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, 5 Dec 2016 06:00:00 EST Auto finance, lending strengthen in Q3, Experian says http://www.autonews.com/article/20161205/FINANCE_AND_INSURANCE/161209934/auto-finance-lending-strengthen-in-q3-experian-says Mon, 5 Dec 2016 13:20:04 EST With more creditworthy consumers financing vehicles in the third quarter, and fewer high-risk folks, the auto finance market is strengthening overall, Experian reports. Discounting fears of an auto loan bubble http://www.autonews.com/article/20161130/BLOG13/311309996/discounting-fears-of-an-auto-loan-bubble Wed, 30 Nov 2016 12:15:00 EST Auto lending is not pushing the economy into a downward spiral. AutoNation's move into branded F&I products brings profit payoff http://www.autonews.com/article/20161130/FINANCE_AND_INSURANCE/311309912/autonations-move-into-branded-fi-products-brings-profit-payoff Wed, 30 Nov 2016 11:45:00 EST CEO Mike Jackson credits AutoNation's consistent gains in FandI gross profit to its branded product line. AutoNation began selling private-label FandI products at its stores at the end of last year and online in the first quarter of 2016. Mobile leasing app expands its dealership reach http://www.autonews.com/article/20161130/FINANCE_AND_INSURANCE/161129867/mobile-leasing-app-expands-its-dealership-reach Wed, 30 Nov 2016 12:15:00 EST Mobile leasing app Honcker, officially launched mid-November, has signed more than 200 new-car dealerships in five states onto its leasing platform. The app enables consumers to strike a lease deal without entering a showroom. Tighter credit, CFPB shift seen as reasons for optimism in 2017 http://www.autonews.com/article/20161130/FINANCE_AND_INSURANCE/311309997/tighter-credit-cfpb-shift-seen-as-reasons-for-optimism-in-2017 Wed, 30 Nov 2016 12:15:00 EST Looking to 2017, Jack Tracey, executive director of the National Automotive Finance Association, sees two reasons for optimism: Funding is getting tighter for subprime lenders and the CFPB will shift to rulemaking rather than enforcement. Markup checks bring charges http://www.autonews.com/article/20161128/LEGALFILE/311289991/markup-checks-bring-charges Mon, 28 Nov 2016 00:01:00 EST The former general manager of Ford Motor and Fiat Chrysler dealerships in Jasper, Ala., faces prison, a $250,000 fine and $914,000 in restitution if convicted of conspiracy, bank fraud and wire fraud in an alleged scheme to rip off the stores. Andrea Riley http://www.autonews.com/article/20161128/OEM02/311289967/andrea-riley Mon, 28 Nov 2016 00:01:00 EST Andrea Riley, chief marketing officer for Ally Financial, has given the auto lending community a face-lift through Ally's marketing efforts. Helping shoppers start their financing online http://www.autonews.com/article/20161123/FINANCE_AND_INSURANCE/311239994/helping-shoppers-start-their-financing-online Wed, 23 Nov 2016 11:15:00 EST Equifax sees mounting evidence that car shoppers are ready to do more of the financing process online -- and it has the tools to help make that happen. CPO sales boost F&I profits more than non-CPO used sales http://www.autonews.com/article/20161123/FINANCE_AND_INSURANCE/311239993/cpo-sales-boost-fi-profits-more-than-non-cpo-used-sales Wed, 23 Nov 2016 11:15:00 EST In an industry where some indicators are starting to turn negative, certified pre-owned sales can help to boost not only overall sales and customer service loyalty but FandI profits as well, experts say. 49 dealers nominated for Time magazine award http://www.autonews.com/article/20161123/RETAIL/161129944/49-dealers-nominated-for-time-magazine-award Wed, 23 Nov 2016 07:36:10 EST Forty-nine U.S. auto dealers have been nominated by automotive trade associations for the 2017 Time Dealer of the Year award. The nominees were announced by Time and Ally Financial, the sponsor. Pitch women on practicality, men on luxury http://www.autonews.com/article/20161123/BLOG13/311239992/pitch-women-on-practicality-men-on-luxury Wed, 23 Nov 2016 11:15:00 EST Women may be more practical lease shoppers than men. They secure lower monthly payments, and they tend to exit leases out of need, rather than want, more often than men. Subprime auto lenders tighten up http://www.autonews.com/article/20161123/FINANCE_AND_INSURANCE/161129956/subprime-auto-lenders-tighten-up Wed, 23 Nov 2016 11:00:00 EST The latest data from Standard and Poor's confirm that subprime auto loans are becoming a little harder to get. How Trump's election could limit the CFPB http://www.autonews.com/article/20161123/FINANCE_AND_INSURANCE/311239995/how-trumps-election-could-limit-the-cfpb Wed, 23 Nov 2016 00:01:00 EST Donald Trump's presidential win is expected to bring significant changes to the way the Consumer Financial Protection Bureau operates, the head of the American Financial Services Association says. Using data to sell F&I add-ons http://www.autonews.com/article/20161123/FINANCE_AND_INSURANCE/311239996/using-data-to-sell-fi-add-ons Wed, 23 Nov 2016 00:01:00 EST What's the next tool for boosting your finance and insurance department? Data, JMandA Group says. Chase names CEO for Auto Finance http://www.autonews.com/article/20161117/OEM02/161119853/chase-names-ceo-for-auto-finance Thu, 17 Nov 2016 13:00:01 EST JPMorgan Chase and Co. named Mark O'Donovan, a 20-year Chase veteran, CEO of Auto Finance, effective immediately, a spokesman told Automotive News. He succeeds Thasunda Duckett, who became CEO of Consumer Banking in September. Lincoln, Ford finance arms take top spots in J.D. Power consumer satisfaction study http://www.autonews.com/article/20161117/RETAIL/161119843/lincoln-ford-finance-arms-take-top-spots-in-j-d-power-consumer Thu, 17 Nov 2016 15:04:22 EST For the second year in a row, the captive finance arms for Lincoln and Ford topped the rankings of the J.D. Power 2016 U.S. Consumer Financing Satisfaction Study. Ford cuts 2017 profit forecast at credit arm http://www.autonews.com/article/20161117/OEM/161119857/ford-cuts-2017-profit-forecast-at-credit-arm Thu, 17 Nov 2016 10:15:59 EST Ford lowered the 2017 pretax profit forecast for its financial services arm by $300 million to about $1.5 billion, due to lower auction values for used vehicles. How Trump's election could limit the CFPB http://www.autonews.com/article/20161116/FINANCE_AND_INSURANCE/161119872/how-trumps-election-could-limit-the-cfpb Wed, 16 Nov 2016 14:33:27 EST The election of President Trump is expected to bring significant changes to the way the Consumer Financial Protection Bureau operates, the head of the American Financial Services Association said today. Used-vehicle leases have trouble competing, executive says http://www.autonews.com/article/20161116/FINANCE_AND_INSURANCE/311169994/used-vehicle-leases-have-trouble-competing-executive-says Wed, 16 Nov 2016 11:00:00 EST Used-vehicle leases, once seen as a possible way to cope with a rising tide of off-lease vehicles coming into the used-car market, have proved uncompetitive so far, an Ally Financial executive said. For Calif., Texas stores, F&I moves online, saving time http://www.autonews.com/article/20161116/FINANCE_AND_INSURANCE/161119895/for-calif-texas-stores-fi-moves-online-saving-time Wed, 16 Nov 2016 11:30:00 EST Dealerships in California and Texas have reduced the time consumers spend in the FandI office since Drive Motors partnered with RouteOne and Dealertrack to enable customers to submit finance and credit data online. Why short-time owners should try leasing http://www.autonews.com/article/20161116/FINANCE_AND_INSURANCE/311169995/why-short-time-owners-should-try-leasing Wed, 16 Nov 2016 11:30:00 EST As the economy strengthens, more consumers are trading in their vehicles mid-loan to purchase a new one, despite carrying negative equity, Edmunds.com says. For some of those short-time owners, leasing may be a better option. New credit evaluation tool aims to help lenders tailor offerings http://www.autonews.com/article/20161116/FINANCE_AND_INSURANCE/311169996/new-credit-evaluation-tool-aims-to-help-lenders-tailor-offerings Wed, 16 Nov 2016 11:45:00 EST The major credit bureaus over the past few years have come up with ways to measure the creditworthiness of customers beyond evaluating their credit scores. Steer customers clear of negative equity with a lease http://www.autonews.com/article/20161116/BLOG13/311169997/steer-customers-clear-of-negative-equity-with-a-lease Wed, 16 Nov 2016 11:15:00 EST About a third of consumers who had negative equity on their vehicles traded them in for a new one so far this year, despite the fact that they were upside down. Chevy forges off-road cred with Colorado ZR2 http://www.autonews.com/article/20161115/OEM04/311159904/chevy-forges-off-road-cred-with-colorado-zr2 Tue, 15 Nov 2016 20:30:00 EST Chevrolet hopes to take advantage of surging demand for midsize pickups with an off-road, high-performance version of the Colorado. NADA forecasts 2017 U.S. new-vehicle sales to remain above 17 million http://www.autonews.com/article/20161115/RETAIL01/161119907/nada-forecasts-2017-u-s-new-vehicle-sales-to-remain-above-17-million Tue, 15 Nov 2016 12:00:00 EST U.S. new-vehicle sales will stay above 17 million for a third straight year in 2017, Steven Szakaly, chief economist of the National Automobile Dealers Association, said as the group issued its annual forecast. Reynolds sells a revolution http://www.autonews.com/article/20161114/RETAIL/311149988/reynolds-sells-a-revolution Mon, 14 Nov 2016 00:01:00 EST Reynolds and Reynolds President Ron Lamb has reinvented the software giant, with new code and products built around his vision of the dealership of the future. Keeping track of F&I chargebacks http://www.autonews.com/article/20161114/FINANCE_AND_INSURANCE/311149997/keeping-track-of-fi-chargebacks Mon, 14 Nov 2016 00:01:00 EST As dealers work to bolster FandI profits, it's vital they keep a close watch on chargebacks. Using data to sell F&I add-ons http://www.autonews.com/article/20161114/FINANCE_AND_INSURANCE/311149996/using-data-to-sell-fi-add-ons Mon, 14 Nov 2016 00:01:00 EST What's the next tool for boosting your finance and insurance department? Data, JMandA Group says. Dealer group smells opportunity with CFPB http://www.autonews.com/article/20161112/RETAIL07/311149941/dealer-group-smells-opportunity-with-cfpb Sat, 12 Nov 2016 00:01:00 EST Don Hall, president of the Virginia Automobile Dealers Association, says he's energized about what the Donald Trump win means for dealer concerns, particularly the attempts to fend off the Consumer Financial Protection Bureau. Trump, GOP Congress may curtail CFPB oversight of auto lending http://www.autonews.com/article/20161109/FINANCE_AND_INSURANCE/311099909/trump-gop-congress-may-curtail-cfpb-oversight-of-auto-lending Wed, 9 Nov 2016 12:45:00 EST After a contentious and unpredictable election, Donald Trump's incoming presidency and a now continuing Republican-led Congress may be a win for dealers and auto lenders hoping to curtail auto lending guidance from the Consumer Financial Protection... Volvo, JM&A partner to expand F&I products for dealers http://www.autonews.com/article/20161109/FINANCE_AND_INSURANCE/161109844/volvo-jma-partner-to-expand-fi-products-for-dealers Wed, 9 Nov 2016 11:45:00 EST To expand FandI business at its U.S. dealerships, Volvo Car USA has partnered with JMandA Group to offer a suite of branded FandI products and on-site training at each store beginning in January. Auto loan growth slows in Q2 http://www.autonews.com/article/20161109/FINANCE_AND_INSURANCE/311099997/auto-loan-growth-slows-in-q2 Wed, 9 Nov 2016 11:45:00 EST In the second quarter, auto loan originations grew at the slowest pace since 2009 as the rate of new-vehicle sales gains slowed, TransUnion said. Loan originations, which TransUnion reports one quarter in arrears, totaled 7. Loan eligibility to grow as credit blots from Great Recession ebb http://www.autonews.com/article/20161109/FINANCE_AND_INSURANCE/311099998/loan-eligibility-to-grow-as-credit-blots-from-great-recession-ebb Wed, 9 Nov 2016 12:00:00 EST This year more consumers will be eligible for auto and other loans as they erase the blots left by the Great Recession from their credit reports. Foreclosures, short sales and bankruptcies will fall from the credit files of 2. Second chances pay off http://www.autonews.com/article/20161109/BLOG13/311109999/second-chances-pay-off Wed, 9 Nov 2016 12:15:00 EST Giving second chances to consumers with credit profiles previously tainted with foreclosures and short sales is paying off. Floorplanning is a plus of franchises http://www.autonews.com/article/20161107/RETAIL07/311079976/floorplanning-is-a-plus-of-franchises Mon, 7 Nov 2016 00:01:00 EST The dealers are the manufacturers' customers. Penske Automotive pilots docuPAD in U.S. stores http://www.autonews.com/article/20161102/FINANCE_AND_INSURANCE/311029996/penske-automotive-pilots-docupad-in-u-s-stores Wed, 2 Nov 2016 11:45:00 EST Penske Automotive is testing Reynolds' docuPAD at five U.S. dealerships to improve FandI profits and transaction times. The dealership group is on the cusp of deciding whether to put the technology in all of its U.S. stores. Lenders showed some caution in Q3 http://www.autonews.com/article/20161102/FINANCE_AND_INSURANCE/161109979/lenders-showed-some-caution-in-q3 Wed, 2 Nov 2016 11:00:00 EST Auto lenders' third-quarter results confirm what FandI managers on the front lines may have already sensed: Some have reined in lending. Public groups post higher F&I gross profit per vehicle; Lithia, Asbury see growth ahead http://www.autonews.com/article/20161102/FINANCE_AND_INSURANCE/311029995/public-groups-post-higher-fi-gross-profit-per-vehicle-lithia-asbury Wed, 2 Nov 2016 11:00:00 EST There's upside in FandI, Lithia and Asbury say. Lithia has consistently improved its FandI performance. While Asbury's FandI gross profit per unit retailed was essentially flat in the third quarter, executives say there's room for growth. Dealers, take a big role in online financing http://www.autonews.com/article/20161102/BLOG13/311029994/dealers-take-a-big-role-in-online-financing Wed, 2 Nov 2016 11:45:00 EST Customers want to be in control of their vehicle purchase, but if they're in the car-buying driver's seat, dealers at least need to be the navigators. Embrace online sales, Cox exec tells dealers http://www.autonews.com/article/20161031/RETAIL07/310319989/embrace-online-sales-cox-exec-tells-dealers Mon, 31 Oct 2016 00:01:00 EST Many dealers are consumed with worries about their role in an autonomous-driving world, but first on their agenda should be selling cars online, Cox Automotive COO Mark O'Neil says. AutoNation, TrueCar: Pals again http://www.autonews.com/article/20161031/RETAIL07/310319944/autonation-truecar-pals-again Mon, 31 Oct 2016 00:01:00 EST AutoNation is restoring TrueCar to all stores by the end of this year, closing a bitter split between the two companies. Hard choices for public retailers http://www.autonews.com/article/20161031/RETAIL07/310319946/hard-choices-for-public-retailers Mon, 31 Oct 2016 00:01:00 EST Several public auto-retailer CEOs noted, in remarks following third-quarter earnings releases, the difficulty of balancing volume against profit amid sometimes unrealistic stair-step incentive targets set by automakers. Ally Financial net income down as it repositions for digital growth http://www.autonews.com/article/20161026/FINANCE_AND_INSURANCE/161029887/ally-financial-net-income-down-as-it-repositions-for-digital-growth Wed, 26 Oct 2016 12:10:03 EST Ally Financial, one of the nation's largest auto lenders, reported lower net income in the third quarter, while net financing revenue inched up. Amid industry turmoil, 'Thank God for F&I' http://www.autonews.com/article/20161026/BLOG13/161029892/amid-industry-turmoil-thank-god-for-fi Wed, 26 Oct 2016 10:45:00 EST Front-end margins are tightening, dealership-automaker relationships are on edge, and regulators are more stringent. Amidst all that, dealers love FandI. Why 2 banks are pursuing margins, not auto loan volume http://www.autonews.com/article/20161026/FINANCE_AND_INSURANCE/161029886/why-2-banks-are-pursuing-margins-not-auto-loan-volume Wed, 26 Oct 2016 12:27:47 EST At a time when industry watchers are fretting over rising risk in auto lending, two big regional banks are dialing back on auto volume in pursuit of higher margin business, with one bank shunning risk and raising loan pricing and the other purposely... Ally's Riley on millennials, online sales http://www.autonews.com/article/20161026/FINANCE_AND_INSURANCE/161029895/allys-riley-on-millennials-online-sales Wed, 26 Oct 2016 10:30:00 EST Andrea Riley, Ally Financial's chief marketing officer, spoke recently with Automotive News about millennials' approach to automotive lending, as well as the prospect of online sales and what it might mean for direct and indirect lending. Expect no-interest deals, loan terms to fall in Q4 http://www.autonews.com/article/20161019/FINANCE_AND_INSURANCE/310059994/expect-no-interest-deals-loan-terms-to-fall-in-q4 Wed, 19 Oct 2016 11:30:00 EST Zero percent financing deals as a share of all new-vehicle sales rose last month, and loan terms reached their highest level since 2002. But if this year aligns with previous trends, the numbers are about to fall. Mass. Lexus store loses bid to toss punitive damages in sexual harassment suit http://www.autonews.com/article/20161019/LEGALFILE/310199996/mass-lexus-store-loses-bid-to-toss-punitive-damages-in-sexual Wed, 19 Oct 2016 11:45:00 EST A former dealership finance manager who was fired after complaining about repeated sexual harassment by the storeandrsquo;s finance director is entitled to both punitive and compensatory damages, the highest court in Massachusetts has... Embrace tools that help dealers, lenders relate http://www.autonews.com/article/20161019/BLOG13/310199997/embrace-tools-that-help-dealers-lenders-relate Wed, 19 Oct 2016 11:45:00 EST Equifax has introduced a new tool to help lenders gain market intelligence and better relate to their dealership partners. Without a direct connection, it acknowledges one of dealers' top concerns. Ruling on CFPB's structure won't diminish its attack on reserve http://www.autonews.com/article/20161019/FINANCE_AND_INSURANCE/161019847/ruling-on-cfpbs-structure-wont-diminish-its-attack-on-reserve Wed, 19 Oct 2016 00:01:00 EST The U.S. Court of Appeals ruled last week that the Consumer Financial Protection Bureau is unconstitutionally structured and must abide by the statute of limitations in all enforcement actions.