Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Fri, 19 Dec 2014 06:00:00 EST Ally's six-year bailout to end as U.S. sells $1.25 billion stake http://www.autonews.com/article/20141218/RETAIL07/141219857/ally-s-six-year-bailout-to-end-as-u-s-sells-1-25-billion-stake Thu, 18 Dec 2014 19:48:44 EST Ally Financial said the Treasury will sell its remaining $1.25 billion stake in the auto lender, resolving one the largest bailouts from the financial crisis six years ago. Forecasters see bigger loans, only modest uptick in delinquencies http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/141219900/forecasters-see-bigger-loans-only-modest-uptick-in-delinquencies Wed, 17 Dec 2014 11:45:00 EST Favorable trends for auto lending should continue into 2015, including bigger average loans and leases and only small increases in delinquencies, analysts for credit bureaus TransUnion and Equifax predict. Incoming AIADA head vows to speak out on CFPB http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/312179997/incoming-aiada-head-vows-to-speak-out-on-cfpb Wed, 17 Dec 2014 10:15:00 EST Bradley Hoffman, incoming chairman of the American International Automobile Dealers Association, says he plans to speak out about the Consumer Financial Protection Bureau's controversial positions on automotive lending. Will the CFPB redefine 'larger'? http://www.autonews.com/article/20141217/BLOG13/312179995/will-the-cfpb-redefine-larger-8221 Wed, 17 Dec 2014 00:01:00 EST Auto industry watchers that formally weighed in on the Consumer Financial Protection Bureau's definition of 'larger' auto lenders took predictable positions before the public comment period closed last week. Ally, Wells Fargo prefer profit over volume http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/312179955/ally-wells-fargo-prefer-profit-over-volume Wed, 17 Dec 2014 11:30:00 EST Ally Financial and Wells Fargo Dealer Services, two of the nation's largest auto lenders, say growing competition has them ready to sacrifice market share to protect profits. Acura boss sees rise in leasing in 2015 http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/312179996/acura-boss-sees-rise-in-leasing-in-2015 Wed, 17 Dec 2014 11:15:00 EST Acura should see a 'steady lift,' rather than a big jump, in leases as a portion of its U.S. sales volume in 2015, the brand's general manager says. Online FandI product sales a 'struggle' http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/312189996/online-fi-product-sales-a-struggle Wed, 17 Dec 2014 00:01:00 EST Dealership staffers must either present FandI products to customers when they take delivery of their car or contact them later by phone, says Lou Bregou, a director of operations at Driver's Village. Selling FandI online is "an uphill struggle," he says. In-store kiosks put FandI right in front of customers http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/312189995/in-store-kiosks-put-fi-right-in-front-of-customers Wed, 17 Dec 2014 00:01:00 EST Michael Fastman is buying kiosks for BMW of Silver Spring, in Silver Spring, Md., where he is general manager, and BMW of Catonsville, in Baltimore, where he is in charge of operations. After decades of store confinement, the FandI office is inching digital http://www.autonews.com/article/20141217/FINANCE_AND_INSURANCE/312189997/after-decades-of-store-confinement-the-fi-office-is-inching-digital Wed, 17 Dec 2014 00:01:00 EST Lou Bregou, a director of operations at Driver's Village in Cicero, N.Y., says he has embraced putting financing tools on the dealership group's e-commerce website. N.Y. Department of Financial Services subpoenas captives, 2 banks over subprime auto lending http://www.autonews.com/article/20141211/FINANCE_AND_INSURANCE/141219953/n-y-department-of-financial-services-subpoenas-captives-2-banks-over Thu, 11 Dec 2014 19:10:09 EST New York state's financial services regulator has subpoenaed financing divisions of automakers including Ford, Honda, Nissan and Volkswagen, along with banks Santander and TD Bank, as part of a probe of possible consumer abuses in subprime auto... Who distorted what? Wording of CFPB statement will get its own investigation http://www.autonews.com/article/20141210/BLOG13/312109994/who-distorted-what-wording-of-cfpb-statement-will-get-its-own Wed, 10 Dec 2014 11:30:00 EST The ombudsmanandrsquo;s office for the Consumer Financial Protection Bureau said it would conduct an independent review into complaints that the CFPBandrsquo;s press releases donandrsquo;t match the consent orders they describe -- something... Lenders dispute CFPB's proposed threshold for oversight http://www.autonews.com/article/20141210/FINANCE_AND_INSURANCE/312109996/lenders-dispute-cfpbs-proposed-threshold-for-oversight Wed, 10 Dec 2014 11:00:00 EST The Consumer Financial Protection Bureau, in its effort to extend its jurisdiction over 'nonbank' auto lenders such as captive and independent finance companies, is reaching for lenders that are too small, the American Financial Services... FandI jobs hold a powerful lure for women http://www.autonews.com/article/20141210/BLOG13/312109993/fi-jobs-hold-a-powerful-lure-for-women Wed, 10 Dec 2014 11:00:00 EST It seems women are keen to work in the finance and insurance department. In fact, FandI has the highest percentage of women employees in a dealership, after the office/administration department. Faster is better in FandI, Power survey shows http://www.autonews.com/article/20141210/FINANCE_AND_INSURANCE/312109995/faster-is-better-in-fi-power-survey-shows Wed, 10 Dec 2014 11:00:00 EST The latest J.D. Power Sales Satisfaction Index Study underscores how important it is to get customers in and out of the FandI office as quickly as possible. Westlake aims for 20% growth in 2015 http://www.autonews.com/article/20141210/FINANCE_AND_INSURANCE/141209815/westlake-aims-for-20-growth-in-2015 Wed, 10 Dec 2014 11:00:00 EST Westlake Financial Services, traditionally a subprime auto lender, has branched out into near-prime and prime-risk lending, plus commercial lending to dealerships. In-store kiosks put FandI right in front of customers http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089993/in-store-kiosks-put-fi-right-in-front-of-customers Mon, 8 Dec 2014 00:01:00 EST Michael Fastman is buying kiosks for BMW of Silver Spring, in Silver Spring, Md., where he is general manager, and BMW of Catonsville, in Baltimore, where he is in charge of operations. Online FandI product sales a 'struggle' http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089977/online-fi-product-sales-a-struggle Mon, 8 Dec 2014 00:01:00 EST Dealership staffers must either present FandI products to customers when they take delivery of their car or contact them later by phone, says Lou Bregou, a director of operations at Driver's Village. Selling FandI online is "an uphill struggle," he says. After decades of store confinement, the FandI office is inching digital http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089976/after-decades-of-store-confinement-the-fi-office-is-inching-digital Mon, 8 Dec 2014 00:01:00 EST Lou Bregou, a director of operations at Driver's Village in Cicero, N.Y., says he has embraced putting financing tools on the dealership group's e-commerce website. GM Financial ready to compete in 2015 http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089968/gm-financial-ready-to-compete-in-2015 Mon, 8 Dec 2014 00:01:00 EST General Motors' captive finance company, GM Financial, is finally ready for prime time. Finance managers found on showroom floor http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089994/finance-managers-found-on-showroom-floor Mon, 8 Dec 2014 00:01:00 EST After working as a sales representative for almost two years at Atlantic Hyundai in West Islip, N.Y., Russell Williamson was ready for more responsibility and the chance to earn more money. FandI, sales managers see paychecks converge http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089978/fi-sales-managers-see-paychecks-converge Mon, 8 Dec 2014 00:01:00 EST The days of fat paychecks for finance and insurance managers may be ending. Lender group says CFPB rule would burden smaller players http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/141209844/lender-group-says-cfpb-rule-would-burden-smaller-players Mon, 8 Dec 2014 20:38:50 EST In seeking to extend its jurisdiction over 'nonbank' auto lenders -- including captive finance companies and independent finance companies -- the Consumer Financial Protection Bureau is reaching for lenders that are too small, the... Aluminum wave could boost dent-repair policies http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089995/aluminum-wave-could-boost-dent-repair-policies Mon, 8 Dec 2014 00:01:00 EST Automakers' growing use of aluminum body parts to save weight and fuel could create an opportunity for dealership FandI departments to sell more paintless dent removal policies, some FandI experts say. Used-car buyers are big FandI opportunity http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089991/used-car-buyers-are-big-fi-opportunity Mon, 8 Dec 2014 00:01:00 EST Otto Belovich believes it is a disservice to his customers -- especially those who buy used vehicles -- if he doesn't offer them the opportunity to purchase a service contract. Easy credit dries up buy-here, pay-here business, dealer says http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089992/easy-credit-dries-up-buy-here-pay-here-business-dealer-says Mon, 8 Dec 2014 00:01:00 EST Dealers and lenders insist that there is no subprime bubble in automotive financing, and the numbers back them up. Appearance products fight to stay on menu http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089980/appearance-products-fight-to-stay-on-menu Mon, 8 Dec 2014 00:01:00 EST Shorter FandI product menus are crowding all but a few top sellers right off the menu, which can leave vehicle appearance products, such exterior finish and fabric protection, fighting for a spot. Group pushes states on FandI product rules http://www.autonews.com/article/20141208/FINANCE_AND_INSURANCE/312089979/group-pushes-states-on-fi-product-rules Mon, 8 Dec 2014 00:01:00 EST Worry that federal regulators' crackdown on dealer markup might spill over into FandI products is revving an industry trade group's efforts to get state-by-state legal definitions for those products, and rules for how they're sold, on the books. Dealer missteps do not a lender meltdown make http://www.autonews.com/article/20141206/BLOG06/141209860/dealer-missteps-do-not-a-lender-meltdown-make Sat, 6 Dec 2014 00:01:00 EST It shouldn't surprise anybody if heightened regulatory scrutiny on car lending reveals some transactions where a dealership has disregarded the rules on loan paperwork. Average new-car loan hits 8-year high of $27,799 http://www.autonews.com/article/20141203/FINANCE_AND_INSURANCE/312039941/average-new-car-loan-hits-8-year-high-of-27799 Wed, 3 Dec 2014 08:04:05 EST The average amount financed to buy a vehicle is the highest it has been in eight years, according Experian Automotive. Honda Finance may face U.S. penalty for discrimination in auto-loan pricing http://www.autonews.com/article/20141203/FINANCE_AND_INSURANCE/312049998/honda-finance-may-face-u-s-penalty-for-discrimination-in-auto-loan Wed, 3 Dec 2014 00:01:00 EST American Honda Finance said the Consumer Financial Protection Bureau and U.S. Auto finance benefits from looser purse strings http://www.autonews.com/article/20141203/BLOG13/312049999/auto-finance-benefits-from-looser-purse-strings Wed, 3 Dec 2014 00:01:00 EST U.S. households have closed the book on a 'deleveraging period,' the government's fancy way of saying households have quit spending less and saving more. And that's good news for auto financing. Aluminum wave may mean more dent and ding policies http://www.autonews.com/article/20141203/FINANCE_AND_INSURANCE/141209924/aluminum-wave-may-mean-more-dent-ding-policies Wed, 3 Dec 2014 08:04:05 EST The growing use of aluminum in car bodies to save weight and fuel could create an opportunity for dealership FandI departments to sell more paintless dent removal policies, some FandI experts say. Toyota's lending arm acused of discriminatory loan pricing by U.S. http://www.autonews.com/article/20141201/FINANCE_AND_INSURANCE/141209978/toyotas-lending-arm-acused-of-discriminatory-loan-pricing-by-u-s Mon, 1 Dec 2014 12:54:37 EST Toyota Motor Credit could face an enforcement action from U.S. authorities over its pricing of auto loans through dealerships and could be forced to reimburse borrowers or pay a fine, the company said. GM Financial CEO sees big growth ahead http://www.autonews.com/article/20141201/FINANCE_AND_INSURANCE/312019959/gm-financial-ceo-sees-big-growth-ahead Mon, 1 Dec 2014 00:01:00 EST It has taken four years, but GM Financial is finally offering a full range of products to General Motors dealers, prompting the captive lender's CEO to predict a "tremendous amount of growth" in 2015. says CEO Dan Berce. AutoNation readies branded FandI products http://www.autonews.com/article/20141201/FINANCE_AND_INSURANCE/312019980/autonation-readies-branded-fi-products Mon, 1 Dec 2014 00:01:00 EST AutoNation will start selling private-label FandI products in 2015 as part of the rollout of its new digital storefront. Delinquency uptick on target, analysts say http://www.autonews.com/article/20141126/FINANCE_AND_INSURANCE/141129901/delinquency-uptick-on-target-analysts-say Wed, 26 Nov 2014 11:30:00 EST Analysts have been predicting for the past two years or so that auto loan delinquencies would grow, but the numbers are only now starting to catch up with the forecasts. Military ends paycheck deductions for car loans http://www.autonews.com/article/20141126/BLOG13/311279997/military-ends-paycheck-deductions-for-car-loans Wed, 26 Nov 2014 00:01:00 EST The Department of Defense last week made it impossible for service members to use the reliable but old-fashioned military allotment system to make auto loan payments -- a small-scale example of a couple of bad apples in auto lending ruining things... VW Credit, Lincoln Financial tops in consumer satisfaction; captives sweep financing study http://www.autonews.com/article/20141126/FINANCE_AND_INSURANCE/311269997/vw-credit-lincoln-financial-tops-in-consumer-satisfaction-captives Wed, 26 Nov 2014 11:30:00 EST Website enhancements and a consumer invoice redesign paid off for Volkswagen Credit, which ranked tops among mass-market lenders in the J.D. Power 2014 U.S. Consumer Financing Satisfaction Study. Mich. store faces trial in suit over negative equity http://www.autonews.com/article/20141126/LEGALFILE/311269990/mich-store-faces-trial-in-suit-over-negative-equity Wed, 26 Nov 2014 11:30:00 EST A Michigan Chrysler-Dodge store violated state law by failing to itemize a customer's negative equity on new-car loan documents. More subprime lenders are on the hot seat http://www.autonews.com/article/20141126/FINANCE_AND_INSURANCE/311269996/more-subprime-lenders-are-on-the-hot-seat Wed, 26 Nov 2014 11:30:00 EST Three regulatory agencies -- two in New York and the Consumer Financial Protection Bureau in Washington -- have taken distinct actions recently against three different subprime auto lenders. U.S. auto loan originations at highest level in 9 years, N.Y. Fed says http://www.autonews.com/article/20141125/RETAIL/141129899/u-s-auto-loan-originations-at-highest-level-in-9-years-n-y-fed-says Tue, 25 Nov 2014 18:14:59 EST Americans took out the most auto loans in nine years during the third quarter, according to the Federal Reserve Bank of New York's quarterly Household Debt and Credit Report. Popping the subprime bubble myth http://www.autonews.com/article/20141124/FINANCE_AND_INSURANCE/311249963/popping-the-subprime-bubble-myth Mon, 24 Nov 2014 00:01:00 EST There is no subprime auto loan bubble, darn it. That message came through loud and clear at session after session devoted to subprime lending during the Used Car Week Conferences sponsored by Auto Remarketing magazine this month in Las Vegas. Popping the subprime bubble myth http://www.autonews.com/article/20141119/BLOG13/311199987/popping-the-subprime-bubble-myth Wed, 19 Nov 2014 00:01:00 EST There is no subprime auto loan bubble, darn it. That message came through loud and clear in session after session during the recent Used Car Week conference sponsored in Las Vegas. New study slams CFPB methodology http://www.autonews.com/article/20141119/FINANCE_AND_INSURANCE/141119822/new-study-slams-cfpb-methodology Wed, 19 Nov 2014 00:01:00 EST The statistical method the Consumer Financial Protection Bureau uses to identify which consumers belong to minority groups correctly identified African-American borrowers only 24 percent of the time. AutoNation to add branded FandI products next year http://www.autonews.com/article/20141119/FINANCE_AND_INSURANCE/141119821/autonation-to-add-branded-fi-products-next-year Wed, 19 Nov 2014 00:01:00 EST AutoNation will start selling private-label FandI products in 2015 as part of the rollout of its new digital storefront. Demand for faster deals could speed e-contracting http://www.autonews.com/article/20141119/FINANCE_AND_INSURANCE/311199989/demand-for-faster-deals-could-speed-e-contracting Wed, 19 Nov 2014 00:01:00 EST Dealerships are trying hard to speed sales transactions, and that may give a shot in the arm to electronic signatures and e-contracting for auto loans, experts say. Free advice for consumers can be worth the price http://www.autonews.com/article/20141119/BLOG13/311199988/free-advice-for-consumers-can-be-worth-the-price Wed, 19 Nov 2014 00:01:00 EST There's a bright spot for dealerships that do a lot of business with automakers' captive finance companies and preferred lenders, data on the website Wallet Hub show: Car manufacturers (that is, captives) charge the lowest auto loan... Land Rover, Toyota top ALG's Residual Value Awards http://www.autonews.com/article/20141117/RETAIL/141119870/land-rover-toyota-top-algs-residual-value-awards Mon, 17 Nov 2014 08:15:00 EST Land Rover and Toyota earned top brand honors for vehicles predicted to hold their value over the next three years, in the ALG Residual Value Awards released today. Dashboard data shifting the car insurance model and changing ownership math http://www.autonews.com/article/20141117/OEM06/311179998/dashboard-data-shifting-the-car-insurance-model-and-changing Mon, 17 Nov 2014 00:01:00 EST As dashboard data make it easier to determine how people are driving, and how much, insurers are moving toward a usage-based insurance model that could upend the cost-benefit analysis of car ownership. Online financial transparency trumps lowest price, dealer says http://www.autonews.com/article/20141112/FINANCE_AND_INSURANCE/141119949/online-financial-transparency-trumps-lowest-price-dealer-says Wed, 12 Nov 2014 10:00:00 EST Customers who apply for vehicle financing on driversselect.com get real information about interest rates, down payments and monthly payments that does not change once they arrive at the Dallas used-only dealership, CEO Steve Hall said. %]