BLOG FOR SPECIAL FINANCE CAR DEALERS
Nuvell and National Auto Finance Cease Operations
GMAC informs its Nuvell and National Auto Finance dealers that both subprime units will cease originating loans on January 7th.
Effects of the financial crisis
Here at Auto Credit Express, we fully realize how much the current financial crisis and the resulting recession has been for car dealers involved with subprime auto loans. Subprime lenders, in particular, have been hit with a double whammy: the subprime customer is especially sensitive to fluctuating economic conditions, resulting in an increase in the number loan delinquencies and repossessions. In addition, the cost of securitizing subprime loans has become more expensive and with little additional capital to make loans, many of these lenders, such as AmeriCredit, have either cut back on the number of loan originations or, like HSBC, have pulled out of the market altogether.
On Tuesday of this week, GMAC, which is the parent company of subprime lenders Nuvell and National Auto Finance, informed their dealer network, in a bulletin, that both lenders would cease originations almost immediately.
Difficult economic environment
Here is the bulletin:
As you know, the automotive industry has been severely affected by the disruption in the capital markets as well as the difficult economic environment.
For Nuvell / National, our availability of capital for non-prime transactions has continued to decrease during the last few months. Moreover, the cost of this limited capital has escalated to a level where it is no longer cost effective to originate new volume. Therefore, we will cease originating volume as of the end of the day tomorrow, January 7, 2009. We will honor approvals on applications decisioned in the last 30 days provided the contracts are received in our office by Friday, January 23, 2009.
Feel free to contact our Jacksonville office at (800) 856-6190 or the Dallas office at (877) 200-5575 if you have any questions or concerns.
We sincerely thank you for your support throughout the years and wish you success in the future.
Tom Pritchard
President
Not Unexpected
Much like subprime lenders HSBC and Triad, both Nuvell and National Auto had cut back on originations in recent months. Carroll Smith, owner of Monument Chevrolet in Pasadena, Texas stated, in an Automotive New article, that “Nuvell was essentially out for us some time ago.”
The Bottom Line
In today’s economy, it is imperative that dealers establish close relationships with their current subprime lenders and cultivate new ones – even if this means establishing relationships with lenders that you wouldn’t normally have used in the past. For just as surely as Nuvell/National weren’t the first lenders to exit the market, they won’t be the last.
August 8th, 2009 at 2:19 pm
COULD YOU LET ME KNOW IF MY PAYMENT ON MY VAN IS THERE SINCE IT WAS MAILED THREE WEEKS AGO AND HAS NOT POSTED ON MY CHECKING ACCOUNT.
THANKS
RON
August 10th, 2009 at 8:43 am
Ron,
We are not a lender, but if you let us know who is, we will try and get you a contact number or email.
September 16th, 2009 at 1:45 pm
Ding dong the witch is dead.HOORAY!!!
October 7th, 2009 at 1:54 pm
Our account with Nuvell/National Auto Finance Company for a 2001 Ford Explorer - Acct. 040000090513 should almost be paid in full. Can you please tell us what we still owe and what our credit with you is and who we can use on credit to buy again? We would appreciate it. Thank you for being so nice in financing our SUV in 2004. Your help with us is greatly appreciated.
Sherri & Johnny Wynne
October 8th, 2009 at 9:07 am
Sherri,
We don’t represent Nuvell/National Auto Finance company, but we did visit their web site where you can either look up their phone number, or create an account and view all your payment activity as well as see what the balance on the account is.
Here is the link:
https://www.nuvell.com/CustomerAccess/register.jsp