Subprime pressuring delinquencies, N.Y. Fed says
The overall delinquency rate for auto loans is slowly increasing, but not alarmingly, and that's masking a worse performance for subprime auto loans, according to the Federal Reserve Bank of New York.
Cordray to resign from CFPB, may run for Ohio governor
Richard Cordray plans to step down as head of the Consumer Financial Protection Bureau, the controversial consumer watchdog created by President Obama following the 2008-09 financial crisis, amid growing speculation that he will run for governor of Ohio as a Democrat.
Mobile technology spurs F&I sales at Straub Automotive
A West Virginia dealership group has solid evidence that its use of mobile technology in the showroom spurs F&I sales.
Use the vehicle as a prop to explain coverage
Take customers to the vehicle to help them better understand their coverage, suggests Dan Mason, general sales manager at McGrath Honda in Elgin, Ill. Go through the warranty overview at or inside the vehicle to show the customer what is and isn’t protected, he said. The protection and risk becomes more real for the customer when they are sitting in their new vehicle.
Ford, Lincoln captives top consumer financing satisfaction study -- again
Lincoln Automotive Financial Services and Ford Motor Credit have locked in another year atop the rankings of J.D. Power's annual Consumer Financing Satisfaction Study.
Product sales drive growth in F&I profit for 4 publics
Four of the six public new-car retailers boosted F&I gross profit per vehicle in the third quarter, while the other two posted declines.
F&I process shares computer screens with customers to build trust
At Schomp Automotive Group, customer-facing software smooths a one-person, one-price, one-hour car-buying process.
E-contracts are not just safer, they could be cheaper, too
The regulatory compliance benefits of electronic contracting also could have financial benefits for dealerships, saving them as much as hundreds of thousands of dollars in fines.
New-car down payments climb
Customer down payments on new-vehicle loans rose more than 10 percent year over year in October, and the average interest rate increased, Edmunds says. Other important variables such as term, monthly payment and the amount financed were essentially flat but at high levels.
Experts question CFPB's warning on longer loans
A new CFPB report suggests that the spread of longer-term auto loans poses increasing risks for consumers and lenders. Outside experts disagree.
Servicing millennials takes special focus, body language
Millennials respond to dealerships that support their journeys, whether they're buying their first car, having children or concerned about transporting pets. So laser focus on their needs, suggests Skyler Huff of marketing agency Barkley in Kansas City, Mo. And pay attention to body language so they know you're authentic. Look at them, don't talk over them and don't cross your arms or legs.
Hurricanes spur GAP claims, sales
In the aftermath of hurricanes Harvey and Irma, guaranteed asset protection claims have jumped, F&I product providers say. And some finance managers are using the storms as a tool when presenting GAP to customers.
Ford Credit boosts Q3 pretax profit despite lending cutback
Ford Motor Credit increased its pretax profit in the third quarter despite sticking to a strategy of "disciplined" lending, including buying fewer finance contracts from dealers.
Let customers know you're there to help
Make your intention to help clear and be friendly to assist customers in overcoming a negative perception of F&I managers, advises Ron Reahard of Reahard & Associates. Customers are asking themselves: Can I trust this person? Does he or she care about me? Is this person trying to help me, or sell me? he said.
Capital One, GM Financial boost originations
Capital One Bank and GM Financial both said this week they are continuing to grow auto finance. The companies' moves are in contrast with banks that are cutting back on auto loans.
Assurant boosts auto presence with Warranty Group acquisition
Assurant's planned acquisition of the Warranty Group next year will give Assurant a larger presence in the market and better position both companies for the future of auto retail, their executives say.
F&I penetration rates dip in first half
Penetration rates for F&I products declined at U.S. dealerships in the first half of the year, NADA Data show.
Ally reduces leasing in Q3
Ally Financial's auto loan and lease originations dipped 1.2 percent to $8.1 billion in the third quarter, the company said Wednesday. Ally has targeted reducing lease volume.
CFPB's arbitration rule overturned by Senate vote
The Senate moved to overturn a rule aimed at making it easier for customers to sue banks, handing financial firms a big win in their battle against post-crisis regulations.
Don't say that! 14 words and phrases that can short-circuit F&I
In the crush of business, even seasoned F&I professionals can slip up and inadvertently antagonize a customer. To help ensure that doesn't happen, experts suggest F&I staffers make it a habit to keep these negative words and phrases out of business discussions.
For speedier approvals, know lenders' preferences
To get more approvals faster, know your finance companies' business preferences, advises F&I training expert Tony Dupaquier. Ask them: “What kind of borrowers do you like? What's your prime line?” Call them on their cellphones weekly to establish a rapport and ask about their wish lists.