Finance and Insurance Newsletter

GM tells Ally that GM Financial will get all of Chevy's subsidized leases

6:30 pm U.S. ET | Feb. 27, 2015
General Motors has notified Ally Financial that it will steer all of its lease subsidies for the Chevrolet brand to captive finance company GM Financial, instead of sharing them among Ally, GM Financial, and to a lesser extent, U.S. Bank.... Read More »

 

Sonic is most-improved in Q4 F&I revenue

11:22 am U.S. ET | Feb. 25, 2015
Sonic Automotive Inc. posted the biggest increase in average F&I revenue per vehicle in the fourth quarter among the six public new-car retail groups, the tallies, completed today, show.... Read More »

 

Consumer Portfolio gains volume; retraining continues after FTC action

10:57 am U.S. ET | Feb. 25, 2015
Subprime auto lender Consumer Portfolio Services reported strong volume growth in the fourth quarter and for all of 2014, despite a run-in with the Federal Trade Commission last year.... Read More »

 

Lender groups want answers from the CFPB

12:15 pm U.S. ET | Feb. 25, 2015
A letter sent last week by the American Financial Services Association and other trade associations to Richard Cordray, director of the Consumer Financial Protection Bureau, was aimed at prodding the CFPB to publicly respond to a study AFSA commissioned last year.... Read More »

 

Reports of growing auto loan delinquencies are overblown, credit bureaus say

10:39 am U.S. ET | Feb. 25, 2015
Despite media notions that U.S. auto loan delinquencies are accelerating, they are in fact trending flat, credit reporting bureaus Equifax and Experian Automotive said last week.
... Read More »

 

JPMorgan says U.S. examining racial disparities on car loans

11:03 pm U.S. ET | Feb. 24, 2015
JPMorgan Chase, the largest US bank, said it’s in talks with the Department of Justice about possible racial disparities in markups that auto dealers charged on loans.... Read More »

 

Auto loan securitization probed by U.S., states

4:50 pm U.S. ET | Feb. 24, 2015
The Justice Department and state authorities are looking into the securitization of auto loans for possible fraud as part of an effort to seek out emerging areas of abuse, Acting Deputy Attorney General Sally Quillian Yates said.... Read More »

 

Auto originations advance 17%; 90-day delinquencies tick up in Q4, Fed says

11:00 am U.S. ET | Feb. 18, 2015
Auto originations rose a robust 17 percent in the fourth quarter, while accounts considered seriously delinquent ticked up slightly, according to the New York Federal Reserve. Loan and lease originations for new and used cars reached $102 billion in the fourth quarter, up from $87.5 billion in the year-earlier period... Read More »

 

JIM HENRY

GM Financial-Chevy lease exclusivity seems likely

11:15 am U.S. ET | Feb. 18, 2015
There wasn't much doubt, but General Motors disclosed for the first time in an SEC filing that it is considering plans to throw all Chevrolet lease incentives to GM Financial instead of sharing them among GM Financial, Ally Financial and U.S. Bank.... Read More »

 

Q&A

JM&A is in growth mode

11:00 am U.S. ET | Feb. 18, 2015
F&I product vendor JM&A Group sold a record 3.2 million contracts in 2014. That was up from 3 million contracts in 2013 and 2.5 million in 2012. And the company is looking for about 6 percent growth in 2015, President Forrest Heathcott says.... Read More »

 

JAMIE LaREAU

Are flat finance fees inevitable? How to lessen the blow

11:30 am U.S. ET | Feb. 18, 2015
Flat finance fees are coming. And if you now derive more than 40 percent of your F&I revenue per vehicle from a finance reserve, you're in trouble.... Read More »

 

Subprime lures Volvo captive

12:01 am U.S. ET | Feb. 18, 2015
Volvo Car Financial Services U.S. plans to begin offering financing to customers with subprime credit scores in the second or third quarter.... Read More »

 

New name, growth for Citizens' auto lending channel

11:00 am U.S. ET | Feb. 18, 2015
RBS Citizens Auto Finance is now Citizens One Auto Finance. Parent Citizens Financial Group dropped the acronym RBS, for Royal Bank of Scotland, from the name of its growing auto loan channel effective this month.... Read More »

 

Lithia, DCH build on the other's strengths

12:01 am U.S. ET | Feb. 16, 2015
Just over four months after Lithia Motors closed on its deal to buy DCH Auto Group's 27 dealerships, the two groups are busy sharing best practices and instituting a new culture at DCH.... Read More »

 

For Ford Credit, 2015 'is a story of growth'

11:00 am U.S. ET | Feb. 11, 2015
Ford Motor Credit is looking to grow along with overall U.S. auto sales in 2015. That's a typical, steady-as-she-goes business plan for Ford Credit, which prides itself on sticking to consistent credit approval standards. That's not to say Ford Credit rested in 2014 or that it intends to take it easy in 2015, says Joy Falotico, the company's executive vice president for marketing, sales, strategic planning and the Americas.... Read More »

 

JIM HENRY

A positive outlook for e-contracting

12:01 am U.S. ET | Feb. 11, 2015
When it comes to e-contracting, maybe the glass is finally more half full than half empty.
... Read More »

 

Public retailers make F&I per-vehicle gains; Group 1 breaks $1,500

11:30 am U.S. ET | Feb. 11, 2015
Four public new-car retailers posted higher F&I revenue per vehicle retailed in the fourth quarter, and three hit all-time highs. Group 1 Automotive's U.S. operations led the way, hitting a record $1,521 for the quarter, up 7 percent from the year-earlier period. Group 1, AutoNation and Asbury -- consistently the highest in F&I revenue per vehicle among the six public new-car retailers -- have gained about $100 per vehicle every year since 2010.... Read More »

 

GM Financial, Santander rev move to prime

11:30 am U.S. ET | Feb. 11, 2015
GM Financial and Santander Consumer USA, two traditional subprime specialists, are accelerating strategic moves into prime-risk loans and leases in 2015. GM Financial also more than tripled its share of U.S. lease originations for parent GM, to 47 percent of GM leases in the fourth quarter from 15 percent a year earlier.... Read More »

 

U.S. prosecutors settle bias case against auto lender-dealers

10:02 am U.S. ET | Feb. 11, 2015
The Justice Department said it reached a settlement in its first-ever discrimination case against auto dealers who also finance the purchase of used cars.... Read More »

 

Why insiders say subprime auto loans pose no risk

12:01 am U.S. ET | Feb. 7, 2015
Auto retailers and lenders are trying to debunk the notion that a bubble of rapid growth in subprime auto loans will lead to a wave of defaults, tanking the U.S. financial system the way subprime mortgage defaults did before the 2008-09 recession.... Read More »

 

New Ally CEO outlines plans to increase nonprime loans

12:19 pm U.S. ET | Feb. 5, 2015
Jeff Brown, newly promoted to CEO of Ally Financial, got more specific about Ally's plans to increase its mix of below-prime loans.... Read More »

 

U.S. prosecutors, pursuing more '08 crisis cases, eye auto loans

12:12 pm U.S. ET | Feb. 4, 2015
The U.S. Department of Justice says it is still pursuing cases tied to the height of the financial crisis in 2008 and using lessons learned from those probes to examine new areas like subprime car loans. Federal lawyers are using the investigative techniques and contacts from mortgage securities probes to confront the next wave of potential financial fraud.... Read More »

 

JIM HENRY

Ally's Carpenter leaves on a high note

11:45 am U.S. ET | Feb. 4, 2015
Michael Carpenter, who retired as CEO of Ally Financial on Monday, can leave saying, “Mission accomplished.”... Read More »

 

GM Financial's new system will boost credit apps

11:00 am U.S. ET | Feb. 4, 2015
GM Financial is developing technology that will enable it to accept consumer credit applications on General Motors' websites and the websites of GM dealers. The goal is to help consumers search for vehicles within the price range for which they have been preapproved while making the credit approval process easier and faster.... Read More »

 

Q&A

Chase Auto Finance CEO sees 'disciplined growth' in 2015

11:00 am U.S. ET | Feb. 4, 2015
Big auto lender Chase Auto Finance, which slowed lending last year, plans to stay prudent in 2015, CEO Thasunda Brown Duckett says. The lender's auto loan and lease originations increased just 5 percent in 2014, to $27.5 billion. In 2013, its year-over-year originations grew 12 percent, with double-digit increases in three of four quarters.... Read More »

 

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