Finance and Insurance

JIM HENRY

BLOG: Lenders' outcry against CFPB 'narratives' is justified

12:01 am U.S. ET | April 8, 2015

It's no wonder auto lenders cried foul last month when the CFPB announced its plan to begin posting consumers' first-person tales of their grievances with auto loans later this year.... Read More »

Q&A

Mercedes’ captive boosts dealership training on branded F&I products

11:00 am U.S. ET | April 8, 2015

Mercedes-Benz Financial Services’ U.S. insurance unit is gearing up to train more dealership F&I managers to sell its First Class-branded F&I products. Lease penetration is high for Mercedes-brand vehicles, so the insurance unit specializes in F&I products suitable for lease customers, such as prepaid maintenance and coverage for excess wear and tear.... Read More »

FICO pilot holds promise for auto financing

11:45 am U.S. ET | April 8, 2015

The results of a pilot program between Fair Isaac Corp. and 12 big credit-card companies could ultimately help dealerships get auto loans approved for so-called thin files -- that is, customers with little or no credit history.
... Read More »

Low rates will continue to help auto sales, financing in 2015, experts say

11:45 am U.S. ET | April 8, 2015

Interest rates should remain low for the rest of 2015, helping auto dealerships sell vehicles, experts say. Low interest rates and longer auto-loan terms have largely offset higher transaction prices the past few years, keeping increases in monthly payments to a minimum.... Read More »

CarMax finance arm won’t become major subprime player

11:30 am U.S. ET | April 8, 2015

CarMax’s finance arm will continue its subprime lending test and might expand it in the future. But the unit won’t become a “full player” in that space, says company CEO Tom Reedy. CarMax Auto Finance will continue to originate loans under the test at its current rate of 5 percent of subprime vehicle sales or a little less than 2 percent of overall loan originations.... Read More »

RICHARD TRUETT

The new sticker shock: High costs to fix high-tech

12:01 am U.S. ET | April 6, 2015

We all know about showroom sticker shock. But here's another side of the affordability problem: the hefty repair costs for minor accidents. At least two factors are driving up the cost to fix vehicles: safety electronics and the way cars are built today.... Read More »

NEAL E. BOUDETTE

BLOG: Apple is a no-show at the New York show

10:19 am U.S. ET | April 2, 2015

Apple's CarPlay and Google's Android Auto are finally here! Well, almost here.... Read More »

Feds put add-on products in their cross hairs

11:00 am U.S. ET | April 1, 2015

The Federal Trade Commission has set its sights on what it calls add-on products: F&I products sold at dealerships such as anti-theft etching or biweekly payments. “The cases we brought today were the first two -- but not the last,” Jessica Rich, director of the FTC Bureau of Consumer Protection, said during a conference call on March 26. She was discussing a crackdown, dubbed “Operation Ruse Control,” on fraudulent dealership practices by authorities in the U.S.... Read More »

CFPB keeps wary eye out for subprime-lending abuses

11:00 am U.S. ET | April 1, 2015

The Consumer Financial Protection Bureau sees the combination of easier credit, a rise in credit losses from historic lows and longer terms in subprime auto loans as an “emerging” risk worth keeping an eye on, said Steven Antonakes, deputy director.... Read More »

NYC aims to remove dealers as middlemen on used-car loans

11:00 am U.S. ET | April 1, 2015

The City of New York is campaigning to remove dealer reserve from used-vehicle financing. And it's enlisting lenders' help to do it.... Read More »

JIM HENRY

BLOG: No such thing as 'little' lies on credit apps

11:00 am U.S. ET | April 1, 2015

The Federal Trade Commission served up a forceful reminder last week that inflating a customer's income on a credit application isn't just a little white lie, even if it's intended to “help” the customer.... Read More »

Ally to relocate its headquarters in downtown Detroit

3:52 pm U.S. ET | March 31, 2015

Ally Financial, along with Detroit political and business leaders, said today it plans to move its headquarters and 1,300 employees to a signature office building in downtown Detroit.... Read More »

Ally touts dealership camaraderie in new ad campaign

2:44 pm U.S. ET | March 31, 2015

Ally Financial is touting the camaraderie it has with dealerships in a new ad campaign that puts an emphasis on storytelling.... Read More »

Ex-dealership staffers face prison

12:01 am U.S. ET | March 30, 2015

Several former sales staffers at a Birmingham, Ala., Nissan store face federal prison time as part of a federal crackdown on fraudulent practices in car dealerships.... Read More »

JIM HENRY

BLOG: If dealers don't weigh in, they can't gripe

12:30 pm U.S. ET | March 25, 2015

Dealers have a chance right now to weigh in on what they like and don’t like about their lenders, and they shouldn’t miss the opportunity.
... Read More »

Dealer groups charge CFPB is unresponsive

12:00 pm U.S. ET | March 25, 2015

Dealer trade groups are asking members to seek help from their elected representatives to prod the Consumer Financial Protection Bureau into responding to a lender study released last fall that was highly critical of its method of determining discrimination in auto finance.... Read More »

Lenders raise red flags over CFPB plan to publish consumer complaints

12:00 pm U.S. ET | March 25, 2015

Auto lenders are lining up to oppose the Consumer Financial Protection Bureau’s plan to publish consumer complaints with financial services providers on its website.... Read More »

Credit union pilot targeting subprime borrowers shows promise

12:30 pm U.S. ET | March 25, 2015

A small pilot program to encourage credit unions to do more subprime auto lending has helped participants gain some business but is still several steps away from providing a model for a larger effort.... Read More »

Volvo's young captive explores new territory

12:01 am U.S. ET | March 25, 2015

Volvo Car Financial Services U.S. is a young captive finance company, in business only since late 2012. But its leadership is seasoned.... Read More »

Store tweaks sales, F&I strategy for Gen Y

12:01 am U.S. ET | March 25, 2015

Dealership managers Austin Salinas and Chris Gottselig know how to sell to Gen Y. That's because they fall into that category themselves. The two developed a speedier, more transparent vehicle sales and finance process at Friendly Ford of Crosby, near Houston, that's boosting the store's profits and reputation.... Read More »

Insurance rates on aluminum F-150 hold for now

12:01 am U.S. ET | March 23, 2015

For now, motorists' yearly insurance premiums for the 2015 aluminum-bodied F-150 are about the same as for the 2014 steel model -- good news for Ford. But premiums could change once insurance companies study accident repair data for the redesigned pickup.... Read More »

JIM HENRY

BLOG: Size of average tax refund makes a decent down payment

11:45 am U.S. ET | March 18, 2015

For anybody keeping track -- which is to say, anybody interested in subprime auto lending – U.S. tax refunds have fallen a bit more behind than they were a few weeks ago.... Read More »

GM dealers: Warranty, maintenance cuts could help F&I, hurt service

11:00 am U.S. ET | March 18, 2015

General Motors' dealers don't seem especially disturbed by the automaker's decision to scale back its powertrain warranty and free maintenance visits on Buick, Chevrolet and GMC vehicles. If anything, dealership executives say, the shorter powertrain warranties could make it easier to sell extended-service contracts.... Read More »

Q&A

Consistent F&I pricing key to compliance

11:00 am U.S. ET | March 18, 2015

As regulators scrutinize auto lending practices, companies in the F&I space have made compliance with state and federal rules a priority too.... Read More »

Dealers, lenders still angling over laws governing F&I tactics

11:00 am U.S. ET | March 18, 2015

Dealers and auto lenders are keeping a close eye on various dealer-backed state laws that seek to restrict what automakers’ captive finance companies can do to induce dealerships to sell F&I products backed by the factory or a specific vendor.... Read More »

 
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Special Video Report
Smart use of phones, sales teams lift Wash. stores

Smart use of phones, sales teams lift Wash. stores

Sales employees at Ford and Hyundai of Kirkland have tapped smartphones to show how customers are “buying a relationship” with the group. Mon., May 4
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