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, 27 Jul 2016 06:00:00 EST 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. VW unit sells Russia bond to fund local operations http://europe.autonews.com/article/20160705/ANE/160709953/vw-unit-sells-russia-bond-to-fund-local-operations Tue, 5 Jul 2016 09:24:14 EST VW's financial services unit has sold a 5 billion ruble ($78 million) bond in Russia to fund its local operations, its first issue in the country's battered debt market in almost two years. Startup puts most of the buying process online http://www.autonews.com/article/20160704/RETAIL/307049989/startup-puts-most-of-the-buying-process-online Mon, 4 Jul 2016 00:01:00 EST Roadster's Express Storefront, which has launched in California linked to dealership websites, takes most of the buying process online. Final document signing can take place when a vehicle is delivered to the customer. Former N.Y. Nissan dealer to repay customers nearly $102,000 for illegal fees, fraud http://www.autonews.com/article/20160629/RETAIL/160629820/former-n-y-nissan-dealer-to-repay-customers-nearly-102000-for Wed, 29 Jun 2016 14:49:10 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. Industry women promote financial literacy http://www.autonews.com/article/20160629/FINANCE_AND_INSURANCE/306299996/industry-women-promote-financial-literacy Wed, 29 Jun 2016 00:01:00 EST With briefcases stuffed with lesson plans, interactive finance timelines and even cardboard banks, female dealers and auto industry leaders are spreading financial literacy to create an educated future-car buyer. A robust compliance process reaps more than legal benefits, experts say http://www.autonews.com/article/20160629/FINANCE_AND_INSURANCE/306299993/a-robust-compliance-process-reaps-more-than-legal-benefits-experts Wed, 29 Jun 2016 12:00:00 EST Compliance training doesn't always result in a compliant business. A culture of compliance comes out of a set of rules, training, employee awareness and practices, and engagement has to start with executives at the top. For dealers, compliance is an 'everyday business strategy' http://www.autonews.com/article/20160629/FINANCE_AND_INSURANCE/160629843/for-dealers-compliance-is-an-everyday-business-strategy Wed, 29 Jun 2016 11:00:00 EST In his new role as vice president of compliance at EFG Cos., Steve Roennau aims to tap his auto retail and finance know-how, including what he learned as an FandI manager, to help dealerships create a consistent compliance game plan. EchoPark F&I process to echo across Sonic http://www.autonews.com/article/20160629/FINANCE_AND_INSURANCE/306299994/echopark-fi-process-to-echo-across-sonic Wed, 29 Jun 2016 00:01:00 EST Sonic Automotive's finance and insurance sales process at its EchoPark used-only dealerships has been so successful in lifting FandI revenue per vehicle, the company plans to expand the process to its 99 franchised stores. Car-sharing, autonomous driving to reshape auto finance, study says http://www.autonews.com/article/20160629/FINANCE_AND_INSURANCE/306299992/car-sharing-autonomous-driving-to-reshape-auto-finance-study-says Wed, 29 Jun 2016 11:00:00 EST A new auto finance ecosystem is on the horizon, with the structure and timing dependent on the shift to car sharing and autonomous driving, according to a new study published by Deloitte Consulting. Kudos to Ford Credit for trying something new http://www.autonews.com/article/20160629/BLOG13/306299990/kudos-to-ford-credit-for-trying-something-new Wed, 29 Jun 2016 12:00:00 EST Piecing together the car sharing and profitability puzzle for the auto industry is exciting, but it's also a time to experiment. Public groups optimistic on F&I revenue growth http://www.autonews.com/article/20160629/FINANCE_AND_INSURANCE/306299995/public-groups-optimistic-on-fi-revenue-growth Wed, 29 Jun 2016 00:01:00 EST All six large public new-car retailers lifted FandI revenue per vehicle through March, and most expect growth to continue. Ally shareholder Feinberg resigns from board after showdown with advisory firm http://www.autonews.com/article/20160628/OEM02/160629848/ally-shareholder-feinberg-resigns-from-board-after-showdown-with Tue, 28 Jun 2016 13:53:32 EST Stephen Feinberg, Ally Financial's third-largest shareholder, stepped down from the auto lender's board after an investor-advisory firm faulted his ability to use the stock as collateral for debt. These guys want your used-vehicle sales, profits http://www.autonews.com/article/20160627/RETAIL04/306279982/these-guys-want-your-used-vehicle-sales-profits Mon, 27 Jun 2016 00:01:00 EST Beepi. Shift. Carvana. Vroom. Don't let the clever names fool you. These tech start-ups aim to take a bite out of the used-vehicle retail industry's lunch. Credit mix in auto lending remains stable, Equifax says http://www.autonews.com/article/20160622/FINANCE_AND_INSURANCE/160629944/credit-mix-in-auto-lending-remains-stable-equifax-says Wed, 22 Jun 2016 11:00:00 EST What's the main trend in auto finance over the past four years? Stability, Equifax says. Over the past four years, the credit mix among new-vehicle loans has remained steady, providing stability to the market. CarMax Auto Finance income takes a tumble http://www.autonews.com/article/20160622/FINANCE_AND_INSURANCE/306229992/carmax-auto-finance-income-takes-a-tumble Wed, 22 Jun 2016 11:45:00 EST Income at CarMax's captive tumbles in the same three month period that the used car retailer's floor traffic declines and sales to customers with low credit scores dip. Better, but still behind http://www.autonews.com/article/20160622/BLOG13/306229997/better-but-still-behind Wed, 22 Jun 2016 11:45:00 EST Automakers trail lenders in the number of women in leadership positions, a study shows. GWC targets new-car dealers' high-mileage trade-ins http://www.autonews.com/article/20160622/FINANCE_AND_INSURANCE/306229993/gwc-targets-new-car-dealers-high-mileage-trade-ins Wed, 22 Jun 2016 11:00:00 EST GWC Warranty is hoping its new protection offerings for high-mileage cars and light trucks will appeal to new-car dealerships adjusting to an increasing number of used vehicles on their lots. Fewer customers may mean more time to sell http://www.autonews.com/article/20160622/FINANCE_AND_INSURANCE/306229996/fewer-customers-may-mean-more-time-to-sell Wed, 22 Jun 2016 00:01:00 EST Dealers wince at the prospect of slowing vehicle sales. But there could be a bright spot: With fewer customers, FandI managers will have more time to focus on sales penetration for add-on products. F&I strategies for slow-growth days http://www.autonews.com/article/20160622/FINANCE_AND_INSURANCE/306229994/fi-strategies-for-slow-growth-days Wed, 22 Jun 2016 00:01:00 EST FandI profit likely hasn't reached its peak, insiders say, but most agree that its growth will slow. Don&'t ignore F&I customers on used-car lot http://www.autonews.com/article/20160622/FINANCE_AND_INSURANCE/306229995/don-t-ignore-fi-customers-on-used-car-lot Wed, 22 Jun 2016 00:01:00 EST If dealerships don't approach pre-owned car buyers with the same enthusiasm they show their new-car buyers, they're losing money. That's especially important now that stores are seeing a major influx of off-lease and other pre-owned cars. No takers for Ford's lease sharing plan http://www.autonews.com/article/20160620/FINANCE_AND_INSURANCE/160619877/no-takers-for-fords-lease-sharing-plan Mon, 20 Jun 2016 00:01:00 EST In March, Ford Credit launched Ford Credit Link, a pilot lease sharing program that allows three to six customers to share a lease, scheduling their driving time and dividing payments any way they'd like. F&I managers, pick up the phone, trainer urges http://www.autonews.com/article/20160615/FINANCE_AND_INSURANCE/306159998/fi-managers-pick-up-the-phone-trainer-urges Wed, 15 Jun 2016 11:30:00 EST More and more often, consumers want to arrange their car purchases on their terms. That means much of the communication could happen via email or by phone rather than during a traditional showroom tour. Where does that leave FandI managers? When an 84-month loan makes sense http://www.autonews.com/article/20160615/FINANCE_AND_INSURANCE/306159997/when-an-84-month-loan-makes-sense Wed, 15 Jun 2016 11:30:00 EST Auto loans lasting seven years or longer have created a stir within the industry, with some lenders testing extended terms and others keeping a distance. Take a lesson from the top closers http://www.autonews.com/article/20160615/BLOG13/306159995/take-a-lesson-from-the-top-closers Wed, 15 Jun 2016 11:30:00 EST Choose your words wisely, dealers. Your email diction could make or break a deal.