Finance and Insurance
GONE IN 60 MINUTES?
High-volume Chevy dealership attacks sticking points that slow deals 12:01 am U.S. ET | June 23, 2014
Berger Chevrolet, a single-point family store under the fourth-generation leadership of dealer principal Matt Berger, pursues speedy transactions of 60 minutes, 90 minutes at the outside.... Read More »
GONE IN 60 MINUTES?
Sonic targets 1-price, 45-minute transactions 12:01 am U.S. ET | June 22, 2014
Sonic Automotive is spending tens of millions of dollars to transform the customer buying experience in the company's dealerships. The goal is to get buyers in and out the door faster.... Read More »
JIM HENRY
Who makes irrational loans? Not Me 12:01 am U.S. ET | June 18, 2014
Are the gremlins at it again in auto loans? Maybe they're to blame for so-called irrational competition, presumably the result of lenders making unprofitable loans to gain market share.... Read More »
Q&A
The case for selling service contracts well after a new-vehicle purchase 12:01 am U.S. ET | June 18, 2014
Dealerships really ought to pitch extended service contracts to customers who didn't buy at the time of purchase, says Ken Murer, founder of Automotive Product Consultants Integrated Services Group. Not only do dealerships miss a profit opportunity by ignoring those customers, he says, they also open up their customers to an assault by direct-to-consumer marketers.... Read More »
Lenders: Battle for auto loans heating up 12:01 am U.S. ET | June 18, 2014
Wall Street analysts fret about the growth in subprime auto lending and the inherent risks of consumer defaults. But the superprime and prime segments are heating up, too, some lenders say. And some said they're seeing tougher competition as they expand into higher credit tiers.... Read More »
Automakers driving banks from buoyant new-car market, financing 12:01 am U.S. ET | June 18, 2014
Captives are providing subsidies from automakers, lowering monthly payments and extending loan terms to make it easier for buyers to drive away in a shiny, new vehicle -- creating formidable competition for banks and other lenders.... Read More »
SunTrust expands auto lending westward 12:01 am U.S. ET | June 18, 2014
SunTrust Banks is expanding its auto-dealer financial services to Dallas, Chicago and Boston, outside its traditional footprint in the Southeast and Mid-Atlantic regions.... Read More »
Most big dealership groups lift F&I revenue 12:01 am U.S. ET | June 18, 2014
Finance and insurance revenue is rising at an overwhelming majority of the nation's largest dealership groups.... Read More »
JIM HENRY
U.S. House action on CFPB is symbolic 12:01 am U.S. ET | June 11, 2014
The auto finance industry, auto dealers, and their mostly Republican allies in Congress continue to make it clear they don’t like the Consumer Financial Protection Bureau or how it was set up in 2010.... Read More »
Ding-and-dent products gain from leasing, bundling 12:01 am U.S. ET | June 11, 2014
Sales of so-called ding-and-dent products have increased at some dealerships, benefiting from two unrelated trends: the rise of leasing and wider use of short menus in the F&I office.... Read More »
U.S. House bills would constrain CFPB 12:01 am U.S. ET | June 11, 2014
The Republican Party-dominated U.S. House of Representatives, with the encouragement of lobbyists for dealers and automotive lenders, has taken steps to constrain the Consumer Financial Protection Bureau.... Read More »
Dealer doesn't charge for powertrain warranty for now 12:01 am U.S. ET | June 11, 2014
Rick Case Automotive Group is offering a 10-year/100,000-mile powertrain warranty on some used cars and trucks, excluding those covered by manufacturer certification. But it is not charging a premium for those vehicles -- at least not yet.... Read More »
Why the 72-month auto loan isn't causing jitters -- yet 12:01 am U.S. ET | June 9, 2014
Lenders are boosting auto sales and commanding higher transaction prices by extending loan terms. Is the industry flirting with another 2008, or is the risk limited?... Read More »
Product menus: Shorter is better 12:01 am U.S. ET | June 9, 2014
At Germain Nissan in Columbus, Ohio, customers typically are pitched five products when they finalize their vehicle purchase in the finance and insurance office.... Read More »
For some, buy-here, pay-here makes sense -- and profits 12:01 am U.S. ET | June 9, 2014
As a Byrider buy-here, pay-here franchisee Gary Tillery funds his customers' loans himself through his own finance arm.... Read More »
Most big dealership groups lift F&I revenue 12:01 am U.S. ET | June 9, 2014
Finance and insurance revenue is rising at an overwhelming majority of the nation's largest dealership groups.... Read More »
Loan application blasts could be a blow to dealers 12:01 am U.S. ET | June 9, 2014
Technology makes it easy for finance and insurance managers to blast credit applications across a wide spectrum of lenders, called shotgunning, rather than matching the right consumer with the right lender. Some dealership groups and auto finance experts say shotgunning can harm a dealership's relationships with customers and lenders alike.... Read More »
At Miami store, no more 'beat up' customers 12:01 am U.S. ET | June 9, 2014
F&I managers at Dadeland Dodge-Chrysler-Jeep in Miami are responsible for the gross profits from both vehicle sales and F&I and handle vehicle purchase negotiations with customers as well as financing. They also get a cut of both to motivate them.... Read More »
Roaring Westlake on prowl for its next lion 12:01 am U.S. ET | June 9, 2014
Now that Don Hankey has turned 70, after more than 40 years of building Westlake Financial Services out of the used-car department of his family's struggling Ford dealership, he is turning his attention to recruiting a successor.... Read More »
FTC crackdown on Consumer Portfolio Services start of 'regulatory onslaught' 12:01 am U.S. ET | June 4, 2014
Last week's consent order with subprime lender Consumer Portfolio Services won't be the last time the FTC targets an auto lender for fairness in collections and loan servicing rather than discrimination in loan originations, lawyers say.... Read More »
Credit union pilot aims at subprime business 12:01 am U.S. ET | June 4, 2014
Many credit unions still shy away from subprime auto loans. But a national trade group is trying to remedy that with a pilot program involving 14 credit unions interested in starting up or increasing subprime auto loan penetration.... Read More »
JIM HENRY
Lender consent order grants insight into FTC 12:01 am U.S. ET | June 4, 2014
Dealers and their legal counsels should check out last week's consent order between subprime auto lender Consumer Portfolio Services and the Federal Trade Commission, even though the case isn't about dealerships.... Read More »
More growth in auto loans, report shows 12:01 am U.S. ET | June 4, 2014
Outstanding auto loans and leases combined hit $884 billion as of April 30, a record high and a 10.8 percent increase from the same date a year ago, credit bureau Equifax reported this week.... Read More »
Auto loan terms, monthly payments hit high in Q1, Experian says 8:30 am U.S. ET | June 2, 2014
The average loan term, average monthly payment and average amount financed for a new light-vehicle hit record highs in the first quarter, signaling consumers in the United States continue to extend themselves to afford pricier cars, Experian Automotive reported today.... Read More »
Study shows federal regulations cost dealers billions, jobs 6:00 am U.S. ET | May 30, 2014
Franchised new-car dealers in the United States spent a combined $3.2 billion in 2012 to meet federal regulations, a new report found. The report made no attempt to determine whether dealerships, the economy, or consumers benefited in any way from any of those regulations, however.... Read More »
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Special Report
 Fewer bosses, Disney savvy, $2 idea lift storesA Chrysler Group dealership chain is stripping away layers of management to sell cars faster. A Chevrolet-Cadillac store is enchanting customers through Disney training. Mon., July 21» Watch the Video |
