Finance and Insurance Newsletter

Credit unions take long-loan lead

12:01 am U.S. ET | Sept. 24, 2014
Credit unions are helping lead the charge into longer loan terms -- some longer than 84 months -- as customers seek to keep their monthly payments flat while taking out larger loans.... Read More »

 

Credit union's key: 'Do everything right'

12:01 am U.S. ET | Sept. 24, 2014
The leading provider of auto loans in New Hampshire isn't a bank or a captive finance company.... Read More »

 

JIM HENRY

The case for casting a wider net with credit apps

12:01 am U.S. ET | Sept. 17, 2014
Auto lenders complain they hate it when dealership F&I managers send them credit applications outside their preferred range of credit scores.... Read More »

 

CFPB to shed light on identifying protected classes

12:01 am U.S. ET | Sept. 17, 2014
The Consumer Financial Protection Bureau is due to issue a white paper soon -- perhaps even this week -- that spells out in greater detail exactly how the bureau determines which consumers belong to legally protected classes of borrowers -- technical details that can ultimately have a big impact on dealers' business.... Read More »

 

Exeter CEO sees steady growth of 15-20%

12:01 am U.S. ET | Sept. 17, 2014
Exeter Finance, a subprime auto-financing specialist, should post “just steady growth” of 15 to 20 percent a year, CEO Mark Floyd says. He made the forecast last week even though in July the company started “making some tweaks” to its lending, he said, tightening its credit standards a bit in light of concerns about issues such as used-car prices.... Read More »

 

F&I panel: 'We can police ourselves'

12:01 am U.S. ET | Sept. 17, 2014
F&I administrators and dealerships should put price ceilings on F&I products to protect themselves from overregulation, a group of executives from F&I providers suggested at a recent industry conference.... Read More »

 

Late auto payments rise, but remain low, TransUnion says

12:01 am U.S. ET | Sept. 17, 2014
Auto loans delinquencies ticked up in the second quarter but remain low and pose no immediate threat to the auto-finance industry, an executive at credit bureau TransUnion says.... Read More »

 

Fla. M-B dealer e-validates contracts, gets paid fast

12:01 am U.S. ET | Sept. 17, 2014
Mercedes-Benz of Coral Gables rarely has to wait more than 24 hours to be paid by lenders that commit to finance the Florida store's loan and lease customers, said Scott Cooper, the finance and insurance director.... Read More »

 

Dealers prying payments from some lenders

12:01 am U.S. ET | Sept. 17, 2014
Dealers are still seeing big differences in how quickly lenders pay them on contracts in transit, despite awareness and technology campaigns aimed at speeding payments to dealers when retail customers finance vehicle purchases and leases.... Read More »

 

Banco Santander acquires Canada's Carfinco for $269 million

11:49 am U.S. ET | Sept. 16, 2014
Banco Santander SA agreed to buy Canadian car-financing company Carfinco Financial Group for about $269 million.... Read More »

 

Captives likely to get CFPB oversight

4:35 pm U.S. ET | Sept. 16, 2014
The Consumer Financial Protection Bureau is expected to issue an important new rule on Thursday defining which nonbank lenders -- including captive finance companies -- will be considered “larger participants” and thus subject to CFPB regulation.... Read More »

 

For GM Financial, closer GM ties could mean cheaper funds

11:00 am U.S. ET | Sept. 10, 2014
General Motors always intended to build GM Financial, formerly subprime lender AmeriCredit, into a full-service captive finance company. The automaker made that intent even more official last week by signing a bigger and more complete support agreement for GM Financial. Steve Jones, GM Financial vice president of investor relations/communications, says that the support agreement could lead to higher credit ratings for GM Financial.... Read More »

 

Cheap deals drive leasing to new high

11:00 am U.S. ET | Sept. 10, 2014
Cheap lease deals helped drive the lease penetration rate to a new high in the second quarter of 2014, according to Experian Automotive. "One out of four new cars that left a dealership in the second quarter was a lease," Melinda Zabritski, senior director of Experian, said during a conference call for analysts last week.... Read More »

 

Q&A

For subprime lender, success is about dealer service

11:00 am U.S. ET | Sept. 10, 2014
Southern Auto Finance Co., a small, regional subprime lender in Fort Lauderdale, Fla., is growing again after pulling back on loan originations and halting market expansion amid heightened industry competition in subprime in 2012 and 2013, CEO George Fussell says. The market is settling now, he says, and the company, often called SAFCo., is looking beyond its current 16-state area.... Read More »

 

JIM HENRY

Regulation forecast calls for rain, former CFPB exec says

11:00 am U.S. ET | Sept. 10, 2014
Rick Hackett, a former assistant director for the Consumer Financial Protection Bureau who was the bureau's liaison to the auto finance industry, predicted the bureau would probably unveil a long-awaited rule next week, defining which nonbanks fall under the CFPB's jurisdiction.... Read More »

 

JIM HENRY

F&I wait times have virtual repercussions

11:00 am U.S. ET | Sept. 10, 2014
Dealerships know that customer satisfaction suffers if car buyers spend time sitting outside the F&I office. But there’s another reason why dealerships should slash F&I wait times: Most customers who use their mobile devices at dealerships use them to shop for other vehicles and better deals elsewhere.... Read More »

 

Pay disparities are hurting morale, dealership retention, expert warns

11:45 am U.S. ET | Sept. 10, 2014
Rising disparities in pay between the F&I and sales departments are leading to morale problems and high turnover at dealerships, a noted F&I authority said at a conference in Las Vegas. Dealerships are testing a number of alternative pay plans, but nothing proposed so far appears to solve the problem.... Read More »

 

Subprime auto probe fails to restrain bond rush

11:21 am U.S. ET | Sept. 10, 2014
The federal probe into auto loans made to people with spotty credit is doing little to derail sales of bonds backed by the debt, even as investors demand more to own the riskiest pieces.... Read More »

 

Fla. M-B dealer e-validates contracts, gets paid fast

12:01 am U.S. ET | Sept. 8, 2014
Mercedes-Benz of Coral Gables rarely has to wait more than 24 hours to be paid by lenders that commit to finance the Florida store's loan and lease customers, said Scott Cooper, the finance and insurance director.... Read More »

 

Dealers prying payments from some lenders

12:01 am U.S. ET | Sept. 8, 2014
Dealers are still seeing big differences in how quickly lenders pay them on contracts in transit, despite awareness and technology campaigns aimed at speeding payments to dealers when retail customers finance vehicle purchases and leases.... Read More »

 

FOILING FRAUD

Phony deals cost dealers reputation, vehicles and lenders

12:01 am U.S. ET | Sept. 8, 2014
For employees in a dealership's finance and insurance office, spotting a potentially fraudulent deal is top priority. A mistake not only can cost a dealership a vehicle, it can hurt the store's reputation and its relationships with lenders. It's a challenge for all dealership groups.... Read More »

 

With digital data, DARCARS has F&I down to a science

12:01 am U.S. ET | Sept. 8, 2014
Finance and insurance managers at DARCARS Automotive Group have a digital Big Brother watching them, ready to spit out a minute-by-minute account of their customer interactions if their sales fumble.... Read More »

 

Auto lenders curb loans to least-creditworthy customers

11:07 am U.S. ET | Sept. 3, 2014
Auto lenders hit the brakes on loans to customers with subprime and deep subprime credit in the second quarter of 2014, according to Experian Automotive. Loans to those customers accounted for 15.1 percent of new-vehicle loans for the quarter.... Read More »

 

JIM HENRY

New rules for asset-backed securities could impact subprime lenders

12:01 am U.S. ET | Sept. 3, 2014
The Securities and Exchange Commission last week laid out new rules for asset-backed securities, the financial practice in which lenders bundle loans and sell them off to investors to raise money to fund new loans.... Read More »

 

Who’s responsible for passing along bad credit info?

12:01 am U.S. ET | Sept. 3, 2014
Will dealerships catch fallout from the Consumer Financial Protection Bureau’s consent order last month with First Investors Financial Services Group? Experts disagree, with some saying no and others suggesting at least indirect implications for dealerships.... Read More »

 

Latest digital edition
Digital Edition Archive
Table of Contents
 Automotive News
Special Report
No. 1 store empowers, retains employees

No. 1 store empowers, retains employees

Texas dealer Greg May encourages his staffers to provide input and solve problems on their own. Mon., October 20
» Watch the Video
     
News by Brand


Rocket Fuel