Finance and Insurance Newsletter

Open-air designs create F&I privacy puzzle

12:01 am U.S. ET | March 9, 2015

Though walls and locked doors still are considered the sure-fire way to keep customer data safe today, manufacturers and some automotive retailers are exploring ways to move the finance and insurance part of the sales transaction outside the traditional F&I "box." It's a bit of a challenge.... Read More »

Security breaches happen, so be prepared

12:01 am U.S. ET | March 9, 2015

Security breaches happen to the best retailers, and auto dealers are not exempt. So what do you do if bad guys get hold of your customers' personal information? You turn to the written plan that you should have created ahead of time as outlined by the Gramm-Leach-Bliley Act, said Charles Gallaer, an attorney with Bellavia Blatt & Crossett in Mineola, N.Y.... Read More »

Small-time security threats bigger concern

12:01 am U.S. ET | March 9, 2015

The biggest threats to a dealership's data aren't Russian hackers breaking through electronic firewalls or robots trying a thousand passwords on security codes until they finally crack into the system.... Read More »

TO SERVE AND PROTECT

Dealerships work to safeguard data as security breaches loom

12:01 am U.S. ET | March 9, 2015

Today, practices designed to protect customer data are becoming commonplace as regulators increasingly view auto dealerships as financial institutions in terms of the magnitude of personal consumer information collected in the F&I department.... Read More »

Loan amounts, payments reach new highs

11:00 am U.S. ET | March 4, 2015

The average amount financed for a new vehicle reached a record $28,381 in the fourth quarter of 2014, Experian Automotive said today. That was an increase of $950, or 3.5 percent, from the year-earlier quarter and a rise of $582, or 2.1 percent, from the previous high of $27,799, set in the third quarter last year.... Read More »

Online retail tools are changing F&I jobs, work force analyst says

11:00 am U.S. ET | March 4, 2015

The neat organization of dealership F&I departments isn't so neat anymore. And industry researchers believe online retail is the reason why.... Read More »

JIM HENRY

BLOG: The auto fallout from tax refund delays

11:45 am U.S. ET | March 4, 2015

Tax refund season is typically the high point of the year for subprime auto lenders, but so far the early tax refund statistics are down slightly from a year ago.... Read More »

Millennials coming on stream in auto loans, leases

11:00 am U.S. ET | March 4, 2015

Millennials get a bum rap as being less interested in driving and cars -- and in auto finance -- than previous generations, TransUnion says in a new study. In fact, millennials are the fastest-growing group of car buyers in auto lending, the TransUnion study found. Millennials represented 27 percent of total auto loans and lease originations combined in 2014, up from 16 percent in 2009.... Read More »

Toyota Financial explores how to improve e-commerce

11:00 am U.S. ET | March 4, 2015

As more shoppers turn to e-commerce as part of buying a car, Toyota Financial Services is turning to its U.S. dealers to find ways to improve its digital offerings. A major push: e-contracting, which Toyota Financial Services launched about two years ago.... Read More »

Santander Consumer USA to pay $9.35 million settlement over military repos

12:01 am U.S. ET | March 4, 2015

Santander Consumer USA will pay at least $9.35 million to resolve charges that it improperly repossessed the cars of members of the military, the U.S. Department of Justice said.... Read More »

GM tells Ally that GM Financial will get all of Chevy's subsidized leases

6:30 pm U.S. ET | Feb. 27, 2015

General Motors has notified Ally Financial that it will steer all of its lease subsidies for the Chevrolet brand to captive finance company GM Financial, instead of sharing them among Ally, GM Financial, and to a lesser extent, U.S. Bank.... Read More »

Santander Consumer USA to pay $9.35 million settlement over military repos

3:07 pm U.S. ET | Feb. 25, 2015

Santander Consumer USA will pay at least $9.35 million to resolve charges that it improperly repossessed the cars of members of the military, the U.S. Department of Justice said.... Read More »

Sonic is most-improved in Q4 F&I revenue

11:22 am U.S. ET | Feb. 25, 2015

Sonic Automotive Inc. posted the biggest increase in average F&I revenue per vehicle in the fourth quarter among the six public new-car retail groups, the tallies, completed today, show.... Read More »

Consumer Portfolio gains volume; retraining continues after FTC action

10:57 am U.S. ET | Feb. 25, 2015

Subprime auto lender Consumer Portfolio Services reported strong volume growth in the fourth quarter and for all of 2014, despite a run-in with the Federal Trade Commission last year.... Read More »

BLOG: Lender groups want answers from the CFPB

12:15 pm U.S. ET | Feb. 25, 2015

A letter sent last week by the American Financial Services Association and other trade associations to Richard Cordray, director of the Consumer Financial Protection Bureau, was aimed at prodding the CFPB to publicly respond to a study AFSA commissioned last year.... Read More »

Reports of growing auto loan delinquencies are overblown, credit bureaus say

10:39 am U.S. ET | Feb. 25, 2015

Despite media notions that U.S. auto loan delinquencies are accelerating, they are in fact trending flat, credit reporting bureaus Equifax and Experian Automotive said last week.
... Read More »

JPMorgan says U.S. examining racial disparities on car loans

11:03 pm U.S. ET | Feb. 24, 2015

JPMorgan Chase, the largest US bank, said it’s in talks with the Department of Justice about possible racial disparities in markups that auto dealers charged on loans.... Read More »

Auto loan securitization probed by U.S., states

4:50 pm U.S. ET | Feb. 24, 2015

The Justice Department and state authorities are looking into the securitization of auto loans for possible fraud as part of an effort to seek out emerging areas of abuse, Acting Deputy Attorney General Sally Quillian Yates said.... Read More »

Auto originations advance 17%; 90-day delinquencies tick up in Q4, Fed says

11:00 am U.S. ET | Feb. 18, 2015

Auto originations rose a robust 17 percent in the fourth quarter, while accounts considered seriously delinquent ticked up slightly, according to the New York Federal Reserve. Loan and lease originations for new and used cars reached $102 billion in the fourth quarter, up from $87.5 billion in the year-earlier period... Read More »

JIM HENRY

BLOG: GM Financial-Chevy lease exclusivity seems likely

11:15 am U.S. ET | Feb. 18, 2015

There wasn't much doubt, but General Motors disclosed for the first time in an SEC filing that it is considering plans to throw all Chevrolet lease incentives to GM Financial instead of sharing them among GM Financial, Ally Financial and U.S. Bank.... Read More »

Q&A

JM&A is in growth mode

11:00 am U.S. ET | Feb. 18, 2015

F&I product vendor JM&A Group sold a record 3.2 million contracts in 2014. That was up from 3 million contracts in 2013 and 2.5 million in 2012. And the company is looking for about 6 percent growth in 2015, President Forrest Heathcott says.... Read More »

JAMIE LaREAU

BLOG: Are flat finance fees inevitable? How to lessen the blow

11:30 am U.S. ET | Feb. 18, 2015

Flat finance fees are coming. And if you now derive more than 40 percent of your F&I revenue per vehicle from a finance reserve, you're in trouble.... Read More »

Subprime lures Volvo captive

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

Volvo Car Financial Services U.S. plans to begin offering financing to customers with subprime credit scores in the second or third quarter.... Read More »

New name, growth for Citizens' auto lending channel

11:00 am U.S. ET | Feb. 18, 2015

RBS Citizens Auto Finance is now Citizens One Auto Finance. Parent Citizens Financial Group dropped the acronym RBS, for Royal Bank of Scotland, from the name of its growing auto loan channel effective this month.... Read More »

Lithia, DCH build on the other's strengths

12:01 am U.S. ET | Feb. 16, 2015

Just over four months after Lithia Motors closed on its deal to buy DCH Auto Group's 27 dealerships, the two groups are busy sharing best practices and instituting a new culture at DCH.... Read More »

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