Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Thu, 16 Aug 2018 06:00:00 EST Mercedes-Benz captive, VW Credit top J.D. Power dealer study of financing appeal http://www.autonews.com/article/20180815/FINANCE_AND_INSURANCE/180819887/mercedes-benz-captive-vw-credit-top-j-d-power-dealer-study-of Wed, 15 Aug 2018 11:28:48 EST Mercedes-Benz Financial, Volkswagen Credit and Citizens One Auto Finance are top lenders in their categories as ranked by dealers, J.D. Power finds. Selling service contracts after the vehicle sale is a winner http://www.autonews.com/article/20180815/BLOG13/180819883/selling-service-contracts-after-transaction-jackie-charniga Wed, 15 Aug 2018 11:58:21 EST Selling service contracts post-transaction to customers can be a lucrative profit booster, FandI experts say. As rates rise, automakers slash 0% financing http://www.autonews.com/article/20180815/FINANCE_AND_INSURANCE/180819885/as-rates-rise-automakers-slash-0-financing Wed, 15 Aug 2018 11:46:26 EST No-interest financing deals are drying up across the industry as automakers cut back on the once-common tactic. AFSA opposes proposed changes to military lending http://www.autonews.com/article/20180815/FINANCE_AND_INSURANCE/180819886/afsa-military-lending Wed, 15 Aug 2018 11:40:55 EST A legislative effort underway to expand and toughen the Military Lending Act, which regulates loans to military service members on active duty, is drawing pushback from a lender trade group. Texas dealer group Reagor Dykes falls fast and hard http://www.autonews.com/article/20180813/RETAIL07/180819948/reagor-dykes-auto-dealer-bankruptcy Mon, 13 Aug 2018 00:01:00 EST The sudden bankruptcy filing by Texas dealership group Reagor Dykes marks a stunning fall for a former high flier, with more of the tale yet to come. Hendrick Automotive group uses docuPAD to improve FandI sales manager training http://www.autonews.com/article/20180813/FINANCE_AND_INSURANCE/180819998/hendrick-automotive-group-docupad-training-fi Mon, 13 Aug 2018 00:01:00 EST Hendrick Automotive Group uses docuPAD to improve training for its FandI managers. New vehicle dealership groups improve average finance and insurance profits http://www.autonews.com/article/20180813/FINANCE_AND_INSURANCE/180819999/new-vehicle-dealership-groups-finance-insurance-profits Mon, 13 Aug 2018 00:01:00 EST Five of the six public new-vehicle dealership groups improved average FandI gross profit per vehicle in the second quarter, driven primarily by FandI training efforts, growing FandI product penetration and increased retail sales. What's next for National Auto Care under new ownership http://www.autonews.com/article/20180808/FINANCE_AND_INSURANCE/180809782/national-auto-care-new-ownership-acquisition-mode Wed, 8 Aug 2018 11:30:00 EST National Auto Care's change in ownership to private equity firm Lovell Minnick Partners will give the FandI product provider the capital and expertise to broaden its business over the next few years. Santander readies for FCA captive audition http://www.autonews.com/article/20180808/BLOG13/180809780/with-chrysler-capital-origination-boost-santander-readies-for-fca Wed, 8 Aug 2018 11:30:00 EST Santander executives couldn't help but brag about origination growth for the company's Chrysler channel during a second-quarter earnings call. Why AutoNation's FandI profits are holding steady http://www.autonews.com/article/20180808/FINANCE_AND_INSURANCE/180809781/autonation-says-fi-profit-will-hold-steady-even-when-new-vehicle Wed, 8 Aug 2018 11:30:00 EST As used-vehicle sales rise and new-vehicle sales decline, AutoNation's FandI profit per unit will likely hold steady. Swaps might help keep payments manageable http://www.autonews.com/article/20180807/RETAIL07/180809799/swaps-might-help-keep-payments-manageable Tue, 7 Aug 2018 16:02:11 EST As interest rates rise, some dealership groups may consider implementing a hedging tool called a swap to keep payments manageable. Mike Groff, CEO of Toyota's captive finance unit, to retire Aug. 31 http://www.autonews.com/article/20180807/FINANCE_AND_INSURANCE/180809807/mike-groff-ceo-of-toyotas-captive-finance-unit-to-retire-aug-31 Tue, 7 Aug 2018 12:13:55 EST After 35 years with the automaker, Mike Groff, Toyota Financial Services CEO, will retire Aug. 31. Toyota Financial executive Mark Templin will replace him starting Sept. 1. Texas dealership files for bankruptcy after Ford Credit lawsuit http://www.autonews.com/article/20180807/RETAIL07/180809798/texas-dealership-files-for-bankruptcy-after-ford-credit-lawsuit Tue, 7 Aug 2018 16:08:34 EST Reagor Dykes Auto Group of Lubbock, Texas, after being sued by Ford Credit for financing violations, has filed for Chapter 11 bankruptcy protection. Auto dealers' floorplanning revenue dries up as interest rates rise http://www.autonews.com/article/20180806/RETAIL07/180809858/floorplanning-revenue-interest-rates Mon, 6 Aug 2018 00:01:00 EST Floorplan expense in the United States flipped to a cost this year for the first time in eight years. Dealers all knew the low-interest-rate environment wouldn't last forever. Now they are exploring ways to mitigate the cost. FTC accuses dealership group of inflating income, down payment on credit apps http://www.autonews.com/article/20180803/RETAIL/180809877/ftc-dealer-group-accused-falsification Fri, 3 Aug 2018 10:32:08 EST A dealership group with stores in Arizona and New Mexico has been charged by the Federal Trade Commission with income falsification among other illegal activities. 5 of the 6 public dealership groups raise average FandI profit per vehicle http://www.autonews.com/article/20180801/FINANCE_AND_INSURANCE/180809966/5-of-the-6-public-dealership-groups-raise-average-fi-profit-per Wed, 1 Aug 2018 12:25:54 EST Five of the six public new-vehicle dealership groups improved average FandI gross profit per vehicle in the second quarter, driven primarily by FandI training efforts, growing FandI product penetration and increased retail sales. GM Financial leads in lease, financing loyalty among captive lenders http://www.autonews.com/article/20180801/FINANCE_AND_INSURANCE/180809988/gm-financial-leads-in-lease-financing-loyalty-among-captive-lenders Wed, 1 Aug 2018 11:00:00 EST GM Financial led overall manufacturer loyalty among captive lenders in 2017, according to an internal analysis of IHS Markit data. Among captives, GM Financial reported the highest retention rate of customers who leased or financed a vehicle. Daimler Financial Services rebrands to highlight mobility http://www.autonews.com/article/20180801/FINANCE_AND_INSURANCE/180809968/daimler-financial-services-rebrands-to-highlight-mobility Wed, 1 Aug 2018 12:09:33 EST Daimler Financial, the finance arm of Daimler AG, will be renamed Daimler Mobility AG in the first half of 2019, underscoring the transformation of the business into a mobility services provider. FandI managers should speak up on used inventory http://www.autonews.com/article/20180801/BLOG13/180809987/fi-managers-should-speak-up-on-used-inventory Wed, 1 Aug 2018 11:00:00 EST In a market where dealers struggle to acquire used vehicles at BMW drops subscription prices http://www.autonews.com/article/20180731/RETAIL/180739922/bmw-subscription-service-drops-price Tue, 31 Jul 2018 08:55:55 EST BMW said it is offering a new lower-price tier in its vehicle subscription program, which allows members to switch out vehicles for a monthly fee. Ally's used originations, non-GM and Chrysler business grow in Q2 http://www.autonews.com/article/20180726/FINANCE_AND_INSURANCE/180729791/ally-second-quarter-earnings-originations Thu, 26 Jul 2018 15:50:50 EST Ally Financial's auto originations rose 12 percent in the second quarter, largely driven by gains in the used-vehicle market. At the same time, the lender's share of non-General Motors and non-Chrysler originations reached a record high. Could subscription services put FandI product sales at risk? http://www.autonews.com/article/20180725/BLOG13/180729829/could-subscription-services-put-fi-product-sales-at-risk Wed, 25 Jul 2018 11:11:15 EST Where FandI products fit in the future of subscription services may be too soon to predict, but programs such as Ford's Canvas say business runs just fine without them. To remedy negative FandI reviews, call the customer http://www.autonews.com/article/20180725/FINANCE_AND_INSURANCE/180729828/to-remedy-negative-fi-reviews-call-the-customer Wed, 25 Jul 2018 11:12:58 EST Managing negative reviews is vital to maintaining a dealership's reputation, and the FandI office needs to be especially vigilant, given how difficult it is to resolve an issue once a deal has been closed, experts say. Fiat Chrysler expected to move ahead with captive plan under new CEO http://www.autonews.com/article/20180725/FINANCE_AND_INSURANCE/180729830/fiat-chrysler-expected-to-move-ahead-with-captive-plan-under-new-ceo Wed, 25 Jul 2018 11:09:38 EST The sudden change in management atop Fiat Chrysler Automobiles, prompted by the recent illness and U.S. auto tariffs could create hurdle for subprime shoppers http://www.autonews.com/article/20180725/FINANCE_AND_INSURANCE/180729862/u-s-auto-tariffs-could-create-hurdle-for-subprime-shoppers Wed, 25 Jul 2018 00:01:00 EST If President Trump decides to impose a 25 percent tariff on imported vehicles, cost-sensitive subprime borrowers are the most likely to get squeezed out of the new-car market, spelling trouble for the likes of the Nissan Sentra, Kia Forte and... Third arrest made in ID fraud scheme affecting 6 N.Y. dealerships http://www.autonews.com/article/20180723/RETAIL07/180729885/third-arrest-made-in-id-fraud-scheme-affecting-6-n-y-dealerships Mon, 23 Jul 2018 17:47:49 EST A third arrest was made last week in Mount Kisco, N.Y., in connection with a rash of thefts of high-end vehicles and ID fraud at New York dealerships from October 2017 to February 2018. QandA with Diarmuid O'Connell http://www.autonews.com/article/20180723/SHIFT/180729999/qa-with-diarmuid-oconnell Mon, 23 Jul 2018 00:01:00 EST As vice president of business development for Tesla, Diarmuid O'Connell led the automaker's state-by-state battle to sell its vehicles through factory-owned stores. Today, O'Connell hopes to innovate another part of auto retail: vehicle financing. Trump's financial regulator pick grilled at confirmation hearing http://www.autonews.com/article/20180720/RETAIL/180729966/cfpb-confirmation-kraninger-trump Fri, 20 Jul 2018 07:42:22 EST President Trump's choice to lead the U.S. consumer watchdog survived aggressive questioning by lawmakers and looked on track to secure a confirmation vote. Penske to install Reynolds' docuPAD in 130 U.S. stores http://www.autonews.com/article/20180718/FINANCE_AND_INSURANCE/180719781/penske-to-install-reynolds-docupad-in-130-u-s-stores Wed, 18 Jul 2018 11:06:33 EST Penske Automotive Group will install Reynolds and Reynolds Co.'s docuPAD systems in its new-vehicle stores in the U.S., deepening its relationship with Reynolds. 40 under 40 honorees take a winding road to FandI success http://www.autonews.com/article/20180718/BLOG13/180719777/40-under-40-honorees-take-a-winding-road-to-fi-success Wed, 18 Jul 2018 12:14:17 EST FandI stars may come from unlikely places. Industry trends could reshape FandI http://www.autonews.com/article/20180718/FINANCE_AND_INSURANCE/180719780/industry-trends-could-reshape-fi Wed, 18 Jul 2018 11:07:34 EST FandI has been a dealership profit center for decades but industry trends such as subscription services, online shopping and electric vehicles could prompt dealerships to restructure the role. New York's Nemet Auto Group pays $165K to resolve deceptive financing, sales tactics http://www.autonews.com/article/20180718/LEGALFILE/180719782/new-yorks-nemet-auto-group-pays-165k-to-resolve-deceptive-financing Wed, 18 Jul 2018 10:52:41 EST A four-rooftop New York dealership group agreed to pay nearly $165,000 to resolve allegations of deceptive vehicle-financing and sales tactics. AutoGravity CEO Andy Hinrichs departs http://www.autonews.com/article/20180717/RETAIL/180719807/autogravity-ceo-andy-hinrichs-departs Tue, 17 Jul 2018 12:26:31 EST AutoGravity co-founder and CEO Andy Hinrichs has left the company to pursue other opportunities. He will be replaced by Alex Mallmann, former head of Mercedes-Benz Auto Finance China. Shay Foley implemented e-contracting at Champion Chevrolet of Avon, reducing errors and funding time http://www.autonews.com/article/20180716/40SUBJECT/180719996/shay-foley-40-under-40 Mon, 16 Jul 2018 00:01:00 EST E-contracting reduced errors, cut funding time Karen Lombardo helped Roadshow BMW-Mini reach its highest unit sales in more than a year http://www.autonews.com/article/20180716/40SUBJECT/180719993/karen-lombardo-40-under-40 Mon, 16 Jul 2018 00:01:00 EST In her fifth full month working at the store, the dealership reached its highest unit sales volume in more than a year. She improved lead conversion to 21.6 percent by April, up from 12.6 percent for all of 2017. Dan Mason helped increase FandI profit per vehicle by $300 http://www.autonews.com/article/20180716/40SUBJECT/180719983/dan-mason-40-under-40 Mon, 16 Jul 2018 00:01:00 EST Mason oversees all finance operations for the nine stores within the dealership group. In Mason's first five months with the company, FandI profit per vehicle has increased $300. Adam Marburger raised the FandI revenue per new vehicle more than $300 at Suntrup Automotive Group http://www.autonews.com/article/20180716/40SUBJECT/180719931/adam-marburger-40-under-40 Mon, 16 Jul 2018 00:01:00 EST Raised the FandI revenue per new vehicle at Suntrup Automotive Group in St. Louis, Mo., more than $300 in five months N.Y. dealership settles complaints of deceptive practices against non-English speakers http://www.autonews.com/article/20180711/FINANCE_AND_INSURANCE/180719918/n-y-dealership-settles-complaints-of-deceptive-practices-against-non Wed, 11 Jul 2018 11:40:58 EST A New York dealership accused of deceptive practices toward non-English-speaking Chinese customers agreed to pay more than $423,000 in restitution and penalties as part of a settlement with the state's attorney general. Bureau of Consumer Financial Protection names new acting deputy director http://www.autonews.com/article/20180711/FINANCE_AND_INSURANCE/180719925/bureau-of-consumer-financial-protection-names-new-acting-deputy Wed, 11 Jul 2018 11:07:47 EST Brian Johnson, principal policy director of the Bureau of Consumer Financial Protection, will become acting deputy director of the agency, pending confirmation of a new chief. Shoppers likely to rethink purchase timeline as rates climb http://www.autonews.com/article/20180711/FINANCE_AND_INSURANCE/180719919/shoppers-likely-to-rethink-purchase-timeline-as-rates-climb Wed, 11 Jul 2018 11:39:59 EST As auto loan interest rates climb, will car shoppers put off a purchase or jump in before the market overheats? Some will likely push ahead with a purchase, while others will postpone a deal. Subscription service tech shows promise as FandI product http://www.autonews.com/article/20180711/BLOG13/180719916/subscription-service-tech-shows-promise-as-fi-product Wed, 11 Jul 2018 12:06:58 EST To prevent downsizing in the FandI department as new vehicle ownership models take hold, product providers should look to other areas of the automotive industry to create products outside the usual FandI realm, such as telematics devices. Consumers respond as auto loan interest rates hit 9-year high http://www.autonews.com/article/20180711/FINANCE_AND_INSURANCE/180719920/consumers-respond-as-auto-loan-interest-rates-hit-9-year-high Wed, 11 Jul 2018 11:37:18 EST As new-vehicle auto loan interest rates hit a nine-year high in June, consumers' average amount financed was relatively flat, and they put more money down. FandI products help auto dealers boost used car sales http://www.autonews.com/article/20180709/FINANCE_AND_INSURANCE/180709807/finance-insurance-dealers-used-vehicle-sales Mon, 9 Jul 2018 00:01:00 EST As new-vehicle sales slow, and many finance and insurance managers likely sell to a larger pool of used-vehicle buyers, wise dealers will look to FandI products for a profit boost. In Finance and Insurance, keeping top employees means creating a flexible work culture http://www.autonews.com/article/20180709/FINANCE_AND_INSURANCE/180709811/finance-insurance-employees-workforce-dealers Mon, 9 Jul 2018 00:01:00 EST In the FandI office, where mistakes can cost dealerships far more than a sale, hiring the right people matters, auto retail experts say. Zero-percent interest auto loans halve in June http://www.autonews.com/article/20180704/FINANCE_AND_INSURANCE/180709855/zero-percent-interest-auto-loans-halve-in-june Wed, 4 Jul 2018 09:18:25 EST The share of zero-percent financing deals nearly halved in June from a year earlier, a sharp decline that could signal the end of "cheap and easy" auto finance deals, Edmunds said. More buyers could shift from leasing http://www.autonews.com/article/20180704/FINANCE_AND_INSURANCE/180709858/more-buyers-could-shift-from-leasing Wed, 4 Jul 2018 09:00:00 EST The gap between monthly payments for leases and used-vehicle loans continues to widen. Because of that, lease volume could decline as consumers shift to used vehicles. Negative equity hits record high http://www.autonews.com/article/20180704/FINANCE_AND_INSURANCE/180709859/negative-equity-hits-record-high Wed, 4 Jul 2018 09:00:00 EST Negative-equity levels hit a record high in the first quarter, Edmunds said, as interest rates and loan terms continue to increase. Consumers still want a sales guide http://www.autonews.com/article/20180704/BLOG13/180709857/consumers-still-want-sales-guide-hannah-lutz Wed, 4 Jul 2018 09:02:12 EST Are advancements in auto retail technology helping or hurting the role of FandI managers? Ally Financial partnerships aimed at pushing lender further into digital space http://www.autonews.com/article/20180704/COPY01/180619993/ally-financial-partnerships-digital Wed, 4 Jul 2018 00:01:00 EST More than a decade ago, on the precipice of an epochal shift in the automotive finance sector, Ally Financial was born. The lender sees technology as part of its DNA. FICO fights auto loan fraud http://www.autonews.com/article/20180704/COPY01/180619994/fair-isaac-fraud-checking Wed, 4 Jul 2018 00:01:00 EST FICO is synonymous with credit scores, but the company does a lot more in the automotive space.