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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 »
 
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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 »


JAMIE LaREAU

Skipping wheel-and-tire was big mistake

12:01 am U.S. ET | Aug. 20, 2014
Wheel-and-tire insurance is a valuable product. There, I admit it. It's not the “snake oil” that a cynical friend once espoused it and other F&I products to be.... 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 »


 
BY THE NUMBERS 
 

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 »


JIM HENRY

N.Y. Times' demands are misguided

12:01 am U.S. ET | Aug. 13, 2014
Subprime auto loans have gotten most of the attention, but an editorial in The New York Times on Saturday makes other demands dealers and lenders are sure to dislike.... 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 »


 


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