Finance and Insurance

Group pushes states on F&I product rules

12:01 am U.S. ET | Dec. 8, 2014
Worry that federal regulators' crackdown on dealer markup might spill over into F&I products is revving an industry trade group's efforts to get state-by-state legal definitions for those products, and rules for how they're sold, on the books.... Read More »

 

LINDSAY CHAPPELL

Dealer missteps do not a lender meltdown make

12:01 am U.S. ET | Dec. 6, 2014
It shouldn't surprise anybody if heightened regulatory scrutiny on car lending reveals some transactions where a dealership has disregarded the rules on loan paperwork. But it's a mistake to jump from that reality to any suggestion that there is something rotten in the structure of the vehicle lending industry.... Read More »

 

Average new-car loan hits 8-year high of $27,799

8:04 am U.S. ET | Dec. 3, 2014
The average amount financed to buy a vehicle is the highest it has been in eight years, according Experian Automotive. Average monthly payments rose in the third quarter despite consumers' continued willingness to turn to leasing and longer loan lengths to keep payments down.... Read More »

 

Honda Finance may face U.S. penalty for discrimination in auto-loan pricing

12:01 am U.S. ET | Dec. 3, 2014
American Honda Finance said the Consumer Financial Protection Bureau and U.S. Department of Justice have concluded the company was responsible for illegal discrimination in pricing auto loans and could be disciplined unless it reaches a settlement with the federal agencies.... Read More »

 

JIM HENRY

Auto finance benefits from looser purse strings

12:01 am U.S. ET | Dec. 3, 2014
U.S. households have closed the book on a “deleveraging period,” the government's fancy way of saying households have quit spending less and saving more. And that's good news for auto financing.... Read More »

 

Aluminum wave may mean more dent & ding policies

8:04 am U.S. ET | Dec. 3, 2014
The growing use of aluminum in car bodies to save weight and fuel could create an opportunity for dealership F&I departments to sell more paintless dent removal policies, some F&I experts say.... Read More »

 

GM Financial CEO sees big growth ahead

12:01 am U.S. ET | Dec. 1, 2014
It has taken four years, but GM Financial is finally offering a full range of products to General Motors dealers, prompting the captive lender's CEO to predict a "tremendous amount of growth" in 2015. says CEO Dan Berce.... Read More »

 

AutoNation readies branded F&I products

12:01 am U.S. ET | Dec. 1, 2014
AutoNation will start selling private-label F&I products in 2015 as part of the rollout of its new digital storefront. The nation's largest dealership group also is contemplating AutoNation-branded finance and lease contracts and whether to set up its own captive finance company.... Read More »

 

Delinquency uptick on target, analysts say

11:30 am U.S. ET | Nov. 26, 2014
Analysts have been predicting for the past two years or so that auto loan delinquencies would grow, but the numbers are only now starting to catch up with the forecasts. Thirty-day auto loan delinquencies rose year over year in both the second and third quarters of 2014, Experian Automotive data show. The increases were “to be expected due to the growth in subprime loans,” said Melinda Zabritski, Experian’s senior director of automotive credit.... Read More »

 

JIM HENRY

Military ends paycheck deductions for car loans

12:01 am U.S. ET | Nov. 26, 2014
The Department of Defense last week made it impossible for service members to use the reliable but old-fashioned military allotment system to make auto loan payments -- a small-scale example of a couple of bad apples in auto lending ruining things for everyone else.... Read More »

 

VW Credit, Lincoln Financial tops in consumer satisfaction; captives sweep financing study

11:30 am U.S. ET | Nov. 26, 2014
Website enhancements and a consumer invoice redesign paid off for Volkswagen Credit, which ranked tops among mass-market lenders in the J.D. Power 2014 U.S. Consumer Financing Satisfaction Study. VW Credit garnered 836 out of 1,000 possible points to best Ford Credit, which came in second, and Honda Financial Services, which took third place.... Read More »

 

More subprime lenders are on the hot seat

11:30 am U.S. ET | Nov. 26, 2014
Three regulatory agencies -- two in New York and the Consumer Financial Protection Bureau in Washington -- have taken distinct actions recently against three different subprime auto lenders.... Read More »

 

U.S. auto loan originations at highest level in 9 years, N.Y. Fed says

6:14 pm U.S. ET | Nov. 25, 2014
Americans took out the most auto loans in nine years during the third quarter, according to the Federal Reserve Bank of New York's quarterly Household Debt and Credit Report.... Read More »

 

ARLENA SAWYERS

Popping the subprime bubble myth

12:01 am U.S. ET | Nov. 24, 2014
There is no subprime auto loan bubble, darn it. That message came through loud and clear at session after session devoted to subprime lending during the Used Car Week Conferences sponsored by Auto Remarketing magazine this month in Las Vegas.... Read More »

 

ARLENA SAWYERS

Popping the subprime bubble myth

12:01 am U.S. ET | Nov. 19, 2014
There is no subprime auto loan bubble, darn it. That message came through loud and clear in session after session during the recent Used Car Week conference sponsored in Las Vegas.... Read More »

 

New study slams CFPB methodology

12:01 am U.S. ET | Nov. 19, 2014
The statistical method the Consumer Financial Protection Bureau uses to identify which consumers belong to minority groups correctly identified African-American borrowers only 24 percent of the time.... Read More »

 

AutoNation to add branded F&I products next year

12:01 am U.S. ET | Nov. 19, 2014
AutoNation will start selling private-label F&I products in 2015 as part of the rollout of its new digital storefront. The nation’s largest dealership group also is contemplating AutoNation-branded finance and lease contracts and whether to set up its own captive finance company... Read More »

 

Demand for faster deals could speed e-contracting

12:01 am U.S. ET | Nov. 19, 2014
Dealerships are trying hard to speed sales transactions, and that may give a shot in the arm to electronic signatures and e-contracting for auto loans, experts say.... Read More »

 

JIM HENRY

Free advice for consumers can be worth the price

12:01 am U.S. ET | Nov. 19, 2014
There’s a bright spot for dealerships that do a lot of business with automakers’ captive finance companies and preferred lenders, data on the website Wallet Hub show: Car manufacturers (that is, captives) charge the lowest auto loan rates for new cars, at 40 percent below average.... Read More »

 

Land Rover, Toyota top ALG's Residual Value Awards

8:15 am U.S. ET | Nov. 17, 2014
Land Rover and Toyota earned top brand honors for vehicles predicted to hold their value over the next three years, in the ALG Residual Value Awards released today.... Read More »

 

HOW'S MY DRIVING?

Dashboard data shifting the car insurance model and changing ownership math

12:01 am U.S. ET | Nov. 17, 2014
As dashboard data make it easier to determine how people are driving, and how much, insurers are moving toward a usage-based insurance model that could upend the cost-benefit analysis of car ownership.... Read More »

 

Online financial transparency trumps lowest price, dealer says

10:00 am U.S. ET | Nov. 12, 2014
Customers who apply for vehicle financing on driversselect.com get real information about interest rates, down payments and monthly payments that does not change once they arrive at the Dallas used-only dealership, CEO Steve Hall said.... Read More »

 

JIM HENRY

‘Disparate impact’ opposition sees hope

12:01 am U.S. ET | Nov. 12, 2014
Hope remains among opponents of the “disparate impact” theory that the U.S. Supreme Court could ultimately rule against the theory in court, maybe in 2015.... Read More »

 

Merger raises question about finance veteran Landy's next move

10:00 am U.S. ET | Nov. 12, 2014
The newly merged Flagship Credit Acceptance and CarFinance Capital will be led by Flagship CEO Michael Ritter, private-equity firm Perella Weinberg Partners, which oversees both companies, said in unveiling the deal last week. But Ritter's appointment raises a question about what's next for CarFinance Capital CEO Jim Landy.... Read More »

 

Credit unions aim to boost auto loans in 2015

10:00 am U.S. ET | Nov. 12, 2014
Credit unions are putting auto loans on the front burner in 2015. Nearly half of credit unions that responded to a recent survey ranked auto loans as their No. 1 growth opportunity in the next 12 months, TransUnion said.... Read More »

 

 
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