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, 20 Nov 2017 06:00:00 EST Wells Fargo dismisses head of consumer lending http://www.autonews.com/article/20171117/FINANCE_AND_INSURANCE/171119794/wells-fargo-dismisses-head-of-consumer-lending Fri, 17 Nov 2017 14:12:16 EST Franklin Codel, the head of consumer lending at Wells Fargo, was fired over unsuitable communications he had with a former employee, the bank said, the latest upheaval at a lender roiled by scandal for more than a year. Cordray to resign from CFPB, may run for Ohio governor http://www.autonews.com/article/20171115/FINANCE_AND_INSURANCE/171119839/cordray-resigns-cfpb-executive-politics Wed, 15 Nov 2017 11:59:49 EST Richard Cordray plans to step down as head of the Consumer Financial Protection Bureau, the controversial consumer watchdog created by President Obama following the 2008-09 financial crisis, amid growing speculation that he will run for governor of... Dealers crucial for vehicle purchase, J.D. Power study finds http://www.autonews.com/article/20171115/RETAIL01/171119837/dealers-crucial-for-vehicle-purchase-j-d-power-study-finds Wed, 15 Nov 2017 12:44:56 EST Online tools may make it easier for consumers to shop for vehicles and products at home, but interacting with a salesperson is a key component of high customer sales satisfaction, a J.D. Power study finds. Subprime pressuring delinquencies, N.Y. Fed says http://www.autonews.com/article/20171115/FINANCE_AND_INSURANCE/171119838/subprime-pressuring-delinquencies-n-y-fed-says Wed, 15 Nov 2017 12:33:21 EST The overall delinquency rate for auto loans is slowly increasing, but not alarmingly, and that's masking a worse performance for subprime auto loans, according to the Federal Reserve Bank of New York. FandI managers' skills will continue to be critical http://www.autonews.com/article/20171115/BLOG13/171119843/fi-managers-skills-will-continue-to-be-critical Wed, 15 Nov 2017 11:19:33 EST Creating one adviser role for sales and FandI doesn't necessarily call for the demise of the FandI manager. Mobile technology spurs FandI sales at Straub Automotive http://www.autonews.com/article/20171115/FINANCE_AND_INSURANCE/171119847/mobile-technology-spurs-fi-sales-at-straub-automotive Wed, 15 Nov 2017 11:02:21 EST A West Virginia dealership group has solid evidence that its use of mobile technology in the showroom spurs FandI sales. Product sales drive growth in FandI profit for 4 publics http://www.autonews.com/article/20171113/FINANCE_AND_INSURANCE/171119995/product-sales-drive-growth-in-fi-profit-for-4-publics Mon, 13 Nov 2017 00:01:00 EST Four of the six public new-car retailers boosted FandI gross profit per vehicle in the third quarter, while the other two posted declines. Ford, Lincoln captives top consumer financing satisfaction study -- again http://www.autonews.com/article/20171113/FINANCE_AND_INSURANCE/171119901/ford-lincoln-lending-jdpower-customer-satisfaction Mon, 13 Nov 2017 13:32:56 EST Lincoln Automotive Financial Services and Ford Motor Credit have locked in another year atop the rankings of J.D. Power's annual Consumer Financing Satisfaction Study. Dealers should help their customers with consumer side of parts anti-trust case http://www.autonews.com/article/20171113/BLOG06/171119909/dealers-suppliers-antitrust-retail-consumer-litigation Mon, 13 Nov 2017 09:44:24 EST There's an opportunity for dealers in regions of the country eligible to benefit from a massive auto parts antitrust class action settlement now being adjudicated. FandI process shares computer screens with customers to build trust http://www.autonews.com/article/20171113/FINANCE_AND_INSURANCE/171119996/fi-process-shares-computer-screens-with-customers-to-build-trust Mon, 13 Nov 2017 00:01:00 EST At Schomp Automotive Group, customer-facing software smooths a one-person, one-price, one-hour car-buying process. Stores must adjust communication http://www.autonews.com/article/20171113/RETAIL07/171119959/stores-must-adjust-communication Mon, 13 Nov 2017 00:01:00 EST Project XX will hopefully launch many conversations in an industry that has spoken little about sexism. Law center wrong about add-ons http://www.autonews.com/article/20171113/OEM11/171119961/law-center-wrong-about-add-ons Mon, 13 Nov 2017 00:01:00 EST The 'Auto Add-ons Add Up' study published by the National Consumer Law Center last month is too biased to be accorded the weight of empirically derived, credible research. Experts question CFPB's warning on longer loans http://www.autonews.com/article/20171108/FINANCE_AND_INSURANCE/171109801/experts-question-cfpbs-warning-on-longer-loans Wed, 8 Nov 2017 11:12:02 EST A new CFPB report suggests that the spread of longer-term auto loans poses increasing risks for consumers and lenders. Outside experts disagree. New-car down payments climb http://www.autonews.com/article/20171108/FINANCE_AND_INSURANCE/171109800/new-car-down-payments-climb Wed, 8 Nov 2017 11:12:12 EST Customer down payments on new-vehicle loans rose more than 10 percent year over year in October, and the average interest rate increased, Edmunds says. Time to organize around empowering women http://www.autonews.com/article/20171108/BLOG13/171109797/time-to-organize-around-empowering-women Wed, 8 Nov 2017 11:18:48 EST Dealership-sponsored female leadership groups could give women the empowerment and camaraderie they need to stay in auto retail and reap its benefits. E-contracts are not just safer, they could be cheaper, too http://www.autonews.com/article/20171108/FINANCE_AND_INSURANCE/171109798/e-contracts-are-not-just-safer-they-could-be-cheaper-too Wed, 8 Nov 2017 11:17:59 EST The regulatory compliance benefits of electronic contracting also could have financial benefits for dealerships, saving them as much as hundreds of thousands of dollars in fines. Ally provides $2 billion in financing to Carvana http://www.autonews.com/article/20171107/RETAIL/171109822/ally-provides-2-billion-in-financing-to-carvana Tue, 7 Nov 2017 16:00:00 EST Ally Financial is tripling its bet on one of the auto industry's disrupters by committing $2 billion to finance retail contracts for online used-vehicle retailer Carvana over the next year. Primm: Many women already have the skills dealerships look for http://www.autonews.com/article/20171106/RETAIL07/171109872/michelle-primm-automotive-news-leading-women Mon, 6 Nov 2017 00:01:00 EST Dealer Michelle Primm said more women need to be made aware of the numerous career opportunities in automotive retailing. CDK demands commitment from dealers http://www.autonews.com/article/20171106/RETAIL07/171109889/cdk-demand-commitment-from-dealers Mon, 6 Nov 2017 00:01:00 EST In October, stores using CDK Global's dealership management systems on month-to-month arrangements found out they had little time to make a big decision: Sign multiyear contracts with CDK or quickly find a new provider. Conant Auto Retail Group to pay $1.4 million to settle FTC claims http://www.autonews.com/article/20171106/RETAIL/171109851/conant-auto-retail-group-to-pay-1-4-million-to-settle-ftc-claims Mon, 6 Nov 2017 16:40:02 EST The California dealership group will pay $1.4 million for violating a 2014 FTC order that prohibited it from false advertising of financing terms. As change sweeps the industry, what will become of automakers, suppliers, dealers? http://www.autonews.com/article/20171105/INDUSTRY_REDESIGNED/171109933/redesigning-the-industry Sun, 5 Nov 2017 00:01:00 EST Emerging technology will ultimately lead to fully self-driving vehicles. Mass-market electrified vehicles also are gaining ground rapidly. Bob Lutz: Kiss the good times goodbye http://www.autonews.com/article/20171105/INDUSTRY_REDESIGNED/171109944/industry-redesigned-bob-lutz Sun, 5 Nov 2017 00:01:00 EST It saddens me to say it, but the auto industry is on an accelerating change curve. We are approaching the end of the automotive era. Ford Credit boosts Q3 pretax profit despite lending cutback http://www.autonews.com/article/20171101/FINANCE_AND_INSURANCE/171109991/ford-credit-q3-earnings-fi Wed, 1 Nov 2017 10:45:00 EST Ford Motor Credit increased its pretax profit in the third quarter despite sticking to a strategy of "disciplined" lending, including buying fewer finance contracts from dealers. Hurricanes spur GAP claims, sales http://www.autonews.com/article/20171101/FINANCE_AND_INSURANCE/171109987/hurricanes-finance-gap-claims-rise Wed, 1 Nov 2017 10:45:00 EST In the aftermath of hurricanes Harvey and Irma, guaranteed asset protection claims have jumped, FandI product providers say. And some finance managers are using the storms as a tool when presenting GAP to customers. Are some privacy concerns overblown? http://www.autonews.com/article/20171101/BLOG13/171109992/dealer-retail-privacy-fi-showroom Wed, 1 Nov 2017 10:45:00 EST Consumers are used to the sharing culture. A dealer I talked with recently said his stores handle the entire FandI process on the showroom floor - with little negative feedback. Public dealer groups predict turnaround http://www.autonews.com/article/20171030/RETAIL07/171039961/public-dealer-groups-predict-turnaround Mon, 30 Oct 2017 00:01:00 EST Public dealership groups had a mixed third quarter, depending on how hard they were hit by hurricanes. But all predicted a robust fourth quarter. Here's why. Dealerships swindled by hacker battle over blame http://www.autonews.com/article/20171030/LEGALFILE/171039998/dealership-fraud-hacker-battle-over-blame Mon, 30 Oct 2017 00:01:00 EST A costly dealership vs. dealership dispute in which a hacker victimized both stores "provides a reminder that on the Internet, no one knows you're a dog." Used-car fraud ring targets automated payoff systems http://www.autonews.com/article/20171028/RETAIL04/171039994/used-car-fraud-ring-targets-payment Sat, 28 Oct 2017 00:01:00 EST Dealers and lenders are getting stung by a new type of used-vehicle sales fraud that takes advantage of banks' automated payoff systems. FandI penetration rates dip in first half http://www.autonews.com/article/20171025/FINANCE_AND_INSURANCE/171029829/fi-penetration-rates-dip-in-first-half Wed, 25 Oct 2017 11:15:00 EST Penetration rates for FandI products declined at U.S. dealerships in the first half of the year, NADA Data show. Ally reduces leasing in Q3 http://www.autonews.com/article/20171025/FINANCE_AND_INSURANCE/171029830/ally-reduces-leasing-in-q3 Wed, 25 Oct 2017 10:49:39 EST Ally Financial's auto loan and lease originations dipped 1.2 percent to $8.1 billion in the third quarter, the company said Wednesday. Ally has targeted reducing lease volume. CFPB's arbitration rule overturned by Senate vote http://www.autonews.com/article/20171025/FINANCE_AND_INSURANCE/171029834/cfpbs-arbitration-rule-overturned-by-senate-vote Wed, 25 Oct 2017 10:20:00 EST The Senate moved to overturn a rule aimed at making it easier for customers to sue banks, handing financial firms a big win in their battle against post-crisis regulations. Assurant boosts auto presence with Warranty Group acquisition http://www.autonews.com/article/20171025/FINANCE_AND_INSURANCE/171029828/assurant-boosts-auto-presence-with-warranty-group-acquisition Wed, 25 Oct 2017 11:05:23 EST Assurant's planned acquisition of the Warranty Group next year will give Assurant a larger presence in the market and better position both companies for the future of auto retail, their executives say. Capital One, GM Financial boost originations http://www.autonews.com/article/20171025/FINANCE_AND_INSURANCE/171029827/capital-one-gm-financial-boost-originations Wed, 25 Oct 2017 11:36:06 EST Capital One Bank and GM Financial both said this week they are continuing to grow auto finance. The companies' moves are in contrast with banks that are cutting back on auto loans. FandI provides lift amid hurricanes http://www.autonews.com/article/20171025/BLOG13/171029826/fi-provides-lift-amid-hurricanes Wed, 25 Oct 2017 12:04:55 EST In a tough quarter for most dealerships in the southern U.S., two public retailers say they got a boost from FandI. Don't say that! 14 words and phrases that can short-circuit FandI http://www.autonews.com/article/20171025/FINANCE_AND_INSURANCE/171029839/dont-say-that-14-words-and-phrases-that-can-short-circuit-fi Wed, 25 Oct 2017 11:00:00 EST In the crush of business, even seasoned FandI professionals can slip up and inadvertently antagonize a customer. Some auto dealers shun e-contracting, preferring paper http://www.autonews.com/article/20171023/FINANCE_AND_INSURANCE/171029934/digital-contracting Mon, 23 Oct 2017 00:01:00 EST Going digital can be worrisome for dealership employees who have been handling deals the same way for decades. Getting employees to buy into e-contracts is the hardest part http://www.autonews.com/article/20171023/FINANCE_AND_INSURANCE/171029939/e-contract-route-one Mon, 23 Oct 2017 00:01:00 EST E-contracting doesn't require much training, but getting employees on board can be a sizable hurdle. Will products be J.D. Power in name only? http://www.autonews.com/article/20171023/FINANCE_AND_INSURANCE/171029957/will-products-be-j-d-power-in-name-only Mon, 23 Oct 2017 00:01:00 EST I would be very interested to see if these finance and insurance offerings are just branded J.D. Power, similar to the General Motors products, or if they are indeed J.D. Power's own products. Wells Fargo faulted by U.S. regulator for auto insurance abuses, report says http://www.autonews.com/article/20171020/RETAIL/171029936/wells-fargo-faulted-by-u-s-regulator-for-auto-insurance-abuses Fri, 20 Oct 2017 13:43:49 EST Wells Fargo wrongly pushed auto insurance on customers who did not need it and took too long to halt the abuse, the New York Times reported, citing a confidential report. Consumer group wants set pricing for FandI products http://www.autonews.com/article/20171018/FINANCE_AND_INSURANCE/171019664/consumer-group-wants-set-pricing-for-fi-products Wed, 18 Oct 2017 11:23:10 EST A consumer advocacy group wants the Consumer Financial Protection Bureau and other agencies to regulate pricing of FandI products, such as extended service contracts, based in part on data that allegedly show dealerships have charged Hispanic... Wells Fargo, Chase clip auto originations http://www.autonews.com/article/20171018/FINANCE_AND_INSURANCE/171019666/wells-fargo-chase-clip-auto-originations Wed, 18 Oct 2017 11:18:09 EST Third-quarter auto loan and lease originations dropped 47 percent at Wells Fargo and 5 percent at Chase as the lenders continued to tighten their credit standards. N.Y. dealership groups to pay more than $1 million for illegal product sales http://www.autonews.com/article/20171018/LEGALFILE/171019667/n-y-dealership-groups-to-pay-more-than-1-million-for-illegal-product Wed, 18 Oct 2017 11:16:50 EST Two New York City-area dealership groups agreed to pay more than $1 million combined in restitution and penalties for selling allegedly illegal identity-theft protection and credit-repair services. The dealerships did not admit to any violations. J.D. Power counts on name recognition for success of new FandI products http://www.autonews.com/article/20171018/FINANCE_AND_INSURANCE/171019665/j-d-power-counts-on-name-recognition-for-success-of-new-fi-products Wed, 18 Oct 2017 11:22:27 EST J.D. Power says brand recognition will make its new suite of FandI products stand out, despite a crowded market. The company launched the suite last month at 10 dealerships in the Southeast. What's in a name? A lot http://www.autonews.com/article/20171018/BLOG13/171019663/whats-in-a-name-a-lot Wed, 18 Oct 2017 11:24:30 EST Brand recognition goes a long way -- even with FandI products. Dealers must retool retail http://www.autonews.com/article/20171016/RETAIL07/171019742/dealer-don-flow-we-must-retool-retail Mon, 16 Oct 2017 00:01:00 EST Dealers can reshape auto retailing by embracing new business models and developing value propositions that meet the needs of today's consumers, says Don Flow, CEO of Flow Automotive Cos. Hyundai Shopper Assurance retail plan borrows from '09 playbook http://www.autonews.com/article/20171016/RETAIL03/171019756/hyundai-shopper-assurance Mon, 16 Oct 2017 00:01:00 EST Hyundai Motor America CMO Dean Evans predicts that with new vehicles luring first-time Hyundai shoppers and the Shopper Assurance program promoting loyalty, Hyundai could post a 10 percent sales gain over 2017. How a dealer's Tires for Life program avoids potholes http://www.autonews.com/article/20171016/RETAIL07/171019816/mastria-nissan-tires-for-life Mon, 16 Oct 2017 00:01:00 EST Mastria Nissan, of Raynham, Mass., carefully manages its Tires for Life program so as to avoid hurting its bottom line while raising its service retention rate. New Washington, new dialogue for industry, CFPB http://www.autonews.com/article/20171011/BLOG13/171019844/new-washington-new-dialogue-for-industry-cfpb Wed, 11 Oct 2017 11:18:46 EST One clear benefit for retailers and lenders under the Trump administration? A better relationship between industry associations and the CFPB. Nonprime financing survey finds more risk, less profit http://www.autonews.com/article/20171011/FINANCE_AND_INSURANCE/171019842/nonprime-financing-survey-finds-more-risk-less-profit Wed, 11 Oct 2017 11:22:57 EST Higher risk and lower returns in subprime auto lending in 2016 set the stage for a continuing pullback in subprime volume in 2017, according to the 2017 Non-Prime Automotive Financing Survey. FandI profits exceed vehicle profits as dealers' aftermarket acumen grows http://www.autonews.com/article/20171011/FINANCE_AND_INSURANCE/171019843/fi-profits-exceed-vehicle-profits-as-dealers-aftermarket-acumen-grows Wed, 11 Oct 2017 11:20:03 EST Strip away manufacturers' dealer incentives, and FandI gross profit on new vehicles is exceeding vehicle gross profit, according to the latest benchmark data from DealerStrong.