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Toyota Financial resists CFPB

12:01 am U.S. ET | July 6, 2015
Toyota Financial Services said it has no plans to change its use of dealer reserve, despite scrutiny from the Consumer Financial Protection Bureau.... Read More »


18 months later, checks will be coming to Ally customers

12:01 am U.S. ET | July 6, 2015
In a 2014 settlement over alleged discriminatory lending, Ally paid $80 million and listed consumers that might have been affected.... Read More »


Dealers feel the need for speed in F&I

11:00 am U.S. ET | July 1, 2015
Where do you see the greatest opportunity for improvement in your dealership's F&I operations? Asked that question, Mary Byrne, a one-time retired dealer who now is the general manager of Bruce Titus Automotive Group, didn't hesitate.... Read More »


Honda, Toyota, Nissan captives face charges of discrimination, report says

12:00 pm U.S. ET | July 1, 2015
The captive finance arms of Honda, Toyota and Nissan may have to limit how much they allow dealers to increase the cost of auto loans after regulators accused the lenders of unintentional discrimination against minority consumers.... Read More »


Michigan Chevy store wins dispute with customer over $10,000 down payment

11:00 am U.S. ET | July 1, 2015
A Detroit-area Chevy dealership is entitled to the $10,000 down payment it failed to collect from a vehicle buyer, the Michigan Court of Appeals has ruled.... Read More »


Q&A

What Tuttle-Click stores look for in lenders

11:00 am U.S. ET | July 1, 2015
Bill Paschen, finance director at Tuttle-Click Automotive Group, says the ideal lender offers aggressive programs to help sell light vehicles, help dealers make money on the back end, and is available by phone when needed.... Read More »


Despite convenience, electronic registration is tough sell in many states

11:15 am U.S. ET | July 1, 2015
In 28 states, car buyers can drive off dealers' lots with their license plates in position and registration forms in hand, thanks to electronic registration at dealerships.... Read More »


After 18 months, CFPB readies to reimburse Ally customers

11:30 am U.S. ET | July 1, 2015
In early 2014, Ally Financial, as part of a settlement over alleged discrimination in auto lending, submitted a list of potentially affected customers to the Consumer Financial Protection Bureau -- along with $80 million to be reimbursed to those...... Read More »


Ford Credit car-sharing plan aims to cut ownership costs

12:15 pm U.S. ET | June 24, 2015
Ford is entering the car-sharing market with a program that will cut Ford Credit customers' vehicle costs by enabling them to rent out their cars.... Read More »


BB&T launches flat fees

11:45 am U.S. ET | June 24, 2015
Auto retailers working with BB&T Dealer Finance soon can expect to be paid flat fees, rather than dealer reserve, for arranging customers' loans. BB&T will launch a nondiscretionary dealer compensation program on July 1.... Read More »


Lenders stretch subprime auto loans, stoking concerns over consumer debt load

12:15 pm U.S. ET | June 24, 2015
Demand for automobile debt in the U.S. is enabling lenders to make longer loans to people with spotty credit, stoking concern that car shoppers are being lulled into debt loads they won't be able to sustain.... Read More »


CarMax originates $15 million in subprime loans in latest quarter

11:45 am U.S. ET | June 24, 2015
CarMax's finance arm originated about $15 million of subprime loans in its most recent quarter ended May 31.... Read More »


NYC dealership must provide documents for non-English speakers

12:15 pm U.S. ET | June 24, 2015
As part of a settlement with the New York attorney general's office, a New York City dealership group must begin providing translations of sales documents to customers who negotiate their vehicle purchases in languages other than English.... Read More »


Legal turmoil at 2 Alabama stores: What went wrong?

12:01 am U.S. ET | June 22, 2015
Two Birmingham, Ala., dealerships have been embroiled in an investigation that has unearthed allegations of loan fraud and dealership managers cheating Nissan North America out of incentive money.... Read More »


Must dealers steer clear of credit repair?

12:01 am U.S. ET | June 22, 2015
The N.Y. attorney general's office reached multimillion-dollar settlements with some dealerships, saying they sold credit repair and ID-theft products for as much as $6,000 and often without the customer's knowledge.... Read More »


Q&A

Why longer loan terms are not a big concern

12:30 pm U.S. ET | June 17, 2015
The average auto loan term on a new car has grown to more than five years. And that has some industry watchers worried that extended loans will keep consumers out of the market longer, lead to negative equity and increase default rates.... Read More »


Lawsuit could test the F&I videotape defense

11:45 am U.S. ET | June 17, 2015
A videotaped closing in the F&I office might be key to a big court case for two dealerships in Alabama.... Read More »


CFPB widens auto lending oversight to non-bank financiers

4:05 pm U.S. ET | June 10, 2015
The top U.S. consumer protection regulator is expanding its oversight to include large non-bank auto financing companies.... Read More »


Ally boosts nonprime lending, non-GM business

11:00 am U.S. ET | June 10, 2015
Ally Financial Inc. has stepped farther away from General Motors in recent months, increasing nonprime lending and doing more business with non-GM brands, Ally CEO Jeffrey Brown said this week.... Read More »


Auto lenders’ decision times drop

11:00 am U.S. ET | June 10, 2015
The industrywide effort to speed the F&I process is making strides due to a stronger focus on technology, according to results of the 2015 Non-prime Automotive Financing Survey.... Read More »


LEASES UNLEASHED

As carmakers and dealers embrace leasing to boost sales, analysts mull finance option's limits

12:01 am U.S. ET | June 8, 2015
Leasing hit a record 26.7 percent of U.S. new-vehicle volume in the first quarter. How high can it go? Analysts predict higher than it is now, but not a whole lot higher.... Read More »


Leasing makes 'obscene' pickup prices respectable

12:01 am U.S. ET | June 8, 2015
Leasing makes "obscene" pickup prices more respectable by reducing customers' monthly payments, dealers say.... Read More »


Lease or buy, treat ultraluxury customers differently

12:01 am U.S. ET | June 8, 2015
When it comes to financing a car, the rich truly are different. It is not a matter of cost; it is not what your monthly payment is.... Read More »


JAMES B. TREECE

Mixed reviews are in after assuming lease for Volt

12:01 am U.S. ET | June 8, 2015
After running into title snags and other glitches in assuming an existing lease on a Chevrolet Volt, Automotive News' James B. Treece sees opportunity for dealerships in smoothing lease swaps for consumers. Here is his story.... Read More »


Dealer helps high-rate customers refinance

12:01 am U.S. ET | June 8, 2015
Honolulu Ford President Mark Benson proactively tries to refinance customers with high-interest-rate car loans, including ones the dealership initially arranged.... Read More »


Dealers confront GAP sold by major auto insurers

12:01 am U.S. ET | June 8, 2015
Major auto-insurance companies are offering GAP coverage. For now, most dealers haven't seen those offerings hurt their GAP sales in the F&I department. But they're watching developments.... Read More »


Dealership groups' hot F&I revenue: $7 billion

12:01 am U.S. ET | June 8, 2015
Finance and insurance revenue keeps jumping at U.S. auto dealerships. By any measure in Automotive News' second annual F&I survey of the nation's largest auto dealership groups, the F&I office is hot, hot, hot.... Read More »


Auto-loan delinquency rates drop to lowest level in a decade

3:58 pm U.S. ET | June 4, 2015
Auto-loan delinquency rates have fallen to their lowest level in a decade, even as high-risk loans continue to rise, a June 4 report said.... Read More »


Average new-car loan hit 67 months in Q1

11:30 am U.S. ET | June 3, 2015
More than a fourth of all new light vehicles financed in the first quarter carried loans of 73 to 84 months, data from Experian Automotive show.... Read More »


Ally Insurance launches extended service contracts, supporting technology

11:30 am U.S. ET | June 3, 2015
Ally Insurance is rolling out an extended service-contract product paired with a technology platform.... Read More »


0% loans mark the start of summer

11:15 am U.S. ET | June 3, 2015
Nearly a tenth of consumers who financed their vehicles in May received no-interest loans, according to Edmunds.com. That share likely will grow through the summer months before falling back in October.... Read More »


U.S. vehicle loan terms hit record in Q1

3:22 pm U.S. ET | June 1, 2015
The average length of loans for new and used vehicles in the United States in the first quarter hit record highs, and nearly 30 percent of new-vehicle loans have pay-back periods longer than six years, Experian Automotive said in a report issued...... Read More »


LEGAL FILE

Former Suzuki store owner wins right to arbitrate in consumer dispute

11:00 am U.S. ET | May 27, 2015
The owner of a former Suzuki dealership in Kansas City, Mo., is entitled to arbitrate rather than litigate a customer's claims stemming from an alleged failure to deliver title to the used vehicle she bought, the Missouri Court of Appeals has ruled.... Read More »


Will CFPB's use of disparate impact be altered by Supreme Court housing ruling?

12:15 pm U.S. ET | May 27, 2015
Will a Supreme Court ruling in a Texas civil rights case alleging the state's housing practices resulted in a disparate impact on African-Americans set a precedent that could affect the CFPB's crackdown on auto lending? Dealership attorneys say the...... Read More »


Auto loans and balances, boosted by millennials, rise in Q1

12:15 pm U.S. ET | May 27, 2015
Auto loans and balances grew in volume in the first quarter, with the youngest U.S. consumers leading the way. Despite those increases, auto loan delinquencies remained flat, credit bureau TransUnion reported today.... Read More »


Larry Miller Group launches Fast Pass to speed auto transactions

12:00 pm U.S. ET | May 27, 2015
Larry H. Miller Dealerships is pushing to put more of the car buying process online, but the F&I component will stay in the dealership.... Read More »


Subprime loans fall to lowest share since 2012

12:00 pm U.S. ET | May 20, 2015
Subprime and deep subprime loans in the first quarter dropped to their lowest share of the market since 2012, Experian Automotive says.... Read More »


Amid higher auto lending, 90-day delinquencies hold flat

11:30 am U.S. ET | May 20, 2015
Auto loan originations rose 12 percent in the first quarter from a year earlier, while 90-day delinquency rates held flat at 3.3 percent, the Federal Reserve Bank of New York said.... Read More »


At Buick store, service lane provides visuals to better sell F&I products

11:15 am U.S. ET | May 20, 2015
Aaron Logan has sold F&I products for 17 years, yet in the past six weeks his extended service contract penetration rate is nearly twice that of the year-earlier period. He credits the boost to his “religious” use of visual aids.... Read More »


Canada shrugs aside worries over long loans

11:00 am U.S. ET | May 13, 2015
U.S. auto industry watchers worry that long loan terms could lead to a financial crisis. But in Canada, industry experts have become accustomed to long loan periods.... Read More »


Student-loan debt doesn't hinder auto lending among college grads, study finds

11:45 am U.S. ET | May 13, 2015
A TransUnion study at least partly contradicts the widely held belief that hefty student loans prevent recent college graduates from getting auto loans.... Read More »


F&I product provider to buy rival in cash deal

11:45 am U.S. ET | May 13, 2015
AmTrust Financial Services agreed to buy Warranty Solutions, owned by Wells Fargo, for $152 million in cash. Finance and insurance product providers say the deal signals further consolidation in the product industry.... Read More »


AutoNation launches private-label products

12:01 am U.S. ET | May 11, 2015
This month in its Texas stores, AutoNation will start selling self-branded extended service contracts. It's the beginning of AutoNation's plan to sell private-label F&I products online and in stores.... Read More »


GM Financial aims for speedier F&I and happier customers

12:01 am U.S. ET | May 11, 2015
GM North America chief Alan Batey believes GM Financial will improve customer satisfaction by getting them through the F&I office more quickly.... Read More »


Ford Credit sees highest Q1 dealer share in 14 years

11:15 am U.S. ET | May 6, 2015
Ford Credit increased its share of U.S. retail loan and lease volume for Ford and Lincoln dealers to 45 percent in the first quarter, the highest first quarter in 14 years. Losses for bad loans were only 0.... Read More »


Subprime lending 'stable' despite worry about risk

11:45 am U.S. ET | May 6, 2015
The year got off to a decent start for subprime auto loans in terms of delinquencies and relatively low losses for bad loans, according to Fitch Ratings.... Read More »


Credit union volume grows

11:45 am U.S. ET | May 6, 2015
Credit unions on the CU Direct auto lending platform are on pace for record volume this year. For the first quarter of 2015, loan volume was 250,000 units, up 21 percent vs. the first quarter last year. Application volume was 960,000, up 27 percent.... Read More »


Aston Martin picks Ally Financial as preferred U.S. lender

11:44 am U.S. ET | May 1, 2015
Aston Martin Lagonda named Ally Financial, the former GM financing arm, as its preferred US auto lender to help the maker of luxury sports cars expand sales.... Read More »


AutoNation says no to captive

11:45 am U.S. ET | April 29, 2015
AutoNation, after exploring whether to launch its own captive finance company, is saying no to the idea. CEO Mike Jackson says the retailer will generate a better return from other investments.... Read More »


Porsche captive adds branded F&I products

12:00 pm U.S. ET | April 29, 2015
Porsche, Bentley and Lamborghini dealers in the U.S. are getting a new menu of F&I products to sell.... Read More »


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