Finance and InsuranceQ&A JM&A: Pursue compliance, consistency for the sake of consumers – and the CFPB 12:01 am U.S. ET | Feb. 12, 2014  Some F&I administrators have said they're concerned that the Consumer Financial Protection Bureau could go after F&I products this year the way it has campaigned against dealership's discretion in setting customer interest rates on auto loans. But Forrest Heathcott, president of F&I administrator JM&A Group, says that so far, he hasn't seen any indication the CFPB is targeting F&I products.... Read More »
Public group F&I results hit high note in Q4 12:01 am U.S. ET | Feb. 12, 2014 Group 1 Automotive's U.S. operations set a record with average F&I revenue per vehicle retailed of $1,418 in the fourth quarter, an increase of 9 percent from the same period a year ago. The first publicly traded new-car retailers to report fourth-quarter earnings -- Group 1, AutoNation and Asbury Automotive -- all topped an average of $1,300 in F&I revenue per vehicle retailed.... Read More »
Dealer reserve caps catch on 12:01 am U.S. ET | Feb. 12, 2014 The notion of capping dealer reserve and documenting exceptions as a way for auto dealers and lenders to avoid possible allegations of discrimination is gaining industry acceptance.... Read More »
JIM HENRY No need to panic as big banks pare dealers 12:01 am U.S. ET | Feb. 12, 2014  Recent news that Chase Auto Finance and TD Auto Finance are looking to trim their dealership networks brought swift reactions of “Here we go again” from some members of the dealership F&I community.... Read More »
Industry trudges toward e-contracts 12:01 am U.S. ET | Feb. 10, 2014 While e-contracting speeds auto deals in the long run, it can slow them in the short run while auto lenders and dealerships learn to use the technology. And that has contributed to a slow rate of adoption.... Read More »
Q&A: PAUL CLARK TD Auto Finance chief: We want to be a one-stop finance shop 12:01 am U.S. ET | Feb. 10, 2014  TD Bank Group of Toronto, like Chase and other banks, wants to focus on strengthening relationships with the dealerships that send the most business, including cross-selling them along multiple business lines, TD Auto Finance CEO Paul Clark says. The company has not said how many low-volume dealerships it plans to cut.... Read More »
Chase halts car loans to 11% of its stores 12:01 am U.S. ET | Feb. 10, 2014  Chase Auto Finance is cutting car-loan availability to about 1,800 dealerships so it can focus on its higher-volume stores. TD Auto Finance has hinted that it also will stop doing business with some of its dealerships. Chase's nearly 11 percent cut in store count brings its total to about 14,000, the company said.... Read More »
Ally says Q4 net income falls, GM relationship extended 12:35 pm U.S. ET | Feb. 6, 2014  Ally Financial said today it has posted fourth-quarter net income of $104 million and lower pretax income for its auto finance business. The lender also said its preferred-lender relationship with General Motors, set to expire Dec. 31, was extended while the companies negotiate a new pact.... Read More »
Public dealer groups receptive to NADA compliance plan 12:01 am U.S. ET | Feb. 5, 2014  Some of the big public retail groups are reacting positively to the National Automobile Dealers Association's recommendations that dealerships adopt a hard percentage cap on dealer reserve and then document any discounts offered.... Read More »
Q&A Subprime, delinquencies, loan terms will grow, Experian says 12:01 am U.S. ET | Feb. 5, 2014  Subprime financing -- and delinquencies -- are likely to grow in 2014, and vehicle loan terms, which hit an average of 65 months for new cars during the first 10 months of 2013, also will continue to stretch out, Experian Automotive says.... Read More »
JIM HENRY Long loans are a necessary evil, dealers say 12:01 am U.S. ET | Feb. 5, 2014  Everyone agrees that superlong loan terms are bad for the industry, but it seems no one wants to give them up firs... Read More »
JAMES B. TREECE Flawed study has lessons for F&I managers 12:01 am U.S. ET | Feb. 5, 2014 
Study that finds discrimination in car loans draws fire 12:01 am U.S. ET | Feb. 5, 2014 A study that found discriminatory lending practices by car dealers has drawn immediate fire from dealer and lender associations for its methodology. The study, “Non-Negotiable: Negotiation Doesn’t Help African Americans and Latinos on Dealer-Financed Car Loans,” was released in late January by the nonprofit Center for Responsible Lending in Durham, N.C.... Read More »
Ally, CFPB poles apart on discrimination breadth, evidence 12:01 am U.S. ET | Feb. 3, 2014 Ally Financial and the Consumer Financial Protection Bureau are miles apart on core issues, such as how to measure discrimination and how widespread it is, says Ally CEO Michael Carpenter.... Read More »
Ally won't be a 'Trojan horse' 12:01 am U.S. ET | Feb. 3, 2014 The CEO of Ally Financial says his company won’t cave to federal pressure and lead the lending industry’s switch from dealer reserve to flat flees.... Read More »
F&I TIPS How golf balls, F&I videos can boost F&I sales 9:50 am U.S. ET | Jan. 29, 2014 A couple of golf balls can go a long way in helping to overcome customer objections.... Read More »
JIM HENRY The flat fee misconnect 12:01 am U.S. ET | Jan. 29, 2014  The Consumer Financial Protection Bureau and dealers are talking past each other about flat fees. The CFPB keeps going out of its way to tell auto lenders and dealers that the CFPB isn't insisting on flat fees.... Read More »
Q&A VW Credit sees steady progress to e-finance docs 12:01 am U.S. ET | Jan. 29, 2014  VW Credit is rolling out a full complement of electronic finance documents and electronic signatures, an effort that has taken several years to introduce in stages.... Read More »
No sure OK for reserve guidelines 12:01 am U.S. ET | Jan. 27, 2014  The National Automobile Dealers Association is going out on a limb by recommending ways for dealerships to ward off discrimination charges from the Consumer Financial Protection Bureau.... Read More »
GABE NELSON How a Philadelphia dealer might help end the CFPB feud 3:20 pm U.S. ET | Jan. 26, 2014  Kerry Pacifico was a nominee for Time Dealer of the Year. He didn’t win. But the 89-year-old dealer can head home to Philadelphia with satisfaction regardless, knowing that his struggle to satisfy fair-lending regulators a decade ago now offers a way for thousands of his fellow dealers to stay in the Consumer Financial Protection Bureau’s good graces.... Read More »
Vehicle loan terms grow 7:17 pm U.S. ET | Jan. 25, 2014 Vehicle loan terms continue to lengthen as more buyers spread their purchase over 72 months.... Read More »
Westcott: Keep defending reserve 5:51 pm U.S. ET | Jan. 25, 2014  NADA must continue to defend in-dealership financing or the car-buying public will suffer, outgoing NADA Chairman David Westcott told dealers today.... Read More »
JAMES B. TREECE What happens in 2016 if interest rates rise? 12:01 am U.S. ET | Jan. 24, 2014  2014 will be a good year for the industry. But what about 2016? Some scenarios to consider as interest rates rise.... Read More »
JIM HENRY Biggest F&I buzzword at NADA? Compliance 12:01 am U.S. ET | Jan. 22, 2014  It looks like compliance will be the No. 1 topic at the National Automobile Dealers Association convention in New Orleans this weekend, judging from the many F&I workshops, trade show displays, and all manner of sales pitches scheduled to take place.... Read More »
Some banks to ease back on auto loan growth 12:01 am U.S. ET | Jan. 22, 2014  Some banks are backing off the accelerator on auto loans for 2014 because of heavier competition and a desire to protect margins.... Read More »
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