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, 26 May 2015 06:00:00 EST Uber, credit-challenged drivers walk the subprime tightrope http://www.autonews.com/article/20150520/BLOG13/150519855/uber-credit-challenged-drivers-walk-the-subprime-tightrope Wed, 20 May 2015 12:00:00 EST Uber offers its credit-challenged drivers a finance program to help them buy their vehicles. But the program can put some drivers in trouble, according to a Marketplace.org report. Amid higher auto lending, 90-day delinquencies hold flat http://www.autonews.com/article/20150520/FINANCE_AND_INSURANCE/305209994/amid-higher-auto-lending-90-day-delinquencies-hold-flat Wed, 20 May 2015 11:30:00 EST Auto loan originations rose 12 percent in the first quarter from a year earlier, while 90-day delinquency rates held flat at 3.3 percent, the Federal Reserve Bank of New York said. At Buick store, service lane provides visuals to better sell FandI products http://www.autonews.com/article/20150520/FINANCE_AND_INSURANCE/305209995/at-buick-store-service-lane-provides-visuals-to-better-sell-fi Wed, 20 May 2015 11:15:00 EST Aaron Logan has sold FandI products for 17 years, yet in the past six weeks his extended service contract penetration rate is nearly twice that of the year-earlier period. He credits the boost to his 'religious' use of visual aids. Subprime loans fall to lowest share since 2012 http://www.autonews.com/article/20150520/FINANCE_AND_INSURANCE/150519860/subprime-loans-fall-to-lowest-share-since-2012 Wed, 20 May 2015 12:00:00 EST Subprime and deep subprime loans in the first quarter dropped to their lowest share of the market since 2012, Experian Automotive says. 'Financial wizard' Robert O'Connell stabilized GMAC http://www.autonews.com/article/20150518/OEM02/150519900/financial-wizard-robert-oconnell-stabilized-gmac Mon, 18 May 2015 00:01:00 EST Robert O'Connell, former CFO of General Motors and CEO and chairman of General Motors Acceptance Corp., died May 8 in Boston. Student-loan debt doesn't hinder auto lending among college grads, study finds http://www.autonews.com/article/20150513/FINANCE_AND_INSURANCE/150519963/student-loan-debt-doesnt-hinder-auto-lending-among-college-grads Wed, 13 May 2015 11:45:00 EST A TransUnion study at least partly contradicts the widely held belief that hefty student loans prevent recent college graduates from getting auto loans. Is the FandI product space overcrowded? Views differ http://www.autonews.com/article/20150513/BLOG13/305139996/is-the-fi-product-space-overcrowded-views-differ Wed, 13 May 2015 11:45:00 EST Competition in the FandI product space is heating up. One product provider is moving the bulk of its business to consulting. Others argue there is still a lot of FandI product business to go around, even in light of increased consolidation. FandI product provider to buy rival in cash deal http://www.autonews.com/article/20150513/FINANCE_AND_INSURANCE/305139998/fi-product-provider-to-buy-rival-in-cash-deal Wed, 13 May 2015 11:45:00 EST AmTrust Financial Services agreed to buy Warranty Solutions, owned by Wells Fargo, for $152 million in cash. Finance and insurance product providers say the deal signals further consolidation in the product industry. Canada shrugs aside worries over long loans http://www.autonews.com/article/20150513/FINANCE_AND_INSURANCE/305139997/canada-shrugs-aside-worries-over-long-loans Wed, 13 May 2015 11:00:00 EST U.S. auto industry watchers worry that long loan terms could lead to a financial crisis. But in Canada, industry experts have become accustomed to long loan periods. GM Financial aims for speedier FandI and happier customers http://www.autonews.com/article/20150511/FINANCE_AND_INSURANCE/305119976/gm-financial-aims-for-speedier-fi-and-happier-customers Mon, 11 May 2015 00:01:00 EST GM North America chief Alan Batey believes GM Financial will improve customer satisfaction by getting them through the FandI office more quickly. AutoNation launches private-label products http://www.autonews.com/article/20150511/FINANCE_AND_INSURANCE/305119978/autonation-launches-private-label-products Mon, 11 May 2015 00:01:00 EST This month in its Texas stores, AutoNation will start selling self-branded extended service contracts. It's the beginning of AutoNation's plan to sell private-label FandI products online and in stores. CFPB plays up auto finance complaints http://www.autonews.com/article/20150506/BLOG13/305069996/cfpb-plays-up-auto-finance-complaints Wed, 6 May 2015 11:00:00 EST A report released by the Consumer Financial Protection Bureau covering nearly 30,000 military service member complaints over a three-year period shows that although gripes about auto loans were a small part of the mix, they were a large part of the... Subprime lending 'stable' despite worry about risk http://www.autonews.com/article/20150506/FINANCE_AND_INSURANCE/305069997/subprime-lending-stable-despite-worry-about-risk Wed, 6 May 2015 11:45:00 EST The year got off to a decent start for subprime auto loans in terms of delinquencies and relatively low losses for bad loans, according to Fitch Ratings. Credit union volume grows http://www.autonews.com/article/20150506/FINANCE_AND_INSURANCE/305069998/credit-union-volume-grows Wed, 6 May 2015 11:45:00 EST Credit unions on the CU Direct auto lending platform are on pace for record volume this year. For the first quarter of 2015, loan volume was 250,000 units, up 21 percent vs. the first quarter last year. Application volume was 960,000, up 27 percent. Ford Credit sees highest Q1 dealer share in 14 years http://www.autonews.com/article/20150506/FINANCE_AND_INSURANCE/150509923/ford-credit-sees-highest-q1-dealer-share-in-14-years Wed, 6 May 2015 11:15:00 EST Ford Credit increased its share of U.S. retail loan and lease volume for Ford and Lincoln dealers to 45 percent in the first quarter, the highest first quarter in 14 years. Losses for bad loans were only 0. Pa. Chrysler store loses bid to toss suit over financing http://www.autonews.com/article/20150506/LEGALFILE/305079998/pa-chrysler-store-loses-bid-to-toss-suit-over-financing Wed, 6 May 2015 11:45:00 EST A retiree on a fixed income who sued a Pennsylvania Chrysler dealership claiming the store deceived her about the financing and condition of a used car may pursue truth-in-lending, fraud and consumer law claims, a federal judge in Philadelphia has... Repair shops strive to stay head of the pace http://www.autonews.com/article/20150504/RETAIL/305049992/repair-shops-strive-to-stay-head-of-the-pace Mon, 4 May 2015 00:01:00 EST Insurance companies are increasingly savvy at reducing payments for repair work. Repair shops say insurers are steering them to aftermarket parts from China and other low-cost countries, which some say are inferior to factory-approved parts. Aston Martin picks Ally Financial as preferred U.S. lender http://www.autonews.com/article/20150501/FINANCE_AND_INSURANCE/150509989/aston-martin-picks-ally-financial-as-preferred-u-s-lender Fri, 1 May 2015 11:44:53 EST Aston Martin Lagonda named Ally Financial, the former GM financing arm, as its preferred US auto lender to help the maker of luxury sports cars expand sales. AutoNation says no to captive http://www.autonews.com/article/20150429/FINANCE_AND_INSURANCE/150429789/autonation-says-no-to-captive Wed, 29 Apr 2015 11:45:00 EST AutoNation, after exploring whether to launch its own captive finance company, is saying no to the idea. CEO Mike Jackson says the retailer will generate a better return from other investments. Porsche captive adds branded FandI products http://www.autonews.com/article/20150429/FINANCE_AND_INSURANCE/304299996/porsche-captive-adds-branded-fi-products Wed, 29 Apr 2015 12:00:00 EST Porsche, Bentley and Lamborghini dealers in the U.S. are getting a new menu of FandI products to sell. Finally, a lender owns up http://www.autonews.com/article/20150429/BLOG13/304299995/finally-a-lender-owns-up Wed, 29 Apr 2015 11:45:00 EST Auto lenders carefully avoid citing their rivals, especially when they want to criticize. So it was refreshing when Ally's CEO figuratively raised his hand this week. Most lenders cite subprime restraint http://www.autonews.com/article/20150429/FINANCE_AND_INSURANCE/150429790/most-lenders-cite-subprime-restraint Wed, 29 Apr 2015 12:15:00 EST GM Financial and Capital One are joining other auto lenders in citing tougher competition in subprime lending and voicing caution over the increase in auto loans to consumers with lower credit scores. Group 1, AutoNation set FandI revenue per vehicle records; most other publics improve http://www.autonews.com/article/20150429/FINANCE_AND_INSURANCE/150429765/group-1-autonation-set-fi-revenue-per-vehicle-records-most-other Wed, 29 Apr 2015 12:15:00 EST The six largest publicly traded new-vehicle retail groups nearly all improved in FandI revenues per vehicle retailed in the first quarter, led by Group 1 and AutoNation, which both topped $1,500 for the quarter. Ally deal enables Mitsubishi to cut costs for capital, infrastructure http://www.autonews.com/article/20150429/FINANCE_AND_INSURANCE/150429768/ally-deal-enables-mitsubishi-to-cut-costs-for-capital-infrastructure Wed, 29 Apr 2015 11:17:26 EST For years, Mitsubishi used an in-house finance arm to underwrite loans to dealers and customers as other small automakers relied on international banking giants to keep the capital flowing. Ally pushes to make up for lost GM lease business http://www.autonews.com/article/20150428/FINANCE_AND_INSURANCE/150429815/ally-pushes-to-make-up-for-lost-gm-lease-business Tue, 28 Apr 2015 08:01:45 EST Ally Financial is responding to GM pulling its subsidized lease business by getting more aggressive in near-prime and subprime loans, and by courting dealers harder than ever, especially non-GM and non-Chrysler dealers. Troubling practices need attention now http://www.autonews.com/article/20150427/FINANCE_AND_INSURANCE/304279973/troubling-practices-need-attention-now Mon, 27 Apr 2015 00:01:00 EST Recognizing the proliferation of troubling practices that mirror the precrash mortgage market is important because these practices deserve attention now. Loans are at a healthy, rational level http://www.autonews.com/article/20150427/FINANCE_AND_INSURANCE/304279972/loans-are-at-a-healthy-rational-level Mon, 27 Apr 2015 00:01:00 EST While it's worthwhile to remember key lessons from the 2008 financial crisis, today's conditions in automotive subprime bear virtually no resemblance to the mortgage issues that precipitated that fateful bubble, says Raj Sundaram, co-president of... Ally to take over Mitsubishi's U.S. lending arm http://www.autonews.com/article/20150427/FINANCE_AND_INSURANCE/150429834/ally-to-take-over-mitsubishis-u-s-lending-arm Mon, 27 Apr 2015 13:26:55 EST Mitsubishi, one of the smallest car companies with a captive finance arm in the United States, is selling its book of business to Ally Financial, the former lending division of General Motors. States' varying auto insurance rates play with the car-buying equation http://www.autonews.com/article/20150427/RETAIL07/304279967/states-varying-auto-insurance-rates-play-with-the-car-buying-equation Mon, 27 Apr 2015 00:01:00 EST Want $7,700 more to spend on a new car? Move from Michigan to Maine before you insure it. GM Financial Q1 net rises as lease volume skyrockets http://www.autonews.com/article/20150423/FINANCE_AND_INSURANCE/150429894/gm-financial-q1-net-rises-as-lease-volume-skyrockets Thu, 23 Apr 2015 14:17:12 EST Captive finance company GM Financial had a giant increase in lease volume in the first quarter, as parent company GM switched to GM Financial as its exclusive preferred lender for Buick, Cadillac, Chevrolet and GMC subsidized leases. Midsize with a four-banger or large and loaded? How auto insurance affects consumers' buying power http://www.autonews.com/article/20150423/BLOG06/150429906/midsize-with-a-four-banger-or-large-and-loaded-how-auto-insurance Thu, 23 Apr 2015 11:32:48 EST Want $7,700 more to spend on a new car? Move from Michigan to Maine before you insure it. That's because U.S. insurance premiums on a new vehicle vary wildly by state, according Insure.com Lawmakers back NADA in battle with CFPB http://www.autonews.com/article/20150422/VIDEO/304159973/lawmakers-back-nada-in-battle-with-cfpb Wed, 22 Apr 2015 00:01:00 EST Two lawmakers have introduced a bipartisan bill to nullify a 2014 bulletin issued by the Consumer Financial Protection Bureau. Dealers missing out on digital FandI sales, study finds http://www.autonews.com/article/20150422/FINANCE_AND_INSURANCE/150429948/dealers-missing-out-on-digital-fi-sales-study-finds Wed, 22 Apr 2015 11:30:00 EST Consumers want FandI product information online rather than all-at-once at the end of their vehicle purchases, a new study finds. Auto finance critic Warren stands firm on CFPB dealership oversight http://www.autonews.com/article/20150422/BLOG13/304239999/auto-finance-critic-warren-stands-firm-on-cfpb-dealership-oversight Wed, 22 Apr 2015 11:15:00 EST Sen. Elizabeth Warren is once again calling for direct regulation of auto dealerships by the Consumer Financial Protection Bureau. Asbury, Sonic see below-average FandI revenue at new-initiative stores http://www.autonews.com/article/20150422/FINANCE_AND_INSURANCE/304229998/asbury-sonic-see-below-average-fi-revenue-at-new-initiative-stores Wed, 22 Apr 2015 11:30:00 EST Two of the nation's biggest publicly traded dealership groups said early, small-scale results from their nontraditional dealerships -- either stand-alone used-vehicle stores or ones that use techniques such as no-haggle pricing -- showed below... Some auto lenders let others pursue volume http://www.autonews.com/article/20150422/FINANCE_AND_INSURANCE/304229999/some-auto-lenders-let-others-pursue-volume Wed, 22 Apr 2015 11:15:00 EST Some auto lenders are choosing not to chase volume. Consumer Portfolio Services and PNC Bank are consciously passing up volume to protect profits and their credit standards. Wells Fargo made a similar statement this month. Ally change saves dealers big money http://www.autonews.com/article/20150420/RETAIL/304209965/ally-change-saves-dealers-big-money Mon, 20 Apr 2015 00:01:00 EST The 4,200 dealerships that finance their vehicle inventory through Ally Financial are seeing savings from Ally's recent shift to peg interest rates to LIBOR rather than a prime-rate benchmark. New Black Book exec looks to help dealers close loans, leases faster http://www.autonews.com/article/20150415/FINANCE_AND_INSURANCE/304159999/new-black-book-exec-looks-to-help-dealers-close-loans-leases-faster Wed, 15 Apr 2015 11:15:00 EST Barrett Teague, Black Book's new vice president of lender solutions, says dealership FandI managers are never far from his mind. In part that's because he's been an FandI manager himself. Teague, 43, joined Black Book on April 6. Dealership gross profits see bigger impact from FandI http://www.autonews.com/article/20150415/FINANCE_AND_INSURANCE/304159998/dealership-gross-profits-see-bigger-impact-from-fi Wed, 15 Apr 2015 12:00:00 EST The average dealership gained more from FandI last year, even though retailers' overall sales penetration for products such as extended service contracts and GAP dropped a fraction of a percentage point. On average, FandI accounted for 39. Women in automotive seek more peers http://www.autonews.com/article/20150415/BLOG13/304169999/women-in-automotive-seek-more-peers Wed, 15 Apr 2015 12:15:00 EST A lot of dealer principals and general managers swear by their female salespeople and FandI managers and wish they had more. But in the business world at large, auto industry careers for women are a 'best-kept secret.' Wells Fargo, Chase adopt different lending approaches http://www.autonews.com/article/20150415/FINANCE_AND_INSURANCE/150419942/wells-fargo-chase-adopt-different-lending-approaches Wed, 15 Apr 2015 12:00:00 EST Wells Fargo and JPMorgan Chase, two of the biggest banks in auto finance, adopted opposite lending strategies in the first quarter. Penske targets 'I' in FandI to boost per-vehicle revenue http://www.autonews.com/article/20150413/FINANCE_AND_INSURANCE/304139984/penske-targets-i-in-fi-to-boost-per-vehicle-revenue Mon, 13 Apr 2015 00:01:00 EST Penske Automotive Group Inc. is refining its training process on insurance product sales to boost overall finance and insurance revenues. Some dealers prep for flat fees http://www.autonews.com/article/20150413/FINANCE_AND_INSURANCE/304139983/some-dealers-prep-for-flat-fees Mon, 13 Apr 2015 00:01:00 EST Dealer Mike Thompson believes he might soon lose the ability to make a healthy profit from finance reserves. His concern is well-founded. Lenders' outcry against CFPB 'narratives' is justified http://www.autonews.com/article/20150408/BLOG13/304089993/lenders-outcry-against-cfpb-narratives-is-justified Wed, 8 Apr 2015 00:01:00 EST It's no wonder auto lenders cried foul last month when the CFPB announced its plan to begin posting consumers' first-person tales of their grievances with auto loans later this year. Mercedes' captive boosts dealership training on branded FandI products http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/304089994/mercedes-captive-boosts-dealership-training-on-branded-fi-products Wed, 8 Apr 2015 11:00:00 EST Mercedes-Benz Financial Services' U.S. insurance unit is gearing up to train more dealership FandI managers to sell its First Class-branded FandI products. FICO pilot holds promise for auto financing http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/304089996/fico-pilot-holds-promise-for-auto-financing Wed, 8 Apr 2015 11:45:00 EST The results of a pilot program between Fair Isaac Corp. and 12 big credit-card companies could ultimately help dealerships get auto loans approved for so-called thin files -- that is, customers with little or no credit history. Low rates will continue to help auto sales, financing in 2015, experts say http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/304089997/low-rates-will-continue-to-help-auto-sales-financing-in-2015-experts Wed, 8 Apr 2015 11:45:00 EST Interest rates should remain low for the rest of 2015, helping auto dealerships sell vehicles, experts say. CarMax finance arm won't become major subprime player http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/150409877/carmax-finance-arm-won-t-become-major-subprime-player Wed, 8 Apr 2015 11:30:00 EST CarMax's finance arm will continue its subprime lending test and might expand it in the future. But the unit won't become a 'full player' in that space, says company CEO Tom Reedy. The new sticker shock: High costs to fix high-tech http://www.autonews.com/article/20150406/RETAIL05/304069994/the-new-sticker-shock-high-costs-to-fix-high-tech Mon, 6 Apr 2015 00:01:00 EST We all know about showroom sticker shock. But here's another side of the affordability problem: the hefty repair costs for minor accidents. Apple is a no-show at the New York show http://www.autonews.com/article/20150402/BLOG06/150409930/apple-is-a-no-show-at-the-new-york-show Thu, 2 Apr 2015 10:19:55 EST Apple's CarPlay and Google's Android Auto are finally here! Well, almost here. %]