Finance and Insurance

Ford Credit car-sharing plan aims to cut ownership costs

12:15 pm U.S. ET | June 24, 2015

Ford is entering the car-sharing market with a program that will cut Ford Credit customers' vehicle costs by enabling them to rent out their cars.... Read More »

HANNAH LUTZ

BLOG: 3 steps to regulatory compliance

12:15 pm U.S. ET | June 24, 2015

To stay out of trouble with regulators, clean up compliance. It sounds like an obvious solution, but what do dealers need to do to be sure compliance is up to par?... Read More »

NYC dealership must provide documents for non-English speakers

12:15 pm U.S. ET | June 24, 2015

As part of a settlement with the New York attorney general's office, a New York City dealership group must begin providing translations of sales documents to customers who negotiate their vehicle purchases in languages other than English.... Read More »

Lenders stretch subprime auto loans, stoking concerns over consumer debt load

12:15 pm U.S. ET | June 24, 2015

Demand for automobile debt in the U.S. is enabling lenders to make longer loans to people with spotty credit, stoking concern that car shoppers are being lulled into debt loads they won't be able to sustain.... Read More »

CarMax originates $15 million in subprime loans in latest quarter

11:45 am U.S. ET | June 24, 2015

CarMax's finance arm originated about $15 million of subprime loans in its most recent quarter ended May 31. CarMax Auto Finance has originated almost $90 million in subprime loans since it began a test program in January 2014 to learn more about customers that it typically had handed off to subprime lending partners.... Read More »

BB&T launches flat fees

11:45 am U.S. ET | June 24, 2015

Auto retailers working with BB&T Dealer Finance soon can expect to be paid flat fees, rather than dealer reserve, for arranging customers' loans. BB&T will launch a nondiscretionary dealer compensation program on July 1.... Read More »

Must dealers steer clear of credit repair?

12:01 am U.S. ET | June 22, 2015

The N.Y. attorney general's office reached multimillion-dollar settlements with some dealerships, saying they sold credit repair and ID-theft products for as much as $6,000 and often without the customer's knowledge. The products in question cost the dealerships $179 or $279.... Read More »

N.Y. targets dealerships' sale of credit-repair, identity-theft products

12:01 am U.S. ET | June 17, 2015

Paragon Honda and its two sister stores have agreed to a $13.5 million settlement with the New York attorney general's office over the alleged unlawful sale of credit-repair and identity-theft prevention products, part of a broader crackdown on deceptive sales practices by dealerships.... Read More »

Q&A

Why longer loan terms are not a big concern

12:30 pm U.S. ET | June 17, 2015

The average auto loan term on a new car has grown to more than five years. And that has some industry watchers worried that extended loans will keep consumers out of the market longer, lead to negative equity and increase default rates. But Michael Collins, senior vice president of F&I solutions at Dealertrack, isn't concerned that the trend toward longer loans is necessarily putting the market in danger.... Read More »

Lawsuit could test the F&I videotape defense

11:45 am U.S. ET | June 17, 2015

A videotaped closing in the F&I office might be key to a big court case for two dealerships in Alabama.... Read More »

HANNAH LUTZ

BLOG: The advantages for going online with F&I

12:00 pm U.S. ET | June 17, 2015

To reduce the push and pull around F&I product options and avoid surprising consumers with unexpectedly higher monthly payments as F&I products are added on, dealerships should introduce F&I online.... Read More »

JAMIE LaREAU

BLOG: A case for breaking the 300% rule

11:45 am U.S. ET | June 17, 2015

Most F&I folks subscribe to the “300 percent rule”: Offer 100 percent of the products to 100 percent of the dealership's customers 100 percent of the time. But a recent conversation with a friend indicates the rule doesn't apply to 100 percent of cases.... Read More »

CFPB widens auto lending oversight to non-bank financiers

4:05 pm U.S. ET | June 10, 2015

The top U.S. consumer protection regulator is expanding its oversight to include large non-bank auto financing companies.... Read More »

Ally boosts nonprime lending, non-GM business

11:00 am U.S. ET | June 10, 2015

Ally Financial Inc. has stepped farther away from General Motors in recent months, increasing nonprime lending and doing more business with non-GM brands, Ally CEO Jeffrey Brown said this week. The effort was spurred, he said, after GM made GM Financial its preferred lender for subsidized leases in February, pulling business from Ally.... Read More »

HANNAH LUTZ

BLOG: Why credit bureaus' loan data vary

11:00 am U.S. ET | June 10, 2015

The three major credit bureaus, TransUnion, Experian and Equifax, publish their auto finance data in spurts throughout the year, usually a week or two apart from one another. But one thing always stops me when reporting the data: The trends are the same, but the numbers don't match up.... Read More »

Auto lenders’ decision times drop

11:00 am U.S. ET | June 10, 2015

The industrywide effort to speed the F&I process is making strides due to a stronger focus on technology, according to results of the 2015 Non-prime Automotive Financing Survey.... Read More »

Dealer helps high-rate customers refinance

12:01 am U.S. ET | June 8, 2015

Honolulu Ford President Mark Benson proactively tries to refinance customers with high-interest-rate car loans, including ones the dealership initially arranged. Failing that, he works to help customers trade up to a new or newer vehicle with a much lower interest rate and monthly payment. He estimates he sells eight to 10 cars a month this way, along with creating good word-of-mouth for future sales.... Read More »

Echopark stores' iPad strategy reaps F&I results

12:01 am U.S. ET | June 8, 2015

Sonic Automotive Inc.'s three new used-vehicle stores in the Denver area are getting strong F&I results. The three stores together average nearly $1,000 per vehicle on sales of extended service contracts, guaranteed asset protection and other add-on items. That's despite having no dedicated F&I officers and using a one-price, one-salesperson process.... Read More »

Leasing makes 'obscene' pickup prices respectable

12:01 am U.S. ET | June 8, 2015

Leasing makes "obscene" pickup prices more respectable by reducing customers' monthly payments, dealers say.... Read More »

JAMES B. TREECE

Mixed reviews are in after assuming lease for Volt

12:01 am U.S. ET | June 8, 2015

After running into title snags and other glitches in assuming an existing lease on a Chevrolet Volt, Automotive News' James B. Treece sees opportunity for dealerships in smoothing lease swaps for consumers. Here is his story.... Read More »

LEASES UNLEASHED

As carmakers and dealers embrace leasing to boost sales, analysts mull finance option's limits

12:01 am U.S. ET | June 8, 2015

Leasing hit a record 26.7 percent of U.S. new-vehicle volume in the first quarter. How high can it go? Analysts predict higher than it is now, but not a whole lot higher.... Read More »

Dealership groups' hot F&I revenue: $7 billion

12:01 am U.S. ET | June 8, 2015

Finance and insurance revenue keeps jumping at U.S. auto dealerships. By any measure in Automotive News' second annual F&I survey of the nation's largest auto dealership groups, the F&I office is hot, hot, hot.... Read More »

Dealers confront GAP sold by major auto insurers

12:01 am U.S. ET | June 8, 2015

Major auto-insurance companies are offering GAP coverage. For now, most dealers haven't seen those offerings hurt their GAP sales in the F&I department. But they're watching developments.... Read More »

Lease or buy, treat ultraluxury customers differently

12:01 am U.S. ET | June 8, 2015

When it comes to financing a car, the rich truly are different. It is not a matter of cost; it is not what your monthly payment is. It is tailored to the needs of the customer, how their business is structured, where the car will be domiciled and how it will be used, said a spokesman for Rolls-Royce Motor Cars North America.... Read More »

Auto-loan delinquency rates drop to lowest level in a decade

3:58 pm U.S. ET | June 4, 2015

Auto-loan delinquency rates have fallen to their lowest level in a decade, even as high-risk loans continue to rise, a June 4 report said.... Read More »

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