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, 23 Aug 2016 06:00:00 EST Subprime loans become prime target for Oliver http://www.autonews.com/article/20160822/FINANCE_AND_INSURANCE/308229987/subprime-loans-become-prime-target-for-oliver Mon, 22 Aug 2016 00:01:00 EST Comedian John Oliver devoted nearly 18 minutes of his weekly HBO show 'Last Week Tonight' on Aug. First Shift: Uber-Volvo self-driving project http://www.autonews.com/article/20160818/VIDEO/308189954/first-shift-uber-volvo-self-driving-project Thu, 18 Aug 2016 00:01:00 EST Uber, Volvo to develop self-driving XC90 SUVs; Lawyers implicate Bosch in diesel scheme; Bottleneck at VW plant; S. Korea widens automaker probe; TV host rips subprime-lending trend. Leasing grows but could lose steam, Equifax says http://www.autonews.com/article/20160817/FINANCE_AND_INSURANCE/160819880/leasing-grows-but-could-lose-steam-equifax-says Wed, 17 Aug 2016 12:45:00 EST The leasing market continues to grow but the rate of growth won't last forever. For both banks and finance companies, outstanding lease accounts have posted double-digit growth this year through June, Equifax says. Mercedes-Benz Financial repeats atop Power's dealer financing satisfaction study http://www.autonews.com/article/20160817/FINANCE_AND_INSURANCE/308179998/mercedes-benz-financial-repeats-atop-powers-dealer-financing Wed, 17 Aug 2016 12:45:00 EST Dealers ranked Mercedes-Benz Financial Services tops in lender services satisfaction for the second straight year, data from J.D. Power latest U.S. Dealer Financing Satisfaction Study show. Why dealers' role in lending should tamp subprime fears http://www.autonews.com/article/20160817/BLOG13/308179999/why-dealers-role-in-lending-should-tamp-subprime-fears Wed, 17 Aug 2016 12:30:00 EST The fear of a subprime auto loan bubble persists despite the industry's insistence over the past few years that the worries are unwarranted. Outstanding auto loans rise 7% to nearly 78 million in Q2 http://www.autonews.com/article/20160817/FINANCE_AND_INSURANCE/308039990/outstanding-auto-loans-rise-7-to-nearly-78-million-in-q2 Wed, 17 Aug 2016 12:45:00 EST Nearly 78 million consumers had an auto loan in the second quarter, up about 7 percent from a year ago, as U.S. sales of new light-vehicles remained strong, TransUnion said in its latest Industry Insights Report. Subprime auto lending gets blasted by comedian John Oliver http://www.autonews.com/article/20160816/RETAIL/160819887/subprime-auto-lending-gets-blasted-by-comedian-john-oliver Tue, 16 Aug 2016 10:44:44 EST Comedian John Oliver took a break from mocking Donald Trump and the Rio Olympics to warn about the dangers of subprime auto lending. Nissan to dangle 5-year, 100,000-mile warranty on 2017 Titan lineup http://www.autonews.com/article/20160815/RETAIL03/160819915/nissan-to-dangle-5-year-100000-mile-warranty-on-2017-titan-lineup Mon, 15 Aug 2016 00:01:00 EST Nissan will offer a five-year/100,000-mile, bumper-to-bumper warranty on the 2017 Titan as it prepares to launch two new, volume variants of the large pickup. Asbury expands online sales experiment http://www.autonews.com/article/20160815/RETAIL/160819935/asbury-expands-online-sales-experiment Mon, 15 Aug 2016 00:01:00 EST Asbury Automotive Group Inc. is trying a low-cost approach to selling vehicles online. Toyota Financial's Texas move under way http://www.autonews.com/article/20160810/FINANCE_AND_INSURANCE/307279998/toyota-financials-texas-move-under-way Wed, 10 Aug 2016 11:30:00 EST Toyota Financial Services has begun its move to Plano, Texas. In addition to the relocation, Toyota's captive plans to make other changes, such as hiring locals and building a more open office environment. CU Direct's credit union network leads loan growth http://www.autonews.com/article/20160810/FINANCE_AND_INSURANCE/160809802/cu-directs-credit-union-network-leads-loan-growth Wed, 10 Aug 2016 11:30:00 EST Credit unions on CU Direct's lending network as a group reaped higher auto-loan origination growth in the first half of this year than any other auto lender ranked among the nation's top 10, CU Direct said. How speed plays a role in CFPB's 'regulation by enforcement' http://www.autonews.com/article/20160810/BLOG13/308109999/how-speed-plays-a-role-in-cfpbs-regulation-by-enforcement Wed, 10 Aug 2016 11:30:00 EST When some politicians accused the Consumer Financial Protection Bureau of regulation by enforcement in the spring, many auto insiders wondered why the regulator wouldn't make a rule that auto lenders would know they would have to follow. Cox Automotive: A 'house of brands' becomes a retail powerhouse http://www.autonews.com/article/20160808/RETAIL07/308089984/cox-automotive-a-house-of-brands-becomes-a-retail-powerhouse Mon, 8 Aug 2016 00:01:00 EST Seemingly overnight, Cox Automotive has burst on the scene as a broad dealer-services provider that touches three out of four vehicle transactions in some way. VW dealer turns to F&I to offset front-end squeeze http://www.autonews.com/article/20160808/FINANCE_AND_INSURANCE/160809901/vw-dealer-turns-to-fi-to-offset-front-end-squeeze Mon, 8 Aug 2016 00:01:00 EST How VW's diesel emissions crisis forced a dealer in Phoenix to improve his FandI business. Cash customers can be F&I customers, too http://www.autonews.com/article/20160808/FINANCE_AND_INSURANCE/160809902/cash-customers-can-be-fi-customers-too Mon, 8 Aug 2016 00:01:00 EST Cash buyers can be won over, FandI insiders say. The key is following a consistent process. N.Y. charges Honda, Nissan dealerships with deceptive F&I product sales http://www.autonews.com/article/20160803/FINANCE_AND_INSURANCE/308039989/n-y-charges-honda-nissan-dealerships-with-deceptive-fi-product-sales Wed, 3 Aug 2016 11:00:00 EST Two more New York dealerships have been charged with deceptive practices involving the sale of credit repair, identity-theft protection and other services. Leasing booms as automakers work to balance residual values, monthly payments http://www.autonews.com/article/20160803/FINANCE_AND_INSURANCE/308039988/leasing-booms-as-automakers-work-to-balance-residual-values-monthly Wed, 3 Aug 2016 13:00:00 EST New car and truck lease volume has doubled since 2011, and leasing is gaining traction among buyers who were less likely to consider it before, according to a study by Edmunds.com. BMW's captive for Americas poised for CEO change http://www.autonews.com/article/20160803/FINANCE_AND_INSURANCE/160809938/bmws-captive-for-americas-poised-for-ceo-change Wed, 3 Aug 2016 11:00:00 EST BMW Group Financial Services for the Americas will be headed by BMW executive Ian Smith starting in 2017. The captive's current chief, Ed Robinson, 61, will retire as CEO at year end, a source says. A leasing pullback could benefit industry http://www.autonews.com/article/20160803/BLOG13/308039986/a-leasing-pullback-could-benefit-industry Wed, 3 Aug 2016 11:00:00 EST Last month, leasing fell to its lowest level since May 2015, but maybe an ease in leasing is favorable for automakers. Publics boost F&I per unit in Q2 http://www.autonews.com/article/20160803/FINANCE_AND_INSURANCE/308039987/publics-boost-fi-per-unit-in-q2 Wed, 3 Aug 2016 13:30:00 EST All six public new-car retailers posted improved FandI revenue per vehicle retailed during the second quarter. Higher FandI product sales, use of technology in the FandI process and a favorable lending environment drove most of the gains, executives said. Autonomous vehicles would need mandatory inspections, NADA exec says http://www.autonews.com/article/20160802/RETAIL/160809951/autonomous-vehicles-would-need-mandatory-inspections-nada-exec-says Tue, 2 Aug 2016 10:56:54 EST If automakers hope to avoid liability in crashes involving autonomous vehicles, regular inspections must be mandated, the chief economist for the National Automobile Dealers Association said. Sonic will offer online car-buying http://www.autonews.com/article/20160801/RETAIL07/308019991/sonic-will-offer-online-car-buying Mon, 1 Aug 2016 00:01:00 EST Sonic Automotive plans to launch technology by early next year that will allow it to offer customers the ability to complete an entire vehicle purchase online. Wells Fargo faces U.S. probe over soldiers' car seizures, report says http://www.autonews.com/article/20160728/RETAIL/160729843/wells-fargo-faces-u-s-probe-over-soldiers-car-seizures-report-says Thu, 28 Jul 2016 10:28:20 EST Wells Fargo is facing a U.S. investigation into whether it improperly repossessed cars owned by members of the military, two people with knowledge of the probe told Bloomberg. NextGear Capital will finance vehicle purchases at CarMax auctions http://www.autonews.com/article/20160727/RETAIL04/160729863/nextgear-capital-will-finance-vehicle-purchases-at-carmax-auctions Wed, 27 Jul 2016 12:31:54 EST NextGear Capital will finance dealers' purchases of used vehicles at CarMax's 68 auction locations starting Aug. 8. Consumers want to learn about F&I products sooner, study finds http://www.autonews.com/article/20160727/FINANCE_AND_INSURANCE/307209998/consumers-want-to-learn-about-fi-products-sooner-study-finds Wed, 27 Jul 2016 10:30:00 EST Educating consumers on FandI products before they enter the dealership may help car buyers better understand the value of -- and therefore be more likely to purchase -- those products, a study found. Refunds go out to consumers caught in warranty scam http://www.autonews.com/article/20160727/FINANCE_AND_INSURANCE/160729884/refunds-go-out-to-consumers-caught-in-warranty-scam Wed, 27 Jul 2016 10:30:00 EST Customers who were deceived by illegal robocalls and fooled into paying thousands of dollars for fraudulent extended warranties will receive more than $4. Look beyond payment when structuring leases http://www.autonews.com/article/20160727/BLOG13/307279996/look-beyond-payment-when-structuring-leases Wed, 27 Jul 2016 10:30:00 EST Monthly payments have become a significant factor in customers' financing decisions. But dealers should look beyond the monthly payment to offer customers the best lease deal. Hail storms dent Ally's insurance business in Q2 http://www.autonews.com/article/20160727/FINANCE_AND_INSURANCE/307279997/hail-storms-dent-allys-insurance-business-in-q2 Wed, 27 Jul 2016 10:30:00 EST Ally Financial's auto insurance business swung to a loss in the second quarter on higher weather losses and lower investment gains, even as the lender carved out gains with a new flagship product, Ally Premier Protection. Ally nearly doubles net income to $360 million in Q2 http://www.autonews.com/article/20160726/FINANCE_AND_INSURANCE/160729886/ally-nearly-doubles-net-income-to-360-million-in-q2 Tue, 26 Jul 2016 15:01:56 EST Ally Financial's second-quarter net income nearly doubled to $360 million, and net financing revenue grew 7.4 percent, as the lender increasingly focused on profitability over quantity of loans and leases. Who pays wholesale for auto loans? http://www.autonews.com/article/20160725/FINANCE_AND_INSURANCE/307259974/who-pays-wholesale-for-auto-loans Mon, 25 Jul 2016 00:01:00 EST A Texas dealer and the CFPB's head of fair-lending enforcement held a lively discussion of why and how dealerships charge for arranging auto financing at the annual National Association of Minority Automobile Dealers conference. Store expects its used-car leasing to grow http://www.autonews.com/article/20160725/RETAIL/307259988/store-expects-its-used-car-leasing-to-grow Mon, 25 Jul 2016 00:01:00 EST Dealer Wes Lutz took used-vehicle leasing into his own hands. He offers his customers leases on late-model used cars and trucks that, in some cases, can cut payments in half compared with purchasing a new vehicle of the same make and model. Used-vehicle leasing can be risky, economist says http://www.autonews.com/article/20160720/FINANCE_AND_INSURANCE/307209996/used-vehicle-leasing-can-be-risky-economist-says Wed, 20 Jul 2016 11:45:00 EST Used-vehicle leasing can help manage the flow of off-lease vehicles, but moving a vehicle's residual risk from a new-car lease contract to a used-car lease contract is risky business, Cox Automotive's chief economist says. Dealers still not convinced the CFPB understands their business http://www.autonews.com/article/20160720/FINANCE_AND_INSURANCE/160729990/dealers-still-not-convinced-the-cfpb-understands-their-business Wed, 20 Jul 2016 11:45:00 EST The CFPB's Patrice Ficklin got an earful after speaking at a minority dealers' gathering. She took the criticism and responded.Dealers still not convinced the CFPB understands their business Dealerships weigh outside F&I audits http://www.autonews.com/article/20160720/FINANCE_AND_INSURANCE/307209997/dealerships-weigh-outside-fi-audits Wed, 20 Jul 2016 11:00:00 EST Dealerships looking to avoid regulatory trouble know they need to be diligent in monitoring compliance. Some stores are tapping outside FandI auditors for help. Are you prepared for regulators&' scrutiny of F&I products? http://www.autonews.com/article/20160720/FINANCE_AND_INSURANCE/160719833/are-you-prepared-for-regulators-scrutiny-of-fi-products Wed, 20 Jul 2016 11:00:00 EST Industry experts say that dealerships are not prepared if regulators begin to examine FandI product sales, despite several years of increased scrutiny of other aspects of dealership operations, especially FandI. Is this form a hassle or a help? http://www.autonews.com/article/20160720/BLOG13/307209995/is-this-form-a-hassle-or-a-help Wed, 20 Jul 2016 11:30:00 EST Each dealership must decide how much effort it wants to put toward compliance. Many, apparently, choose not to use NADA's dealer participation certification form, part of its Fair Credit Compliance Policy and Program. Ally launches stock buyback, first dividend as public company http://www.autonews.com/article/20160719/FINANCE_AND_INSURANCE/160719838/ally-launches-stock-buyback-first-dividend-as-public-company Tue, 19 Jul 2016 12:03:11 EST Ally Financial, in another benchmark event during its long recovery from the Great Recession, said it is launching a stock buyback valued at up to $700 million along with its first dividend as a public company. Automaker financing unleashes Mexico sales http://www.autonews.com/article/20160718/RETAIL01/307189985/automaker-financing-unleashes-mexico-sales Mon, 18 Jul 2016 00:01:00 EST When banks and finance companies say no, cash-poor Mexican consumers turn to a traditional form of credit known as autofinanciamiento, or "self financing." Look behind every door for F&I candidates http://www.autonews.com/article/20160713/BLOG13/307139996/look-behind-every-door-for-fi-candidates Wed, 13 Jul 2016 11:30:00 EST Your next FandI guru might be your local bartender. Rent-to-own program helps dealer sell more cars http://www.autonews.com/article/20160713/FINANCE_AND_INSURANCE/160719959/rent-to-own-program-helps-dealer-sell-more-cars Wed, 13 Jul 2016 11:45:00 EST When Atlanta dealer Scott Smith started a rental-car company three years ago, he quickly realized the business could help serve up profits for his dealerships too. Enter Smith's rent-to-own program. Consumers likelier to exit auto loans early http://www.autonews.com/article/20160713/FINANCE_AND_INSURANCE/307139998/consumers-likelier-to-exit-auto-loans-early Wed, 13 Jul 2016 11:45:00 EST Even as auto loan terms get longer, the length of time consumers remain in a loan has shrunk, TransUnion says. Questions raised about used-car loan outlook http://www.autonews.com/article/20160713/FINANCE_AND_INSURANCE/307139997/questions-raised-about-used-car-loan-outlook Wed, 13 Jul 2016 11:30:00 EST Add used-car finance to the list of things to worry about -- a list that may, some lenders say, include the lower end of subprime lending. Infiniti tops survey on satisfaction among sales prospects http://www.autonews.com/article/20160711/RETAIL/160719998/infiniti-tops-survey-on-satisfaction-among-sales-prospects Mon, 11 Jul 2016 00:01:00 EST Infiniti stores outperformed all brands in an annual study on building rapport and satisfaction among potential car buyers. The 2016 Pied Piper Prospect Satisfaction Index is based on the treatment of mystery shoppers who visited 6,157 U.S. stores. Long loans can help make case for F&I products http://www.autonews.com/article/20160711/FINANCE_AND_INSURANCE/307119951/long-loans-can-help-make-case-for-fi-products Mon, 11 Jul 2016 00:01:00 EST One dealership perk to long-term car loans? There's more opportunity to convince customers that they need FandI products. Casting a longer car loan shadow http://www.autonews.com/article/20160711/FINANCE_AND_INSURANCE/307119928/casting-a-longer-car-loan-shadow Mon, 11 Jul 2016 00:01:00 EST The average loan term has been on a continual climb. Why? Vehicle affordability -- or the lack thereof -- has driven the rise. CFPB accuses some lenders of deceptive GAP, payment deferral ads http://www.autonews.com/article/20160706/FINANCE_AND_INSURANCE/160709943/cfpb-accuses-some-lenders-of-deceptive-gap-payment-deferral-ads Wed, 6 Jul 2016 11:30:00 EST One or more auto lenders have been deceptive in their advertisements for GAP coverage and disclosures of payment deferral terms, the Consumer Financial Protection Bureau said. Affordability drives longer loans http://www.autonews.com/article/20160706/BLOG13/307069992/affordability-drives-longer-loans Wed, 6 Jul 2016 11:30:00 EST The average loan term has been on a continuous climb. In retrospect, based on vehicle affordability, the rise seems to have been inevitable. Cars aren't affordable, study finds http://www.autonews.com/article/20160706/FINANCE_AND_INSURANCE/307069993/cars-arent-affordable-study-finds Wed, 6 Jul 2016 11:30:00 EST The average cost of a new vehicle is too high for the median-income households in each of the 50 largest U.S. cities, a study by Bankrate.com found. Subaru store lifts vehicle sales, F&I with combined process http://www.autonews.com/article/20160706/FINANCE_AND_INSURANCE/307059915/subaru-store-lifts-vehicle-sales-fi-with-combined-process Wed, 6 Jul 2016 11:45:00 EST Subaru of Las Vegas General Manager Burton Hughes began a transition about 18 months ago that has culminated in combining FandI and sales. Former N.Y. Nissan dealer to repay customers nearly $102,000 for illegal fees, fraud http://www.autonews.com/article/20160706/FINANCE_AND_INSURANCE/307069991/former-n-y-nissan-dealer-to-repay-customers-nearly-102000-for Wed, 6 Jul 2016 00:01:00 EST A former New York dealer has agreed to pay $101,986 in restitution to 119 consumers for charging them illegal fees and employing deceptive sales and advertising tactics, New York Attorney General Eric Schneiderman said.