Finance and Insurance

LEASES UNLEASHED

As carmakers and dealers embrace leasing to boost sales, analysts mull finance option's limits

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

Leasing hit a record 26.7 percent of U.S. new-vehicle volume in the first quarter. How high can it go? Analysts predict higher than it is now, but not a whole lot higher.... Read More »

Dealership groups' hot F&I revenue: $7 billion

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

Finance and insurance revenue keeps jumping at U.S. auto dealerships. By any measure in Automotive News' second annual F&I survey of the nation's largest auto dealership groups, the F&I office is hot, hot, hot.... Read More »

Dealers confront GAP sold by major auto insurers

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

Major auto-insurance companies are offering GAP coverage. For now, most dealers haven't seen those offerings hurt their GAP sales in the F&I department. But they're watching developments.... Read More »

Lease or buy, treat ultraluxury customers differently

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

When it comes to financing a car, the rich truly are different. It is not a matter of cost; it is not what your monthly payment is. It is tailored to the needs of the customer, how their business is structured, where the car will be domiciled and how it will be used, said a spokesman for Rolls-Royce Motor Cars North America.... Read More »

Auto-loan delinquency rates drop to lowest level in a decade

3:58 pm U.S. ET | June 4, 2015

Auto-loan delinquency rates have fallen to their lowest level in a decade, even as high-risk loans continue to rise, a June 4 report said.... Read More »

Average new-car loan hit 67 months in Q1

11:30 am U.S. ET | June 3, 2015

More than a fourth of all new light vehicles financed in the first quarter carried loans of 73 to 84 months, data from Experian Automotive show. The average loan term in the quarter rose to 67 months for new vehicles and 62 months for used, both records. Longer loan terms aren't necessarily a threat to the auto market, but they already are trimming sales, industry experts say.... Read More »

Ally Insurance launches extended service contracts, supporting technology

11:30 am U.S. ET | June 3, 2015

Ally Insurance is rolling out an extended service-contract product paired with a technology platform. The new product line offers three levels of service contracts aimed at new-vehicle buyers who want coverage beyond the standard warranty or buyers of used vehicles seeking coverage. One dealer found the program saved customers 15 minutes in the F&I office.... Read More »

JAMES B. TREECE

BLOG: How credit unions, as a group, will become the largest auto lender

11:45 am U.S. ET | June 3, 2015

Credit unions as a group, largely working through Credit Union Direct’s CUDL platform, are poised to become the largest single lender to auto buyers -- eventually. Here’s how.... Read More »

0% loans mark the start of summer

11:15 am U.S. ET | June 3, 2015

Nearly a tenth of consumers who financed their vehicles in May received no-interest loans, according to Edmunds.com. That share likely will grow through the summer months before falling back in October.... Read More »

New car, truck loans reach longest term on record

12:31 pm U.S. ET | June 1, 2015

The average length of loans for new and used vehicles in the U.S. in the first quarter hit record highs, and nearly 30 percent of new-vehicle loans have pay-back periods longer than six years, Experian Automotive says.... Read More »

U.S. vehicle loan terms hit record in Q1

3:22 pm U.S. ET | June 1, 2015

The average length of loans for new and used vehicles in the United States in the first quarter hit record highs, and nearly 30 percent of new-vehicle loans have pay-back periods longer than six years, Experian Automotive said in a report issued today.... Read More »

Will CFPB's use of disparate impact be altered by Supreme Court housing ruling?

12:15 pm U.S. ET | May 27, 2015

Will a Supreme Court ruling in a Texas civil rights case alleging the state's housing practices resulted in a disparate impact on African-Americans set a precedent that could affect the CFPB's crackdown on auto lending? Dealership attorneys say the CFPB won't benefit from the decision, but government officials believe the ruling could lead to a change in the bureau's use of the disparate impact theory in the long-term.... Read More »

Auto loans and balances, boosted by millennials, rise in Q1

12:15 pm U.S. ET | May 27, 2015

Auto loans and balances grew in volume in the first quarter, with the youngest U.S. consumers leading the way. Despite those increases, auto loan delinquencies remained flat, credit bureau TransUnion reported today.... Read More »

JAMIE LaREAU

BLOG: F&I providers and lenders, here's your chance to fulfill dealers' dreams

11:30 am U.S. ET | May 27, 2015

With gross profit margins on new-vehicle sales narrowing, dealers are worried about the future and where the profits on the sales side will come. The F&I office is an obvious place.... Read More »

Larry Miller Group launches Fast Pass to speed auto transactions

12:00 pm U.S. ET | May 27, 2015

Larry H. Miller Dealerships is pushing to put more of the car buying process online, but the F&I component will stay in the dealership. The group is launching LHM Fast Pass, a website tool that enables customers to select and reserve online a new or used vehicle for purchase or lease.... Read More »

HANNAH LUTZ

BLOG: Uber, credit-challenged drivers walk the subprime tightrope

12:00 pm U.S. ET | May 20, 2015

Uber offers its credit-challenged drivers a finance program to help them buy their vehicles. But the program can put some drivers in trouble, according to a Marketplace.org report. Some auto industry experts fear that too many subprime loans could help trigger another financial crisis.... Read More »

Amid higher auto lending, 90-day delinquencies hold flat

11:30 am U.S. ET | May 20, 2015

Auto loan originations rose 12 percent in the first quarter from a year earlier, while 90-day delinquency rates held flat at 3.3 percent, the Federal Reserve Bank of New York said.... Read More »

At Buick store, service lane provides visuals to better sell F&I products

11:15 am U.S. ET | May 20, 2015

Aaron Logan has sold F&I products for 17 years, yet in the past six weeks his extended service contract penetration rate is nearly twice that of the year-earlier period. He credits the boost to his “religious” use of visual aids.... Read More »

Subprime loans fall to lowest share since 2012

12:00 pm U.S. ET | May 20, 2015

Subprime and deep subprime loans in the first quarter dropped to their lowest share of the market since 2012, Experian Automotive says.... Read More »

'Financial wizard' Robert O'Connell stabilized GMAC

12:01 am U.S. ET | May 18, 2015

Robert O'Connell, former CFO of General Motors and CEO and chairman of General Motors Acceptance Corp., died May 8 in Boston.... Read More »

Student-loan debt doesn't hinder auto lending among college grads, study finds

11:45 am U.S. ET | May 13, 2015

A TransUnion study at least partly contradicts the widely held belief that hefty student loans prevent recent college graduates from getting auto loans.... Read More »

JAMIE LaREAU

BLOG: Is the F&I product space overcrowded? Views differ

11:45 am U.S. ET | May 13, 2015

Competition in the F&I product space is heating up. One product provider is moving the bulk of its business to consulting. Others argue there is still a lot of F&I product business to go around, even in light of increased consolidation.... Read More »

F&I product provider to buy rival in cash deal

11:45 am U.S. ET | May 13, 2015

AmTrust Financial Services agreed to buy Warranty Solutions, owned by Wells Fargo, for $152 million in cash. Finance and insurance product providers say the deal signals further consolidation in the product industry.... Read More »

Canada shrugs aside worries over long loans

11:00 am U.S. ET | May 13, 2015

U.S. auto industry watchers worry that long loan terms could lead to a financial crisis. But in Canada, industry experts have become accustomed to long loan periods.... Read More »

GM Financial aims for speedier F&I and happier customers

12:01 am U.S. ET | May 11, 2015

GM North America chief Alan Batey believes GM Financial will improve customer satisfaction by getting them through the F&I office more quickly.... Read More »

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