Finance and Insurance Newsletter

JAMES B. TREECE

Mixed reviews are in after assuming lease for Volt

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

After running into title snags and other glitches in assuming an existing lease on a Chevrolet Volt, Automotive News' James B. Treece sees opportunity for dealerships in smoothing lease swaps for consumers. Here is his story.... 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 »

FCA's shorter warranty could drive service plan sales

12:01 am U.S. ET | June 1, 2015

Fiat Chrysler's decision to reduce its limited powertrain warranty coverage by 40 percent brings it in line with its Detroit-based competitors. The automaker's 2016 models will have 5-year/60,000-mile powertrain warranties, instead of 5-year/100,000-mile warranties, FCA US said.... Read More »

VW Jetta leases as cheap as iPhone plans show company's U.S. travails

6:40 am U.S. ET | June 1, 2015

The $89 a month it takes to lease a Jetta at some U.S. dealerships is about as low as the price of using an iPhone on some cell phone plans. It's also a sign of how Volkswagen is grasping to turn around its fortunes in the U.S.... 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 »

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 »

AutoNation launches private-label products

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

This month in its Texas stores, AutoNation will start selling self-branded extended service contracts. It's the beginning of AutoNation's plan to sell private-label F&I products online and in stores. The company could eventually even take the products in-house completely.... Read More »

JIM HENRY

BLOG: CFPB plays up auto finance complaints

11:00 am U.S. ET | May 6, 2015

A report released by the Consumer Financial Protection Bureau covering nearly 30,000 military service member complaints over a three-year period shows that although gripes about auto loans were a small part of the mix, they were a large part of the CFPB's enforcement actions.... Read More »

Subprime lending 'stable' despite worry about risk

11:45 am U.S. ET | May 6, 2015

The year got off to a decent start for subprime auto loans in terms of delinquencies and relatively low losses for bad loans, according to Fitch Ratings. Fitch analysts expect losses to increase “marginally” in 2015 due to softer used-car prices and easier loan approvals for the balance of the year. But overall, the ratings agency said in a recent note, it expects auto loan performance to be relatively stable for the year.... Read More »

Credit union volume grows

11:45 am U.S. ET | May 6, 2015

Credit unions on the CU Direct auto lending platform are on pace for record volume this year. For the first quarter of 2015, loan volume was 250,000 units, up 21 percent vs. the first quarter last year. Application volume was 960,000, up 27 percent. Based on first quarter results, CUDL expects full-year 2015 applications to reach 3.8 million to 4 million and full-year funded loans to reach 1.1 million to 1.2 million.... Read More »

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