Finance and Insurance Newsletter

U.S. House passes bill revoking CFPB auto lending guidance; Senate, Obama pose hurdles

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

A bill that would limit the U.S. Consumer Financial Protection Bureau’s 2013 auto lending guidance passed the House of Representatives last week by a 332-96 vote. But the bill faces an uphill battle in the Senate and from President Obama.... Read More »


BLOG: Why CFPB reform bill could face tougher challenge in the Senate

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

A bill to limit the Consumer Financial Protection Bureau’s 2013 auto lending guidance found overwhelming support in the House, but when it reaches the Senate, the story could change.... Read More »

Auto loans outstanding surpass $1 trillion, delinquencies hold flat; 'no score' segment improves

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

Auto loan balances reached $1.008 trillion in the third quarter, an increase of $101 billion since the end of the same quarter last year, according to TransUnion. The credit reporting agency said auto loans delinquent 60 days or more remained flat in the third quarter vs. the year-earlier period at 1.2 percent.... Read More »

Gen Y's surprising yen for add-ons

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

Younger consumers are just as likely as their older counterparts to buy finance and insurance products, a J.D. Power and Associates study finds.... Read More »


BLOG: A case for tracking customers' ownership status

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

Service contract sales could be the key to keeping customers driving the oldest vehicles engaged with their dealerships.... Read More »

Obama opposes U.S. House bill on auto financing

10:14 am U.S. ET | Nov. 17, 2015

The Obama administration opposes a U.S. House bill on auto financing, saying it would revoke "important guidance designed to prevent discriminatory pricing of auto loans," the White House said this week.... Read More »


Compliance starts with the dealer

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

Karen Klees, certified consumer credit compliance specialist at EFG, advises dealers to install a written F&I compliance process and to train employees regularly on the practices they expect.... Read More »

Millennials' appetite for auto loans rising

12:45 pm U.S. ET | Nov. 11, 2015

Despite concerns over millennials' lack of interest in vehicle ownership, they are buying and financing vehicles, says CU Direct, which links credit unions and auto dealerships through its CUDL lending platform.... Read More »


BLOG: Accuracy, time savings drive e-contracting gains

12:00 pm U.S. ET | Nov. 11, 2015

Auto retailers and lenders are realizing more and more the value of electronic contracting.... Read More »

Using ‘thought tracks’ to build trust, F&I sales

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

Scripted F&I interviews or casual customer conversations? That’s the choice F&I managers are beginning to face as they look to build trust with customers. The longstanding practice of using hard-scripted word tracks to conduct customer interviews and sell F&I products especially may need adjustment as dealerships seek to engage younger buyers, some experts say.... Read More »

Props push up F&I product profits at store

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

To sell F&I products, Steve Ward, business manager at Marion Toyota, uses parts and repair orders as props to show customers why it's important to invest in a vehicle service contract. Ward's profits from product sales are so high, he says, he gives up dealer reserve on 80 percent of customer loans.... Read More »

Ally sees progress, gains despite GM setback

1:00 pm U.S. ET | Nov. 4, 2015

Despite an overall drop in auto originations resulting from a loss of some GM business, Ally's third-quarter financial results were positive, Ally executives say. Ally said it gained in all business channels in the quarter save its GM subvented loan and lease business, part of which GM is shifting to its captive GM Financial.... Read More »

Publics see F&I gains in Q3, buoyed by add-on sales

1:45 pm U.S. ET | Nov. 4, 2015

An increase in F&I product penetration helped all six public new-car dealership groups to reap third-quarter gains in F&I revenue per vehicle retailed. AutoNation, the largest of the companies, set a record.... Read More »


BLOG: Why F&I manager turnover is high

12:15 pm U.S. ET | Nov. 4, 2015

The latest NADA workforce study again found that F&I managers are making more money than any other employees at dealerships save general managers. So why do F&I managers have the highest turnover rate among dealership employees?... Read More »

Auto loan balances reach all-time high

1:45 pm U.S. ET | Nov. 4, 2015

Strong U.S. light-vehicle sales pushed outstanding auto loan balances to an all-time high in the third quarter. Still, consumers are paying their auto loans, Experian Automotive said today.... Read More »

Ally Financial profit slumps on lower auto loans

8:55 am U.S. ET | Oct. 29, 2015

Ally Financial's third-quarter profit fell 37 percent as it earned less money from its core auto lending and dealer financing operations.... Read More »

AutoNation, Group 1, Sonic post F&I gains

2:15 pm U.S. ET | Oct. 28, 2015

Large public new-car dealership groups AutoNation, Group 1 Automotive and Sonic Automotive reported improved F&I revenue per vehicle retailed in the third quarter. AutoNation reported the most significant surge.... Read More »


BLOG: Industry fine-tunes credit measures to avoid subprime risk

1:30 pm U.S. ET | Oct. 28, 2015

The idea of a subprime auto loan bubble still hasn't popped with everyone.... Read More »

F&I managers’ pay slightly tops that of sales managers, study shows

11:00 am U.S. ET | Oct. 28, 2015

F&I managers at new-car dealerships didn’t earn significantly more in compensation in 2014 than sales managers, new data from the National Automobile Dealers Association show.... Read More »

Asbury, Lithia boost per-vehicle F&I revenue

11:30 am U.S. ET | Oct. 21, 2015

Asbury Automotive Group and Lithia Motors, two of the nation's six large public new-car retailers, reported increases in profits per vehicle retailed during the third quarter.... Read More »


BLOG: It’s time to look beyond car buyers’ credit scores

11:30 am U.S. ET | Oct. 21, 2015

For some consumers, payment history can show they are more prepared to take on loans than their credit scores would indicate. And that could be a win for the industry.... Read More »

GM Financial's global lease originations surge 252%

11:30 am U.S. ET | Oct. 21, 2015

GM Financial's worldwide lease originations soared to $6.2 billion during the third quarter, a 252 percent climb from the year earlier period. The surge comes after General Motors began using its captive as its sole provider of subsidized leases earlier this year.... Read More »

Captives may have lending edge as rate hike looms

11:30 am U.S. ET | Oct. 21, 2015

As federal interest rate hikes loom, banks are lending more conservatively out of fear that with higher interest rates, consumers' lending risk will go up. Higher rates will also affect automakers' captive finance arms, but the captives will likely have the ability to keep the rates they charge consumers down through support from their manufacturer parents, economists say.... Read More »

VW appoints Santelmann head of finance arm

6:33 am U.S. ET | Oct. 16, 2015

Volkswagen has appointed Lars-Henner Santelmann as new head of its finance arm, Volkswagen Financial Services, the carmaker said Oct. 16.... Read More »


BLOG: Warding off bias claims by shedding light on dealer reserve

12:15 pm U.S. ET | Oct. 14, 2015

Of the three parties that share a financial stake in an auto loan arranged at a dealership, typically only two know exactly how the interest rate breaks down: the dealership and the lender. Most car buyers are in the dark when it comes to the bit of interest that the dealership likely has added to their loan, known as the dealer reserve.... Read More »

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GM's Barra: Tapping into ideas from Silicon Valley

GM's Barra: Tapping into ideas from Silicon Valley

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