Consumer are more cautious about spending and are conducting more research before making major purchases in the wake of the economic downturn, but a new study reveals that they still have a lot to learn.
Attributing its third-quarter decline in auto loans to a retrenchment and repositioning of its auto finance business, Capital One reported a 3.3 percent decline in auto loans last Thursday — the same day the McLean, Va.-based company reported a 14 percent increase in third-quarter profits.
Despite its auto finance unit’s profit nearly tripling, mounting charge-offs led Capital One Financial Corp. to report a second-quarter loss of $275.5 million.
The auto finance industry struggled through the first quarter of this year, but several companies reported lower losses compared to the fourth quarter 2008.
While Americans say they understand financial basics and monitoring budgets, they may not be doing enough to save or protect their financial future, according to a survey of America’s “financial IQ” by Capital One Financial Corporation.
Experian Automotive’s AutoCount has ranked the top auto finance lenders for 2008, listing Toyota Financial Services at the No. 1 spot and revealing that GMAC, Ford Motor Credit and Chrysler Financial Services lost significant market share in a watershed year for the U.S. automotive industry.
Capital One Financial Corp. showed a third-quarter profit, but it was clear the bank and credit-card issuer is repositioning its auto portfolio.
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