Finance and Insurance

Millennials embrace F&I jobs, spark change

12:30 pm U.S. ET | July 8, 2015

Finance and insurance departments tend to have less trouble recruiting and retaining millennial staffers than sales departments. One general manager cites the hours, pay and opportunity for financial growth as the most alluring aspects of the job for millennials. The CEO of another dealership group is bulking up staff to allow millennials to work the hours they prefer.... Read More »

Path to positive equity grows

12:15 pm U.S. ET | July 8, 2015

The time it takes for consumers with new-car loans to reach a positive equity position on their vehicles has grown by 12 to 14 months over the past 15 years, but that's not necessarily a bad thing, says Steven Szakaly, chief economist for the National Automobile Dealers Association.... Read More »

HANNAH LUTZ

BLOG: Has high court raised bar for CFPB in auto bias cases?

12:01 am U.S. ET | July 8, 2015

From the outside, the Supreme Court's ruling last month upholding disparate impact claims in housing discrimination lawsuits may look like a headache for auto dealers, but a provision in the decision could give the Consumer Financial Protection Bureau a hurdle that could work in dealers' favor.... Read More »

What's holding up e-contracting?

12:30 pm U.S. ET | July 8, 2015

In an increasingly digital world where auto dealerships, and their customers, seek the most efficient, error-free F&I process, the use of electronic contracts is growing, but they're not yet the norm.... Read More »

Toyota Financial resists CFPB

12:01 am U.S. ET | July 6, 2015

Toyota Financial Services said it has no plans to change its use of dealer reserve, despite scrutiny from the Consumer Financial Protection Bureau.... Read More »

18 months later, checks will be coming to Ally customers

12:01 am U.S. ET | July 6, 2015

In a 2014 settlement over alleged discriminatory lending, Ally paid $80 million and listed consumers that might have been affected. Now, about a year and a half later, the CFPB is going to start contacting those consumers to determine who gets the money.... Read More »

Honda, Toyota, Nissan captives face charges of discrimination, report says

12:00 pm U.S. ET | July 1, 2015

The captive finance arms of Honda, Toyota and Nissan may have to limit how much they allow dealers to increase the cost of auto loans after regulators accused the lenders of unintentional discrimination against minority consumers. The CFPB plans to cite American Honda Finance, Toyota Motor Credit and Nissan Motor Acceptance as early as this month for unintentional discrimination, according to consent orders American Banker obtained.... Read More »

Dealers feel the need for speed in F&I

11:00 am U.S. ET | July 1, 2015

Where do you see the greatest opportunity for improvement in your dealership's F&I operations? Asked that question, Mary Byrne, a one-time retired dealer who now is the general manager of Bruce Titus Automotive Group, didn't hesitate. “It's speed,” she said.... Read More »

Despite convenience, electronic registration is tough sell in many states

11:15 am U.S. ET | July 1, 2015

In 28 states, car buyers can drive off dealers' lots with their license plates in position and registration forms in hand, thanks to electronic registration at dealerships. But even with the benefits, some experts doubt that e-registration will adopt a convenient national standard or even become mandatory in all states because of legal barriers and insufficient sales in various states to justify the expense of establishing it.... Read More »

After 18 months, CFPB readies to reimburse Ally customers

11:30 am U.S. ET | July 1, 2015

In early 2014, Ally Financial, as part of a settlement over alleged discrimination in auto lending, submitted a list of potentially affected customers to the Consumer Financial Protection Bureau -- along with $80 million to be reimbursed to those customers. Now, roughly a year and a half later, the CFPB plans to begin contacting those customers in upcoming weeks to determine who gets the money.... Read More »

Q&A

What Tuttle-Click stores look for in lenders

11:00 am U.S. ET | July 1, 2015

Bill Paschen, finance director at Tuttle-Click Automotive Group, says the ideal lender offers aggressive programs to help sell light vehicles, help dealers make money on the back end, and is available by phone when needed. But he says most lenders still don't fully understand the importance dealers place on making money on finance and insurance products.... Read More »

Ford Credit car-sharing plan aims to cut ownership costs

12:15 pm U.S. ET | June 24, 2015

Ford is entering the car-sharing market with a program that will cut Ford Credit customers' vehicle costs by enabling them to rent out their cars.... Read More »

HANNAH LUTZ

BLOG: 3 steps to regulatory compliance

12:15 pm U.S. ET | June 24, 2015

To stay out of trouble with regulators, clean up compliance. It sounds like an obvious solution, but what do dealers need to do to be sure compliance is up to par?... Read More »

NYC dealership must provide documents for non-English speakers

12:15 pm U.S. ET | June 24, 2015

As part of a settlement with the New York attorney general's office, a New York City dealership group must begin providing translations of sales documents to customers who negotiate their vehicle purchases in languages other than English.... Read More »

Lenders stretch subprime auto loans, stoking concerns over consumer debt load

12:15 pm U.S. ET | June 24, 2015

Demand for automobile debt in the U.S. is enabling lenders to make longer loans to people with spotty credit, stoking concern that car shoppers are being lulled into debt loads they won't be able to sustain.... Read More »

CarMax originates $15 million in subprime loans in latest quarter

11:45 am U.S. ET | June 24, 2015

CarMax's finance arm originated about $15 million of subprime loans in its most recent quarter ended May 31. CarMax Auto Finance has originated almost $90 million in subprime loans since it began a test program in January 2014 to learn more about customers that it typically had handed off to subprime lending partners.... Read More »

BB&T launches flat fees

11:45 am U.S. ET | June 24, 2015

Auto retailers working with BB&T Dealer Finance soon can expect to be paid flat fees, rather than dealer reserve, for arranging customers' loans. BB&T will launch a nondiscretionary dealer compensation program on July 1.... Read More »

Must dealers steer clear of credit repair?

12:01 am U.S. ET | June 22, 2015

The N.Y. attorney general's office reached multimillion-dollar settlements with some dealerships, saying they sold credit repair and ID-theft products for as much as $6,000 and often without the customer's knowledge. The products in question cost the dealerships $179 or $279.... Read More »

N.Y. targets dealerships' sale of credit-repair, identity-theft products

12:01 am U.S. ET | June 17, 2015

Paragon Honda and its two sister stores have agreed to a $13.5 million settlement with the New York attorney general's office over the alleged unlawful sale of credit-repair and identity-theft prevention products, part of a broader crackdown on deceptive sales practices by dealerships.... Read More »

Q&A

Why longer loan terms are not a big concern

12:30 pm U.S. ET | June 17, 2015

The average auto loan term on a new car has grown to more than five years. And that has some industry watchers worried that extended loans will keep consumers out of the market longer, lead to negative equity and increase default rates. But Michael Collins, senior vice president of F&I solutions at Dealertrack, isn't concerned that the trend toward longer loans is necessarily putting the market in danger.... Read More »

Lawsuit could test the F&I videotape defense

11:45 am U.S. ET | June 17, 2015

A videotaped closing in the F&I office might be key to a big court case for two dealerships in Alabama.... Read More »

HANNAH LUTZ

BLOG: The advantages for going online with F&I

12:00 pm U.S. ET | June 17, 2015

To reduce the push and pull around F&I product options and avoid surprising consumers with unexpectedly higher monthly payments as F&I products are added on, dealerships should introduce F&I online.... Read More »

JAMIE LaREAU

BLOG: A case for breaking the 300% rule

11:45 am U.S. ET | June 17, 2015

Most F&I folks subscribe to the “300 percent rule”: Offer 100 percent of the products to 100 percent of the dealership's customers 100 percent of the time. But a recent conversation with a friend indicates the rule doesn't apply to 100 percent of cases.... Read More »

CFPB widens auto lending oversight to non-bank financiers

4:05 pm U.S. ET | June 10, 2015

The top U.S. consumer protection regulator is expanding its oversight to include large non-bank auto financing companies.... Read More »

Ally boosts nonprime lending, non-GM business

11:00 am U.S. ET | June 10, 2015

Ally Financial Inc. has stepped farther away from General Motors in recent months, increasing nonprime lending and doing more business with non-GM brands, Ally CEO Jeffrey Brown said this week. The effort was spurred, he said, after GM made GM Financial its preferred lender for subsidized leases in February, pulling business from Ally.... Read More »

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