While dealers are adapting to change, so too are their lenders, according to Michael McGhee, Senior Vice President & Division Head, TD Auto Finance Canada in his remarks at the 6th annual CADA Summit.
McGhee says the focus for TD Auto Finance this year is improvement. “More than ever we are preparing for the future,” says McGhee, adding they want to find the best way to work with and help dealers.
“Today we are among leaders,” says McGhee. “Leaders who can help shape the future of the industry.”
McGhee says TD Auto Finance has enjoyed participating in and being the CADA Summit’s exclusive sponsor since its inception. He reviewed his notes from previous events and discovered many of the themes covered at earlier events still remain valid today. Themes such as: strong industry growth, record sales, dealer consolidation, continued shift in consumers moving to self-serve and digital interactions, high levels of consumer debt, longer amortizations for vehicle loans and increased negative equity.
But McGhee says the bank is also carefully watching three other trends that gained momentum in 2017.
1. Fraud:
There’s been an increase in various types of fraud involving the auto industry, with used car lots becoming popular businesses for money laundering, increases in identity theft and fraudulent representations. Banks and dealers need to work more closely together to prevent fraud, he says.
2. FinTech:
McGhee says various FinTech companies have gone from “an idea to a solution” in a relatively short order. The bank is often approached by various FinTech startups, and TD recently made its first FinTech acquisition. He says dealers and lenders will need to work with some of these companies to benefit consumers.
3. Increased regulatory interest:
McGhee says the regulatory environment remains focused on consumer protection. “We are all feeling the increased scrutiny,” says McGhee. He says consumer protection agencies and government policy makers want to understand the impact of long-term loans and negative equity on the economy.
TD Auto Finance is the exclusive sponsor of the CADA Summit.
