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Q&A

CFPB’s new rule ups costs for small lenders, creates unlevel field

12:01 am U.S. ET | Sept. 24, 2014
The Consumer Financial Protection Bureau’s proposed new rule extending its jurisdiction to include “larger participant” nonbank auto lenders has some shortcomings, says Bill Himpler, executive vice president of the American...... Read More »


How F&I managers can stay credible with 6 key audiences

12:01 am U.S. ET | Sept. 24, 2014
The customer is only one of a half-dozen audiences F&I managers need to maintain credibility with if they want to be successful, F&I trainer Tony Dupaquier says.... Read More »


Share of CarMax sales financed with subprime loans declines

12:01 am U.S. ET | Sept. 24, 2014
The percentage of CarMax vehicles purchased with loans from lenders that specialize in subprime loans dropped almost 5 percentage points in the company’s fiscal quarter that ended Aug. 31.... Read More »


Credit unions take long-loan lead

12:01 am U.S. ET | Sept. 24, 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 »


Credit union's key: 'Do everything right'

12:01 am U.S. ET | Sept. 24, 2014
The leading provider of auto loans in New Hampshire isn't a bank or a captive finance company.... Read More »


LETTER TO THE EDITOR

Find F&I talent on showroom floor

12:01 am U.S. ET | Sept. 22, 2014
The best source for a new financial services manager is your showroom floor.... Read More »


CFPB's latest guide on discrimination falls short, auto lenders, dealers say

3:28 pm U.S. ET | Sept. 18, 2014
Auto lenders and dealers are largely disappointed with a long-awaited report by the Consumer Financial Protection Bureau that outlines the bureau's method for finding discrimination in auto loans.... Read More »


CFPB to shed light on identifying protected classes

12:01 am U.S. ET | Sept. 17, 2014
The Consumer Financial Protection Bureau is due to issue a white paper soon -- perhaps even this week -- that spells out in greater detail exactly how the bureau determines which consumers belong to legally protected classes of borrowers --...... Read More »


F&I panel: 'We can police ourselves'

12:01 am U.S. ET | Sept. 17, 2014
F&I administrators and dealerships should put price ceilings on F&I products to protect themselves from overregulation, a group of executives from F&I providers suggested at a recent industry conference.... Read More »


Late auto payments rise, but remain low, TransUnion says

12:01 am U.S. ET | Sept. 17, 2014
Auto loans delinquencies ticked up in the second quarter but remain low and pose no immediate threat to the auto-finance industry, an executive at credit bureau TransUnion says.... Read More »


Exeter CEO sees steady growth of 15-20%

12:01 am U.S. ET | Sept. 17, 2014
Exeter Finance, a subprime auto-financing specialist, should post “just steady growth” of 15 to 20 percent a year, CEO Mark Floyd says.... Read More »


Dealers prying payments from some lenders

12:01 am U.S. ET | Sept. 17, 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 »


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

12:01 am U.S. ET | Sept. 17, 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 »


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...... Read More »


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 »


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 »


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 »


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 »


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 »


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 »


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