Q4 F&I results improve at 5 of 6 publics
Group 1, AutoNation, Asbury, Sonic and Lithia posted improved F&I results in the fourth quarter, although the retailers gave mixed views this month on whether growth will continue. Penske slipped a bit but will continue to focus on F&I training, the company said.
Auto finance OK overall, but subprime shows blemishes, N.Y. Fed says
Credit quality looks OK for auto finance overall, and outstanding auto loans and leases combined hit a record $1.16 trillion at the end of 2016, up about 9 percent from 2015, according to the latest Household Debt and Credit Report from the Federal Reserve Bank of New York.
Early F&I intros speed deals, enable tailored menus
Introduce F&I early in the sales process to speed up the transaction, suggests John Stephens of EFG Cos. F&I managers will be able not only to submit the credit application while the customer is still with the salesperson but also to tailor presentations “based on individual customer needs, reducing objections and increasing product penetration,” he said.
New delinquent U.S. car loans at 8-year peak
More Americans fell behind on their car loan payments in the fourth quarter, bringing auto delinquencies to their highest since the height of the financial crisis, Federal Reserve Bank of New York data released on Thursday showed.
Auto lenders' kill switches being probed by U.S. regulator
A U.S. regulator is looking at whether auto finance companies that use sophisticated technology like ignition kill switches are illegally harassing subprime borrowers that have fallen behind on their payments.
Finance portal offers 'one-stop shop' for dealership staffs
To help dealership employees access data needed to close deals faster, ChannelNet, with Hyundai Capital America, has upgraded its dealer portal, adding mobile use and customizing it to fit the duties of multiple staffers.
Helping subprime customers fosters loyalty
Train sales and F&I staff to help subprime consumers get into the right car with the right financing arrangement, advises Brien Joyce of EFG Cos. Many subprime consumers “are essentially good people who’ve fallen on hard times,” he said. “After they pick themselves back up, they will remember how they were treated when they were struggling, and they will be that much more loyal to the companies who treated them well.”
Used-car leasing fails to meet expectations
In spring 2016, the idea of used leasing buzzed around the National Automobile Dealers Association convention and the American Financial Services Association Vehicle Finance Conference in Las Vegas. Nearly a year later, used leasing is still only a sliver of the market.
VIDEO: Overcoming compliance fears
Many dealers are afraid of making compliance a priority, and that fear could be getting in the way of better performing F&I managers, according to Greg Kostern, business operations director at Johnson Automotive.
Thoughts on leasing from dealer council chairs
Ahead of January's National Automobile Dealers Association convention in New Orleans, Automotive News interviewed 25 dealer council chairs, or dealers holding the equivalent position, representing 31 brands. Here's a roundup of what some of them said about the outlook for leasing at their brand in 2017.
F&I sales are tougher without common ground
When a customer objects to buying an important F&I product, find common ground, suggests Rick McCormick of Reahard & Associates. “You can’t sell anything to anybody when you disagree,” he says. “When a customer knows you can relate to how they feel, they will listen to what you’re talking about.”
Trump orders review of Dodd-Frank, potentially impacting CFPB, CordrayUPDATED: 2/3/17 2:40 pm ET - adds details
President Trump ordered a sweeping review of the Dodd-Frank Act rules enacted in response to the 2008-09 financial crisis, a move that could impact the Consumer Financial Protection Bureau and auto lending.
Why Audi's Keogh keeps leasing in check
Leasing accounts for a majority of Audi's sales in the U.S., but Audi of America President Scott Keogh says he wouldn't want the brand to get to a point where captive finance leasing dominates Audi's book of business.
In Canada, 8-year terms 'push the ceiling'
Showroom intros, videos plant the F&I product seed
With squeezed new-vehicle margins, many dealers are relying on F&I for profit, but customers are often skeptical of F&I products. By introducing F&I products on the showroom floor or in videos, dealers can educate customers on product value before they step into the F&I office.
F&I masters employ emotion
In F&I, use emotion, then logic, suggests Rick McCormick of Reahard & Associates. "The only people that master the F&I craft are the people who use emotion at a very high level. Logic is only used to wrap up the sale," he said.
AutoGravity expands financing app, websites to 46 states
Car buyers across the country can now select a vehicle and financing offer through AutoGravity's mobile app and web platform. Consumers in 46 states will be able to access up to four financing offers through the company's smartphone app, website or partnering dealership websites. AutoGravity is working to obtain licenses in the remaining states of Connecticut, Pennsylvania, New Jersey and North Dakota.
F&I buys drive dealer, brand loyalty, study finds
Robust leasing starts with employee training
To boost lease profit, train employees regularly on the benefits of leasing vs. buying, suggests Todd Cooper, vice president of training services for EFG Cos. Employees need to learn to explain the value of leasing based on the customer's driving and buying habits.