Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Tue, 28 Mar 2017 06:00:00 EST Getting payment figures down to the penny http://www.autonews.com/article/20170327/FINANCE_AND_INSURANCE/303279976/third-party-shopping-sites-ponder-penny-perfect-payment-predictions Mon, 27 Mar 2017 00:01:00 EST With advancements in online tools for trade-in valuation and financing, could there be a day when consumers get exact payment offers via third-party sites before stepping foot in dealerships? Bad ethics come from factory, too http://www.autonews.com/article/20170327/RETAIL/170329900/bad-ethics-come-from-factory-too Mon, 27 Mar 2017 00:01:00 EST The tactics often employed to bully dealers to participate in manufacturers' mostly self-serving, revenue-enhancing programs are why state franchise laws are in place. Auto sales peak heightens risk for lenders, Moody's warns http://www.autonews.com/article/20170327/FINANCE_AND_INSURANCE/170329874/auto-sales-peak-heightens-risk-for-lenders-moodys-warns Mon, 27 Mar 2017 09:27:34 EST As auto sales have peaked in the United States, competition to finance car loans is set to intensify and drive increased credit risk for lenders. VW finance arm makes record 2016 profit http://europe.autonews.com/article/20170324/ANE/170329905/vw-finance-arm-makes-record-2016-profit Fri, 24 Mar 2017 07:44:22 EST VW Group's finance division reported record earnings of $2.3 billion last year despite the automaker's emissions scandal. The division, which handles dealer and customer financing, said the residual values of the automaker's leased cars had held up. CFPB fines Experian $3 million over misleading credit scores http://www.autonews.com/article/20170323/FINANCE_AND_INSURANCE/170329915/cfpb-fines-experian-3-million-over-misleading-credit-scores Thu, 23 Mar 2017 15:27:07 EST The Consumer Financial Protection Bureau fined Experian $3 million for deceiving consumers about the nature and use of the credit scores it presented to consumers. Sage Auto settled with FTC to avoid costly litigation, its attorney says http://www.autonews.com/article/20170322/FINANCE_AND_INSURANCE/170329961/sage-auto-settled-with-ftc-to-avoid-costly-litigation-its-attorney Wed, 22 Mar 2017 11:30:00 EST Sage Automotive Group and its owners settled federal charges last week that the group used deceptive and unfair sales and financing practices. AutoNews Now: Cadillac, Lincoln in BMW's line of fire? http://www.autonews.com/article/20170322/VIDEO/303229974/autonews-now-cadillac-lincoln-in-bmws-line-of-fire Wed, 22 Mar 2017 15:00:00 EST BMW aims for Mercedes, but may hit Cadillac, Lincoln; Porsche profit tops $17K per car; Ally profit warning stokes used-car price worries; Toyota to reveal freshened Sienna, Yaris. Keep FandI simple and fast, no matter the tools http://www.autonews.com/article/20170322/BLOG13/303229994/keep-fi-simple-and-fast-no-matter-the-tools Wed, 22 Mar 2017 00:01:00 EST It's important to remember that each consumer's priorities are different when it comes to the FandI process. Digital retailers bring monthly payment offers to the web http://www.autonews.com/article/20170322/FINANCE_AND_INSURANCE/303229997/digital-retailers-bring-monthly-payment-offers-to-the-web Wed, 22 Mar 2017 00:01:00 EST Some tech companies are bringing a new layer of precision to online car deals with platforms that offer consumers accurate monthly payments before they come to the store. N.J. sets disclosure rules for starter interrupters http://www.autonews.com/article/20170322/FINANCE_AND_INSURANCE/303229995/n-j-sets-disclosure-rules-for-starter-interrupters Wed, 22 Mar 2017 11:30:00 EST New Jersey is increasing disclosure requirements for the use of starter interrupters with subprime, used-car auto loans. But it won't tie use of the devices to reduced loan rates. Ally will pursue profits over market share, lender says http://www.autonews.com/article/20170322/FINANCE_AND_INSURANCE/303229941/ally-will-pursue-profits-over-market-share-lender-says Wed, 22 Mar 2017 11:45:00 EST Ally Financial will stick with a strategy of raising rates and getting tougher on approvals in some auto-loan niches in 2017, sacrificing volume for higher margins, company executives said. Protecting personal info, despite humans http://www.autonews.com/article/20170322/FINANCE_AND_INSURANCE/303229996/protecting-personal-info-despite-humans Wed, 22 Mar 2017 00:01:00 EST Dealerships are required by law with protecting customers' personal information. But fulfilling that charge isn't easy. Online presentation is key for FandI profits http://www.autonews.com/article/20170322/FINANCE_AND_INSURANCE/303229998/online-presentation-is-key-for-fi-profits Wed, 22 Mar 2017 00:01:00 EST Dealers who take a holistic approach to presenting FandI products online will engage consumers, increase their willingness to buy and boost profitability, Cox Automotive's Mark O'Neil says. Ally profit warning deepens angst over slumping used-car prices http://www.autonews.com/article/20170321/FINANCE_AND_INSURANCE/170329966/ally-profit-warning-deepens-angst-over-slumping-used-car-prices Tue, 21 Mar 2017 14:22:50 EST Ally warned profit may grow less than anticipated only a few months ago, the latest sign that automakers' heavy discounting and aggressive use of leasing has created a supply glut hurting lenders. Dealerships must prepare for online FandI http://www.autonews.com/article/20170320/FINANCE_AND_INSURANCE/303209962/dealerships-must-prepare-for-online-fi Mon, 20 Mar 2017 00:01:00 EST Dealerships must figure out how to present the benefits of FandI products to prospects who prefer to purchase online. Who puts the customer first? http://www.autonews.com/article/20170315/BLOG13/170319919/who-puts-the-customer-first Wed, 15 Mar 2017 11:30:00 EST Very few customers say the FandI manager put their interests first. Really? CU Direct's network climbs to No. 2 in auto loan originations http://www.autonews.com/article/20170315/FINANCE_AND_INSURANCE/170319923/cu-directs-network-climbs-to-no-2-in-auto-loan-originations Wed, 15 Mar 2017 11:30:00 EST Credit unions on CU Direct's auto lending network as a group were the second-largest auto financing source in 2016, CU Direct said. Auto gripes trail other complaints, FTC report says http://www.autonews.com/article/20170315/FINANCE_AND_INSURANCE/303159998/auto-gripes-trail-other-complaints-ftc-report-says Wed, 15 Mar 2017 11:30:00 EST There were more complaints regarding banks and lenders and telephone and mobile services last year than auto-related complaints, an annual report from the Federal Trade Commission shows. Sage Automotive to pay $3.6 million to settle FTC charges http://www.autonews.com/article/20170314/RETAIL07/170319927/sage-automotive-to-pay-3-6-million-to-settle-ftc-charges Tue, 14 Mar 2017 13:54:00 EST Sage Automotive and its owners agreed to settle federal charges that the dealership group used deceptive and unfair sales and financing practices. BMW probed by U.S. over leases to military members http://www.autonews.com/article/20170314/FINANCE_AND_INSURANCE/170319938/bmw-probed-by-u-s-over-leases-to-military-members Tue, 14 Mar 2017 06:47:59 EST The U.S. Justice Department sought information from BMW AG's leasing business last year about how it handles overdue payments from U.S. military personnel, according to documents obtained by Bloomberg. First Shift: Nissan's design master stepping down http://www.autonews.com/article/20170314/VIDEO/303149980/first-shift-nissans-design-master-stepping-down Tue, 14 Mar 2017 08:30:00 EST Nissan's design master stepping down, ex-BMW design chief joins Infiniti; Leadership changes at Mitsu; VW upbeat on '17; Subprime bubble just a myth?; U.S. recalls hit record high. Digital retailers bring monthly payment offers to the web http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/170309759/digital-retailers-bring-monthly-payment-offers-to-the-web Mon, 13 Mar 2017 00:01:00 EST Some tech companies are bringing a new layer of precision to online car deals with platforms that offer consumers accurate monthly payments before they come to the store. E-contracting grows, has hurdles to clear http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139989/e-contracting-grows-has-hurdles-to-clear Mon, 13 Mar 2017 00:01:00 EST Electronic contracting has become increasingly prevalent in auto retail, but it still has room to improve, especially as an enabler to the fully online vehicle transaction. Do you know the rules on credit pulls? http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139991/do-you-know-the-rules-on-credit-pulls Mon, 13 Mar 2017 00:01:00 EST Soft credit pulls can help consumers do more of the car-buying process, including FandI, online. But dealerships need to be aware to stay in compliance with the laws. Fully online car sales coming, but at what cost to finance and insurance? http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139990/fully-online-transactions-coming-but-at-what-cost-to-fi Mon, 13 Mar 2017 00:01:00 EST As the auto industry prepares for the advent of the fully online transaction, there is a specific set of challenges in the FandI arena. Dealers not sold on completely digital FandI http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139997/dealers-not-sold-on-completely-digital-fi Mon, 13 Mar 2017 00:01:00 EST Dealers have moved toward embracing online vehicle shopping, electronic negotiation and even virtual test drives. But completely digital FandI experiences? Not so much. Online presentation is key for FandI profits http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139998/online-presentation-is-key-for-fi-profits Mon, 13 Mar 2017 00:01:00 EST Dealers who take a holistic approach to presenting FandI products online will engage consumers, increase their willingness to buy and boost profitability, Cox Automotive's Mark O'Neil says. Big lenders backing off subprime loans http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139982/big-lenders-backing-off-subprime-loans Mon, 13 Mar 2017 00:01:00 EST Some of the nation's largest auto lenders are likely to remain cautious about subprime in 2017 - especially the lower end of subprime - after hitting the brakes on the segment to varying degrees in 2016. App-based GPS a hit with dealers, buyers http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139983/app-based-gps-a-hit-with-dealers-buyers Mon, 13 Mar 2017 00:01:00 EST App-based GPS systems lead a double life. Purchased by dealers and installed on vehicles for inventory and lot management, the products also serve as a profit center when sold to consumers as security feature in the FandI department. Store puts FandI in sales managers' hands http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139986/store-puts-fi-in-sales-managers-hands Mon, 13 Mar 2017 00:01:00 EST At McGeorge Toyota in Henrico, Va., the sales managers do the job that an FandI manager typically does -- menu-sell FandI products and arrange financing. Balancing front end, FandI to maximize profit http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139987/balancing-front-end-fi-to-maximize-profit Mon, 13 Mar 2017 00:01:00 EST FandI managers eager to boost their commissions sometimes entice customers to buy FandI products with giveaways that slice into the otherwise solid profit made on the front end of the vehicle transaction. Protecting personal info, despite humans http://www.autonews.com/article/20170313/FINANCE_AND_INSURANCE/303139988/protecting-personal-info-despite-humans Mon, 13 Mar 2017 00:01:00 EST Dealerships are required by law with protecting customers' personal information. But fulfilling that charge isn't easy. AutoGravity, Black Book launch digital tool to crunch trade-in value http://www.autonews.com/article/20170308/FINANCE_AND_INSURANCE/303089997/autogravity-black-book-launch-digital-tool-to-crunch-trade-in-value Wed, 8 Mar 2017 12:15:00 EST AutoGravity and Black Book have teamed up to offer consumers and dealers a trade-in value tool through AutoGravity's mobile app and web platform. The tool went live on Tuesday. Dealerships can maintain business models while aligning with customers' visions, Protective says http://www.autonews.com/article/20170308/VIDEO/303089929/dealerships-can-maintain-business-models-while-aligning-with Wed, 8 Mar 2017 00:01:00 EST Scott Karchunas, president of Protective Asset Protection, says dealerships' long-term business models can work in conjunction with online sales and financing tools and align with consumers' car-buying visions. Leasing slows from its torrid growth pace http://www.autonews.com/article/20170308/FINANCE_AND_INSURANCE/170309807/leasing-slows-from-its-torrid-growth-pace Wed, 8 Mar 2017 12:00:00 EST While leasing continues to drive new-vehicle sales, it's growing at a slower rate than in recent years. Edmunds expects lease penetration to decline to 30 percent overall in 2017, from a record high 32 percent in 2016. In Trump era, lenders could channel compliance resources to tech http://www.autonews.com/article/20170308/BLOG13/170309785/in-trump-era-lenders-could-channel-compliance-resources-to-tech Wed, 8 Mar 2017 11:13:46 EST Lenders are trying to determine the impact of technology throughout the car buying, financing and ownership process and how it will affect their business. Santander Consumer will reject some FCA dealers, reward others http://www.autonews.com/article/20170308/FINANCE_AND_INSURANCE/303089996/santander-consumer-will-reject-some-fca-dealers-reward-others Wed, 8 Mar 2017 12:15:00 EST Santander Consumer USA, the lender behind Chrysler Capital, is heightening scrutiny of its dealership partners, saying it wants to end relationships with some stores and deepen successful ties with others. Score One for 3rd-party certification http://www.autonews.com/article/20170306/RETAIL07/303069968/score-one-for-3rd-party-certification Mon, 6 Mar 2017 00:01:00 EST Last month's hacking hoax shows the value of DMS companies knowing who is pulling what data through their systems. The incident could be seen as vindication of sorts for CDK and Reynolds. Reynolds President Ron Lamb steps down http://www.autonews.com/article/20170306/OEM02/303069958/reynolds-president-ron-lamb-steps-down Mon, 6 Mar 2017 00:01:00 EST Reynolds and Reynolds President Ron Lamb stepped down from the company after nearly seven years at the helm of the dealership software giant. Profit focus runs over customers http://www.autonews.com/article/20170306/RETAIL01/303069986/profit-focus-runs-over-customers Mon, 6 Mar 2017 00:01:00 EST What's really needed is a course for dealers in "Selling with Ethics, Honesty and Integrity." Auto loan values rise along with the length of terms, leasing http://www.autonews.com/article/20170302/FINANCE_AND_INSURANCE/170309941/auto-loan-values-rise-along-with-the-length-of-terms-leasing Thu, 2 Mar 2017 12:23:57 EST The average loan amounts for new and used vehicles rose in the fourth quarter, but consumers kept monthly payments low with long loan terms and leasing, Experian Automotive reported. Software analyzes patterns, flags fraud http://www.autonews.com/article/20170301/FINANCE_AND_INSURANCE/170309976/software-analyzes-patterns-flags-fraud Wed, 1 Mar 2017 11:45:00 EST PointPredictive's Auto Fraud Manager software uses pattern recognition to identify risk and potentially cut fraud and early payment default losses in half. Delinquencies edge up but remain in check http://www.autonews.com/article/20170301/FINANCE_AND_INSURANCE/170309974/delinquencies-edge-up-but-remain-in-check Wed, 1 Mar 2017 11:52:42 EST The percentage of auto loans delinquent 30 or more days rose slightly in the fourth quarter, Moody's Analytics said, adding that it's not cause for alarm. Most of the auto originations in the third quarter went to high-income borrowers. For millennials, it's all about the payment http://www.autonews.com/article/20170301/BLOG13/170309973/for-millennials-its-all-about-the-payment Wed, 1 Mar 2017 11:55:04 EST As millennials age, the vehicles they choose to buy may change, but the way they look at affordability will likely remain consistent. Slow tax refunds delay subprime bump http://www.autonews.com/article/20170301/FINANCE_AND_INSURANCE/170309975/slow-tax-refunds-delay-subprime-bump Wed, 1 Mar 2017 11:48:20 EST Delayed tax refunds postponed the start of the busiest season of the year in subprime auto loans, two big lenders in subprime said. Prioritize transparency and compliance, JMandA says http://www.autonews.com/article/20170301/FINANCE_AND_INSURANCE/170309983/prioritize-transparency-and-compliance-jma-says Wed, 1 Mar 2017 11:00:00 EST Forrest Heathcott, president of JMandA Group, suggests the best way to educate consumers is with a "mantra of transparency." Credit Acceptance to expand Michigan headquarters, add 532 jobs http://www.autonews.com/article/20170301/FINANCE_AND_INSURANCE/170309985/credit-acceptance-to-expand-michigan-headquarters-add-532-jobs Wed, 1 Mar 2017 08:08:14 EST Auto lender Credit Acceptance plans to add more than 500 jobs in an expansion of its corporate headquarters in suburban Detroit. Credit union liable for unpaid judgment against dealership http://www.autonews.com/article/20170227/LEGALFILE/302279980/credit-union-liable-for-unpaid-judgment-against-dealership Mon, 27 Feb 2017 00:01:00 EST A credit union is on the hook for a large chunk of an unpaid trial award a closed Buick-GMC store owed the buyer of a 2006 Nissan Altima. The millennials are coming http://www.autonews.com/article/20170227/RETAIL/302279963/the-millennials-are-coming Mon, 27 Feb 2017 00:01:00 EST So you thought millennials didn't care about owning cars? Think again. They're the fastest-growing segment among vehicle buyers and are likely to represent about 40 percent of the U.S. new car market by 2020. Auto finance OK overall, but subprime shows blemishes, N.Y. Fed says http://www.autonews.com/article/20170222/FINANCE_AND_INSURANCE/302229997/auto-finance-ok-overall-but-subprime-shows-blemishes-n-y-fed-says Wed, 22 Feb 2017 11:30:00 EST Credit quality looks OK for auto finance overall, and outstanding auto loans and leases combined hit a record $1. %]