Finance and Insurance

Monthly payments, loan terms up in Q2, Experian says

1:49 pm U.S. ET | Aug. 27, 2015

The average monthly payment increased and new-vehicle loan terms grew during the second quarter as average U.S. transaction prices for new cars and light trucks rose, Experian Automotive reported today.... Read More »

Loan terms for used vehicles grow as inventory becomes 'younger, pricier'

1:45 pm U.S. ET | Aug. 26, 2015

Loan terms on used cars and light trucks are ticking up as those vehicles, on average, become “younger and pricier,” according to Edmunds.com. The average loan term on a used vehicle stretched to 66.2 months in the second quarter, up 1.1 month from the year-earlier period. At the same time, the average transaction price rose 7.6 percent to $18,800, the company says in a new report.... Read More »

HANNAH LUTZ

BLOG: E-contracting needs standard definition

12:15 pm U.S. ET | Aug. 26, 2015

Although electronic contracting has gained traction, it’s still not widely embraced by dealers.
... Read More »

Dealers urged to polish fair lending practices as CFPB rule looms

12:15 pm U.S. ET | Aug. 26, 2015

Dealers, learn your lenders' fair lending policies and polish your own. That's legal experts' advice to retailers looking to prepare for the Consumer Financial Protection Bureau's larger participant rule, which takes effect Aug. 31.... Read More »

Electronic F&I boosts customer satisfaction, study finds

12:15 pm U.S. ET | Aug. 26, 2015

For higher customer satisfaction and more referrals, dealers should incorporate electronic components into the F&I process, a study by F&I Express and Make My Deal found.... Read More »

HANNAH LUTZ

BLOG: Why industry's trudging tech rep no longer applies

12:15 pm U.S. ET | Aug. 19, 2015

Auto dealers and lenders have a reputation of resisting change, especially when it comes to technology. But maybe that reputation is undeserved now.... Read More »

Northwood, EFG look to classroom for F&I innovation

11:45 am U.S. ET | Aug. 19, 2015

Northwood University and EFG are looking for some inspiration from students to shake up the F&I product menu. The Midland, Mich., school and F&I product vendor this fall are launching the F&I Innovator of the Year Award, an annual competition among Northwood students to invent an F&I product that EFG will develop for the auto retail market.... Read More »

Q&A

The key to profits with subprime buyers

12:00 pm U.S. ET | Aug. 19, 2015

Subprime finance exec George Fussell has a message for dealers: To make the best profit when selling to subprime buyers, put them in an older vehicle.... Read More »

Toyota, Scion target younger consumers with online sales, finance tool

11:45 am U.S. ET | Aug. 19, 2015

Toyota and Scion are targeting young consumers with a new car-buying program that will enable customers to start both the shopping experience and financing process online. Scion began a pilot of its online transaction program, Pure Process Plus, in May. The Toyota brand plans to launch its online shopping tool in six to 12 months.... Read More »

Wells Fargo adding car loan branches to boost less risky lending

3:26 pm U.S. ET | Aug. 18, 2015

Wells Fargo is building more branches devoted to car loans and financing for auto dealers to help increase its auto lending business without taking bad credit risk, the bank's head of car lending told Reuters.... Read More »

U.S. sets consumer payment terms under Ally's bias settlement

11:45 am U.S. ET | Aug. 12, 2015

Consumers eligible to participate in Ally Financial's settlement with U.S. regulators over alleged discriminatory auto lending practices could receive a payment of at least $225 from the settlement fund, according to a letter sent to a refund candidate that was obtained by Automotive News.... Read More »

Millennials beat Gen Xers in taking out auto loans

11:45 am U.S. ET | Aug. 12, 2015

Millennials are taking out more auto loans than the generation before them did. Auto loans made up 14 percent of all newly opened accounts for millennials in the last half of 2014, compared with 1 percent of newly opened accounts for members of Generation X in the last half of 1998, when they were at a comparable age.... Read More »

Auto loan, lease balances top $1 trillion

11:45 am U.S. ET | Aug. 12, 2015

U.S. auto loan and lease balances, fueled by a robust market for new vehicles, have surpassed $1 trillion for the first time, according to the latest Equifax National Consumer Credit Trends Report. Total outstanding U.S. auto loans and leases reached $1.021 trillion in June, a year-over-year gain of 10.5 percent.... Read More »

A former CFPB lawyer on how lenders can stay clean with the bureau

11:45 am U.S. ET | Aug. 12, 2015

The Consumer Financial Protection Bureau at times gives one consumer complaint the weight of 10,000. But there are ways auto lenders can maintain a clean reputation with the bureau, a former CFPB lawyer says.... Read More »

HANNAH LUTZ

BLOG: A case for using single staffer for sales, F&I

11:45 am U.S. ET | Aug. 12, 2015

At Barry Chrysler-Dodge-Jeep- Ram in Ephrata, Wash., store owner Denver Morford wants customers to work with the same employee throughout the entire purchase process to build a relationship and customer retention.... Read More »

Santander says U.S. regulators fault auto-loan practices

6:42 am U.S. ET | Aug. 11, 2015

Santander Consumer USA said a U.S. regulatory review of auto loans it helped fund found they may have violated fair-lending laws.... Read More »

How to keep the F&I office out of trouble

12:01 am U.S. ET | Aug. 10, 2015

Dealers and their finance and insurance managers often have opposing goals. Dealers seek high customer satisfaction and loyalty and long-term revenue. F&I managers tend to focus on short-term profits and maximizing opportunities to generate them. If F&I managers prioritize those aims instead of dealers', it could lead to serious problems in the F&I office.... Read More »

CFPB urges Fifth Third to lower its allowable dealer reserve, report says

2:50 pm U.S. ET | Aug. 7, 2015

The Consumer Financial Protection Bureau is urging Fifth Third Bancorp to reduce the amount of dealer reserve the bank allows on its auto loans, as part of talks to settle an investigation by the agency into possible discriminatory lending practices by Fifth Third, The Wall Street Journal reported.... Read More »

Q&A

Teaching F&I students how to handle the hardest customers in market

12:45 pm U.S. ET | Aug. 5, 2015

Retail expert Tony Dupaquier is teaching his F&I students to think forward, such embracing one employee for both sales and F&I and using services such as GoToMeeting to reach online customers.... Read More »

Average loan term rises slightly to 68.1 months in July

12:45 pm U.S. ET | Aug. 5, 2015

The average new-vehicle loan term reached 68.1 months in July, up slightly from 66.99 months a year earlier, Edmunds data show. The average APR on a new-vehicle loan in July was 4.4 percent, the lowest average for a single month since September 2014.... Read More »

Millennial debt, low spending pose long-term challenge for industry

12:30 pm U.S. ET | Aug. 5, 2015

Current economic trends are positive for the auto industry as young consumers find jobs, but their low spending and debt could hurt the industry in the long run, economists say.... Read More »

HANNAH LUTZ

BLOG: Bill limiting CFPB has long road to becoming law

12:30 pm U.S. ET | Aug. 5, 2015

The U.S. House Financial Services Committee last week moved a bill that would limit the Consumer Financial Protection Bureau's guidance over auto lending. But dealers and lenders should hold off on the celebrations.... Read More »

ARLENA SAWYERS

BLOG: Mel Farr still wows Detroit

5:00 pm U.S. ET | Aug. 4, 2015

Mel Farr, who died Monday, was an automotive pioneer on two fronts: as a minority dealer and as a champion of subprime buyers, using leading-edge technology to enable sales to consumers who otherwise would have been turned away.... Read More »

U.S. House committee approves limit on CFPB's oversight of auto lending

5:15 pm U.S. ET | July 29, 2015

The U.S. House Financial Services Committee approved a bill Wednesday that would significantly limit the Consumer Financial Protection Bureau's guidance over auto lending.... Read More »

Dealer satisfaction grows when auto lenders embrace e-contracting

12:00 pm U.S. ET | July 29, 2015

Dealers like e-contracting. That's one of the key findings from the 2015 U.S. Dealer Financing Satisfaction Study by J.D. Power released this week. Another takeaway: Dealers are willing to pay lenders a premium for good service.... Read More »

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