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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 »


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 »


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 »


Asbury targets underperformers, training as F&I gains stall

12:01 am U.S. ET | Aug. 20, 2014
Asbury Automotive Group's improvement in average F&I revenues per vehicle retailed has stalled this year.... Read More »


CFPB fines subprime lender First Investors Financial Services Group for sending credit bureaus inaccurate info

12:30 pm U.S. ET | Aug. 20, 2014
The Consumer Financial Protection Bureau fined subprime auto lender First Investors Financial Services Group nearly $3 million for knowingly providing inaccurate information to credit reporting agencies for at least three years.... Read More »


Auto loans could get boost from revamped FICO scores

12:01 am U.S. ET | Aug. 20, 2014
A planned update in the way FICO scores are calculated should help some borrowers qualify more easily for auto loans by putting less weight on overdue medical debt when calculating credit scores, according to Fair Isaac Corp.... Read More »


Canadians stretch out auto loans as debt warnings go ignored

5:34 am U.S. ET | Aug. 20, 2014
The average term of a light-vehicle loan in Canada is 69 months, close to a peak of 72 months set in the third quarter of 2013, according to J.D. Power. Longer-term car loans are leaving Canadians in debt for a longer time, analysts say.... Read More »


NADA, AFSA dispute New York Times editorial on subprime auto loans

12:01 am U.S. ET | Aug. 13, 2014
Auto dealer and lender groups are howling in protest at an editorial in Saturday's New York Times that equated subprime auto loans with subprime mortgages. The groups insist there is no comparison between the two types of loans.... Read More »


N.C. Toyota store prevails in spot delivery dispute

12:01 am U.S. ET | Aug. 13, 2014
A federal judge has dismissed a civil lawsuit accusing a Greenville, N.C., dealership of truth in lending violations by a spot delivery customer who was denied financing and then arrested after refusing to return her car or let it be repossessed.... Read More »


Q&A

Flat fees for F&I products? It's possible

12:01 am U.S. ET | Aug. 13, 2014
It's a matter of "when" rather than "if" U.S. regulators will force auto lenders to switch to flat fees from dealer reserve, says John Pappanastos, CEO of EFG Companies, a major F&I administrator. Flat fees for F&I products could follow, he says.... Read More »


Toyota: Favorable auto finance climate to continue driving U.S. retail volume

12:01 am U.S. ET | Aug. 13, 2014
An auto finance environment favorable to many U.S. consumers will continue to provide a tailwind for higher retail auto sales in 2014, a top Toyota executive said Tuesday.... Read More »


Subprime auto loans' risk is acceptable, analysts say

5:42 pm U.S. ET | Aug. 13, 2014
The rising number of subprime auto loans doesn't represent a disaster waiting to happen, akin to the mountain of subprime mortgages that went bad and set off the Great Recession, Moody’s says.... Read More »


Subprime lender learns FTC's 'not cutting any slack'

12:01 am U.S. ET | Aug. 11, 2014
Subprime auto lender Consumer Portfolio Services learned some costly but valuable lessons from a $5.5 million consent order with the Federal Trade Commission this year.... Read More »


High-tech toys drive service contract sales

12:01 am U.S. ET | Aug. 11, 2014
In-vehicle, high-tech toys and consumers' urge to protect them are driving sales of extended service contracts, some finance and insurance professionals say.... Read More »


After probe of Santander, GM Financial, who's next among subprime auto lenders?

2:54 pm U.S. ET | Aug. 8, 2014
Other subprime auto lenders that issue asset-backed securities are wondering whether they're next after Santander Consumer USA followed GM Financial as the subject of a subpoena from the U.S. Department of Justice.... Read More »


Santander Consumer receives subpoena over subprime auto loans

9:05 pm U.S. ET | Aug. 7, 2014
Santander Consumer USA said it received a civil subpoena from the U.S. Department of Justice related to its nonprime auto loans.... Read More »


NEWS ANALYSIS

GM Financial subpoena opens new front in auto lending crackdown

12:01 am U.S. ET | Aug. 6, 2014
The U.S. Department of Justice opened a new front in a multifaceted crackdown on auto lending by federal regulators when it subpoenaed GM Financial last month to produce documents relating to its subprime auto loan contracts.... Read More »


N.J. Chevy store's win in customer fraud suit upheld

12:01 am U.S. ET | Aug. 6, 2014
A New Jersey Chevrolet store's win in its suit for breach of contract and fraud against a customer has been affirmed by a state appeals panel.... Read More »


Penske taking steps to improve F&I revenue

12:01 am U.S. ET | Aug. 6, 2014
Penske Automotive lags its publicly traded dealership-group peers in finance and insurance revenue per vehicle retailed, largely because Penske dealerships lease vehicles at rates above the industry average.... Read More »


Ally's insurance operations reap fewer revenues in Q2

12:01 am U.S. ET | Aug. 6, 2014
Ally Financial's revenue from the sale of extended service contracts dropped slightly in the second quarter, partly as a result of increasing lease volume.... Read More »


Chrysler Capital seeks to regain retail share lost in Q2

12:01 am U.S. ET | Aug. 6, 2014
Chrysler Capital, the preferred lender for Chrysler Group, cut back on some near-prime and subprime originations to Chrysler Group customers in April and May because competition had driven margins unattractively low, Santander Consumer USA, the...... Read More »


GM's subprime auto lending draws attention of U.S. investigators

5:04 pm U.S. ET | Aug. 5, 2014
Federal prosecutors are asking questions about the practices of GM's financing unit, subpoenaing the company in the midst of a resurgence in U.S. auto sales fueled partly by a subprime lending boom.... Read More »


GM Financial says Justice Dept. seeks subprime loan records

11:36 am U.S. ET | Aug. 4, 2014
GM's lending unit said the Department of Justice subpoenaed documents related to its subprime lending practices.... Read More »


Lenders listen to satisfy dealers

12:01 am U.S. ET | Aug. 4, 2014
As auto lenders seek to do a better job of serving dealers, there's no single solution, said Mark Kaczynski, CEO of captive finance company Nissan Motor Acceptance Corp., which serves the Nissan and Infiniti brands. In the J.D. Power 2014 U.S.... Read More »


Volume hot, profits not, for GM Financial, Ford Credit

12:01 am U.S. ET | July 30, 2014
North American auto loan and lease originations combined rose in the second quarter from the year-earlier period for both Ford Motor Co.'s and General Motors' captive finance companies.... Read More »


Group 1 leads peers in F&I revenue per vehicle; Penske trails again

12:01 am U.S. ET | July 30, 2014
Group 1 Automotive's 120 U.S. dealerships had the highest average F&I revenue per vehicle retailed in the second quarter among the six publicly traded new-car groups.... Read More »


Dahlheim named CEO of VW Credit

12:01 am U.S. ET | July 30, 2014
VW Credit named CFO Christian Dahlheim CEO of the captive finance company today, succeeding Andrew Stuart, who left the company to become CEO of U.S. operations for TD Auto Finance.... Read More »


BMW Group tops dealer finance satisfaction survey

12:01 am U.S. ET | July 30, 2014
BMW Group Financial Services dominated nearly every category of J.D. Power's 2014 U.S. Dealer Financing Satisfaction Study released this week.... Read More »


Near-record auto lending drives Ally Q2 profit higher

10:53 am U.S. ET | July 29, 2014
Ally Financial originated near-record auto lending volume and added more than 900 dealerships in the United States since a year ago to produce a comeback in net income in the second quarter.... Read More »


Some worry about F&I product regs, but not Jackson

12:01 am U.S. ET | July 23, 2014
AutoNation CEO Mike Jackson says that unlike some in the retail industry, he's not worried the Consumer Financial Protection Bureau could have plans to impose stricter monitoring of financing for F&I products.... Read More »


F&I revenue growth slows in Q2 for some major dealership groups

12:01 am U.S. ET | July 23, 2014
Of the four publicly traded new-car dealership groups that have reported second-quarter results, only one has posted a higher rate of growth in F&I revenue per vehicle retailed than it did a year ago.... Read More »


Capital One, Huntington target more prime loans

12:01 am U.S. ET | July 23, 2014
Capital One continues to push aggressively in auto loans while other big banks, such as Chase and Wells Fargo, have slowed auto loan growth amid accelerating competition, especially in prime-risk lending.... Read More »


Credit union scraps ad campaign slamming rate markup

12:01 am U.S. ET | July 16, 2014
A Florida credit union is canceling an advertising and social media campaign that hit at a retail industry sore spot -- dealer reserve.... Read More »


Q&A

CFPB scrutiny could force fixed F&I prices

12:01 am U.S. ET | July 16, 2014
The Consumer Financial Protection Bureau is sending signals it may be interested in scrutinizing the value of F&I products purchased by consumers, relative to the cost of the products for dealers, according to David Bafumo, president of FNI Inc.... Read More »


Chase, Wells Fargo ease auto loan growth

12:01 am U.S. ET | July 16, 2014
Two of the biggest banks in auto lending are growing their loan business but at a slower pace.... Read More »


Shoppers wary of dealer loans

12:01 am U.S. ET | July 14, 2014
Although most car buyers finance their vehicles through dealerships, the vast majority don't plan to do so while in the online-research phase of shopping.... Read More »


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