Finance and InsuranceJAMIE LaREAU Worried about the CFPB? Stay calm 12:01 am U.S. ET | April 3, 2013  Everyone stay calm. That's David Westcott's message to finance and insurance professionals, even though the chairman of the National Automobile Dealers Association admits he is very concerned.... Read More »
JIM HENRY Worried about the CFPB? You should be 12:01 am U.S. ET | April 3, 2013  Dealers and lenders are upset that the Consumer Financial Protection Bureau is demanding greater transparency from them, but isn't reciprocating.... Read More »
Tesla offering special financing plan for Model S sedan 5:18 pm U.S. ET | April 2, 2013  Tesla Motors has joined forces with USBank and Wells Fargo Bank to create vehicle financing and leasing products that allow consumers to lease a Model S electric sedan for a net payment of about $500 a month after a 10 percent down payment and calculated savings. CEO Elon Musk said he would personally guarantee the value of the cars.... Read More »
GM Financial completes $2.6B deal for Ally units in Europe, Latin America 11:14 am U.S. ET | April 2, 2013  Ally Financial said it completed the sale of most of its operations in Europe and Latin America to General Motors Financial for about $2.6 billion. Ally, in a statement today, said it will get about $2.4 billion at closing and about $190 million in dividends prior to closing from the GM unit.... Read More »
Fed agency: We're watching auto lending 12:01 am U.S. ET | April 1, 2013  For more than two years, the Consumer Financial Protection Bureau kept mum on its plans related to auto lending. But at the end of March, it showed that it intends to aggressively oversee the sector.... Read More »
GM targets higher resale values to boost profits, margins 12:19 am U.S. ET | March 30, 2013  GM, seeking to boost its profit margins, says it can save as much as $200 million annually by improving resale values of its vehicles and further narrowing the gap with competitors who don't have to spend as much to offer lease deals.... Read More »
JIM HENRY The CFPB's new, scary truth 12:01 am U.S. ET | March 27, 2013  Last week the Consumer Financial Protection Bureau and Director Richard Cordray threw cold water on a common notion among advocates for dealers and lenders: The CFPB doesn't understand how the business works and everything would be OK if the feds were just “educated.”... Read More »
U.S. financial regulator warns auto lenders on markup discrimination 3:11 pm U.S. ET | March 21, 2013  The Consumer Financial Protection Bureau today issued a warning to auto lenders: Make sure dealer participation in interest rates does not lead to discrimination or face the consequences.... Read More »
Ally to sell remaining mortgage servicing rights to Quicken 12:21 pm U.S. ET | March 21, 2013 Ally Financial, the former GMAC lending unit that had its capital plan rejected last week by the Federal Reserve, agreed to sell its remaining agency mortgage servicing rights to Quicken Loans Inc. for about $280 million.... Read More »
JIM HENRY Dealers and credit unions: Strife or synergy? 12:01 am U.S. ET | March 20, 2013  Is there peace or war between auto dealers and credit unions -- or something in between? From many angles it looks like peace.... Read More »
JAMIE LaREAU A case for a la carte menus 12:01 am U.S. ET | March 20, 2013  Many F&I managers believe bundling is their best friend. By bundling, they can offer customers several F&I products in a package costing less than buying each product individually. A bundle might consist of an extended-service contract, key fob protection and GAP, all for a single price.... Read More »
JIM HENRY F&I survey gives all dealerships a voice 12:01 am U.S. ET | March 13, 2013  It’s March. Time to work on tax returns -- and the annual U.S. Dealer Financing Satisfaction Study from J.D. Power.... Read More »
Cordray nomination at stalemate as senators refuse to negotiate 10:05 am U.S. ET | March 12, 2013  A Senate hearing today on Richard Cordray's second nomination to head the Consumer Financial Protection Bureau was less about his leadership than Republican distaste for the bureau itself.... Read More »
Q&A: TRIP HALL, PRESIDENT, CAPITAL ONE AUTO FINANCE Diamond program propels Capital One 12:01 am U.S. ET | March 11, 2013  Capital One Auto Finance booked a record $16 billion in auto loan originations last year. Much of that success, says President Trip Hall, stemmed from the lender's Diamond Dealer incentive program, which was launched in 2010.... Read More »
FINANCE & INSURANCE Arbitration angst 12:01 am U.S. ET | March 11, 2013  U.S. dealerships, which increasingly ask car buyers to sign binding arbitration agreements in the finance and insurance office, soon could be barred from using that dispute-resolution provision.... Read More »
FINANCE & INSURANCE Legal experts split over class-action waivers 12:01 am U.S. ET | March 11, 2013 Class-action waivers minimize the risk of car-buyer class actions that are costly for dealerships to defend. But are they enforceable?... Read More »
FINANCE & INSURANCE Dealers urged to replace loan reserve profit 12:01 am U.S. ET | March 11, 2013  Auto dealers are saying it's urgent to sell more F&I products, such as extended-service contracts, now that the Consumer Financial Protection Bureau seems ready to put stricter limits on how much dealers can earn on customer interest rates, also known as the dealer reserve.... Read More »
BEST PRACTICES How small-town dealer tripled his F&I take 12:01 am U.S. ET | March 11, 2013  When Ford Motor Co. offered dealers free training to sell finance and insurance products in 2010, Joel Higley turned it down. He had hired his own F&I trainer the year before.... Read More »
Q&A: MARC SHEINBAUM, CEO, CHASE AUTO FINANCE Chase auto unit CEO is bullish on lending outlook 12:01 am U.S. ET | March 11, 2013  Marc Sheinbaum has been CEO of Chase Auto Finance since 2007. Though he will leave the finance company at the end of March, Sheinbaum remains bullish on the outlook for continued growth in auto lending this year.... Read More »
FINANCE & INSURANCE VW finance arm pushes to go paperless 12:01 am U.S. ET | March 11, 2013  VW Credit Inc., Volkswagen Group of America's captive finance company, wants its dealers to file consumer loan applications and submit signed agreements electronically, down to the last piece of paper.... Read More »
FINANCE & INSURANCE Ford's F&I training tuneups keep dealer current 12:01 am U.S. ET | March 11, 2013  Bob Wheat, general manager at Village Ford in suburban Detroit, refuses to rest on his laurels. When Ford offered dealers free training on F&I sales techniques and products in 2010, Wheat jumped on it.... Read More »
Ally says Federal Reserve's stress test was 'fundamentally flawed' 9:39 am U.S. ET | March 8, 2013  Ally Financial, the auto lender majority-owned by the federal government, disputed results of the Federal Reserve's stress tests, calling the analysis "fundamentally flawed." "The analysis is inconsistent with historical experience in the most-stressed periods in our business,” the lender said in a statement on Thursday.... Read More »
PSA will offer retail banking to raise funds for dealers, auto opsMarch 8, 2013 06:01 CET  PSA/Peugeot-Citroen will offer savings accounts through its financing arm to raise funding for dealerships and other automotive operations. PSA is following Renault in setting up a retail banking arm.... Read More »
JIM HENRY A little education can save a lot of complaining 12:01 am U.S. ET | March 6, 2013  It's easy to be cynical about this, but consumer education could ease the sting of tougher regulations that seem to be in the works for auto lenders and dealers.... Read More »
JAMIE LaREAU Facebook fills F&I training void 12:01 am U.S. ET | March 6, 2013  Do you feel you get enough in-house training? I posted that question on a Facebook page catering to F&I managers and trainers last week and got about a dozen replies. Responses were mixed, but the overall sentiment was no.... Read More »
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