Captive Finance Companies

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 »

 

Westcott: Keep defending reserve

5:51 pm U.S. ET | Jan. 25, 2014
NADA must continue to defend in-dealership financing or the car-buying public will suffer, outgoing NADA Chairman David Westcott told dealers today.... Read More »

 

JAMES B. TREECE

What happens in 2016 if interest rates rise?

12:01 am U.S. ET | Jan. 24, 2014
2014 will be a good year for the industry. But what about 2016? Some scenarios to consider as interest rates rise.... Read More »

 

JIM HENRY

Ally, more independent, can better focus on dealers

12:01 am U.S. ET | Dec. 26, 2013
It's time to stop thinking of Ally Financial as GM's captive finance company and get used to the fact that it's an independent bank.... Read More »

 

Ally wins U.S. approval to alter holding structure to keep insurance, vehicle-auction site

11:49 am U.S. ET | Dec. 23, 2013
Ally Financial won regulatory approval to change its holding-company status, allowing the firm to keep an insurance business and a vehicle-auction Web site. Ally, majority owned by the U.S. government, warned in July that regulators might not allow the shift as an exemption ends this month, potentially imposing a “material adverse” effect on earnings.... Read More »

 

TD Auto pares dealership network

9:11 am U.S. ET | Dec. 11, 2013
TD Auto Finance says it will trim its U.S. dealership network, essentially dropping dealerships with the least amount of volume.... Read More »

 

Lean, healthy Ally Financial moves toward stock offering

12:01 am U.S. ET | Dec. 9, 2013
It has been a long journey for Ally Financial and Michael Carpenter. Carpenter, who has been CEO of the Detroit company since November 2009, finally has Ally positioned to buy out the U.S. Treasury's stake in the lender.... Read More »

 

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