Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Mon, 24 Nov 2014 06:00:00 EST 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. Dealertrack bullish on auto sales, financing http://www.autonews.com/article/20141112/FINANCE_AND_INSURANCE/311129993/dealertrack-bullish-on-auto-sales-financing Wed, 12 Nov 2014 10:00:00 EST U.S. auto sales should keep growing for the next several years, providing more support to the recent rise in leasing and auto financing activity, Dealertrack Technologies CEO Mark O'Neil says. 'Disparate impact' opposition sees hope http://www.autonews.com/article/20141112/BLOG13/311139999/-disparate-impact-8217-opposition-sees-hope Wed, 12 Nov 2014 00:01:00 EST Hope remains among opponents of the 'disparate impact' theory that the U.S. Supreme Court could ultimately rule against the theory in court, maybe in 2015. Merger raises question about finance veteran Landy's next move http://www.autonews.com/article/20141112/FINANCE_AND_INSURANCE/141119950/merger-raises-question-about-finance-veteran-landys-next-move Wed, 12 Nov 2014 10:00:00 EST The newly merged Flagship Credit Acceptance and CarFinance Capital will be led by Flagship CEO Michael Ritter, private-equity firm Perella Weinberg Partners, which oversees both companies, said in unveiling the deal last week. Credit unions aim to boost auto loans in 2015 http://www.autonews.com/article/20141112/FINANCE_AND_INSURANCE/311129992/credit-unions-aim-to-boost-auto-loans-in-2015 Wed, 12 Nov 2014 10:00:00 EST Credit unions are putting auto loans on the front burner in 2015. Nearly half of credit unions that responded to a recent survey ranked auto loans as their No. 1 growth opportunity in the next 12 months, TransUnion said. Bundlers beware: 1-price packaging pitfalls http://www.autonews.com/article/20141110/FINANCE_AND_INSURANCE/311109968/bundlers-beware-1-price-packaging-pitfalls Mon, 10 Nov 2014 00:01:00 EST Dealer David Kelleher is such a fan of product bundling, he looks for it in everything he buys. Looking for a new FandI product? Mull this http://www.autonews.com/article/20141105/BLOG13/311059994/looking-for-a-new-fi-product-mull-this Wed, 5 Nov 2014 00:01:00 EST Consider this a free idea -- the kind that hopefully somebody out there takes and develops and uses to make a lot of money. How some customers cheat themselves http://www.autonews.com/article/20141105/FINANCE_AND_INSURANCE/311059995/how-some-customers-cheat-themselves Wed, 5 Nov 2014 00:01:00 EST When Hennessy Buick-GMC in Georgia signed up this year for an Equifax system that automatically verifies employment and income, Finance Director Blake Bailey thought the system would mostly identify people who had overstated their income. Why Santander says it's behind on Chrysler Capital targets http://www.autonews.com/article/20141105/FINANCE_AND_INSURANCE/311059996/why-santander-says-its-behind-on-chrysler-capital-targets Wed, 5 Nov 2014 00:01:00 EST Santander Consumer USA has a long way to go to hit the Chrysler Capital sales penetration targets called for in its contract with Chrysler Group. SEC joins pile of regulators probing subprime loan securitization http://www.autonews.com/article/20141105/BLOG13/311059993/sec-joins-pile-of-regulators-probing-subprime-loan-securitization Wed, 5 Nov 2014 00:01:00 EST It appears that when it comes to investigating the securitization of subprime auto loans, the bigger the mountain of regulators, the better. GM's summer deals stoke Ally volume http://www.autonews.com/article/20141105/FINANCE_AND_INSURANCE/141109932/gms-summer-deals-stoke-ally-volume Wed, 5 Nov 2014 00:01:00 EST Summer incentive programs at General Motors boosted Ally Financial's volume of subvented new-car loans by $800 million in the third quarter, the lender says. How to buy your next car in 31 minutes http://www.autonews.com/article/20141103/RETAIL/311039950/how-to-buy-your-next-car-in-31-minutes Mon, 3 Nov 2014 00:01:00 EST To see if Sonic Automotive's new approach to selling cars really works, Automotive News Staff Reporter Amy Wilson headed to the dealership group's trailblazing Town and Country Toyota store in Charlotte, N.C. Industry fishbowl: Everybody's watching Sonic http://www.autonews.com/article/20141103/RETAIL/311039952/industry-fishbowl-everybodys-watching-sonic Mon, 3 Nov 2014 00:01:00 EST The industry is closely watching Sonic Automotive Inc. as it seeks to reinvent auto retailing. GM pulls branded FandI sales from GM Financial http://www.autonews.com/article/20141103/FINANCE_AND_INSURANCE/311039978/gm-pulls-branded-fi-sales-from-gm-financial Mon, 3 Nov 2014 00:01:00 EST General Motors is bringing sales of its branded finance and insurance products in-house, taking over from captive finance company GM Financial, in a move designed to get those products on more GM dealerships' radar. SEC investigates Ally on subprime loans, securitization http://www.autonews.com/article/20141031/FINANCE_AND_INSURANCE/141039961/sec-investigates-ally-on-subprime-loans-securitization Fri, 31 Oct 2014 14:08:42 EST Ally Financial is being investigated by the Securities and Exchange with regard to 'subprime automotive finance and related securitization activities.' The story behind that list of dealership slang http://www.autonews.com/article/20141029/BLOG13/310299957/the-story-behind-that-list-of-dealership-slang Wed, 29 Oct 2014 00:01:00 EST FandI managers -- mostly appalled, but at least partly amused -- recently passed around online a link to a 'Car Dealer Dictionary' of dealership slang, including terms that are supposedly in use in FandI departments. GM takes charge of its branded FandI products http://www.autonews.com/article/20141029/FINANCE_AND_INSURANCE/141029829/gm-takes-charge-of-its-branded-fi-products Wed, 29 Oct 2014 06:53:02 EST General Motors is bringing the sales of its branded FandI 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'... Ally swings to $356 million Q3 profit on higher auto-loan demand http://www.autonews.com/article/20141029/FINANCE_AND_INSURANCE/141029822/ally-swings-to-356-million-q3-profit-on-higher-auto-loan-demand Wed, 29 Oct 2014 08:40:32 EST Ally Financial said that its third-quarter profit jumped from a year-earlier loss because of higher demand for loans from car dealerships. Huntington Bank focuses on internal auto loan growth http://www.autonews.com/article/20141029/FINANCE_AND_INSURANCE/141029827/huntington-bank-focuses-on-internal-auto-loan-growth Wed, 29 Oct 2014 07:22:18 EST Huntington Bank, of Columbus, Ohio, switched gears in the last year from expanding its footprint and adding new markets to cultivating more business with its existing dealer network. Captives see big rise in leases http://www.autonews.com/article/20141029/FINANCE_AND_INSURANCE/141029828/captives-see-big-rise-in-leases Wed, 29 Oct 2014 07:10:14 EST Leases accounted for almost half of GM Financial originations in the United States and Canada in the quarter. That's a big increase for the GM captive finance company and part of an industry trend that carried leasing to new highs. Q auto's sales strategy: 1 person, 1 price http://www.autonews.com/article/20141027/RETAIL04/310279993/q-autos-sales-strategy-1-person-1-price Mon, 27 Oct 2014 00:01:00 EST Casey Coffey said the goal at Q auto -- Asbury Automotive Group Inc.'s new line of used-only dealerships -- is to stock an array of quality used vehicles and make quick, no-hassle sales to consumers. Tesla offers leasing options for new Model S in U.S. http://www.autonews.com/article/20141027/RETAIL/141029868/tesla-offers-leasing-options-for-new-model-s-in-u-s Mon, 27 Oct 2014 06:49:42 EST Tesla Motors unveiled a leasing policy for its new Model S with an option for buyers in the United States to return the car within three months of purchase. M-B captive hikes online sales of off-lease cars http://www.autonews.com/article/20141027/RETAIL04/310279994/m-b-captive-hikes-online-sales-of-off-lease-cars Mon, 27 Oct 2014 00:01:00 EST An enhancement to Mercedes-Benz Financial Services' 24/7 online remarketing tool has helped the captive finance company boost online sales of off-lease vehicles to dealers. GM Financial faces government, state probes over subprime loans, securities http://www.autonews.com/article/20141023/OEM11/141029899/gm-financial-faces-government-state-probes-over-subprime-loans Thu, 23 Oct 2014 17:49:21 EST GM Financial disclosed Thursday it is being investigated by 'state attorneys general and other governmental offices' in connection with subprime auto loans and the sale of subprime auto loans in the form of asset-backed securities. GM Financial profits down despite higher volumes http://www.autonews.com/article/20141023/FINANCE_AND_INSURANCE/141029906/gm-financial-profits-down-despite-higher-volumes Thu, 23 Oct 2014 15:10:09 EST For the second quarter in a row, net income fell slightly for GM Financial despite sharply higher loan and lease originations. The captive finance company today reported net income of $158 million in the third quarter of 2014, down 1. Sonic learns the importance of paperwork, staffing http://www.autonews.com/article/20141022/FINANCE_AND_INSURANCE/310229982/sonic-learns-the-importance-of-paperwork-staffing Wed, 22 Oct 2014 00:01:00 EST In launching its One Sonic-One Experience initiative, Sonic Automotive had the technology, the store and the full attention of its top management committed to making it work. Anderson named CEO at Exeter Finance http://www.autonews.com/article/20141022/FINANCE_AND_INSURANCE/141029958/anderson-named-ceo-at-exeter-finance Wed, 22 Oct 2014 00:01:00 EST Subprime auto lender Exeter Finance Corp. named Thomas Anderson its CEO, succeeding Mark Floyd, who will continue to serve on the company's board of directors. Huntington, Fifth Third, Capital One target prime-risk auto loans http://www.autonews.com/article/20141022/FINANCE_AND_INSURANCE/310229981/huntington-fifth-third-capital-one-target-prime-risk-auto-loans Wed, 22 Oct 2014 00:01:00 EST Some big banks in auto lending are responding to tougher competition by zeroing in on prime-risk loans. Huntington Bank and Fifth Third Bank are restricting lending to prime contracts only. Why loan length doesn't matter http://www.autonews.com/article/20141022/BLOG13/310229980/why-loan-length-doesn-t-matter Wed, 22 Oct 2014 00:01:00 EST There's another reason not to fret over longer new-car loans: The numbers can be misleading. Consumer Portfolio grows, staffs up for tax-refund season http://www.autonews.com/article/20141022/FINANCE_AND_INSURANCE/310229983/consumer-portfolio-grows-staffs-up-for-tax-refund-season Wed, 22 Oct 2014 00:01:00 EST Consumer Portfolio Services increased auto originations 35 percent in the third quarter to $279.3 million, aided by a slowdown in subprime loans at competing lenders. Lithia expects flat per-unit FandI revenue through 2015 http://www.autonews.com/article/20141015/FINANCE_AND_INSURANCE/310159993/lithia-expects-flat-per-unit-fi-revenue-through-2015 Wed, 15 Oct 2014 00:01:00 EST Lithia Motors expects average FandI revenue per vehicle retailed to stay flat through the rest of 2014 and 2015, at the current level of about $1,200 on a same-store basis. TrueCar offers upfront pricing on document fees, dealer-added accessories http://www.autonews.com/article/20141015/FINANCE_AND_INSURANCE/141019926/truecar-offers-upfront-pricing-on-document-fees-dealer-added Wed, 15 Oct 2014 11:46:03 EST TrueCar, bidding to increase transparency of vehicle transaction costs, said its 9,000 dealer franchisees agreed to reveal all vehicle accessory and nongovernmental document fees when guaranteeing prices to TrueCar shoppers Wells Fargo, Chase boost auto lending http://www.autonews.com/article/20141015/FINANCE_AND_INSURANCE/310159994/wells-fargo-chase-boost-auto-lending Wed, 15 Oct 2014 00:01:00 EST Wells Fargo expects to keep its position as the No. 1 U.S. auto lender by volume as auto lenders report third-quarter results. Visions of a paper-free auto finance world http://www.autonews.com/article/20141015/BLOG13/310159991/visions-of-a-paper-free-auto-finance-world Wed, 15 Oct 2014 00:01:00 EST What will auto finance look like in 2020? Chase Auto Finance exec Bill Jensen did some speculating recently at the Auto Finance Summit in Las Vegas. CFPB faces legal hurdle in regulating FandI products http://www.autonews.com/article/20141015/FINANCE_AND_INSURANCE/141019937/cfpb-faces-legal-hurdle-in-regulating-fi-products Wed, 15 Oct 2014 00:01:00 EST It's clear the Consumer Financial Protection Bureau would like to increase regulation of what it calls 'add-on' FandI products such as extended-service contracts and GAP. Pohanka group prevails in suit over GAP coverage http://www.autonews.com/article/20141015/LEGALFILE/310159992/pohanka-group-prevails-in-suit-over-gap-coverage Wed, 15 Oct 2014 00:01:00 EST A proposed class-action suit challenging the validity of the GAP coverage sold by Pohanka group dealerships has been tossed by a federal judge in Baltimore. How to navigate the incentives maze http://www.autonews.com/article/20141013/FINANCE_AND_INSURANCE/310139999/how-to-navigate-the-incentives-maze Mon, 13 Oct 2014 00:01:00 EST From cash rebates to discount financing to lease subvention deals, complex automaker incentive programs keep dealership FandI departments constantly on their toes to find car buyers the best deals. Dealers to face more lender scrutiny http://www.autonews.com/article/20141008/FINANCE_AND_INSURANCE/310089998/dealers-to-face-more-lender-scrutiny Wed, 8 Oct 2014 00:01:00 EST Dealerships can expect more scrutiny from more lenders -- possibly including new attention aimed at leases -- when the 'larger participants' rule proposed last month by the Consumer Financial Protection Bureau is enacted, possibly by... TD Auto Finance sheds stores, eschews subprime http://www.autonews.com/article/20141008/FINANCE_AND_INSURANCE/310089999/td-auto-finance-sheds-stores-eschews-subprime Wed, 8 Oct 2014 00:01:00 EST TD Auto Finance has shed about 2,800 dealerships this year in its campaign to cut low-volume stores and concentrate on dealerships that send the most business. Many of the dealerships cut were independent, used-car stores. Subprime is no runaway train http://www.autonews.com/article/20141008/BLOG13/310089997/subprime-is-no-runaway-train Wed, 8 Oct 2014 00:01:00 EST There it goes again, as Ronald Reagan might have said. The New York Times is still hammering a theme that subprime auto loans will endanger the U.S. economy in the way that subprime mortgages helped bring about the Great Recession. GM Financial has big role in GM master plan http://www.autonews.com/article/20141008/FINANCE_AND_INSURANCE/141009802/gm-financial-has-big-role-in-gm-master-plan Wed, 8 Oct 2014 00:01:00 EST GM Financial will have an oversized role in General Motors' efforts to increase revenue, market share and customer loyalty in the U.S. and other mature markets through 2020, GM President Dan Ammann says. Sonic to launch captive -- in a few years http://www.autonews.com/article/20141006/RETAIL/310069969/sonic-to-launch-captive-in-a-few-years Mon, 6 Oct 2014 00:01:00 EST Sonic Automotive plans to launch a captive finance arm, but the startup date is at least four years away. %]