Is a dollar penny-ante stuff? Not to feds

Posted 12:01 am U.S. ET, June 19

Jim Henry is a special correspondent for Automotive News

To the Consumer Financial Protection Bureau, even $1 a month is too much if it's the cost of discrimination in auto lending. Even if that discrimination is completely unintentional.
Some in the industry think there should be some wriggle room, some leeway if there's just a smidgen of a difference between the rate charged one ...
     Continue reading "Is a dollar penny-ante stuff? Not to feds" » Jun 19, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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In F&I, man beats machine every time

Posted 12:01 am U.S. ET, June 19

Jamie LaReau covers auto dealers for Automotive News.

Retail auto sales are built on human relationships.
Whether the rapport is between the salesperson and customer or between the F&I manager and customer, the relationship is built on human-to-human interaction with trust as its foundation.
And that's something no piece of technology or m ...
     Continue reading "In F&I, man beats machine every time" » Jun 19, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Why some F&I time should be spent in the box

Posted 12:01 am U.S. ET, June 12

Jim Henry is a special correspondent for Automotive News

Most F&I insiders agree that customers dread the idea of spending time in the F&I office, also known as “the box.” But the F&I office has its supporters, too.
Certainly, there’s been a lot of discussion lately about keeping the customer’s time spent there to a minimum. And F&I managers ...
     Continue reading "Why some F&I time should be spent in the box" » Jun 12, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Lincoln's maintenance cutbacks offer F&I opportunity

Posted 12:01 am U.S. ET, June 12

Jamie LaReau covers auto dealers for Automotive News.

Some Lincoln dealers see opportunity in Lincoln's plan to trim its complimentary maintenance program from 4 years/50,000 miles to 2 years/24,000 miles starting with 2014 models.
They say the change presents an opportunity to pitch other aftermarket products that would enhance the shorter plans, thus boosting F&I sales. Or ...
     Continue reading "Lincoln's maintenance cutbacks offer F&I opportunity" » Jun 12, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Lenders must be locally flexible

Posted 12:01 am U.S. ET, June 5

Jim Henry is a special correspondent for Automotive News

Centralization has its limits.
Several large dealership groups and lenders have centralized functions at headquarters or set standard nationwide procedures. But sometimes consumers and their incomes don’t fit the usual profile.
Consider:
• Some Las Vegas ...
     Continue reading "Lenders must be locally flexible" » Jun 5, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Where are the beefs about auto loans?

Posted 12:01 am U.S. ET, May 29

Jim Henry is a special correspondent for Automotive News

With Memorial Day earlier this week, it's a good time to note that auto loans barely made the Consumer Financial Protection Bureau's list of common complaints for military families, despite an outcry from the bureau, the Federal Trade Commission and others over supposed dealer abuses.
In 2010, a Defense Department spokesman e ...
     Continue reading "Where are the beefs about auto loans?" » May 29, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Are worries over slower, smaller tax refunds overblown?

Posted 12:01 am U.S. ET, May 22

Jim Henry is a special correspondent for Automotive News

Some lenders complained in first-quarter earnings reports about smaller and later tax refunds.
IRS refund statistics weren’t down by much, but any change is important because tax refunds contribute to the annual peak in subprime financing, according to dealers and subprime lenders.
Ch ...
     Continue reading "Are worries over slower, smaller tax refunds overblown?" » May 22, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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For happier customers, sales and F&I need to talk

Posted 12:01 am U.S. ET, May 22

Jamie LaReau covers auto dealers for Automotive News

Good communication between sales and finance staff cannot be overstated.
That’s my takeaway from reading a recent chat on a Facebook page shared by finance managers.
Many pondered why a customer can sometimes complain to the sales manager that the F&I manager was rude when the F&a ...
     Continue reading "For happier customers, sales and F&I need to talk" » May 22, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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'Last resort' means something good

Posted 12:01 am U.S. ET, May 15

Jim Henry is a special correspondent for Automotive News

In a recent blog, I referred to GM Financial as a "lender of last resort" for parent company General Motors.
I meant simply that GM regards GM Financial as a lender ...
     Continue reading "'Last resort' means something good" » May 15, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Subprime scrutiny could open a real can of worms

Posted 12:01 am U.S. ET, May 8

Jim Henry is a special correspondent for Automotive News

Here's a disturbing thought: As much as the Consumer Financial Protection Bureau has upset auto lenders and dealers, it hasn't even gotten around to the vast category of subprime auto lending.
Sure, the bureau has targeted dealer reserve in prime-risk lending. And now the bureau is reportedly looking into F&I products as ...
     Continue reading "Subprime scrutiny could open a real can of worms" » May 8, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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GM, Chrysler take opposite tacks on captives

Posted 12:01 am U.S. ET, May 1

Jim Henry is a special correspondent for Automotive News

Does a car company need to own a captive finance company?
While General Motors and Chrysler Group came off similar experiences of being partners with Ally Financial after their old captives went away during restructuring, they have reached different conclusions.
GM is a “yes” fo ...
     Continue reading "GM, Chrysler take opposite tacks on captives" » May 1, 2013 12:01 am U.S. ET Post Comment  |  Permalink

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Why car loans, mortgages are apples and oranges

Posted 12:01 am U.S. ET, April 24

Jim Henry is a special correspondent for Automotive News

Using questionable logic, the Consumer Financial Protection Bureau tends to equate mortgage brokers and auto dealers.
The bureau notes that in both cases there's a middleman who contributes to the interest rate a consumer pays. The more the middleman adds, the more profit the middleman makes.
...
     Continue reading "Why car loans, mortgages are apples and oranges" » Apr 24, 2013 12:01 am U.S. ET

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Another case for bundling

Posted 12:01 am U.S. ET, April 24

Jamie LaReau covers auto dealers for Automotive News

F&I managers like to bundle products, with good reason. The practice typically spurs sales of other products.
For example, the Larry H. Miller Automotive Group of Cos. had been pre-installing Total Care Auto Etch on all its cars since 2006. But it had meager Etch contract sales for a long time.
...
     Continue reading "Another case for bundling" » Apr 24, 2013 12:01 am U.S. ET

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Who's the No. 1 lender? Gimme an A …

Posted 12:01 am U.S. ET, April 17

Jim Henry is a special correspondent for Automotive News

Who's No. 1 in auto finance? It depends on who's doing the telling.
Wells Fargo & Co. said in its first-quarter conference call last week that its Wells Fargo Dealer Services is now "the industry's leading auto lender."
That will be news to Ally Financial Inc., which claims it's been No ...
     Continue reading "Who's the No. 1 lender? Gimme an A …" » Apr 17, 2013 12:01 am U.S. ET

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Lots of chatter on CFPB and dealer reserve

Posted 12:01 am U.S. ET, April 10

Jim Henry is a special correspondent for Automotive News

The Consumer Financial Protection Bureau’s effort to cut dealer reserve is sparking a fair amount of online debate.
For instance, bloggers have reacted to a statement from dealer groups warning that reducing dealers’ ability to set customers’ final interest rates would cut competition among lenders. That, in ...
     Continue reading "Lots of chatter on CFPB and dealer reserve" » Apr 10, 2013 12:01 am U.S. ET

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Strange question? Not really

Posted 12:01 am U.S. ET, April 10

Jamie LaReau covers auto dealers for Automotive News

Should an F&I officer or a salesperson explain the risks of a big down payment to a lease customer?
That's the ethical question that Mike Conn, business manager at Dreyer & Reinbold dealership group in Greenwood, Ind., posed to his F&I peers on Facebook in a post expressing concern that one of his customers used h ...
     Continue reading "Strange question? Not really" » Apr 10, 2013 12:01 am U.S. ET

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Worried about the CFPB? You should be

Posted 12:01 am U.S. ET, April 3

Jim Henry is a special correspondent for Automotive News

Dealers and lenders are upset that the Consumer Financial Protection Bureau is demanding greater transparency from them, but isn't reciprocating.
Dealer and lender groups are especially anxious to know how, exactly, the CFPB does the math to determine whether lending policies have a "disparate impact" on minorities.
...
     Continue reading "Worried about the CFPB? You should be " » Apr 3, 2013 12:01 am U.S. ET

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Worried about the CFPB? Stay calm

Posted 12:01 am U.S. ET, April 3

Jamie LaReau covers auto dealers for Automotive News

Everyone stay calm.
That's David Westcott's message to finance and insurance professionals, even though the chairman of the National Automobile Dealers Association admits he is very concerned.
Westcott and many dealership F&I managers worry about how the probes by the Consumer Financial ...
     Continue reading "Worried about the CFPB? Stay calm" » Apr 3, 2013 12:01 am U.S. ET

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The CFPB's new, scary truth

Posted 12:01 am U.S. ET, March 27

Jim Henry is a special correspondent for Automotive News

Last week the Consumer Financial Protection Bureau and Director Richard Cordray threw cold water on a common notion among advocates for dealers and lenders: The CFPB doesn't understand how the business works and everything would be OK if the feds were just "educated."
Now the industry is starting to accept a different, and mu ...
     Continue reading "The CFPB's new, scary truth" » Mar 27, 2013 12:01 am U.S. ET

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Dealers and credit unions: Strife or synergy?

Posted 12:01 am U.S. ET, March 20

Jim Henry is a special correspondent for Automotive News

Is there peace or war between auto dealers and credit unions -- or something in between?
From many angles it looks like peace.
Some dealers enjoy good relationships with their local credit unions. According to credit union aggregator Credit Union Direct Lending, credit unions are more likel ...
     Continue reading "Dealers and credit unions: Strife or synergy?" » Mar 20, 2013 12:01 am U.S. ET

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A case for a la carte menus

Posted 12:01 am U.S. ET, March 20

Jamie LaReau covers auto dealers for Automotive News

Many F&I managers believe bundling is their best friend.
By bundling, they can offer customers several F&I products in a package costing less than buying each product individually. A bundle might consist of an extended-service contract, key fob protection and GAP, all for a single price.
...
     Continue reading "A case for a la carte menus" » Mar 20, 2013 12:01 am U.S. ET

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F&I survey gives all dealerships a voice

Posted 12:01 am U.S. ET, March 13

Jim Henry is a special correspondent for Automotive News

It’s March. Time to work on tax returns -- and the annual U.S. Dealer Financing Satisfaction Study from J.D. Power.
J.D. Power says the surveys should start arriving at dealerships this week. They’re aimed at dealer principals, but in practice, general managers and F&I managers usually fill them out, J.D. Powe ...
     Continue reading "F&I survey gives all dealerships a voice" » Mar 13, 2013 12:01 am U.S. ET

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A little education can save a lot of complaining

Posted 12:01 am U.S. ET, March 6

Jim Henry is a special correspondent for Automotive News

It's easy to be cynical about this, but consumer education could ease the sting of tougher regulations that seem to be in the works for auto lenders and dealers.
"Compliance and education are the culture in our dealership. It has to be instilled," said Todd Snell, CEO of Snell Motors Inc. (Buick-Cadillac-GMC) in Mankato, Minn ...
     Continue reading "A little education can save a lot of complaining" » Mar 6, 2013 12:01 am U.S. ET

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Facebook fills F&I training void

Posted 12:01 am U.S. ET, March 6

Jamie LaReau covers auto dealers for Automotive News

Do you feel you get enough in-house training?
I posted that question on a Facebook page catering to F&I managers and trainers last week and got about a dozen replies. Responses were mixed, but the overall sentiment was no.
My question was prompted by a conversation I had with an F&I ...
     Continue reading "Facebook fills F&I training void" » Mar 6, 2013 12:01 am U.S. ET

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Auto industry as boogeyman? Depends on your view

Posted 12:01 am U.S. ET, Feb. 27

Jim Henry is a special correspondent for Automotive News

The Federal Trade Commission's latest annual report of U.S. consumer complaints could be a good inkblot test for how people feel about auto finance.
The FTC's Consumer Sentinel Network Data Book for 2012 details millions of unconfirmed consumer complaints of identify theft, fraud and other types compiled by the FTC, state law ...
     Continue reading "Auto industry as boogeyman? Depends on your view" » Feb 27, 2013 12:01 am U.S. ET

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