Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Sat, 20 Jan 2018 06:00:00 EST Zurich pulls back on some dealerships' insurance http://www.autonews.com/article/20180119/FINANCE_AND_INSURANCE/180119641/zurich-dealership-insurance Fri, 19 Jan 2018 15:26:20 EST Zurich North America no longer will offer property and casualty insurance to independent dealerships and some franchise dealerships. FandI products are not affected. Cox sees strong 2018 auto sales http://www.autonews.com/article/20180117/OEM09/180119706/cox-automotive-retail-forecast-world-congress-detroit Wed, 17 Jan 2018 16:11:23 EST Cox Automotive's chief economist sees strong 2018 auto sales, despite rising interest rates, but a shift toward used cars amid a torrent of off-lease vehicles. 'Incorporate a certain amount of fear' and other advice from an FandI insider http://www.autonews.com/article/20180117/FINANCE_AND_INSURANCE/180119715/incorporate-a-certain-amount-of-fear-and-other-advice-from-an-fi Wed, 17 Jan 2018 11:34:45 EST In his new book, "Perfect Dealership," Max Zanan, president of Total Dealer Compliance, lays out his recommendations for auto retailers. Here are edited excerpts from his chapter on FandI. Chase Auto Finance joins AutoFi retailing platform http://www.autonews.com/article/20180117/FINANCE_AND_INSURANCE/180119713/chase-auto-finance-joins-autofi-retailing-platform Wed, 17 Jan 2018 11:59:34 EST Dealership websites that use AutoFi's vehicle sales and financing platform will be able to show financing options from Chase Auto Finance beginning in the first half of this year. Scrutiny continues http://www.autonews.com/article/20180117/BLOG13/180119714/scrutiny-continues Wed, 17 Jan 2018 11:37:18 EST The CFPB may have been defanged, but dealerships' role in arranging loans is still being scrutinized. A report last week was a timely reminder. Cheap leases take toll on used market http://www.autonews.com/article/20180115/RETAIL04/180119879/used-midsize-sedans-auctions Mon, 15 Jan 2018 00:01:00 EST It's easy to see why wholesale prices for used midsize sedans are declining: aggressively priced, subvented leases adopted two and three years ago to clear out the cars as consumer preferences shifted to crossovers and SUVs have begun to ripple... Tool targets consumers with expiring leases http://www.autonews.com/article/20180115/FINANCE_AND_INSURANCE/180119941/propensity360-pearl-technology-germain-toyota Mon, 15 Jan 2018 00:01:00 EST A tool by Pearl Technology Holdings and Experian helps dealerships target prospects based on what they're paying or driving, and helps stores know what to stock. Discriminatory financing found at auto dealerships http://www.autonews.com/article/20180112/FINANCE_AND_INSURANCE/180119909/discrimination-auto-dealers-retail-financing Fri, 12 Jan 2018 09:02:13 EST A report by the National Fair Housing Alliance found discriminatory pricing tactics in car sales and financing by dealerships. Ally hosts online trivia at Detroit auto show http://www.autonews.com/article/20180111/RETAIL03/180119928/ally-detroit-auto-show-trivia Thu, 11 Jan 2018 15:46:44 EST Ally Financial is partnering with History Channel's Danny Koker to host a limited-run trivia promotion that will be filmed at the Detroit auto show. Military members deserve fast resolution on lending http://www.autonews.com/article/20180110/BLOG13/180119981/military-members-deserve-fast-resolution-on-lending Wed, 10 Jan 2018 11:52:26 EST Dealers and lenders are facing significant challenges following the Department of Defense's latest interpretation of the Military Lending Act, but until the DOD clarifies the interpretation, an act that was designed to protect service members may... Murky Military Lending Act requirements leave industry scrambling http://www.autonews.com/article/20180110/FINANCE_AND_INSURANCE/180119982/murky-military-lending-act-requirements-leave-industry-scrambling Wed, 10 Jan 2018 11:50:51 EST The Department of Defense's latest interpretation of the Military Lending Act, published last month, includes a murky set of rules that could retroactively put dealers and lenders in regulatory jeopardy, attorneys, compliance experts and... Average new-car down payment, transaction price hit all-time highs http://www.autonews.com/article/20180110/FINANCE_AND_INSURANCE/180119984/average-new-car-down-payment-transaction-price-hit-all-time-highs Wed, 10 Jan 2018 11:48:40 EST New-car down payments reached a record-high average in December as vehicle transaction prices hit their own high, Edmunds says. Will competition soften impact of banks' expected rate hikes? http://www.autonews.com/article/20180110/FINANCE_AND_INSURANCE/180119983/will-competition-soften-impact-of-banks-expected-rate-hikes Wed, 10 Jan 2018 11:49:45 EST Auto loan interest rates at banks will rise this year, pushed by the Federal Reserve's expected rate increases. But heightened competition among auto lenders will mitigate banks' rate hikes, according to Bankrate.com. At Daimler, mobility falls under finance http://www.autonews.com/article/20180108/FINANCE_AND_INSURANCE/180109902/daimler-financial-services-car2go Mon, 8 Jan 2018 00:01:00 EST Many of Daimler AG's mobility initiatives in the U.S. and internationally fall under its finance arm, Daimler Financial Services. Finance and mobility are often assumed to be separate tracks, but to Daimler's leaders, they merge. Innovators shift FandI retailing to the Web http://www.autonews.com/article/20180108/FINANCE_AND_INSURANCE/180109904/finance-insurance-dealerships-retail Mon, 8 Jan 2018 00:01:00 EST Digital innovators Drive Motors, Roadster and AutoGravity are reshaping the way consumers shop for vehicle financing and FandI products. And they say dealers and lenders are poised to benefit. ZF targets Q3 for blockchain mobility payment platform debut http://www.autonews.com/article/20180108/MOBILITY/180109812/zf-ces-blockchain-mobility-payment Mon, 8 Jan 2018 11:56:36 EST ZF Friedrichshafen said it will introduce Car eWallet, its in-car payment system, in Germany in the third quarter. FandI trends won't let up in 2018 http://www.autonews.com/article/20180108/FINANCE_AND_INSURANCE/180109887/finance-insurance-trends-2018 Mon, 8 Jan 2018 00:01:00 EST Last year brought its fair share of changes in auto finance. Here are some trends that likely will continue in 2018. Subaru store shifts pay plan to spur FandI sales http://www.autonews.com/article/20180108/FINANCE_AND_INSURANCE/180109906/subaru-store-finance-insurance Mon, 8 Jan 2018 00:01:00 EST Patriot Subaru in Saco, Maine, reworked FandI officers' pay plans, compensating them on product sales rather than finance reserve. The result? Improved FandI sales, revenue per vehicle and take-home pay. Tool helps dealers target likely customers, manage vehicle acquisitions http://www.autonews.com/article/20180103/FINANCE_AND_INSURANCE/180109943/tool-helps-dealers-target-likely-customers-manage-vehicle Wed, 3 Jan 2018 11:20:41 EST Propensity360, a tool by Pearl Technology Holdings and Experian, helps dealerships target potential customers based on factors such as what they're currently paying or driving. It also helps stores zero in on which vehicles to stock. CU Direct's network tops Q3 auto lenders http://www.autonews.com/article/20180103/FINANCE_AND_INSURANCE/180109942/cu-directs-network-tops-q3-auto-lenders Wed, 3 Jan 2018 11:21:11 EST Credit Union Direct's automotive lending network collectively ranked No. 1 among the 10 largest auto lending sources in 2017's third quarter. 'Always check bank rates' and other savvy FandI advice http://www.autonews.com/article/20180103/FINANCE_AND_INSURANCE/180109944/always-check-bank-rates-and-other-savvy-fi-advice Wed, 3 Jan 2018 11:20:09 EST Each week the FandI Report features a savvy tip from an industry expert. Here's a sampling of our 2017 FandI tips and the month in which each appeared. In 2018, some trends will sustain http://www.autonews.com/article/20180103/BLOG13/180109945/in-2018-some-trends-will-sustain Wed, 3 Jan 2018 11:19:37 EST Last year brought its fair share of changes in auto finance. Here are some trends that likely will continue in 2018. Why electric vehicle drivers prefer leasing #8212; by far http://www.autonews.com/article/20180103/OEM05/180109952/why-ev-drivers-prefer-leasing-by-far Wed, 3 Jan 2018 06:42:45 EST U.S. drivers now lease almost 80 percent of battery electric vehicles and 55 percent of plug-in hybrids. Fed interest rate hikes expected to factor into lower '18 U.S. auto sales http://www.autonews.com/article/20180102/RETAIL/180109973/december-monthly-sales-2017 Tue, 2 Jan 2018 07:24:53 EST As automakers seal their first annual U.S. sales decline since 2009, expectations for more interest rate hikes are bolstering the nearly unanimous view that car demand will shrink again in 2018. Sales staff gains from introducing FandI products http://www.autonews.com/article/20180101/RETAIL07/180109994/finance-insurance-dealerships-best-practices Mon, 1 Jan 2018 00:01:00 EST At Sam Pack's Five Star Ford of Lewisville, the sales team gets 5 percent of FandI income for alerting customers to products. The result is higher FandI profit per unit. 'We have proven all the naysayers wrong' http://www.autonews.com/article/20171227/FINANCE_AND_INSURANCE/171229887/autogravity-finance-online-lending Wed, 27 Dec 2017 10:00:00 EST CEO Andy Hinrichs muses on AutoGravity's growth, the evolution of digital retail and how vehicle shopping and financing will continue to evolve. Plan now for a changing industry http://www.autonews.com/article/20171227/BLOG13/171229889/dealers-future-technology-changes Wed, 27 Dec 2017 10:00:00 EST Dealers who just a few months ago may have been reluctant to plan for the future could be shifting their perspectives as the pace of change quickens in auto retail. Darwin Online offers a next step toward digital FandI http://www.autonews.com/article/20171227/FINANCE_AND_INSURANCE/171229890/darwin-online-financing-lending-hinrichs-expansion Wed, 27 Dec 2017 10:00:00 EST Tool enables customers on dealership websites to finance vehicles and add FandI products to their shopping carts. Transactions are completed in-store. Smooth year-end wind-up springs from 'process, process, process' http://www.autonews.com/article/20171227/FINANCE_AND_INSURANCE/171229888/dealer-finance-retail-lending-process Wed, 27 Dec 2017 10:00:00 EST The year-end sales frenzy can throw even auto finance veterans off their game. Adherence to FandI procedures and teamwork are key. It's time to lay down some definitions http://www.autonews.com/article/20171220/BLOG13/171229986/its-time-to-lay-down-some-definitions Wed, 20 Dec 2017 11:11:56 EST "Digital retail" and "online transaction" have become popular terms in recent years, but what do they really mean? Look at FandI benchmarks beyond numbers http://www.autonews.com/article/20171220/FINANCE_AND_INSURANCE/171229989/look-at-fi-benchmarks-beyond-numbers Wed, 20 Dec 2017 10:59:22 EST Qualitative benchmarks can show dealers where more training may be necessary to improve FandI results, John Stephens of EFG says. Walser Automotive: So long to FandI managers, hello to more profits http://www.autonews.com/article/20171220/FINANCE_AND_INSURANCE/171229987/walser-automotive-so-long-to-fi-managers-hello-to-more-profits Wed, 20 Dec 2017 11:10:27 EST Walser Automotive Group eliminated FandI managers and, despite some initial setbacks, now makes better hires, secures superior lending, has increased revenue and makes customers happier. Mixed lease-end messages leave customers mixed-up http://www.autonews.com/article/20171220/FINANCE_AND_INSURANCE/171229988/mixed-lease-end-messages-leave-customers-mixed-up Wed, 20 Dec 2017 11:09:19 EST Most lease customers consider their lease-end options just a few months before their term expires, according to J.D. Power, but they often receive lease-end messages much earlier and from multiple sources, causing confusion. Waymo partners with insurance firm to cover AV riders http://www.autonews.com/article/20171219/MOBILITY/171219732/waymo-autonomous-rider-insurance Tue, 19 Dec 2017 15:10:03 EST Waymo, the self-driving company spun out from Google, is partnering with insurance startup Trov to provide trip-based coverage for autonomous vehicle riders. Honda says ruptured Takata airbag led to death in Louisiana http://www.autonews.com/article/20171219/OEM/171219727/honda-says-ruptured-takata-airbag-led-to-death-in-louisiana Tue, 19 Dec 2017 19:22:14 EST The 2004 Civic involved in a July crash was under recall but had not been repaired, the company says, adding that the ruptured inflator in the vehicle was not the original one installed. Extended contract sales now can mean future shop profits http://www.autonews.com/article/20171218/RETAIL05/171219990/extended-contract-sales-now-can-mean-future-shop-profits Mon, 18 Dec 2017 00:01:00 EST Growth in sales of service contracts means more work -- and more profits -- for fixed ops, but service departments need to pay close attention to the plans' details. Breakthrough claimed in remote, electronic signature on auto finance contract http://www.autonews.com/article/20171214/FINANCE_AND_INSURANCE/171219817/breakthrough-claimed-in-remote-electronic-signature-on-auto-finance Thu, 14 Dec 2017 16:54:02 EST Technology provider RouteOne, in a venture with Toyota Financial Services, says it has successfully processed the industry's first remotely captured, electronic customer signature on a finance contract arranged through a dealership. First Shift: Shaky future for Ford Fusion? http://www.autonews.com/article/20171214/VIDEO/312149974/first-shift-shaky-future-for-ford-fusion Thu, 14 Dec 2017 08:30:00 EST Shaky future for Ford Fusion?; UAW rep quits GM board; EV credit saved, report says; Hyundai back in Super Bowl; How tech will change FandI; Google's top-trending auto brands. Lenders relieved by used-car price strength http://www.autonews.com/article/20171213/FINANCE_AND_INSURANCE/171219868/lenders-relieved-by-used-car-price-strength Wed, 13 Dec 2017 10:44:43 EST Lenders who have been watching used-vehicle prices closely are breathing more easily, after prices held up better than expected in the second half. Mercedes-Benz Financial launches expansion of Texas operations http://www.autonews.com/article/20171213/FINANCE_AND_INSURANCE/171219861/mercedes-benz-financial-launches-expansion-of-texas-operations Wed, 13 Dec 2017 12:46:05 EST Mercedes-Benz Financial Services said it will shift business operations into a new facility at its AllianceTexas operation in Fort Worth. Dealers test student-designed service app http://www.autonews.com/article/20171213/FINANCE_AND_INSURANCE/171219865/dealers-test-student-designed-service-app Wed, 13 Dec 2017 11:24:40 EST EFG merged two winning products from its Northwood University Innovator of the Year competitions and will bring the combined model to the market as Driver's Advocate. Why lenders enjoy high used prices http://www.autonews.com/article/20171213/FINANCE_AND_INSURANCE/171219867/why-lenders-enjoy-high-used-prices Wed, 13 Dec 2017 10:45:20 EST Used-vehicle values have largely outperformed expectations this year, and there are at least four reasons for that, according to Tom Kontos, chief economist at ADESA Analytical Services. Many consumers ready to complete vehicle purchase online, survey finds http://www.autonews.com/article/20171213/FINANCE_AND_INSURANCE/171219869/many-consumers-ready-to-complete-vehicle-purchase-online-survey-finds Wed, 13 Dec 2017 10:44:00 EST Nearly half of consumers surveyed by Chase said they were comfortable completing their entire vehicle purchase online. That statistic bodes well for the bank's Chase Auto Direct digital car-shopping and financing tool. Lenders need to stay diligent http://www.autonews.com/article/20171213/BLOG13/171219864/lenders-need-to-stay-diligent Wed, 13 Dec 2017 11:25:25 EST This year was full of relatively positive, consistent auto finance trends. Next year will likely follow suit, but the upswing won't last forever. TransUnion sees delinquencies edging up, tighter lending rules on horizon http://www.autonews.com/article/20171213/FINANCE_AND_INSURANCE/171219866/transunion-sees-delinquencies-edging-up-tighter-lending-rules-on Wed, 13 Dec 2017 11:01:22 EST In 2018, delinquencies will tick up, lenders will continue to tighten their standards, and the industry will rely more on alternative data, TransUnion predicts. VW bank expects profit rise in 2017 despite diesel scandal http://europe.autonews.com/article/20171213/ANE/171219875/vw-bank-expects-profit-rise-in-2017-despite-diesel-scandal Wed, 13 Dec 2017 09:40:25 EST Volkswagen's financial arm said that it expects 2017 profit will exceed a record 2.1 billion euros ($2.47 billion) in 2016, despite a diesel scandal that has rocked the industry. A century of forward thinking gave rise to FandI office, products of today http://www.autonews.com/article/20171211/FINANCE_AND_INSURANCE/171219968/finance-insurance-dealers-history Mon, 11 Dec 2017 00:01:00 EST In this special section, Automotive News sheds light on a few of the countless people and companies that helped shape the modern dealership FandI office. The birth of a captive finance company http://www.autonews.com/article/20171211/FINANCE_AND_INSURANCE/171219987/finance-insurance-dealers-captive Mon, 11 Dec 2017 00:01:00 EST GMAC, launched in 1919, became the model for the modern captive finance company and helped popularize the idea of mass-market consumer financing. Sloan: Willys-Overland first to fill credit 'vacuum' http://www.autonews.com/article/20171211/FINANCE_AND_INSURANCE/171219985/willys-overland-finance-captive Mon, 11 Dec 2017 00:01:00 EST GM wasn't the first car company to figure out its customers and dealers needed a finance source they could rely on and do something about it. That honor goes to Willys-Overland Motor Co. Credit insurance pioneer still a player http://www.autonews.com/article/20171211/FINANCE_AND_INSURANCE/171219983/finance-insurance-credit-dealerships Mon, 11 Dec 2017 00:01:00 EST It has long been said that the "I" in FandI refers to credit insurance, arguably the first add-on product sold in dealerships' finance and insurance offices. One of the product's earliest providers, Central States Health and Life Co.