Finance and Insurance

Ally touts dealership camaraderie in new ad campaign

2:44 pm U.S. ET | March 31, 2015

Ally Financial is touting the camaraderie it has with dealerships in a new ad campaign that puts an emphasis on storytelling.... Read More »

JIM HENRY

BLOG: If dealers don't weigh in, they can't gripe

12:30 pm U.S. ET | March 25, 2015

Dealers have a chance right now to weigh in on what they like and don’t like about their lenders, and they shouldn’t miss the opportunity.
... Read More »

Dealer groups charge CFPB is unresponsive

12:00 pm U.S. ET | March 25, 2015

Dealer trade groups are asking members to seek help from their elected representatives to prod the Consumer Financial Protection Bureau into responding to a lender study released last fall that was highly critical of its method of determining discrimination in auto finance.... Read More »

Lenders raise red flags over CFPB plan to publish consumer complaints

12:00 pm U.S. ET | March 25, 2015

Auto lenders are lining up to oppose the Consumer Financial Protection Bureau’s plan to publish consumer complaints with financial services providers on its website.... Read More »

Credit union pilot targeting subprime borrowers shows promise

12:30 pm U.S. ET | March 25, 2015

A small pilot program to encourage credit unions to do more subprime auto lending has helped participants gain some business but is still several steps away from providing a model for a larger effort.... Read More »

Volvo's young captive explores new territory

12:01 am U.S. ET | March 25, 2015

Volvo Car Financial Services U.S. is a young captive finance company, in business only since late 2012. But its leadership is seasoned.... Read More »

Store tweaks sales, F&I strategy for Gen Y

12:01 am U.S. ET | March 25, 2015

Dealership managers Austin Salinas and Chris Gottselig know how to sell to Gen Y. That's because they fall into that category themselves. The two developed a speedier, more transparent vehicle sales and finance process at Friendly Ford of Crosby, near Houston, that's boosting the store's profits and reputation.... Read More »

Insurance rates on aluminum F-150 hold for now

12:01 am U.S. ET | March 23, 2015

For now, motorists' yearly insurance premiums for the 2015 aluminum-bodied F-150 are about the same as for the 2014 steel model -- good news for Ford. But premiums could change once insurance companies study accident repair data for the redesigned pickup.... Read More »

JIM HENRY

BLOG: Size of average tax refund makes a decent down payment

11:45 am U.S. ET | March 18, 2015

For anybody keeping track -- which is to say, anybody interested in subprime auto lending – U.S. tax refunds have fallen a bit more behind than they were a few weeks ago.... Read More »

GM dealers: Warranty, maintenance cuts could help F&I, hurt service

11:00 am U.S. ET | March 18, 2015

General Motors' dealers don't seem especially disturbed by the automaker's decision to scale back its powertrain warranty and free maintenance visits on Buick, Chevrolet and GMC vehicles. If anything, dealership executives say, the shorter powertrain warranties could make it easier to sell extended-service contracts.... Read More »

Q&A

Consistent F&I pricing key to compliance

11:00 am U.S. ET | March 18, 2015

As regulators scrutinize auto lending practices, companies in the F&I space have made compliance with state and federal rules a priority too.... Read More »

Dealers, lenders still angling over laws governing F&I tactics

11:00 am U.S. ET | March 18, 2015

Dealers and auto lenders are keeping a close eye on various dealer-backed state laws that seek to restrict what automakers’ captive finance companies can do to induce dealerships to sell F&I products backed by the factory or a specific vendor.... Read More »

VW finance arm eyes record profit in 2015, CEO says

March 18, 2015 12:34 CET

Volkswagen's finance division is targeting 2015 operating profit that will not be below last year's record result of 1.7 billion euros ($1.80 billion), its CEO Frank Witter said.... Read More »

Jump-starting car sales from the service lane

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

Mike Bowsher uses software at the service desk to help him jump-start the sales process at his stores. The owner of Carl Black Auto Group says once his staff got the hang of using the software tools, new- and used-vehicle sales across his four dealerships rose 700 to 800 vehicles per quarter.... Read More »

Stakes are high for Ally's new CEO

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

New Ally Financial CEO Jeffrey Brown must hit the ground running. Along with a sizable to-do list, he must deal with a shrinking share of business supported by incentives from former parent GM. The decline in GM business is a long-term trend and an obvious priority for Brown.... Read More »

Ally adds 7-year loans, as debate over risk heats up

12:01 am U.S. ET | March 11, 2015

The slow march toward 84-month loans is adding fuel to the debate over whether auto lending is getting too risky, possibly threatening the economy the way subprime mortgages did during the run-up to the 2008-09 financial crisis. Auto buyers increasingly are opting to spread their payments over longer terms so they can finance higher amounts -- and thus buy pricier vehicles -- and still keep monthly payments low.... Read More »

GM Financial will double earnings by 2018, GM says

11:45 am U.S. ET | March 11, 2015

GM expects earnings from GM Financial “to more than double by 2018,” GM President Dan Ammann told investors this week. GM wants pretax earnings for GM Financial to rise from $815 million in 2014 to more than $1.6 billion in 2018. The automaker also wants to increase GM Financial’s earning assets -- outstanding consumer and commercial loans, plus leases -- from $40.8 billion as of Dec. 31, 2014, to more than $82 billion at the end of 2018.... Read More »

JIM HENRY

BLOG: Congressmen get testy with CFPB chief Cordray

11:45 am U.S. ET | March 11, 2015

The Consumer Financial Protection Bureau and its critics on the House Financial Services Committee traded jabs in a tense session last week as CFPB Director Richard Cordray presented the bureau's semiannual report.... Read More »

Q&A

Exeter picks up the pace on approvals

12:01 am U.S. ET | March 11, 2015

Exeter Finance's new software platform, which accelerates decisions on customer credit applications and speeds sales transactions, is making it easier for dealerships to move cars. The computer upgrade has translated into business and revenue growth for Exeter, says Thomas Anderson, the subprime lender's new CEO.... Read More »

Open-air designs create F&I privacy puzzle

12:01 am U.S. ET | March 9, 2015

Though walls and locked doors still are considered the sure-fire way to keep customer data safe today, manufacturers and some automotive retailers are exploring ways to move the finance and insurance part of the sales transaction outside the traditional F&I "box." It's a bit of a challenge.... Read More »

Security breaches happen, so be prepared

12:01 am U.S. ET | March 9, 2015

Security breaches happen to the best retailers, and auto dealers are not exempt. So what do you do if bad guys get hold of your customers' personal information? You turn to the written plan that you should have created ahead of time as outlined by the Gramm-Leach-Bliley Act, said Charles Gallaer, an attorney with Bellavia Blatt & Crossett in Mineola, N.Y.... Read More »

Small-time security threats bigger concern

12:01 am U.S. ET | March 9, 2015

The biggest threats to a dealership's data aren't Russian hackers breaking through electronic firewalls or robots trying a thousand passwords on security codes until they finally crack into the system.... Read More »

TO SERVE AND PROTECT

Dealerships work to safeguard data as security breaches loom

12:01 am U.S. ET | March 9, 2015

Today, practices designed to protect customer data are becoming commonplace as regulators increasingly view auto dealerships as financial institutions in terms of the magnitude of personal consumer information collected in the F&I department.... Read More »

Why dealer's sold on one-price, one-person

12:01 am U.S. ET | March 9, 2015

The One Price, One Person sales model calls for a single sales employee handling a customer's entire vehicle transaction with no price haggling, including financing and the sale of ancillary F&I products. It was considered cutting edge when dealer Brian McCafferty introduced it at his Toyota store outside Phoenix 10 years ago. "Sadly," he says, it still is.... Read More »

Toyota Financial adds products, bolsters support

12:01 am U.S. ET | March 9, 2015

Toyota Financial Services is taking a more aggressive marketing stance this year to improve customer retention.... Read More »

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