Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Sun, 5 Jul 2015 06:00:00 EST Honda, Toyota, Nissan captives face charges of discrimination, report says http://www.autonews.com/article/20150701/FINANCE_AND_INSURANCE/307029999/honda-toyota-nissan-captives-face-charges-of-discrimination-report Wed, 1 Jul 2015 12:00:00 EST The captive finance arms of Honda, Toyota and Nissan may have to limit how much they allow dealers to increase the cost of auto loans after regulators accused the lenders of unintentional discrimination against minority consumers. Michigan Chevy store wins dispute with customer over $10,000 down payment http://www.autonews.com/article/20150701/LEGALFILE/307019991/michigan-chevy-store-wins-dispute-with-customer-over-10000-down Wed, 1 Jul 2015 11:00:00 EST A Detroit-area Chevy dealership is entitled to the $10,000 down payment it failed to collect from a vehicle buyer, the Michigan Court of Appeals has ruled. Dealers feel the need for speed in FandI http://www.autonews.com/article/20150701/FINANCE_AND_INSURANCE/307019992/dealers-feel-the-need-for-speed-in-fi Wed, 1 Jul 2015 11:00:00 EST Where do you see the greatest opportunity for improvement in your dealership's FandI operations? Asked that question, Mary Byrne, a one-time retired dealer who now is the general manager of Bruce Titus Automotive Group, didn't hesitate. Despite convenience, electronic registration is tough sell in many states http://www.autonews.com/article/20150701/FINANCE_AND_INSURANCE/307019993/despite-convenience-electronic-registration-is-tough-sell-in-many Wed, 1 Jul 2015 11:15:00 EST In 28 states, car buyers can drive off dealers' lots with their license plates in position and registration forms in hand, thanks to electronic registration at dealerships. After 18 months, CFPB readies to reimburse Ally customers http://www.autonews.com/article/20150701/FINANCE_AND_INSURANCE/150629882/after-18-months-cfpb-readies-to-reimburse-ally-customers Wed, 1 Jul 2015 11:30:00 EST In early 2014, Ally Financial, as part of a settlement over alleged discrimination in auto lending, submitted a list of potentially affected customers to the Consumer Financial Protection Bureau -- along with $80 million to be reimbursed to those... What Tuttle-Click stores look for in lenders http://www.autonews.com/article/20150701/FINANCE_AND_INSURANCE/150629885/what-tuttle-click-stores-look-for-in-lenders Wed, 1 Jul 2015 11:00:00 EST Bill Paschen, finance director at Tuttle-Click Automotive Group, says the ideal lender offers aggressive programs to help sell light vehicles, help dealers make money on the back end, and is available by phone when needed. A role for dealers in lease transfers http://www.autonews.com/article/20150629/RETAIL01/306299987/a-role-for-dealers-in-lease-transfers Mon, 29 Jun 2015 00:01:00 EST I read with great interest about James B. Treece's experience in assuming the short-term lease of a Chevy Volt ("Mixed reviews are in after assuming lease for Volt," June 8). I agree with him. Dealers should have a role in the lease-transfer process. How dealers can protect themselves from bad actors http://www.autonews.com/article/20150629/RETAIL07/306299994/how-dealers-can-protect-themselves-from-bad-actors Mon, 29 Jun 2015 00:01:00 EST A blot on auto retailing is developing in Birmingham, Ala. Supreme Court ruling could favor all groups debating bias in auto lending http://www.autonews.com/article/20150625/FINANCE_AND_INSURANCE/150629929/supreme-court-ruling-could-favor-all-groups-debating-bias-in-auto Thu, 25 Jun 2015 19:45:00 EST The Supreme Court's decision to endorse a broad interpretation of a legal theory used to fight housing discrimination provides ammunition for groups at odds over the CFPB's power to pursue discrimination in auto lending. Ford Credit car-sharing plan aims to cut ownership costs http://www.autonews.com/article/20150624/FINANCE_AND_INSURANCE/306249950/ford-credit-car-sharing-plan-aims-to-cut-ownership-costs Wed, 24 Jun 2015 12:15:00 EST Ford is entering the car-sharing market with a program that will cut Ford Credit customers' vehicle costs by enabling them to rent out their cars. 3 steps to regulatory compliance http://www.autonews.com/article/20150624/BLOG13/306259999/3-steps-to-regulatory-compliance Wed, 24 Jun 2015 12:15:00 EST To stay out of trouble with regulators, clean up compliance. It sounds like an obvious solution, but what do dealers need to do to be sure compliance is up to par? NYC dealership must provide documents for non-English speakers http://www.autonews.com/article/20150624/FINANCE_AND_INSURANCE/306249994/nyc-dealership-must-provide-documents-for-non-english-speakers Wed, 24 Jun 2015 12:15:00 EST As part of a settlement with the New York attorney general's office, a New York City dealership group must begin providing translations of sales documents to customers who negotiate their vehicle purchases in languages other than English. Lenders stretch subprime auto loans, stoking concerns over consumer debt load http://www.autonews.com/article/20150624/FINANCE_AND_INSURANCE/306249961/lenders-stretch-subprime-auto-loans-stoking-concerns-over-consumer Wed, 24 Jun 2015 12:15:00 EST Demand for automobile debt in the U.S. is enabling lenders to make longer loans to people with spotty credit, stoking concern that car shoppers are being lulled into debt loads they won't be able to sustain. CarMax originates $15 million in subprime loans in latest quarter http://www.autonews.com/article/20150624/FINANCE_AND_INSURANCE/306249995/carmax-originates-15-million-in-subprime-loans-in-latest-quarter Wed, 24 Jun 2015 11:45:00 EST CarMax's finance arm originated about $15 million of subprime loans in its most recent quarter ended May 31. BBandT launches flat fees http://www.autonews.com/article/20150624/FINANCE_AND_INSURANCE/150629968/bbt-launches-flat-fees Wed, 24 Jun 2015 11:45:00 EST Auto retailers working with BBandT Dealer Finance soon can expect to be paid flat fees, rather than dealer reserve, for arranging customers' loans. BBandT will launch a nondiscretionary dealer compensation program on July 1. Must dealers steer clear of credit repair? http://www.autonews.com/article/20150622/FINANCE_AND_INSURANCE/306229962/must-dealers-steer-clear-of-credit-repair Mon, 22 Jun 2015 00:01:00 EST The N.Y. attorney general's office reached multimillion-dollar settlements with some dealerships, saying they sold credit repair and ID-theft products for as much as $6,000 and often without the customer's knowledge. Legal turmoil at 2 Alabama stores: What went wrong? http://www.autonews.com/article/20150622/LEGALFILE/306229961/legal-turmoil-at-2-alabama-stores-what-went-wrong Mon, 22 Jun 2015 00:01:00 EST Two Birmingham, Ala., dealerships have been embroiled in an investigation that has unearthed allegations of loan fraud and dealership managers cheating Nissan North America out of incentive money. N.Y. targets dealerships' sale of credit-repair, identity-theft products http://www.autonews.com/article/20150617/RETAIL/150619876/n-y-targets-dealerships-sale-of-credit-repair-identity-theft-products Wed, 17 Jun 2015 00:01:00 EST Paragon Honda and its two sister stores have agreed to a $13. Why longer loan terms are not a big concern http://www.autonews.com/article/20150617/FINANCE_AND_INSURANCE/306179995/why-longer-loan-terms-are-not-a-big-concern Wed, 17 Jun 2015 12:30:00 EST The average auto loan term on a new car has grown to more than five years. And that has some industry watchers worried that extended loans will keep consumers out of the market longer, lead to negative equity and increase default rates. Lawsuit could test the FandI videotape defense http://www.autonews.com/article/20150617/FINANCE_AND_INSURANCE/150619882/lawsuit-could-test-the-fi-videotape-defense Wed, 17 Jun 2015 11:45:00 EST A videotaped closing in the FandI office might be key to a big court case for two dealerships in Alabama. The advantages for going online with FandI http://www.autonews.com/article/20150617/BLOG13/306189998/the-advantages-for-going-online-with-fi Wed, 17 Jun 2015 12:00:00 EST To reduce the push and pull around FandI product options and avoid surprising consumers with unexpectedly higher monthly payments as FandI products are added on, dealerships should introduce FandI online. A case for breaking the 300% rule http://www.autonews.com/article/20150617/BLOG13/306189999/a-case-for-breaking-the-300-rule Wed, 17 Jun 2015 11:45:00 EST Most FandI folks subscribe to the '300 percent rule': Offer 100 percent of the products to 100 percent of the dealership's customers 100 percent of the time. CFPB widens auto lending oversight to non-bank financiers http://www.autonews.com/article/20150610/FINANCE_AND_INSURANCE/150619975/cfpb-widens-auto-lending-oversight-to-non-bank-financiers Wed, 10 Jun 2015 16:05:36 EST The top U.S. consumer protection regulator is expanding its oversight to include large non-bank auto financing companies. Ally boosts nonprime lending, non-GM business http://www.autonews.com/article/20150610/FINANCE_AND_INSURANCE/306109996/ally-boosts-nonprime-lending-non-gm-business Wed, 10 Jun 2015 11:00:00 EST Ally Financial Inc. has stepped farther away from General Motors in recent months, increasing nonprime lending and doing more business with non-GM brands, Ally CEO Jeffrey Brown said this week. Who's bigger? A lender quiz http://www.autonews.com/article/20150610/FINANCE_AND_INSURANCE/150619989/whos-bigger-a-lender-quiz Wed, 10 Jun 2015 08:59:44 EST Here are 10 of the top 20 retail auto lenders in the first quarter as ranked by Experian Automotive. Try to rank them by market share. Why credit bureaus' loan data vary http://www.autonews.com/article/20150610/BLOG13/306109995/why-credit-bureaus-loan-data-vary Wed, 10 Jun 2015 11:00:00 EST The three major credit bureaus, TransUnion, Experian and Equifax, publish their auto finance data in spurts throughout the year, usually a week or two apart from one another. Auto lenders' decision times drop http://www.autonews.com/article/20150610/FINANCE_AND_INSURANCE/306109997/auto-lenders-decision-times-drop Wed, 10 Jun 2015 11:00:00 EST The industrywide effort to speed the FandI process is making strides due to a stronger focus on technology, according to results of the 2015 Non-prime Automotive Financing Survey. Dealer helps high-rate customers refinance http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089996/dealer-helps-high-rate-customers-refinance Mon, 8 Jun 2015 00:01:00 EST Honolulu Ford President Mark Benson proactively tries to refinance customers with high-interest-rate car loans, including ones the dealership initially arranged. Echopark stores' iPad strategy reaps FandI results http://www.autonews.com/article/20150608/RETAIL/306089992/echopark-stores-ipad-strategy-reaps-fi-results Mon, 8 Jun 2015 00:01:00 EST Sonic Automotive Inc.'s three new used-vehicle stores in the Denver area are getting strong FandI results. Leasing makes 'obscene' pickup prices respectable http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089991/leasing-makes-obscene-pickup-prices-respectable Mon, 8 Jun 2015 00:01:00 EST Leasing makes "obscene" pickup prices more respectable by reducing customers' monthly payments, dealers say. Mixed reviews are in after assuming lease for Volt http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089995/mixed-reviews-are-in-after-assuming-lease-for-volt Mon, 8 Jun 2015 00:01:00 EST After running into title snags and other glitches in assuming an existing lease on a Chevrolet Volt, Automotive News' James B. Treece sees opportunity for dealerships in smoothing lease swaps for consumers. Here is his story. As carmakers and dealers embrace leasing to boost sales, analysts mull finance option's limits http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089982/as-carmakers-and-dealers-embrace-leasing-to-boost-sales-analysts Mon, 8 Jun 2015 00:01:00 EST Leasing hit a record 26.7 percent of U.S. new-vehicle volume in the first quarter. How high can it go? Analysts predict higher than it is now, but not a whole lot higher. Dealership groups' hot FandI revenue: $7 billion http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089985/dealership-groups-hot-fi-revenue-7-billion Mon, 8 Jun 2015 00:01:00 EST Finance and insurance revenue keeps jumping at U.S. auto dealerships. By any measure in Automotive News' second annual FandI survey of the nation's largest auto dealership groups, the FandI office is hot, hot, hot. Dealers confront GAP sold by major auto insurers http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089986/dealers-confront-gap-sold-by-major-auto-insurers Mon, 8 Jun 2015 00:01:00 EST Major auto-insurance companies are offering GAP coverage. For now, most dealers haven't seen those offerings hurt their GAP sales in the FandI department. But they're watching developments. Lease or buy, treat ultraluxury customers differently http://www.autonews.com/article/20150608/FINANCE_AND_INSURANCE/306089989/lease-or-buy-treat-ultraluxury-customers-differently Mon, 8 Jun 2015 00:01:00 EST When it comes to financing a car, the rich truly are different. It is not a matter of cost; it is not what your monthly payment is. Auto-loan delinquency rates drop to lowest level in a decade http://www.autonews.com/article/20150604/FINANCE_AND_INSURANCE/150609917/auto-loan-delinquency-rates-drop-to-lowest-level-in-a-decade Thu, 4 Jun 2015 15:58:29 EST Auto-loan delinquency rates have fallen to their lowest level in a decade, even as high-risk loans continue to rise, a June 4 report said. Average new-car loan hit 67 months in Q1 http://www.autonews.com/article/20150603/FINANCE_AND_INSURANCE/150609945/average-new-car-loan-hit-67-months-in-q1 Wed, 3 Jun 2015 11:30:00 EST More than a fourth of all new light vehicles financed in the first quarter carried loans of 73 to 84 months, data from Experian Automotive show. Ally Insurance launches extended service contracts, supporting technology http://www.autonews.com/article/20150603/FINANCE_AND_INSURANCE/306039963/ally-insurance-launches-extended-service-contracts-supporting Wed, 3 Jun 2015 11:30:00 EST Ally Insurance is rolling out an extended service-contract product paired with a technology platform. How credit unions, as a group, will become the largest auto lender http://www.autonews.com/article/20150603/BLOG13/306049997/how-credit-unions-as-a-group-will-become-the-largest-auto-lender Wed, 3 Jun 2015 11:45:00 EST Credit unions as a group, largely working through Credit Union Direct's CUDL platform, are poised to become the largest single lender to auto buyers -- eventually. Here's how. 0% loans mark the start of summer http://www.autonews.com/article/20150603/FINANCE_AND_INSURANCE/306039964/0-loans-mark-the-start-of-summer Wed, 3 Jun 2015 11:15:00 EST Nearly a tenth of consumers who financed their vehicles in May received no-interest loans, according to Edmunds.com. That share likely will grow through the summer months before falling back in October. FCA's shorter warranty could drive service plan sales http://www.autonews.com/article/20150601/OEM/306019963/fcas-shorter-warranty-could-drive-service-plan-sales Mon, 1 Jun 2015 00:01:00 EST Fiat Chrysler's decision to reduce its limited powertrain warranty coverage by 40 percent brings it in line with its Detroit-based competitors. VW Jetta leases as cheap as iPhone plans show company's U.S. travails http://www.autonews.com/article/20150601/RETAIL01/150609997/vw-jetta-leases-as-cheap-as-iphone-plans-show-companys-u-s-travails Mon, 1 Jun 2015 06:40:23 EST The $89 a month it takes to lease a Jetta at some U.S. dealerships is about as low as the price of using an iPhone on some cell phone plans. It's also a sign of how Volkswagen is grasping to turn around its fortunes in the U.S. New car, truck loans reach longest term on record http://www.autonews.com/article/20150601/RETAIL01/150609987/new-car-truck-loans-reach-longest-term-on-record Mon, 1 Jun 2015 12:31:41 EST The average length of loans for new and used vehicles in the U.S. in the first quarter hit record highs, and nearly 30 percent of new-vehicle loans have pay-back periods longer than six years, Experian Automotive says. U.S. vehicle loan terms hit record in Q1 http://www.autonews.com/article/20150601/FINANCE_AND_INSURANCE/150609983/u-s-vehicle-loan-terms-hit-record-in-q1 Mon, 1 Jun 2015 15:22:56 EST The average length of loans for new and used vehicles in the United States in the first quarter hit record highs, and nearly 30 percent of new-vehicle loans have pay-back periods longer than six years, Experian Automotive said in a report issued... Will CFPB's use of disparate impact be altered by Supreme Court housing ruling? http://www.autonews.com/article/20150527/FINANCE_AND_INSURANCE/305279997/will-cfpbs-use-of-disparate-impact-be-altered-by-supreme-court Wed, 27 May 2015 12:15:00 EST Will a Supreme Court ruling in a Texas civil rights case alleging the state's housing practices resulted in a disparate impact on African-Americans set a precedent that could affect the CFPB's crackdown on auto lending? Dealership attorneys say the... Auto loans and balances, boosted by millennials, rise in Q1 http://www.autonews.com/article/20150527/FINANCE_AND_INSURANCE/305279996/auto-loans-and-balances-boosted-by-millennials-rise-in-q1 Wed, 27 May 2015 12:15:00 EST Auto loans and balances grew in volume in the first quarter, with the youngest U.S. consumers leading the way. Despite those increases, auto loan delinquencies remained flat, credit bureau TransUnion reported today. Former Suzuki store owner wins right to arbitrate in consumer dispute http://www.autonews.com/article/20150527/LEGALFILE/305279995/former-suzuki-store-owner-wins-right-to-arbitrate-in-consumer-dispute Wed, 27 May 2015 11:00:00 EST The owner of a former Suzuki dealership in Kansas City, Mo., is entitled to arbitrate rather than litigate a customer's claims stemming from an alleged failure to deliver title to the used vehicle she bought, the Missouri Court of Appeals has ruled. FandI providers and lenders, here's your chance to fulfill dealers' dreams http://www.autonews.com/article/20150527/BLOG13/150529884/fi-providers-and-lenders-heres-your-chance-to-fulfill-dealers-dreams Wed, 27 May 2015 11:30:00 EST With gross profit margins on new-vehicle sales narrowing, dealers are worried about the future and where the profits on the sales side will come. The FandI office is an obvious place. Larry Miller Group launches Fast Pass to speed auto transactions http://www.autonews.com/article/20150527/FINANCE_AND_INSURANCE/150529898/larry-miller-group-launches-fast-pass-to-speed-auto-transactions Wed, 27 May 2015 12:00:00 EST Larry H. Miller Dealerships is pushing to put more of the car buying process online, but the FandI component will stay in the dealership. 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. %]