Captive Finance Companies

CFPB widens auto lending oversight to non-bank financiers

4:05 pm U.S. ET | June 10, 2015

The top U.S. consumer protection regulator is expanding its oversight to include large non-bank auto financing companies.... 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 »

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 »

GM Financial Q1 net rises as lease volume skyrockets

2:17 pm U.S. ET | April 23, 2015

Captive finance company GM Financial had a giant increase in lease volume in the first quarter, as parent company GM switched to GM Financial as its exclusive preferred lender for Buick, Cadillac, Chevrolet and GMC subsidized leases.... Read More »

Volvo's young captive explores new territory

12:01 am U.S. ET | March 25, 2015

Volvo Car Financial Services U.S. is a young captive finance company, in business only since late 2012. But its leadership is seasoned.... Read More »

Ally adds 7-year loans, as debate over risk heats up

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

The slow march toward 84-month loans is adding fuel to the debate over whether auto lending is getting too risky, possibly threatening the economy the way subprime mortgages did during the run-up to the 2008-09 financial crisis. Auto buyers increasingly are opting to spread their payments over longer terms so they can finance higher amounts -- and thus buy pricier vehicles -- and still keep monthly payments low.... Read More »

GM Financial will double earnings by 2018, GM says

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

GM expects earnings from GM Financial “to more than double by 2018,” GM President Dan Ammann told investors this week. GM wants pretax earnings for GM Financial to rise from $815 million in 2014 to more than $1.6 billion in 2018. The automaker also wants to increase GM Financial’s earning assets -- outstanding consumer and commercial loans, plus leases -- from $40.8 billion as of Dec. 31, 2014, to more than $82 billion at the end of 2018.... 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 »

JAMIE LaREAU

BLOG: Volvo captive finance's plan to help spur sales of Volvo's XC90

3:30 pm U.S. ET | Feb. 19, 2015

The redesigned 2016 Volvo XC90 is “the big” launch facing Volvo's captive finance company. Just ask Dan Romagnoli. He is the man responsible for making sure dealers get enough financing support to sell the heck out of the crossover when it goes on sale in May.... 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 »

GM Financial, Santander rev move to prime

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

GM Financial and Santander Consumer USA, two traditional subprime specialists, are accelerating strategic moves into prime-risk loans and leases in 2015. GM Financial also more than tripled its share of U.S. lease originations for parent GM, to 47 percent of GM leases in the fourth quarter from 15 percent a year earlier.... Read More »

GM ramps up leasing business with captive financial unit

3:16 pm U.S. ET | Feb. 4, 2015

GM Financial more than tripled its share of parent General Motors' US lease originations in the fourth quarter. And it's poised to gain even more as it becomes the exclusive source of leases for the Buick-GMC and Cadillac brands, beginning with Buick-GMC this week.... Read More »

U.S. prosecutors, pursuing more '08 crisis cases, eye auto loans

12:12 pm U.S. ET | Feb. 4, 2015

The U.S. Department of Justice says it is still pursuing cases tied to the height of the financial crisis in 2008 and using lessons learned from those probes to examine new areas like subprime car loans. Federal lawyers are using the investigative techniques and contacts from mortgage securities probes to confront the next wave of potential financial fraud.... Read More »

GM Financial's new system will boost credit apps

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

GM Financial is developing technology that will enable it to accept consumer credit applications on General Motors' websites and the websites of GM dealers. The goal is to help consumers search for vehicles within the price range for which they have been preapproved while making the credit approval process easier and faster.... Read More »

GM's lease incentive move to captive unit surprised, angered Ally's chief

11:40 am U.S. ET | Jan. 29, 2015

General Motors' recent move to steer 100 percent of its Buick, Cadillac and GMC lease incentives in the US to captive finance company GM Financial took Ally Financial by surprise, Ally CEO Michael Carpenter said during a conference call today.... Read More »

Q&A

Ally Premier Protection enables 'one product, one system and one brand'

11:00 am U.S. ET | Jan. 28, 2015

Ally Financial is phasing in Ally Premier Protection brand for service contracts and other F&I products, plus an updated technology platform to help market and administer them. At the same time, it's phasing out its use of the GM Protection Plan brand.... Read More »

GM and Ally compete to grow F&I

12:34 pm U.S. ET | Jan. 24, 2015

GM is on a hiring binge to build a direct sales force for its branded F&I products as the company seeks a foothold in the competitive space. GM rolled out branded F&I products nationally last year while taking over the business from captive-finance arm GM Financial.... Read More »

Q&A

GM Financial is up to the full-service task

6:53 pm U.S. ET | Jan. 23, 2015

GM Financial will become the exclusive provider of subsidized leases for Buick-GMC dealerships on Feb. 3. Cadillac and Chevrolet will follow. Kyle Birch, GM Financial COO, talked with Staff Reporter Mike Colias about how it has grown leasing capabilities on its way to becoming GM's full-line captive financing arm.... Read More »

GM takes charge of its branded F&I products

2:00 pm U.S. ET | Jan. 23, 2015

General Motors is bringing the sales of its branded F&I products in-house, taking over responsibility from captive finance company GM Financial, in a move designed to give those sales a shot in the arm and get those products on more GM dealerships' radar.... Read More »

Dealers, captives battle in statehouses

2:00 pm U.S. ET | Jan. 23, 2015

A battle is heating up in several state capitals as dealer associations face off against carmakers and their captive finance companies over proposed state laws governing the sale of F&I products.... Read More »

Nicolosi returns to Volvo Financial with broader duties

9:00 am U.S. ET | Jan. 21, 2015

Tony Nicolosi has been named president of Volvo Cars Financial Services of the Americas, 16 months after he became CEO of Volvo Cars of North America. The move is part of a management shakeup at the struggling brand, which also includes global corporate product strategy chief Lex Kerssemakers being named to the post of CEO for North America.... Read More »

Welcome growth for GM Financial

12:01 am U.S. ET | Jan. 19, 2015

General Motors' move to steer all subvented leases for Cadillac and Buick-GMC through GM Financial as part of the captive's ongoing buildup was welcome news for dealers, Cadillac dealer Howard Drake says.... Read More »

GM to use GM Financial for subsidized leases, drop Ally, U.S. Bank

3:19 pm U.S. ET | Jan. 9, 2015

General Motors plans to make GM Financial its preferred lender for subsidized leases, a big step toward elevating its in-house lending arm into a full-line captive finance provider to enhance GM dealers' ability to sell vehicles.... Read More »

Ally sells last of its overseas operations to GM Financial

11:30 am U.S. ET | Jan. 7, 2015

Ally Financial has stripped down to its core businesses: U.S. auto finance, F&I products such as extended service contracts, commercial loans to dealers, and online retail banking. The company jettisoned the last of its noncore operations when it completed the sale of its auto financing joint-venture unit in China to General Motors' captive finance company, GM Financial, for $1 billion.... Read More »

Ally's six-year bailout ends after U.S. sells $1.28 billion stake

7:48 pm U.S. ET | Dec. 18, 2014

The Treasury disposed of its remaining $1.28 billion stake in auto lender Ally Financial, resolving the last big bailout from an emergency government program to halt the 2008 financial crisis. Ally said the government ultimately gained $2.4 billion from its investment.... Read More »

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