Chase, Wells Fargo take measured approach to auto lending
Wells Fargo and Chase Auto remain cautious on auto finance, although Wells Fargo increased auto loan originations last quarter, and Chase Auto Finance has increased lease originations for its private-label customers.
How opinion becomes commitment
Ask your customer which deal meets their needs the best, advises Eric Mélon, president of sales at Innovative Aftermarket Systems. An opinion about a finance plan or product can quickly become a commitment once the F&I manager knows what the customer thinks about the process. “People love to give their opinion. They don't like to commit,” Mélon says. “If they say it, they believe it.”
Ally Financial leads in Q2 auto loan market share, Experian says
Ally Financial had the highest auto loan market share in the second quarter, according to Experian, driven primarily by increases in the company's used-vehicle loan portfolio.
Bank fraud, limited safeguards among top F&I compliance concerns
What's the No. 1 compliance hurdle for automotive dealerships today? That was a contentious question at the F&I Industry Summit this week.
N.Y. dealerships owe Nissan captive $40 million
Nissan Motor Acceptance Corp. is entitled to more than $40 million from several New York dealerships, their operating managers and their guarantors after the parties defaulted on floorplan, mortgage and revolving lines of credit loans, and personal guarantees.
Set the right expectations
If your sales team also helps with F&I, make sure it is up to date on market trends, such as the Federal Reserve rate, says Dwayne Wiggins, an F&I trainer. “Be sure that there’s effective communication between the F&I office and the sales desk so that when they work their deals upfront, [they don’t] set the expectations the wrong way because that could limit opportunities for everybody.”
Does Connecticut amendment on lending violate U.S. discrimination laws?
An amendment to the Connecticut Retail Installment Sales Finance Act requires auto lenders -- and possibly F&I managers -- to ask applicants in the state for their race, ethnicity and gender. Some, including the state's banking commissioner, wonder whether asking such a question could violate federal discrimination laws.
As interest rates continue rise, affordability suffers
After the Federal Reserve lifted the benchmark interest rate for the third time this year, economists say car buyers are feeling the pain.
Scoring technique switch expands Prestige portfolio
After tightening lending standards two years ago, Prestige Financial's auto loan portfolio shrunk. To increase business, the subprime lender six months ago replaced its legacy scoring techniques with software from ZestFinance.
U.S. regulator unsatisfied with Wells Fargo's progress in reimbursing auto loan customers
Wells Fargo hasn't yet satisfied one of the regulators responsible for deciding whether the bank is properly reimbursing customers who might have been harmed by recent scandals involving its auto lending and mortgage businesses.
Put compliance training first
All incoming employees should be exposed to written compliance procedures, according to Jenn Reid, a senior director at Equifax Automotive Services. Make sure all employees are given a copy and are properly trained on the dealership's compliance procedures long before they start on the sales floor. “If it’s not a part of your training or in your handbook, it’s not a process,” Reid said.
Credit freeze could lengthen F&I transaction
A change to the Fair Credit Reporting Act that allows customers to "freeze" their credit reports free of charge acts as a temporary shield from fraudsters and identity thieves, but the freeze also can slow a transaction in the F&I office to a glacial pace.
Auto loan balance with suspected fraud activity surpasses $600 million
Total outstanding loan balances with suspected fraud activity surpassed $1 billion in the second quarter, with auto loans accounting for more than half that amount, according to TransUnion.
Ensure refunds go right
Develop processes to track F&I product refunds if a customer cancels, advises Deanna Stockamp, partner at Stockamp and Brown. If the customer financed the product, the refund needs to go to the lender. If the dealer sends the refund to the customer, "You're not going to see that money again," Stockamp says.
Automakers offer financial assistance to victims of Hurricane Florence
Several automakers and lenders are offering financial relief to customers in North and South Carolina affected by Hurricane Florence.
JM&A pilots virtual F&I sales consultants
F&I product and training company JM&A Group is piloting a program in which its employees sell F&I products via Skype to consumers in dealerships.
Through thick and thin, dependable profits from F&I fight margin compression
In the past decade, F&I profits have steadily increased, and continue to be a powerful weapon for dealers against margin compression.
Good experience? Pass it along
Ask satisfied customers to leave online reviews, recommends Tony Dupaquier, director of The Academy, an F&I training company. Online reviews reach more customers than word-of-mouth, and positive comments online can make a big difference. “Super happy people rarely write a review,” he said. “Pissed-off people do.”
Vendor strategies for expansion
For F&I vendors, there is no cookie-cutter approach to business expansion in the ecosystem of dealers, automakers and captive lenders. When pitching potential clients, deciding who to approach first can depend on a variety of factors unique to each business model or product.
How vendors sell dealers
Pitching a service or pilot system to a dealer can be an arduous process, especially when faced with a growing laundry list of competitors. Here's how some vendors get dealers to listen.
How vendors avoid overload
Vendors that have successful partnerships with dealerships do their homework and follow the dealerships' lead when it comes to the frequency and style of communication.