Finance and Insurance Newsletter

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 »

Ford Credit sees highest Q1 dealer share in 14 years

11:15 am U.S. ET | May 6, 2015

Ford Credit increased its share of U.S. retail loan and lease volume for Ford and Lincoln dealers to 45 percent in the first quarter, the highest first quarter in 14 years. Losses for bad loans were only 0.22 percent of the total outstanding, well below the 10-year average of 0.40 percent.... Read More »

Aston Martin picks Ally Financial as preferred U.S. lender

11:44 am U.S. ET | May 1, 2015

Aston Martin Lagonda named Ally Financial, the former GM financing arm, as its preferred US auto lender to help the maker of luxury sports cars expand sales.... Read More »

AutoNation says no to captive

11:45 am U.S. ET | April 29, 2015

AutoNation, after exploring whether to launch its own captive finance company, is saying no to the idea. CEO Mike Jackson says the retailer will generate a better return from other investments.... Read More »

Porsche captive adds branded F&I products

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

Porsche, Bentley and Lamborghini dealers in the U.S. are getting a new menu of F&I products to sell. Porsche Financial Services North America is introducing extended service contracts and other products bearing the Porsche name, plus F&I products for the Bentley and Lamborghini brands.... Read More »

JIM HENRY

BLOG: Finally, a lender owns up

11:45 am U.S. ET | April 29, 2015

Auto lenders carefully avoid citing their rivals, especially when they want to criticize. So it was refreshing when Ally's CEO figuratively raised his hand this week.... Read More »

Most lenders cite subprime restraint

12:15 pm U.S. ET | April 29, 2015

GM Financial and Capital One are joining other auto lenders in citing tougher competition in subprime lending and voicing caution over the increase in auto loans to consumers with lower credit scores. Ally Financial, one of the nation's largest auto lenders, is taking the opposite approach, and pursuing more subprime business.... Read More »

Group 1, AutoNation set F&I revenue per vehicle records; most other publics improve

12:15 pm U.S. ET | April 29, 2015

The six largest publicly traded new-vehicle retail groups nearly all improved in F&I revenues per vehicle retailed in the first quarter, led by Group 1 and AutoNation, which both topped $1,500 for the quarter.... Read More »

Ally deal enables Mitsubishi to cut costs for capital, infrastructure

11:17 am U.S. ET | April 29, 2015

For years, Mitsubishi used an in-house finance arm to underwrite loans to dealers and customers as other small automakers relied on international banking giants to keep the capital flowing. This week, by selling its captive lending arm to Ally Financial and naming Ally as its preferred U.S. lender, Mitsubishi shed the hefty costs of banking to focus on its core business: making and selling cars.... Read More »

Ally pushes to make up for lost GM lease business

8:01 am U.S. ET | April 28, 2015

Ally Financial is responding to GM pulling its subsidized lease business by getting more aggressive in near-prime and subprime loans, and by courting dealers harder than ever, especially non-GM and non-Chrysler dealers.... Read More »

VIDEO: Lawmakers back NADA in battle with CFPB

12:01 am U.S. ET | April 22, 2015

Two lawmakers have introduced a bipartisan bill to nullify a 2014 bulletin issued by the Consumer Financial Protection Bureau.... Read More »

Dealers missing out on digital F&I sales, study finds

11:30 am U.S. ET | April 22, 2015

Consumers want F&I product information online rather than all-at-once at the end of their vehicle purchases, a new study finds. The survey by MakeMyDeal indicates that consumers want to learn about F&I products online before entering a new-vehicle store.... Read More »

JIM HENRY

BLOG: Auto finance critic Warren stands firm on CFPB dealership oversight

11:15 am U.S. ET | April 22, 2015

Sen. Elizabeth Warren is once again calling for direct regulation of auto dealerships by the Consumer Financial Protection Bureau.... Read More »

Automotive News
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Toyota's Lentz in Texas: A Lexus regret, fixing 'starved' Scion, the next Prius

Toyota's Lentz in Texas: A Lexus regret, fixing 'starved' Scion, the next Prius

Toyota North America CEO Jim Lentz is a pioneer. He and a handful of other employees moved to north Texas last September to help build the automaker's new U.S. headquarters.
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