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, 23 Jun 2018 06:00:00 EST Ally to pay $19.7 million to settle class-action suit http://www.autonews.com/article/20180621/RETAIL/180629948/ally-class-action-case-settled-leasing Thu, 21 Jun 2018 14:32:49 EST Ally Financial has agreed to pay nearly $20 million to settle a class-action lawsuit accusing the lender of charging customers fees outside their lease-to-own agreements. DealerRater survey finds what bothers consumers at auto dealerships http://www.autonews.com/article/20180620/FINANCE_AND_INSURANCE/180629986/dealerrater-survey-car-dealerships-customers Wed, 20 Jun 2018 11:00:00 EST A small percentage of car shoppers say negotiations over prices and terms could be handled better, and even fewer feel that way about the presentation of FandI products. GM Financial follows the rules but consumers feel the pain http://www.autonews.com/article/20180620/BLOG13/180629982/gm-financial-follows-the-rules-but-consumers-feel-the-pain Wed, 20 Jun 2018 12:01:37 EST GM Financial stopped reporting customer payment information to the credit bureaus after problems following a systemwide technology upgrade, and legally, that was the lender's only choice. GM Financial resumes payment reporting after 5-month hiatus http://www.autonews.com/article/20180620/FINANCE_AND_INSURANCE/180629985/gm-financial-resumes-payment-reporting-after-5-month-hiatus Wed, 20 Jun 2018 11:00:00 EST GM Financial customers were thrust into a state of uncertainty from January through May after the lender stopped reporting payment information to credit bureaus because of problems following a systemwide technology upgrade. AutoFi's financing platform expands to send deals through BDC http://www.autonews.com/article/20180620/FINANCE_AND_INSURANCE/180629989/autofis-financing-platform-expands-to-send-deals-through-bdc Wed, 20 Jun 2018 11:00:00 EST Dealerships using AutoFi can now construct deals to send to customers, but at least one dealership is taking the platform much further, integrating the tool into its vehicle-delivery program. Market Scan powers financing technology revolution http://www.autonews.com/article/20180620/COPY01/306219995/market-scan-financing-tech Wed, 20 Jun 2018 00:01:00 EST Market Scan's database powers many of the companies that are enabling online transactions, whether on dealership sites or independent apps. Selling cars online calls for multiple skills http://www.autonews.com/article/20180620/COPY01/306219994/aaron-krane-car-buying-online Wed, 20 Jun 2018 00:01:00 EST As a tech expert but car-buying rookie, Drive Motors' CEO knew he needed automotive expertise to understand how to make the product easy and useful for dealerships. Finance techology startups can find success by mixing skill sets http://www.autonews.com/article/20180620/COPY01/306219996/fintech-startups-can-find-success-by-mixing-skill-sets Wed, 20 Jun 2018 00:01:00 EST For a fintech startup breaking into automotive retail, should the top leadership have dealership experience, finance expertise or software skills? White House aide Kraninger is Trump pick to head lending watchdog http://www.autonews.com/article/20180616/FINANCE_AND_INSURANCE/180619757/white-house-aide-kraninger-is-trump-pick-to-head-lending-watchdog Sat, 16 Jun 2018 23:29:04 EST If approved by the Senate, Kathy Kraninger, a little-known White House aide, would succeed her boss, White House Budget Director Mick Mulvaney, who's led the Bureau of Consumer Financial Protection part-time since November. Is Chase angling to operate as FCA captive? http://www.autonews.com/article/20180613/FINANCE_AND_INSURANCE/180619876/is-chase-angling-to-operate-as-fca-captive Wed, 13 Jun 2018 11:42:41 EST After Fiat Chrysler Automobiles made clear that it wants a captive, could Chase Auto be raising its hand? Tight budget? Don't forgo protective products http://www.autonews.com/article/20180613/BLOG13/180619867/tight-budget-dont-forgo-protective-products Wed, 13 Jun 2018 12:14:12 EST Those looking to whittle down monthly car payments could see FandI products as burdens, but investing in those products could be the key to avoiding a truly unmanageable cost later. Trump to name nominee to steer U.S. lending watchdog next week http://www.autonews.com/article/20180613/FINANCE_AND_INSURANCE/180619871/trump-to-name-nominee-to-steer-u-s-lending-watchdog-next-week Wed, 13 Jun 2018 11:57:11 EST President Donald Trump has been reviewing a handful of potential nominees to lead the Bureau of Consumer Financial Protection and his final pick will be named next week, a top U.S. official said. M-B mobility learnings migrate to subscription program http://www.autonews.com/article/20180613/FINANCE_AND_INSURANCE/180619875/m-b-mobility-learnings-migrate-to-subscription-program Wed, 13 Jun 2018 11:43:38 EST Mercedes-Benz Financial Services will apply the fleet management and concierge skills gleaned from its other mobility ventures to Mercedes-Benz Collection. Credit availability, interest rates among dealer concerns http://www.autonews.com/article/20180613/FINANCE_AND_INSURANCE/180619877/credit-availability-interest-rates-on-dealers-minds Wed, 13 Jun 2018 11:33:52 EST Dealer concern about rising interest rates has sharply increased, Cox Automotive survey finds. An auto retail revolution is coming, and dealership expertise must be part of it http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619982/finance-insurance-technology-digital-age Mon, 11 Jun 2018 00:01:00 EST A tech-driven auto retailing transformation is inevitable, but what that transformation will look like, and how the industry will get there, is less predictable. Tools for selling finance and insurance are changing http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619991/auto-dealer-f-i-technology-digital-tools Mon, 11 Jun 2018 00:01:00 EST Digitalization of the FandI process is inevitable, but which tools will be uniform across the automotive retail terrain is less certain. Finance technology leveraging Silicon Valley mindset, auto sales know-how http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619983/car-dealer-lender-technology-silicon-valley Mon, 11 Jun 2018 00:01:00 EST For dealership fintech companies to be successful in a space where many entrepreneurs have failed, a Silicon Valley mindset combined with traditional auto retail expertise could be a winning combination. Former auto dealers launches Blinker mobile app http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619990/blinker-mobile-used-vehicles Mon, 11 Jun 2018 00:01:00 EST After decades in the brick-and-mortar world as a dealer, Rod Buscher launched Blinker, a mobile app for customers looking to buy, sell or refinance used cars without visiting a dealership. Finance techology startups can find success by mixing skill sets http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619986/fintech-startups-can-find-success-by-mixing-skill-sets Mon, 11 Jun 2018 00:01:00 EST For a fintech startup breaking into automotive retail, should the top leadership have dealership experience, finance expertise or software skills? Market Scan powers financing technology revolution http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619987/market-scan-financing-tech Mon, 11 Jun 2018 00:01:00 EST Market Scan's database powers many of the companies that are enabling online transactions, whether on dealership sites or independent apps. Market Scan helps lenders find the best way to structure their deals http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619988/market-scan-compare-terms Mon, 11 Jun 2018 00:01:00 EST Here is how Market Scan helps lenders know how best to structure their deals to win the business without overpaying. Selling cars online calls for multiple skills http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619989/aaron-krane-car-buying-online Mon, 11 Jun 2018 00:01:00 EST As a tech expert but car-buying rookie, Drive Motors' CEO knew he needed automotive expertise to understand how to make the product easy and useful for dealerships. AutoGravity touts products for auto lenders http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619992/autogravitys-new-priority-deepen-ties-with-clients Mon, 11 Jun 2018 00:01:00 EST AutoGravity's strategy was initially centered on client expansion, but going forward, the company will devote more attention to enhancing existing relationships. Ally Financial partnerships aimed at pushing lender further into digital space http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619993/ally-financial-partnerships-digital Mon, 11 Jun 2018 00:01:00 EST More than a decade ago, on the precipice of an epochal shift in the automotive finance sector, Ally Financial was born. The lender sees technology as part of its DNA. FICO fights auto loan fraud http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619994/fair-isaac-fraud-checking Mon, 11 Jun 2018 00:01:00 EST FICO is synonymous with credit scores, but the company does a lot more in the automotive space. Finance and insurance revenue grew in 2017 at 150 largest auto dealership groups http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619995/150-largest-dealership-groups-f-i-revenue Mon, 11 Jun 2018 00:01:00 EST Finance and insurance revenue per vehicle and overall FandI revenue grew at the 150 largest dealership groups in the U.S., amid an industrywide light-vehicle sales slowdown, according to an Automotive News survey. Close relationship with finance and insurance department pays off across the car dealership http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619998/extending-team-spirit-to-the-service-dept Mon, 11 Jun 2018 00:01:00 EST If dealers want the service department to support finance and insurance efforts, they should treat service advisers as partners to both the FandI and sales teams. Study finds that online montlhy auto pricing quotes, especially from Audi, get payment right http://www.autonews.com/article/20180611/FINANCE_AND_INSURANCE/180619999/audi-study-online-monthly-quote Mon, 11 Jun 2018 00:01:00 EST When car shoppers are quoted a monthly payment online nowadays, most of the time, that is what they're actually going to pay, an online survey found. Does publishing consumer complaint data harm or heal the auto finance industry? http://www.autonews.com/article/20180606/BLOG13/180609832/does-publishing-consumer-complaint-data-harm-or-heal-the-auto Wed, 6 Jun 2018 11:30:00 EST The Bureau of Consumer Financial Protection's database of consumer complaints could vanish from public view. Could shielding consumer gripes from the public benefit the auto finance marketplace? Depends on whom you ask. Credit unions urged to begin leasing http://www.autonews.com/article/20180606/FINANCE_AND_INSURANCE/180609831/credit-unions-urged-to-begin-leasing Wed, 6 Jun 2018 11:28:54 EST If credit unions want to finance vehicles for ride-sharing or subscription services someday, they are being urged to start leasing now. Accessories break the ice, boost revenue http://www.autonews.com/article/20180606/FINANCE_AND_INSURANCE/180609829/accessories-break-the-ice-boost-revenue Wed, 6 Jun 2018 11:41:42 EST Selling accessories can be a conversation starter that reduces customers' resistance to FandI products, some FandI managers say. Gap between new, used payments widens http://www.autonews.com/article/20180606/FINANCE_AND_INSURANCE/180609830/gap-between-new-used-payments-widens Wed, 6 Jun 2018 11:40:11 EST The gap between new- and used-vehicle loan payments continued to widen in the first quarter, even as lease returns lift overall used-vehicle loan amounts, according to Experian's latest report. Mercedes USA launches subscription service to compete with Porsche, BMW and Cadillac http://www.autonews.com/article/20180605/RETAIL/180609870/mercedes-subscription-sales-retail-dealerships Tue, 5 Jun 2018 11:43:40 EST Mercedes-Benz launched its vehicle subscription service on Tuesday, taking on Porsche, BMW and Cadillac with a lower monthly price. FCA captive would roil Santander Consumer USA http://www.autonews.com/article/20180604/FINANCE_AND_INSURANCE/180609922/fca-captive-would-roil-santander Mon, 4 Jun 2018 00:01:00 EST Fiat Chrysler Automobiles' intention to launch its own U.S. captive finance arm could throw another lender's business into upheaval. FCA's captive finance unit could be startup or acquisition http://www.autonews.com/article/20180601/FINANCE_AND_INSURANCE/180609972/fiat-chrysler-mulls-captive-finance-unit Fri, 1 Jun 2018 09:45:53 EST Fiat Chrysler Automobiles could establish its own captive finance arm for the first time in nearly a decade, the automaker said Friday. It could be formed from scratch or through an acquisition. New-vehicle loan amounts, payments hit record high http://www.autonews.com/article/20180531/FINANCE_AND_INSURANCE/180539961/new-vehicle-loan-amounts-payments-hit-record-high Thu, 31 May 2018 12:01:22 EST The average loan amount and monthly payment for new vehicles reached record highs in the first quarter. The percentage of new-vehicle subprime loan originations dropped, while prime origination share reached a six-year high. Santander falls as FCA reportedly adding own finance arm http://www.autonews.com/article/20180530/RETAIL/180539974/santander-fca-shares-fall Wed, 30 May 2018 15:57:34 EST Santander Consumer USA shares fell after Bloomberg reported that its auto-finance partner Fiat Chrysler Automobiles was preparing an announcement on forming its own captive lending unit. Consumers would welcome help in funding repairs http://www.autonews.com/article/20180530/FINANCE_AND_INSURANCE/180539982/consumers-would-welcome-help-in-funding-repairs Wed, 30 May 2018 11:00:00 EST There may be an opportunity for dealerships to extend their vehicle-financing business into the financing of expensive repairs, an online survey found. Multiple credit bureau pulls increase odds for auto loans http://www.autonews.com/article/20180530/FINANCE_AND_INSURANCE/180539984/multiple-credit-bureau-pulls-increase-odds-for-auto-loans Wed, 30 May 2018 11:42:54 EST The difference in consumer credit scores among the three credit bureaus is between 40 and 50 points on average, according to 700Credit. Consider nontraditional loans to gauge creditworthiness http://www.autonews.com/article/20180530/BLOG13/180539980/consider-nontraditional-loans-to-gauge-creditworthiness Wed, 30 May 2018 12:02:37 EST As research reveals more ways that small pieces of information can increase a borrower's creditworthiness, what the industry considers relevant compared with what's "alternative" may change. CFPB consent orders still binds Honda Finance, Fifth Third http://www.autonews.com/article/20180528/FINANCE_AND_INSURANCE/180529791/cfpb-trump-honda-finance-fifth-third Mon, 28 May 2018 00:01:00 EST With a signature from President Donald Trump last week, the Bureau of Consumer Financial Protection's auto lending guidance was officially repealed, but two lenders remain bound by consent orders formed on the basis of that guidance. Teaching the auto retail titans http://www.autonews.com/article/20180526/RETAIL07/180529796/retail-mentors-legends-mentors Sat, 26 May 2018 00:01:00 EST The auto retail legends of today discuss the individuals who mentored them, and how that has prompted them to do likewise for the next generation. PointPredictive launches tools to combat identity fraud http://www.autonews.com/article/20180523/FINANCE_AND_INSURANCE/180529883/pointpredictive-launches-tools-to-combat-identity-fraud Wed, 23 May 2018 11:45:00 EST PointPredictive is rolling out products to help lenders catch fake identities and learn from the fraud experiences of their peers. Toyota raises dealer reserve cap following early release from consent order http://www.autonews.com/article/20180523/FINANCE_AND_INSURANCE/180529881/toyota-raises-dealer-reserve-cap-following-early-release-from Wed, 23 May 2018 11:45:00 EST Toyota Motor Credit has raised its dealer reserve cap after satisfying terms of a 2016 consent order set by the Bureau of Consumer Financial Protection and the Department of Justice that required the lender to pay a hefty fine and limit dealer... Fifth Third Bancorp pays $4.7 billion for MB Financial's Chicago muscle http://www.autonews.com/article/20180523/FINANCE_AND_INSURANCE/180529911/fifth-third-bancorp-pays-4-7-billion-for-mb-financials-chicago-muscle Wed, 23 May 2018 11:30:00 EST Fifth Third Bancorp, a major regional auto lender in the U.S., agreed to buy smaller rival MB Financial in a stock-and-cash deal valued at about $4.7 billion, as it looks to expand in Chicago and broaden its middle market customer base. Wells Fargo to boost auto lending http://www.autonews.com/article/20180523/FINANCE_AND_INSURANCE/305239997/wells-fargo-to-boost-auto-lending Wed, 23 May 2018 11:15:00 EST Wells Fargo CEO Tim Sloan said the banking giant is ready to increase lending for car sales after pulling back last year. Wells Fargo decided to rein in car financing in mid-2017 and tighten underwriting standards. Separate financial literacy messages from social media clutter http://www.autonews.com/article/20180523/BLOG13/180529885/separate-financial-literacy-messages-from-social-media-clutter Wed, 23 May 2018 11:30:00 EST How can auto lenders and dealers explain the ins and outs of vehicle financing to younger buyers? Meet them where they are. Carmakers' captives show reasons to be fearful http://www.autonews.com/article/20180523/FINANCE_AND_INSURANCE/305239996/carmakers-captives-show-reasons-to-be-fearful Wed, 23 May 2018 00:01:00 EST Bets on the world's biggest car companies look a bit less safe as the U.S. market confronts slowing sales, an obsession with trucks and ballooning numbers of used cars. Trump signs congressional resolution overturning auto lending rule http://www.autonews.com/article/20180521/FINANCE_AND_INSURANCE/180529945/trump-signs-congressional-resolution-overturning-auto-lending-rule Mon, 21 May 2018 15:15:36 EST President Donald Trump signed into law a congressional resolution overhauling a rule issued by the Bureau of Consumer Financial Protection that aimed to bar discrimination in auto lending. Dealership group finds success in its approach to finance and insurance http://www.autonews.com/article/20180521/RETAIL07/180529994/best-practices-brandon-steven-motors Mon, 21 May 2018 00:01:00 EST Brandon Steven Motors has transformed its finance and insurance operations and lifted FandI profit per vehicle by putting finance managers in the hot seat.