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Captives likely to get CFPB oversight

4:35 pm U.S. ET | Sept. 16, 2014
The Consumer Financial Protection Bureau is expected to issue an important new rule on Thursday defining which nonbank lenders -- including captive finance companies -- will be considered “larger participants” and thus subject to CFPB regulation.... Read More »
 
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Banco Santander acquires Canada's Carfinco for $269 million

11:49 am U.S. ET | Sept. 16, 2014
Banco Santander SA agreed to buy Canadian car-financing company Carfinco Financial Group for about $269 million.... Read More »


U.S. Treasury trims Ally stake further

5:19 pm U.S. ET | Sept. 12, 2014
The Treasury started a second trading plan to cut its stake in Ally Financial. After completing its first plan, it now holds 66.2 million shares of Ally’s common stock, a statement said on Friday. That’s 13.... Read More »


JIM HENRY

F&I wait times have virtual repercussions

11:00 am U.S. ET | Sept. 10, 2014
Dealerships know that customer satisfaction suffers if car buyers spend time sitting outside the F&I office.... Read More »


Pay disparities are hurting morale, dealership retention, expert warns

11:45 am U.S. ET | Sept. 10, 2014
Rising disparities in pay between the F&I and sales departments are leading to morale problems and high turnover at dealerships, a noted F&I authority said at a conference in Las Vegas.... Read More »


Q&A

For subprime lender, success is about dealer service

11:00 am U.S. ET | Sept. 10, 2014
Southern Auto Finance Co., a small, regional subprime lender in Fort Lauderdale, Fla.... Read More »


JIM HENRY

Regulation forecast calls for rain, former CFPB exec says

11:00 am U.S. ET | Sept. 10, 2014
Rick Hackett, a former assistant director for the Consumer Financial Protection Bureau who was the bureau's liaison to the auto finance industry, predicted the bureau would probably unveil a long-awaited rule next week, defining which nonbanks fall...... Read More »


Subprime auto probe fails to restrain bond rush

11:21 am U.S. ET | Sept. 10, 2014
The federal probe into auto loans made to people with spotty credit is doing little to derail sales of bonds backed by the debt, even as investors demand more to own the riskiest pieces.... Read More »


 
BY THE NUMBERS 
 
FOILING FRAUD

Phony deals cost dealers reputation, vehicles and lenders

12:01 am U.S. ET | Sept. 8, 2014
For employees in a dealership's finance and insurance office, spotting a potentially fraudulent deal is top priority. A mistake not only can cost a dealership a vehicle, it can hurt the store's reputation and its relationships with lenders.... Read More »


Fla. M-B dealer e-validates contracts, gets paid fast

12:01 am U.S. ET | Sept. 8, 2014
Mercedes-Benz of Coral Gables rarely has to wait more than 24 hours to be paid by lenders that commit to finance the Florida store's loan and lease customers, said Scott Cooper, the finance and insurance director.... Read More »


Dealers prying payments from some lenders

12:01 am U.S. ET | Sept. 8, 2014
Dealers are still seeing big differences in how quickly lenders pay them on contracts in transit, despite awareness and technology campaigns aimed at speeding payments to dealers when retail customers finance vehicle purchases and leases.... Read More »


How to stop fraud

12:01 am U.S. ET | Sept. 8, 2014
Auto retailers can prevent fraud by recognizing certain customer clues, dealers and experts say.... Read More »


With digital data, DARCARS has F&I down to a science

12:01 am U.S. ET | Sept. 8, 2014
Finance and insurance managers at DARCARS Automotive Group have a digital Big Brother watching them, ready to spit out a minute-by-minute account of their customer interactions if their sales fumble.... Read More »


Credit unions take long-loan lead

12:01 am U.S. ET | Sept. 8, 2014
Credit unions are helping lead the charge into longer loan terms -- some longer than 84 months -- as customers seek to keep their monthly payments flat while taking out larger loans.... Read More »


Is it wise to keep putting the car before the cash?

12:01 am U.S. ET | Sept. 8, 2014
Dealerships can and should take some of the risk out of making spot deliveries, experts say.... Read More »


Credit union's key: 'Do everything right'

12:01 am U.S. ET | Sept. 8, 2014
The leading provider of auto loans in New Hampshire isn't a bank or a captive finance company.... Read More »


Auto lenders curb loans to least-creditworthy customers

11:07 am U.S. ET | Sept. 3, 2014
Auto lenders hit the brakes on loans to customers with subprime and deep subprime credit in the second quarter of 2014, according to Experian Automotive. Loans to those customers accounted for 15.1 percent of new-vehicle loans for the quarter.... Read More »


Q&A

Sonic’s EchoPark stores will use self-branded products, financing

12:01 am U.S. ET | Sept. 3, 2014
Sonic Automotive is negotiating with auto lenders and F&I product administrators to provide private-label retail financing and F&I products for its new EchoPark stand-alone used-car dealerships, says Jeff Dyke, Sonic’s executive vice president...... Read More »


Who’s responsible for passing along bad credit info?

12:01 am U.S. ET | Sept. 3, 2014
Will dealerships catch fallout from the Consumer Financial Protection Bureau’s consent order last month with First Investors Financial Services Group? Experts disagree, with some saying no and others suggesting at least indirect implications...... Read More »


Santander sued by investors over subprime lending practices

12:01 am U.S. ET | Sept. 3, 2014
A lawsuit seeking class-action status was filed against Santander Consumer USA last week on behalf of investors who claim the lender misled them about the company’s “auto lending business and underwriting practices.”... Read More »


'No evidence' of subprime auto loan bubble, Equifax economist says

12:01 am U.S. ET | Aug. 27, 2014
Equifax has joined other financial data crunching firms that dispute there's an alarming subprime auto loan bubble that's about to burst.... Read More »


Is rise in Q2 loan delinquencies a turning point?

12:01 am U.S. ET | Aug. 27, 2014
Industry-watchers insist that today's auto loan delinquency rates are low by historical standards. But a slight uptick in 30- and 60-day delinquencies in the second quarter could be a sign that the long decline in delinquencies could be reversing.... Read More »


F&I departments need a farm team

12:01 am U.S. ET | Aug. 27, 2014
The term “succession planning” is usually applied to dealer principals, but it can apply to F&I managers, too.... Read More »


JIM HENRY

Did dealers hurt themselves with the carve out?

12:01 am U.S. ET | Aug. 20, 2014
There’s no mistaking that federal regulators are serious about policing auto lenders. By extension, auto dealers feel they’ve got a big target on their backs, too.... Read More »


Subprime auto loan growth is 'less pronounced' in context, Fed analysts say

12:01 am U.S. ET | Aug. 20, 2014
While auto lending is rising in all credit categories, subprime auto loans are growing the fastest because that segment dropped the most during the downturn, according to a study by four analysts from the Federal Reserve Bank of New York.... Read More »


 


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