Fireside Bank to Cease Originations, Exits Auto Finance
Unitrin Inc. has announced plans to shelve Fireside Bank, the company's subprime auto finance unit. Fireside will cease originations immediately and collect and service its existing portfolio in-house.
PLEASANTON, Calif. — Unitrin Inc. has announced plans to shelve Fireside Bank, the company's subprime auto finance unit. Fireside will cease originations immediately and collect and service its existing portfolio in-house.
"The turmoil in the economy, coupled with changes in the used-car marketplace and increased capital requirements has led to this decision," Don Southwell, Unitrin's CEO, said in prepared statement. "In an era of scarce capital resources for all financial institutions, Unitrin’s management and board of directors believe that it is in the best interests of Unitrin’s shareholders to redeploy its investment in Fireside."
Southwell indicated that the auto lending subsidiary remains solvent despite posting multimillion-dollar net losses in 2007 and 2008. After 50 years in the auto finance business, Fireside had ongoing relationships with more than 15,000 U.S. dealers in 17 states.
More Auto Finance
More Auto Loans for the Taking in August
Riskier categories were on the uptick for the month as lenders loosened access in several areas while balancing out the exposure in another, Cox Automotive reported.
Read More →
July Was Hot for Auto Borrowers
Credit proved readily available for many, but most loans left buyers in negative territory, Cox Automotive said.
Read More →
Dealer Lender Preferences Revealed
When lenders provide consistent, fast service, their overall satisfaction scores with dealers greatly improve, according to JD Power research.
Read More →
Auto Refi Savings Surge
Consumers with 84-month auto loan terms who refinanced saved the most on monthly payments, according to a new report by auto refinancing provider Caribou.
Read More →
Subaru Enters Lending Business
The automaker follows other brands in adding captive financing in the U.S., and says the move will strengthen its position here.
Read More →
Positive Equity Reaches Record High
Mainstream vehicle owners who bought a car seven years ago are likely to have positive equity when trading in for a new vehicle, according to second-quarter Edmunds data.
Read More →
Dealerships Are Paying the Price for Extended Car Loans
Growing negative-equity scenarios mean such lengthy terms should be addressed in a forward-looking way to make them work for the dealer and the consumer down the road.
Read More →
Trade-Ins in Negative Equity Reach New Heights
As such trade-ins rise in frequency, so do monthly loan payment amounts and interest rates, according to second-quarter data compiled by Edmunds.
Read More →
Auto Credit Plentiful
June numbers show lenders are readily granting access, including to risky borrowers, as consumers leverage themselves to take on high prices.
Read More →
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →