Captive Finance Companies

Lenders wary of feds' scrutiny

12:01 am U.S. ET | Aug. 11, 2014
The U.S. Department of Justice sent subpoenas to the two largest issuers of securities based on subprime auto loans, leaving other subprime lenders to wonder what the agency is looking for and who might be subpoenaed next.... Read More »

 

After probe of Santander, GM Financial, who's next among subprime auto lenders?

2:54 pm U.S. ET | Aug. 8, 2014
Other subprime auto lenders that issue asset-backed securities are wondering whether they're next after Santander Consumer USA followed GM Financial as the subject of a subpoena from the U.S. Department of Justice.... Read More »

 

JAMES B. TREECE

GM Financial subpoena shifts investigation away from dealers

12:01 am U.S. ET | Aug. 6, 2014
When dealers saw headlines saying the U.S. Department of Justice had subpoenaed GM Financial ast month to produce documents relating to its subprime auto loan contracts, they could be excused for worrying that this represented another threat to their arranging car loans for consumers.... Read More »

 

GM's subprime auto lending draws attention of U.S. investigators

5:04 pm U.S. ET | Aug. 5, 2014
Federal prosecutors are asking questions about the practices of GM's financing unit, subpoenaing the company in the midst of a resurgence in U.S. auto sales fueled partly by a subprime lending boom.... Read More »

 

Volume hot, profits not, for GM Financial, Ford Credit

12:01 am U.S. ET | July 30, 2014
North American auto loan and lease originations combined rose in the second quarter from the year-earlier period for both Ford Motor Co.'s and General Motors' captive finance companies.... Read More »

 

BMW Group tops dealer finance satisfaction survey

12:01 am U.S. ET | July 30, 2014
BMW Group Financial Services dominated nearly every category of J.D. Power's 2014 U.S. Dealer Financing Satisfaction Study released this week.... Read More »

 

Shoppers wary of dealer loans

12:01 am U.S. ET | July 14, 2014
Although most car buyers finance their vehicles through dealerships, the vast majority don't plan to do so while in the online-research phase of shopping.... Read More »

 

Dealer-backed laws limit captives' power to compel sales of branded F&I products

12:01 am U.S. ET | July 2, 2014
Several states have adopted laws that limit the power of automakers' captive finance companies and preferred lenders to compel dealerships to sell F&I products backed by the factory or a specific vendor.... Read More »

 

Automakers driving banks from buoyant new-car market, financing

12:01 am U.S. ET | June 18, 2014
Captives are providing subsidies from automakers, lowering monthly payments and extending loan terms to make it easier for buyers to drive away in a shiny, new vehicle -- creating formidable competition for banks and other lenders.... Read More »

 

Fiat finance unit says Luxembourg tax ruling is legitimate

June 11, 2014 18:39 CET
Fiat's finance unit said it was confident of the legitimacy of a tax deal with Luxembourg that the European Commission is currently investigating.... Read More »

 

For some, buy-here, pay-here makes sense -- and profits

12:01 am U.S. ET | June 9, 2014
As a Byrider buy-here, pay-here franchisee Gary Tillery funds his customers' loans himself through his own finance arm.... Read More »

 

Q&A

GM Financial bulks up compliance staff amid CFPB oversight

12:01 am U.S. ET | May 21, 2014
GM Financial, like other auto lenders, is gearing up for much closer monitoring of loans originated via dealerships to head off the possibility of discrimination charges from the Consumer Financial Protection Bureau.... Read More »

 

GM Financial tests prime-risk auto loans

12:01 am U.S. ET | April 30, 2014
GM Financial has launched a pilot program for prime-risk auto loans in two states as a prelude to more widespread prime-risk lending.... Read More »

 

Chrysler Capital offers perks for dealers' loyalty

12:01 am U.S. ET | April 14, 2014
Chrysler Capital has launched a dealer-loyalty program that offers participants longer car loans and lower rates but requires them to get a quote from Chrysler Capital for every customer loan.... Read More »

 

GM Financial, Ally swap corporate profiles

12:01 am U.S. ET | April 2, 2014
A new and much bigger GM Financial is emerging this year -- a global, mostly prime-risk auto lender that looks a lot like the old GMAC captive finance company.... Read More »

 

Ally Financial IPO could generate $2.7 billion for U.S. Treasury

9:00 am U.S. ET | March 27, 2014
Ally Financial, the former GMAC auto lender rescued by the federal government during the 2008 financial crisis, is helping the Treasury Department divest its stake by seeking as much as $2.7 billion in an initial public offering.... Read More »

 

Dealers, captives battle in statehouses

12:01 am U.S. ET | March 19, 2014
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 »

 

Ally names Jeffrey Brown to replace Muir as CEO of dealer financial unit

5:01 pm U.S. ET | March 13, 2014
Ally Financial has appointed Jeffrey Brown as CEO of Ally Dealer Financial Services, succeeding the veteran Bill Muir, who will retire later this year.... Read More »

 

CFPB fills auto finance liaison job

4:04 pm U.S. ET | March 13, 2014
The Consumer Financial Protection Bureau has appointed attorney Jeffrey Langer to the role of liaison between the CFPB and the auto finance industry, succeeding Rick Hackett. Langer’s appointment, announced Wednesday, was effective immediately.... Read More »

 

Dealers, captives battle in statehouses

12:01 am U.S. ET | March 10, 2014
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 »

 

GM Financial, Ally swap corporate profiles

12:01 am U.S. ET | March 10, 2014
A new and much bigger GM Financial is emerging this year -- a global, mostly prime-risk auto lender that looks a lot like the old GMAC captive finance company.... Read More »

 

JIM HENRY

The disconnect lingers between auto finance and the CFPB

12:01 am U.S. ET | Feb. 26, 2014
The auto finance industry and the Consumer Financial Protection Bureau have a fundamental disconnect. The auto finance industry sees itself as unique while the CFPB sees it as just one more consumer finance sector, essentially not that different from mortgages, credit cards or student loans.... Read More »

 

Fiat seeks to turn financing unit into a bank, report says

Feb. 16, 2014 16:54 CET
Fiat has asked the Bank of Italy's permission to turn its financing unit into a bank. The move would make Fiat more competitive against rivals such as VW and PSA, which already have their own internal banks.... Read More »

 

Ally says Q4 net income falls, GM relationship extended

12:35 pm U.S. ET | Feb. 6, 2014
Ally Financial said today it has posted fourth-quarter net income of $104 million and lower pretax income for its auto finance business. The lender also said its preferred-lender relationship with General Motors, set to expire Dec. 31, was extended while the companies negotiate a new pact.... Read More »

 

JAMES B. TREECE

Flawed study has lessons for F&I managers

12:01 am U.S. ET | Feb. 5, 2014
There’s a lot not to like about a new study on discrimination in car loans. But there also are a few nuggets in it that indicate problems in the F&I office.
The study is titled "Non-Negotiable: Negotiation Doesn’t Help African Americans and Latinos on Dealer-Financed Car Loans" and was conducted by the nonprofit Center for Responsible Lending in Durham, N.C.... Read More »

 

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