, Nissan Pathfinder SE 4WD, Toyoto...

  • In Brief.  // American Banker;2/28/2000, Vol. 165 Issue 39, p3 

    Presents a news roundup about banks in the United States as of February 28, 2000. Includes GE Capital Fleet Services' purchase of a portfolio of vehicles from Bank of America Leasing and Capital Group; Opening by Wells Fargo & Co. of a real estate office in New York City; Enforcement action...

  • Susquehanna Keeps Auto Unit; Street Frowns. Reosti, John // American Banker;1/31/2006, Vol. 171 Issue 20, p5 

    The article discusses Susquehanna Bancshares Inc. unsuccessful efforts to sell its ailing auto leasing subsidiary, Hann Financial Services Corp. Susquehanna chairman and chief executive William J. Reuter says his company is better off taking another year of losses than selling Hann Financial at...

  • Time Is Right in Phoenix. Albanese, Elizabeth // Bond Buyer;4/5/2002, Vol. 339 Issue 31359, p1 

    Reports on the approval to build a consolidated car rental facility at Sky Harbor International Airport by Phoenix City Council in Phoenix, Arizona. Opposition to the car rental facility project; Source of funding to meet operational cost; Improvement of the car rental rates.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics