Finance and Insurance Newsletter

Dealer satisfaction grows when auto lenders embrace e-contracting

12:00 pm U.S. ET | July 29, 2015

Dealers like e-contracting. That's one of the key findings from the 2015 U.S. Dealer Financing Satisfaction Study by J.D. Power released this week. Another takeaway: Dealers are willing to pay lenders a premium for good service.... Read More »

Public retailers boost F&I profits in Q2

12:30 pm U.S. ET | July 29, 2015

F&I profits increased at all six of the largest public new-car retailers in the second quarter. The nation's largest retailer, AutoNation, led the way with F&I revenue per new vehicle retailed of $1,528 on a same-store basis.... Read More »

HANNAH LUTZ

BLOG: AutoNation, Group 1 are neck and neck in F&I race

12:30 pm U.S. ET | July 29, 2015

AutoNation overtook former frontrunner Group 1 Automotive for the top spot among the public retailers in F&I profit per vehicle in the second quarter. Or did it? It depends on how you measure.... Read More »

Ally's second-quarter auto lending flat despite GM pullback

11:45 am U.S. ET | July 29, 2015

Ally Financial's second-quarter auto lending originations declined just 1 percent from a year earlier to $10.8 billion, despite a sharp drop in lease originations for GM vehicles. For the first time, GM accounted for less than half of Ally's auto originations.... Read More »

As dealership sales climb, margins slide

12:01 am U.S. ET | July 27, 2015

On the surface, second-quarter results from five publicly traded dealership groups last week were solid. But behind the gains lurked a disturbing trend: At all five, profit margins on new-vehicle sales fell.... Read More »

HANNAH LUTZ

BLOG: How Honda Finance’s settlement could be a win for all retailers

11:30 am U.S. ET | July 22, 2015

At face value, the consent order between Honda Finance and the CFPB over lending practices doesn’t seem like a gift to retailers industrywide, but it could be.... Read More »

Sonic rethinks the appeal of captive finance arm

11:30 am U.S. ET | July 22, 2015

Wary of regulators, Sonic Automotive is slowing its plans to establish a captive finance arm. The Consumer Financial Protection Bureau’s investigations and citations of automakers’ finance arms have given Sonic pause.... Read More »

A safer way to offer credit repair

11:30 am U.S. ET | July 22, 2015

New York's crackdown on dealerships and vendor Credit Forget It last month for a credit repair product the state considers illegal likely spurred some auto retailers to back away from credit repair altogether. But dealerships looking to retain customers with bad credit can still offer them credit repair services and stay on the right side of regulators.... Read More »

Chase Auto, Wells Fargo see rise in Q2 loan originations

11:30 am U.S. ET | July 22, 2015

Auto loan originations are rising at two of the nation’s biggest banks in auto lending. Chase Auto Finance and Wells Fargo generated more loans during the second quarter, although the growth in lending was bigger at Chase.... Read More »

Subprime auto-lending veteran calls longer loan maturities new normal

11:30 am U.S. ET | July 22, 2015

The man who created one of the biggest U.S. subprime lenders says there's nothing dangerous about borrowers being given longer car loans.... Read More »

AutoNation CEO endorses CFPB, Honda Finance pact

12:01 am U.S. ET | July 20, 2015

AutoNation CEO Mike Jackson has endorsed the settlement between the Consumer Financial Protection Bureau and American Honda Finance for preventing discrimination in auto finance, calling the agreement a “workable template” that other retailers and lenders should follow.... Read More »

NEWS ANALYSIS

What Honda-U.S. settlement changes

12:01 am U.S. ET | July 20, 2015

The federal government's settlement with American Honda Finance Corp. for alleged discriminatory auto lending was a smaller victory for the regulators than it first appeared. But if other captive finance companies follow Honda Finance's lead, that will make the settlement more significant.... Read More »

JASON STEIN

Birthday wish for CFPB: Get real

12:01 am U.S. ET | July 20, 2015

Five years after it was created, the Consumer Financial Protection Bureau should seek additional information and better methodology to ensure it is really protecting consumers from discrimination.... Read More »

Regulators urge captives to follow Honda Finance's lead

11:30 am U.S. ET | July 15, 2015

Regulators are urging other captive finance arms to follow the lead of American Honda Finance after it entered into a settlement on Tuesday that will see it limit dealer reserve and pay $24 million to consumers harmed by alleged auto-lending discrimination nationwide.... Read More »

HANNAH LUTZ

BLOG: In dealer-reserve debate, CFPB, NADA and American Honda Finance strive to move ball

11:30 am U.S. ET | July 15, 2015

The debate over dealer-arranged auto loans has taken on new dimensions in recent weeks with various stakeholders seeking the upper hand.... Read More »

New York dealerships to pay more than $300,000 in deceptive advertising, fraud settlement

11:30 am U.S. ET | July 15, 2015

The New York Attorney General’s Office reached a settlement Tuesday requiring 23 dealerships in the New York area -- the Atlantic Auto Group’s 22 stores and Hyundai of White Plains -- to pay restitution and penalties to resolve false advertising claims, many of which involved vehicle financing.... Read More »

FTC, dealerships settle price-misrepresentation charges

11:30 am U.S. ET | July 15, 2015

In the past three months, the Federal Trade Commission has approved final consent orders involving five dealerships and one loan-acceleration provider for misrepresenting vehicle and add-on costs.... Read More »

Nationwide car-shopping site adds finance, insurance

11:30 am U.S. ET | July 15, 2015

Nationwide Insurance launched an online service that enables consumers to research, shop for, finance and insure a car online, joining an industrywide move to put more of the finance and insurance process on the web.... Read More »

CFPB, Justice talk straight to minority dealers

11:30 am U.S. ET | July 15, 2015

After a senior CFPB official and a Justice Department colleague spoke at the recent National Association of Minority Automobile Dealers conference, the Q&A session sometimes got testy. Here's how it went.... Read More »

What's holding up e-contracting?

12:01 am U.S. ET | July 13, 2015

E-contracting speeds funding to dealerships, provides a more efficient customer experience and improves stores' F&I operations. And its use has grown since the technology began creating buzz in the mid-1990s. Some banks and automakers' captive finance companies have started accepting e-contracts. But for e-contracting to become mainstream, lenders must do more. And dealers need to give them the push, insiders say.... Read More »

Toyota Financial CEO, CFO take on added duties

12:28 pm U.S. ET | July 10, 2015

Toyota Financial Services added expanded global roles for Mike Groff, president and CEO, and Chris Ballinger, senior vice president and CFO.... Read More »

Millennials embrace F&I jobs, spark change

12:30 pm U.S. ET | July 8, 2015

Finance and insurance departments tend to have less trouble recruiting and retaining millennial staffers than sales departments. One general manager cites the hours, pay and opportunity for financial growth as the most alluring aspects of the job for millennials. The CEO of another dealership group is bulking up staff to allow millennials to work the hours they prefer.... Read More »

Path to positive equity grows

12:15 pm U.S. ET | July 8, 2015

The time it takes for consumers with new-car loans to reach a positive equity position on their vehicles has grown by 12 to 14 months over the past 15 years, but that's not necessarily a bad thing, says Steven Szakaly, chief economist for the National Automobile Dealers Association.... Read More »

HANNAH LUTZ

BLOG: Has high court raised bar for CFPB in auto bias cases?

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

From the outside, the Supreme Court's ruling last month upholding disparate impact claims in housing discrimination lawsuits may look like a headache for auto dealers, but a provision in the decision could give the Consumer Financial Protection Bureau a hurdle that could work in dealers' favor.... Read More »

What's holding up e-contracting?

12:30 pm U.S. ET | July 8, 2015

In an increasingly digital world where auto dealerships, and their customers, seek the most efficient, error-free F&I process, the use of electronic contracts is growing, but they're not yet the norm.... Read More »

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