Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Wed, 25 Apr 2018 06:00:00 EST Treat consumer complaints like ransom notes http://www.autonews.com/article/20180425/FINANCE_AND_INSURANCE/180429868/treat-consumer-complaints-like-ransom-notes Wed, 25 Apr 2018 11:19:44 EST Dealers can prevent costly investigations by taking consumers' complaints seriously. Treat them like ransom notes, says Reynolds' Terry O'Loughlin. Bank of America's online auto traffic doubles http://www.autonews.com/article/20180425/FINANCE_AND_INSURANCE/180429867/bank-of-americas-online-auto-traffic-doubles Wed, 25 Apr 2018 11:20:38 EST The number of customers using Bank of America's online shopping and auto financing portal has doubled since the end of 2017, less than a year after the company launched a pilot of the platform. Want to know what customers really think? Google yourself http://www.autonews.com/article/20180425/BLOG13/180429866/want-to-know-what-customers-really-think-google-yourself Wed, 25 Apr 2018 11:21:32 EST Dealers invested in addressing consumer complaints should Google themselves to stay ahead of compliance issues. CFPB's regulation by enforcement halts -- for now http://www.autonews.com/article/20180425/FINANCE_AND_INSURANCE/180429869/cfpbs-regulation-by-enforcement-halts-for-now Wed, 25 Apr 2018 11:18:50 EST Regulation by enforcement is over at the CFPB, at least while Acting Director Mick Mulvaney leads the bureau, he told members of Congress. Car dealers competing with brands in auto subscription business http://www.autonews.com/article/20180423/RETAIL07/180429963/car-dealers-monthly-auto-subscriptions Mon, 23 Apr 2018 00:01:00 EST Some dealers are offering subscription programs to ensure the retailers remain relevant as automakers also experiment with the business model. Car dealers fixated on costs http://www.autonews.com/article/20180423/RETAIL07/180429943/car-dealerships-cost-cutting Mon, 23 Apr 2018 00:01:00 EST Dealers are increasingly cutting costs across the board this year to offset narrowing margins, rising expenses and a potential economic downturn. Washington angles to check CFPB's power http://www.autonews.com/article/20180423/FINANCE_AND_INSURANCE/180429937/cfpb-regulation-republican-minorities Mon, 23 Apr 2018 00:01:00 EST Congressional efforts to limit the CFPB's power are moving in parallel with similar efforts by its leader. Truck craze, tech stretch purse strings, auto loans http://www.autonews.com/article/20180420/RETAIL01/304209938/truck-craze-tech-stretch-purse-strings-auto-loans Fri, 20 Apr 2018 08:34:20 EST Americans' love of pricey pickups, crossovers and SUVs is stretching their wallets, leading lenders to bend over backward to keep monthly payments affordable. Tim Russi to leave Ally Financial http://www.autonews.com/article/20180419/FINANCE_AND_INSURANCE/180419719/tim-russi-to-leave-ally-financial Thu, 19 Apr 2018 14:04:44 EST Tim Russi, the Ally Financial auto finance president who led many digital initiatives and helped expand the lender's dealership reach, is leaving the post, effective immediately. Wells Fargo fined $1 billion for auto loan, mortgage abuse http://www.autonews.com/article/20180419/FINANCE_AND_INSURANCE/180419715/wells-fargo-fined-for-auto-lending-abuse Thu, 19 Apr 2018 20:12:21 EST The settlement with the CFPB cites Wells Fargo's practice of forcing auto insurance on some customers who took out loans to buy new vehicles. Wells Fargo also will "remediate harmed consumers," the bureau said. Will new tech help or hurt residuals? http://www.autonews.com/article/20180418/BLOG13/180419756/will-new-tech-help-or-hurt-residuals Wed, 18 Apr 2018 11:25:26 EST GM President Dan Ammann thinks new technology doesn't have to hurt a vehicle's residual values, contrary to the generally accepted wisdom -- and here is why. CFPB director to Congress: 'Take my power away' http://www.autonews.com/article/20180418/FINANCE_AND_INSURANCE/180419760/cfpb-director-to-congress-take-my-power-away Wed, 18 Apr 2018 11:09:50 EST Despite insistence that he has not "burned the place down," Mick Mulvaney, acting director of the CFPB, is pushing for increased oversight of the Bureau. FandI penetration rises even at luxury stores http://www.autonews.com/article/20180418/FINANCE_AND_INSURANCE/180419759/fi-penetration-rises-even-at-luxury-stores Wed, 18 Apr 2018 11:10:39 EST FandI penetration on new- and used-vehicle sales grew last year at luxury-brand dealerships, despite the prevalence of leasing among luxury customers, a NADA report shows. Credit experts in Canada warn of creeping negative equity http://www.autonews.com/article/20180418/FINANCE_AND_INSURANCE/304209991/canada-credit-rating-auto-loans Wed, 18 Apr 2018 00:01:00 EST Canadian buyers are attracted to longer loan periods but still want to break their loans in the fourth year, putting them upside-down. Young Canadians are increasing their auto-loan debt http://www.autonews.com/article/20180418/FINANCE_AND_INSURANCE/304209992/canada-millennial-auto-loan-debt Wed, 18 Apr 2018 00:01:00 EST Canadian millennials are taking on more auto-loan debt, defying perceptions that they don't care about vehicle ownership and prefer to use Uber and Lyft. U.S. Senate votes to repeal CFPB's auto-lending guidance http://www.autonews.com/article/20180417/FINANCE_AND_INSURANCE/180419770/u-s-senate-votes-to-repeal-cfpbs-auto-lending-guidance Tue, 17 Apr 2018 15:36:23 EST A resolution rescinding the Consumer Financial Protection Bureau's auto lending guidance, which aims to limit dealerships' retail margin on loans, passed by a narrow margin in the Senate. It will head to the House floor next for a vote. Car dealerships leaning on incentives to turn profit http://www.autonews.com/article/20180416/RETAIL07/180419845/report-nada-dealers-incentives Mon, 16 Apr 2018 00:01:00 EST Dealerships' average net profit was more than 15 times the size of total operating profit last year, showing just how much they rely on automaker incentives. Mercedes-Benz will launch vehicle subscription pilot in Nashville, Philadelphia in June http://www.autonews.com/article/20180412/RETAIL/180419902/mercedes-subscription-tennesee-pennsylvania Thu, 12 Apr 2018 09:00:00 EST Mercedes-Benz will launch its vehicle subscription program in a pilot with dealers in Nashville and Philadelphia, setting up a battle with BMW as the luxury rivals try out a new type of relationship with customers. CarMax captive's profit rises http://www.autonews.com/article/20180411/FINANCE_AND_INSURANCE/180419936/carmax-captive-profit-rises Wed, 11 Apr 2018 11:14:52 EST Income at CarMax Auto Finance rose 22 percent in the latest quarter, despite a rise in the share of financings where the retailer paid a fee to outside lenders. Poor grammar is a sales turnoff http://www.autonews.com/article/20180411/BLOG13/180419933/poor-grammar-is-a-sales-turnoff Wed, 11 Apr 2018 11:19:31 EST First impressions matter when it comes to attracting online shoppers. Dealerships should ensure responses to potential customers are not only thoughtful and informative, but also grammatically correct. JMandA's Forrest Heathcott talks predictive data, FandI income http://www.autonews.com/article/20180411/FINANCE_AND_INSURANCE/180419972/jmas-heathcott-talks-predictive-data-fi-income Wed, 11 Apr 2018 11:00:00 EST Forrest Heathcott, president of JMandA Group, says dealers can optimize their finance and insurance income through data analytics with a tool that helps predict the purchase behavior of consumers. Auto origination balance and number of accounts fall in 2017 http://www.autonews.com/article/20180411/FINANCE_AND_INSURANCE/180419935/auto-origination-balance-and-number-of-accounts-fall-in-2017 Wed, 11 Apr 2018 11:17:11 EST Auto loan and lease accounts and origination balance both dipped in 2017, driven in part by consumers' shift toward used-vehicle sales, according to Equifax. U.S. senate panel to repeal CFPB's auto lending rules, chief says http://www.autonews.com/article/20180410/FINANCE_AND_INSURANCE/180419971/u-s-senate-panel-to-repeal-cfpbs-auto-lending-rules-chief-says Tue, 10 Apr 2018 14:05:14 EST The U.S. Senate Banking Committee plans to repeal the Consumer Financial Protection Bureau's indirect auto lending and leveraged lending rules in coming weeks. Ally Financial, Fair link on financing, auctions http://www.autonews.com/article/20180410/FINANCE_AND_INSURANCE/180419951/ally-fair-painter-venture-finance-auctions Tue, 10 Apr 2018 16:19:47 EST Ally and Fair have joined to offer consumers online vehicle financing through Ally's Clearlane, while Fair will send its off-lease cars to Ally's SmartAuction. Video meetings boost profits http://www.autonews.com/article/20180409/RETAIL07/180409796/video-meetings-boost-dealership-profits Mon, 9 Apr 2018 00:01:00 EST John Eagle Auto Group in Dallas holds monthly video conferences to help FandI staff brainstorm ways to improve profits at its 12 Texas dealerships. Team up to improve the lease-end process http://www.autonews.com/article/20180409/RETAIL07/180409797/dealer-lender-brand-coordination Mon, 9 Apr 2018 00:01:00 EST If dealerships, lenders and automotive brands want customers to be happier, a more digital and personalized lease-end process may be the answer. Captives go online to educate consumers http://www.autonews.com/article/20180409/RETAIL07/180409791/captives-lease-end-education Mon, 9 Apr 2018 00:01:00 EST Some captives have put their lease-end education tools online to improve customer satisfaction with an experience that too often leaves consumers with questions. Smaller subprime auto lenders are folding as losses pile up http://www.autonews.com/article/20180406/FINANCE_AND_INSURANCE/180409760/small-subprime-lenders-folding-fi Fri, 6 Apr 2018 09:25:09 EST Growing numbers of small subprime auto lenders are closing or shutting down after loan losses and slim margins spur banks and private equity owners to cut off funding. Ford wins approval for German banking license to offset Brexit risk http://europe.autonews.com/article/20180406/ANE/180409768/ford-wins-approval-for-german-banking-license-to-offset-brexit-risk Fri, 6 Apr 2018 05:28:22 EST Ford won approval from the European Central Bank to set up a bank in Germany as part of its strategy to mitigate any risk from Britain leaving the EU. BMW launches subscription pilot in at Sonic dealership in Tennessee http://europe.autonews.com/article/20180404/COPY/304049903/access-by-bmw-subscription-pilot-nashville-tennessee Wed, 4 Apr 2018 09:00:00 EST BMW, joining the list of automakers exploring the business case for vehicle subscription services, will launch its first pilot program in the United States. The 0% auto loan era fading into America's rearview mirror http://www.autonews.com/article/20180404/FINANCE_AND_INSURANCE/180409853/zero-percent-auto-loan-era-fading-into-americas-rearview-mirror Wed, 4 Apr 2018 11:00:00 EST Automakers that used 0 percent financing offers to juice sales at the height of the American auto boom are starting to abandon them as rising interest rates lift their own borrowing costs. Experian exec talks record-high payments, vehicle affordability and interest rate hikes http://www.autonews.com/article/20180404/FINANCE_AND_INSURANCE/180409884/experian-exec-talks-record-high-payments-vehicle-affordability-and Wed, 4 Apr 2018 11:00:00 EST Experian's Melinda Zabritski says record-high auto loan amounts and monthly payments have more customers choosing to buy used vehicles or lease new vehicles. As interest rates continue to rise, so will monthly payments, she adds. BMW launches subscription pilot in at Sonic dealership in Tennessee http://www.autonews.com/article/20180404/RETAIL/180409859/access-by-bmw-subscription-pilot-nashville-tennessee Wed, 4 Apr 2018 09:00:00 EST BMW, joining the list of automakers exploring the business case for vehicle subscription services, will launch its first pilot program in the United States at a Sonic Automotive store in Nashville. Early credit awareness will improve car-buying process http://www.autonews.com/article/20180404/FINANCE_AND_INSURANCE/180409850/early-credit-awareness-will-improve-car-buying-process Wed, 4 Apr 2018 11:28:43 EST Most millennials and baby boomers say they understand their credit scores' influence on vehicle financing, according to an Equifax survey. Handicapping the CFPB's next chief http://www.autonews.com/article/20180404/BLOG13/180409851/handicapping-the-cfpbs-next-chief Wed, 4 Apr 2018 11:23:27 EST An American Financial Services Association leader identifies who he thinks may be on the short list to take charge of the Consumer Financial Protection Bureau. Faster decisions to spur loan growth at credit unions http://www.autonews.com/article/20180404/FINANCE_AND_INSURANCE/180409852/faster-decisions-will-spur-credit-unions-loan-growth Wed, 4 Apr 2018 11:19:34 EST Faster decisioning, aided by automated approvals, will keep credit unions gaining market share in auto loans, says an executive of CU Direct. Mulvaney gives Congress advice on stripping away his CFPB powers http://www.autonews.com/article/20180402/FINANCE_AND_INSURANCE/180409921/mulvaney-congress-cfpb-regulation Mon, 2 Apr 2018 16:57:56 EST Mick Mulvaney has long complained that the head of the CFPB has too much authority over banks. Now he's offering lawmakers specific advice on how they should start stripping those powers away. Alternative data, AI will shape lenders' decisions http://www.autonews.com/article/20180328/FINANCE_AND_INSURANCE/180329647/alternative-data-ai-will-shape-lenders-decisions Wed, 28 Mar 2018 12:15:00 EST As lenders employ alternative data and artificial intelligence, their decisions may be harder for FandI managers to understand, panelists at the AFSA conference said. Let's hope resolution on military lending lands soon http://www.autonews.com/article/20180328/BLOG13/180329645/lets-hope-resolution-on-military-lending-lands-soon Wed, 28 Mar 2018 12:15:22 EST What's next for the interpretation of the Military Lending Act that has befuddled auto dealers and lenders? A quick resolution, sources say. Captives posted strong 2017 in loan originations http://www.autonews.com/article/20180328/FINANCE_AND_INSURANCE/180329643/captives-posted-strong-2017-in-loan-originations Wed, 28 Mar 2018 12:32:23 EST Captive finance companies had a strong 2017 for auto loan originations, even excluding leases. Start FandI product education before consumers visit the store, EFG study suggests http://www.autonews.com/article/20180328/FINANCE_AND_INSURANCE/180329644/start-fi-product-education-before-consumers-visit-the-store-efg Wed, 28 Mar 2018 12:19:12 EST About a quarter of car buyers expect to spend less than an hour in the dealership, including purchase time, according to a survey by EFG Cos. Terry Taylor, mysterious empire builder http://www.autonews.com/article/20180326/RETAIL07/180329815/terry-taylor-dealership-empire Mon, 26 Mar 2018 00:01:00 EST Terry Taylor, a private but skillful operator, owns more dealerships than anyone else in the country #8212; and probably the world. N.Y. dealer taps Google tech in fixed ops http://www.autonews.com/article/20180323/RETAIL06/180329802/n-y-dealer-taps-google-tech-in-fixed-ops Fri, 23 Mar 2018 13:06:13 EST New York dealer Brian Benstock is tapping Google technologies, including virtual helper Assistant, to drive service traffic and improve customers' experiences in service. Ally to be Drive Motors' preferred finance provider http://www.autonews.com/article/20180322/RETAIL06/180329845/ally-to-be-drive-motors-preferred-finance-provider Thu, 22 Mar 2018 16:39:51 EST Ally Financial will be the preferred finance company for vehicle transactions through Drive Motors, the companies said. AutoCanada buys Chicago dealership group http://www.autonews.com/article/20180322/RETAIL/180329881/autocanda-chicago-grossinger-acquistion-wall-canada Thu, 22 Mar 2018 07:49:19 EST AutoCanada, Canada's only publicly traded auto retailer, is buying most of the Grossinger Auto Group in Chicago, giving it a foothold in the United States -- with plans for more growth. Ally's auto finance platform to test digital service http://www.autonews.com/article/20180322/RETAIL06/180329847/allys-auto-finance-platform-to-test-digital-service Thu, 22 Mar 2018 16:30:55 EST Ally Financial's Clearlane will pilot Clearmatch, a digital service that will approve customers for vehicle financing, connect them with participating dealerships and let them shop those dealerships' inventory in the platform. Auto lending landscape forecast to change http://www.autonews.com/article/20180322/RETAIL06/180329861/auto-lending-landscape-forecast-to-change Thu, 22 Mar 2018 14:26:03 EST Even a modest rise in interest rates, plus tighter lending standards, could impact consumers' vehicle choices, sales and production volumes, dealers' inventory acceptance and lenders' loss risk, experts say. Partnerships, investments needed for online auto financing success, panel says http://www.autonews.com/article/20180321/FINANCE_AND_INSURANCE/180329916/partnerships-investments-needed-for-online-auto-financing-success Wed, 21 Mar 2018 11:30:00 EST Digital investments and partnerships are the keys to appealing to today's consumers, auto finance panelists say. Experian launches tool to better track credit, evaluate risk, identify fraud http://www.autonews.com/article/20180321/FINANCE_AND_INSURANCE/180329919/experian-launches-tool-to-better-track-credit-evaluate-risk-identify Wed, 21 Mar 2018 11:30:00 EST Experian's new Trended 3D tool aggregates raw trended credit data from Experian, Equifax and TransUnion into attributes that Experian says will help lenders better evaluate risk and identify fraud. Bring service into the FandI mix http://www.autonews.com/article/20180321/BLOG13/180329921/bring-service-into-the-fi-mix Wed, 21 Mar 2018 11:30:00 EST Trying to come up with new FandI products to offer? Ask the service department.