Finance and Insurance

JIM HENRY

BLOG: Finally, a lender owns up

11:45 am U.S. ET | April 29, 2015

Auto lenders carefully avoid citing their rivals, especially when they want to criticize. So it was refreshing when Ally's CEO figuratively raised his hand this week.... Read More »

Most lenders cite subprime restraint

12:15 pm U.S. ET | April 29, 2015

GM Financial and Capital One are joining other auto lenders in citing tougher competition in subprime lending and voicing caution over the increase in auto loans to consumers with lower credit scores. Ally Financial, one of the nation's largest auto lenders, is taking the opposite approach, and pursuing more subprime business.... Read More »

Ally deal enables Mitsubishi to cut costs for capital, infrastructure

11:17 am U.S. ET | April 29, 2015

For years, Mitsubishi used an in-house finance arm to underwrite loans to dealers and customers as other small automakers relied on international banking giants to keep the capital flowing. This week, by selling its captive lending arm to Ally Financial and naming Ally as its preferred U.S. lender, Mitsubishi shed the hefty costs of banking to focus on its core business: making and selling cars.... Read More »

Ally pushes to make up for lost GM lease business

8:01 am U.S. ET | April 28, 2015

Ally Financial is responding to GM pulling its subsidized lease business by getting more aggressive in near-prime and subprime loans, and by courting dealers harder than ever, especially non-GM and non-Chrysler dealers.... Read More »

CHRIS KUKLA

Troubling practices need attention now

12:01 am U.S. ET | April 27, 2015

Recognizing the proliferation of troubling practices that mirror the precrash mortgage market is important because these practices deserve attention now.... Read More »

RAJ SUNDARAM

Loans are at a healthy, rational level

12:01 am U.S. ET | April 27, 2015

While it's worthwhile to remember key lessons from the 2008 financial crisis, today's conditions in automotive subprime bear virtually no resemblance to the mortgage issues that precipitated that fateful bubble, says Raj Sundaram, co-president of Dealertrack Inc.... Read More »

Ally to take over Mitsubishi's U.S. lending arm

1:26 pm U.S. ET | April 27, 2015

Mitsubishi, one of the smallest car companies with a captive finance arm in the United States, is selling its book of business to Ally Financial, the former lending division of General Motors.... Read More »

JESSE SNYDER

States' varying auto insurance rates play with the car-buying equation

12:01 am U.S. ET | April 27, 2015

Want $7,700 more to spend on a new car? Move from Michigan to Maine before you insure it.... Read More »

GM Financial Q1 net rises as lease volume skyrockets

2:17 pm U.S. ET | April 23, 2015

Captive finance company GM Financial had a giant increase in lease volume in the first quarter, as parent company GM switched to GM Financial as its exclusive preferred lender for Buick, Cadillac, Chevrolet and GMC subsidized leases.... Read More »

JESSE SNYDER

BLOG: Midsize with a four-banger or large and loaded? How auto insurance affects consumers' buying power

11:32 am U.S. ET | April 23, 2015

Want $7,700 more to spend on a new car? Move from Michigan to Maine before you insure it. That's because U.S. insurance premiums on a new vehicle vary wildly by state, according Insure.com... Read More »

Dealers missing out on digital F&I sales, study finds

11:30 am U.S. ET | April 22, 2015

Consumers want F&I product information online rather than all-at-once at the end of their vehicle purchases, a new study finds. The survey by MakeMyDeal indicates that consumers want to learn about F&I products online before entering a new-vehicle store.... Read More »

JIM HENRY

BLOG: Auto finance critic Warren stands firm on CFPB dealership oversight

11:15 am U.S. ET | April 22, 2015

Sen. Elizabeth Warren is once again calling for direct regulation of auto dealerships by the Consumer Financial Protection Bureau.... Read More »

Asbury, Sonic see below-average F&I revenue at new-initiative stores

11:30 am U.S. ET | April 22, 2015

Two of the nation's biggest publicly traded dealership groups said early, small-scale results from their nontraditional dealerships -- either stand-alone used-vehicle stores or ones that use techniques such as no-haggle pricing -- showed below average F&I revenue per vehicle retailed.... Read More »

Some auto lenders let others pursue volume

11:15 am U.S. ET | April 22, 2015

Some auto lenders are choosing not to chase volume. Consumer Portfolio Services and PNC Bank are consciously passing up volume to protect profits and their credit standards. Wells Fargo made a similar statement this month.... Read More »

Ally change saves dealers big money

12:01 am U.S. ET | April 20, 2015

The 4,200 dealerships that finance their vehicle inventory through Ally Financial are seeing savings from Ally's recent shift to peg interest rates to LIBOR rather than a prime-rate benchmark.... Read More »

Q&A

New Black Book exec looks to help dealers close loans, leases faster

11:15 am U.S. ET | April 15, 2015

Barrett Teague, Black Book's new vice president of lender solutions, says dealership F&I managers are never far from his mind. In part that's because he's been an F&I manager himself. Teague, 43, joined Black Book on April 6. His new role is to work with lenders, but how lenders use Black Book data also has a direct effect on dealerships, he says.... Read More »

Dealership gross profits see bigger impact from F&I

12:00 pm U.S. ET | April 15, 2015

The average dealership gained more from F&I last year, even though retailers' overall sales penetration for products such as extended service contracts and GAP dropped a fraction of a percentage point. On average, F&I accounted for 39.6 percent of gross profit for new- and used-vehicle departments combined in 2014, up from 38.8 percent in 2013, according to the 2014 NADA Data report.... Read More »

JIM HENRY

BLOG: Women in automotive seek more peers

12:15 pm U.S. ET | April 15, 2015

A lot of dealer principals and general managers swear by their female salespeople and F&I managers and wish they had more. But in the business world at large, auto industry careers for women are a “best-kept secret.”... Read More »

Wells Fargo, Chase adopt different lending approaches

12:00 pm U.S. ET | April 15, 2015

Wells Fargo and JPMorgan Chase, two of the biggest banks in auto finance, adopted opposite lending strategies in the first quarter. At Wells Fargo Dealer Services, total originations of auto loans and leases were lower compared with the year-earlier period, for the second quarter in a row and by a larger margin. Chase Auto Finance reported its 14th consecutive quarter of year-over-year increases in originations.... Read More »

Penske targets 'I' in F&I to boost per-vehicle revenue

12:01 am U.S. ET | April 13, 2015

Penske Automotive Group Inc. is refining its training process on insurance product sales to boost overall finance and insurance revenues.... Read More »

Some dealers prep for flat fees

12:01 am U.S. ET | April 13, 2015

Dealer Mike Thompson believes he might soon lose the ability to make a healthy profit from finance reserves. His concern is well-founded. The Consumer Financial Protection Bureau has been pressuring auto lenders for the past few years to stop allowing dealerships to set their own reserve amounts.... Read More »

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 »

Automotive News
Special Video Report
Colo. stores use cameras, computers to build transparency

Colo. stores use cameras, computers to build transparency

Planet Honda's technicians-turned-video directors are with one tap bringing the service bay to customers, while digital files are providing a clear snapshot of a used-car's history at Kuni Lexus of Greenwood...
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