Finance and Insurance Newsletter


BLOG: Before CFPB crackdown, how about some guidance?

12:00 pm U.S. ET | Sept. 30, 2015

Before the Consumer Financial Protection Bureau cracks down on auto lenders, it should offer guidance on what its dealer reserve standards are.... Read More »

How extended ownership can create F&I opportunities

12:00 pm U.S. ET | Sept. 30, 2015

Extended vehicle ownership keeps customers out of the market longer. But achieving positive equity in their vehicles as their loan balance falls gives customers more money to put toward another vehicle, including buying F&I products, AutoAlert and IHS Automotive say.... Read More »

Dealers: U.S., Fifth Third settlement over lending bias to curb consumer savings

11:45 am U.S. ET | Sept. 30, 2015

National dealer associations are criticizing the government’s settlement with Fifth Third Bancorp over alleged discriminatory auto lending practices, claiming dealers who work with the bank will now be limited in offering consumers competitive interest rates on auto loans. As part of the settlement, Fifth Third agreed to limit dealer reserve to 1.25 percent above its wholesale buy rate on an auto loan. Previously it had allowed dealerships up to 2.5 percent in reserve.... Read More »

U.S. House panel presses Cordray on how CFPB determines lending bias

11:45 am U.S. ET | Sept. 30, 2015

CFPB Director Richard Cordray told a U.S. House panel Tuesday that the bureau didn't account for credit scores when measuring whether minorities were charged higher interest rates than other borrowers on dealership-arranged auto loans through Ally Financial. Most committee members challenged the CFPB's methodology to calculate discrimination and pressed Cordray to explain how and if the bureau determines the creditworthiness of potentially harmed consumers.... Read More »

Dealers, lenders teach the ABCs of finance

12:01 am U.S. ET | Sept. 30, 2015

Dealers, captive finance companies and others in the industry are trying to help consumers learn good personal finance skills that in turn will help them become better versed about buying and financing a vehicle.... Read More »

Trading profit today for loyalty tomorrow

12:01 am U.S. ET | Sept. 30, 2015

At Johnson Automotive, F&I managers practice the art of conversation and body language to up F&I revenue and customer satisfaction.... Read More »

Captives, independents see solid gains in auto loan, lease accounts

1:00 pm U.S. ET | Sept. 23, 2015

The number of loan and lease accounts is growing faster at auto finance companies than it is at banks, helped by finance companies' lower interest rates and higher subprime lending, Equifax says.... Read More »


BLOG: A cautionary tale of 2 dealership groups and compliance

1:15 pm U.S. ET | Sept. 23, 2015

Just two years after the FTC charged them with deceptive advertising, two dealership groups caught fire again. And it’s costing them.... Read More »

Trust, customized pitches and visuals key to F&I sales, trainers say

12:45 pm U.S. ET | Sept. 23, 2015

To sell F&I products to wary customers, establish trust, personalize the pitch and use visuals, trainers say.... Read More »

F&I profits surpass vehicle profits

12:15 pm U.S. ET | Sept. 23, 2015

Take away automakers' dealer incentives, and dealerships are averaging higher gross profits on F&I than on selling new vehicles, DealerStrong's Greg Goebel says. Three years ago, the reverse was true.... Read More »

What Sonic is doing to curtail F&I crime

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

For the past 15 years, the most important compliance program at Sonic Automotive has been in its finance and insurance division.... Read More »

Steering dealership ads clear of legal pitfalls

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

Dealerships must review all language before releasing advertisements to consumers if they don't want to find themselves under the Federal Trade Commission's microscope, legal experts and trainers say.... Read More »

W.Va. dealership group pays $80,000 civil penalty over ads

2:14 pm U.S. ET | Sept. 18, 2015

A West Virginia auto dealership group agreed to pay an $80,000 civil penalty to settle a U.S. Federal Trade Commission lawsuit that charged it with showing misleading advertisements, the FTC said.... Read More »

Pros, cons of pitching F&I products with tech tools

12:15 pm U.S. ET | Sept. 16, 2015

Using technology to provide F&I product information educates consumers, but it can also benefit dealers. Digital product introductions can provide dealerships with data on their customers' F&I product interests. And that knowledge can help guide F&I managers' product recommendations.... Read More »

Why training should reach outside the box

12:15 pm U.S. ET | Sept. 16, 2015

Training helps F&I managers close more deals, sell more aftermarket products and, as a result, earn more money. But finance managers' education should go beyond what's needed in the F&I box.... Read More »

No-score buyers surpass those with deep subprime scores

12:15 pm U.S. ET | Sept. 16, 2015

For the first time on record, consumers without credit scores now account for more of the new- and used-vehicle markets than do consumers with credit scores traditionally considered deep subprime, data presented at the Industry Summit, an annual F&I conference, showed.... Read More »


BLOG: Is more schooling needed on CFPB?

12:15 pm U.S. ET | Sept. 16, 2015

Is the Consumer Financial Protection Bureau the household name everybody assumes it is?... Read More »

Dealers would be wise to vet F&I vendors

12:01 am U.S. ET | Sept. 14, 2015

The tale of Credit Forget It underscores the first rule of finance-and-insurance vendor vetting for dealerships: Do your own homework. Dealers are pitched all the time to sell new and sometimes unfamiliar products, so they must step up to protect themselves from unscrupulous or even just clueless vendors promoting problematic products or processes.... Read More »

Toyota bans below-invoice ads

12:01 am U.S. ET | Sept. 14, 2015

Toyota told dealers assembled at its national dealer meeting that they would no longer be permitted to advertise vehicle prices below invoice. Toyota will implement the prohibition from Jan. 1 and will begin enforcing the new ad covenants on April 1.... Read More »

Why it's time to rethink gouging

12:01 am U.S. ET | Sept. 14, 2015

Some dealerships are overly marking up prices on F&I products, and those markups are putting a bull's-eye on all retailers' F&I sales practices, industry watchers warn.... Read More »

As subprime expands, smallest lenders grow fastest, survey finds

11:45 am U.S. ET | Sept. 9, 2015

The U.S. subprime auto market continued to expand for the fourth consecutive year in 2014, but the smallest lenders posted by far the biggest gains in portfolio size and value, according to the National Automotive Finance Association's 2015 Non-Prime Automotive Financing Survey.... Read More »


BLOG: Affordability, technology are hot F&I product topics among student inventors

11:45 am U.S. ET | Sept. 9, 2015

Students at Northwood University view the school’s first annual competition to invent a salable F&I product as a gamelike challenge to make the F&I experience better for dealerships and customers alike.... Read More »

Software speeds refunds of canceled F&I products at AutoNation stores

11:30 am U.S. ET | Sept. 9, 2015

At AutoNation, the time it takes to cancel consumers’ F&I products has shrunk to three days on average, a fraction of what it used to be, since the nation’s largest new-vehicle retailer began using F&I product cancellation software at its dealerships.... Read More »


Captives’ role underappreciated, Moody’s analyst says

11:30 am U.S. ET | Sept. 9, 2015

Jason Grohotolski, a senior analyst for Moody’s Analytics, discusses the critical role of captive finance companies in today’s auto-lending market in a wide-ranging Q&A.... Read More »

Prestige Financial lets consumers refinance directly

11:30 am U.S. ET | Sept. 9, 2015

Subprime lender Prestige Financial Services has begun allowing consumers to refinance their vehicles directly, bypassing the dealership. The initiative is part of an effort to expand the company’s auto-lending portfolio. But it illustrates how the Internet can challenge today’s indirect-lending business model.... Read More »

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