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Artificial intelligence is helping reduce bias from dealers and lenders who might otherwise underestimate or overestimate a borrower's income in the auto finance process. Reducing that bias speeds up deals, lowers risk and matches borrowers with the right type of loans, said Jessica Gonzalez, director of auto lending strategy and account management for Informed.IQ.

AI, widely used by lenders making upfront credit decisions for car buyers, is a relatively new tool for income verification, Gonzalez said. The company, based in Tiburon, Calif., works with seven of the top 10 auto lenders, including Ally and Capital One.

Instead of using AI, some lenders still "stare and compare" income documents to confirm the information dealers submit to them. Gonzalez said using AI to verify income especially helps car buyers who are nervous about walking into a dealership, such as lower-income and thin-file consumers with little credit history .

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Subprime auto lenders are willing to finance electric vehicles, but they say few among their credit-challenged consumers are seeking those models.

Credit Acceptance Corp. Chief Treasury Officer Doug Busk said on an earnings call Aug. 1 that his company financed some EVs, but not many.

"The chief barrier there is just price," Busk said. Credit Acceptance's target customer had difficulty affording EVs, he said.

The average EV loan covers an amount 56 percent larger than a loan for an internal combustion engine model, according to Equifax data from the third quarter of 2018 through the second quarter of 2022.

Eighty percent of EV loans and leases historically have gone to borrowers with superprime credit scores of at least 720, compared with a 50 percent superprime share of all vehicle financing, according to Equifax. Correspondingly, the average EV interest rate has been 50 percent lower than that found on a gasoline-powered vehicle, the credit bu…

Electric vehicle shoppers who receive lower monthly payments for agreeing to send the lender a delayed down payment — such as money received from an EV tax credit — are making good on that promise, two companies facilitating that financing model say.

Startups Tenet and EV Life offer customers a deferred payment structure, with EV Life incorporating it into loans it writes itself and Tenet serving as the matchmaker between customers and financial institutions supportive of the concept.

Tenet also participates in indirect loans involving dealerships, and EV Life is interested in that space.

Both companies have other EV financing businesses as well. EV Life has created tax credit and rebate calculation software and licensed it to Nissan and Toyota; Tenet pairs customers with climate-mindful lenders willing to offer cheaper loans and provides lenders EV depreciation models and automated loan application decisions.

Tenet allows consumers to def…

There was a surge in EV leasing this summer, accounting for 26 percent of all EV transactions in July — up dramatically from 7 percent in December, J.D. Power data shows.

But counterintuitively, the brands experiencing an explosion in leasing are the ones ineligible for the U.S. government's Clean Vehicle Credit incentive.

EV lease rates in June for Volvo, Mercedes-Benz, Audi and Kia, which don't qualify for the purchase credit, ranged from 60 to 82 percent, J.D. Power data shows. However, Tesla, with its Model 3 and Model Y qualifying for the purchase credit, has an overall lease rate of about 8 percent.

The federal Clean Vehicle Credit, most recently modified in April, offers EV, plug-in hybrid and fuel cell EV buyers a maximum tax credit of $7,500 for vehicles that meet qualifying standards based on final assembly location, battery component and critical minerals sourcing, and consumers' modified adjusted gross income. Automakers already producing a…

Cadillac’s V-Series performance subbrand is about to turn 20, and Cadillac is celebrating with a special 20th Anniversary package on its 2024 models.

The V-Series made its racing entrance in March 2004 and later entered production with the 2004 CTS-V sedan.

Today, the V-Series is available for the CT4 and CT5 sedans, including Blackwing variants, along with the Escalade large SUV. To commemorate two decades, Cadillac’s anniversary package will feature a custom grille header, wake-up animation screen and puddle lamp projector, along with a Black Diamond Tricoat heritage color.

IM Motors, a Chinese premium electric-vehicle maker backed by Alibaba Group Holding Ltd. and SAIC Motor Corp., is considering raising new funds to help finance expansion plans, according to people familiar with the matter.

The Shanghai-based company is working with advisers including China International Capital Corp. as it seeks to raise about 6 billion yuan ($828 million), the people said, asking not to be identified because the matter is private.

Considerations are preliminary and details such as the size of the deal could still change, the people said. Representatives for IM Motors, known as Zhiji Motors in Chinese, and SAIC didn't immediately respond to requests for comment, while CICC declined to comment.

IM Motors was founded in 2020 with total investment of 10 billion yuan from SAIC Motor, Alibaba and Shanghai's Pudong District, a press release shows. It started mass production of its first model, the IM L7, in early 2022, according to a different…

The bidding war for U.S. Steel could have big implications for a burgeoning domestic market for electrical steel — an ultrathin material vital for the auto industry as it makes more electric vehicles.

Electrical steel is a relatively niche segment, accounting for only about 1 percent of global steel production, but it is growing rapidly.

The material is difficult to make. It is rolled into sheets about 1-millimeter thick or less to be used in electric motors, transformers and generators. It contains silicon, and has magnetic properties well-suited for such electrical products.

U.S. Steel is well aware of the importance of the material, and it is spending billions to ramp up production of products such as electrical steel as it aims to lay claim to emerging opportunities in EVs.

Thanks to a recent investment in one of its mills, U.S. Steel now has a "near monopoly" on the domestic production of non-grain-oriented elect…

U.S. light-vehicle sales rose again in August at Hyundai and Kia, helped by the highest industry inventory levels in two years and increasing incentives that helped offset higher interest rates for consumers.

It was the 13th consecutive month of U.S. sales gains for the two Korean brands, and is expected to lead off a strong sales report Friday for an industry that was severely inventory constrained a year ago.

“The supply recovery continues to improve across the country, and this is leading to the market’s sales gains this year," said Charlie Chesbrough, senior economist at Cox Automotive, who noted that with improved supplies, sales incentives had also worked their way back into the mix.

Hyundai Motor America said U.S. sales during the month improved 1.1 percent to 65,046 vehicles while Kia America reported a gain of 9.2 percent to 72,147 vehicles.

Hyundai's luxury brand Genesis said sales during August surged 27 percent to 6,453 vehicles.

The IAA Mobility, Europe’s and Germany’s largest auto show, is making its second Munich appearance this week and next.The event was held for many years in Frankfurt before Munich became its home in 2021.Most debuts will be of vehicles intended for the European market, but some models destined for the U.S. will get premier treatment. Mini, VW and Mercedes-Benz all will unveil new vehicles this year, and there’s a good chance BMW and Fisker will have something new to show.Stay with Automotive News for the latest from the Munich show.

Tesla Inc. presented a freshened version of its entry-level Model 3 that adds premium features including ventilated seats, ambient lighting and a rear-seat infotainment screen.

The upgraded Model 3 will be displayed at the 2023 Munich auto show.

The EV leader also announced surprise price cuts for other models late Thursday as CEO Elon Musk seeks 50 percent sales growth this year globally, even at the expense of profits.

"More sophisticated materials, ventilated seats and customizable ambient lighting," Tesla Europe said of the Model 3 on social media platform X, formerly Twitter. "More refined and relaxed ride quality, thanks to a combination of stiffer body and updated suspension tuning." Musk is the majority owner of X.

A check of Tesla's global websites showed that orders for the freshened Model 3 went live on Thursday for selected countries, but not the U.S. The Model 3 has not been significantly freshened since its launch in 2017.

T…

MUNICH — Mini seeks to revive its flagging fortunes and shed its quirky status in the U.S. by giving Americans more of what they want. The BMW-owned compact car brand will up-size its largest model — the Countryman — and electrify it.

The redesigned crossover, available in combustion engine and battery-powered versions, shares a platform with the subcompact BMW X1 Series. The electric 2025 Mini Countryman SE ALL4 arrives in U.S. stores in September 2024.

Pricing was not disclosed.

The electric Countryman is the second volume EV from the Mini brand, which has seen U.S. sales tumble 32 percent since 2018. The British marque plans to go all-electric by 2030.

"We're at the start of what is the most significant evolution of our product portfolio since we launched (in the U.S.) in 2002," Michael Peyton, vice president of Mini of the Americas, told Automotive News.

Mini has announced it is also planning a subcompact crossover and a Cooper SE rep…

Europe's most important auto show will provide insight into how successfully the region's established automakers can fight off a growing threat from Chinese rivals such as BYD and U.S. upstart Tesla.

The battleground is clear: electromobility, autonomous driving, fast-charging batteries with long ranges and user-friendly software features.

These will be the key themes of the IAA Mobility auto show in Munich (formerly held in Frankfurt), which has its press day on Monday, Sept. 4 and is open to the public from Sept. 5-10.

There will be nearly twice as many Chinese brands at the show this year as there were in 2021 when coronavirus travel restrictions kept away many exhibitors and visitors.

BYD and SAIC-owned MG Motor are seen by industry insiders as the main threat to European brands. BYD and MG are expanding step-by-step into Europe, targeting key markets and building up retail networks. Both companies are also looking to open factories in Europ…