Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Thu, 29 Jan 2015 06:00:00 EST Don't get mad, get a lawyer, panelists say http://www.autonews.com/article/20150128/FINANCE_AND_INSURANCE/301289991/dont-get-mad-get-a-lawyer-panelists-say Wed, 28 Jan 2015 11:00:00 EST Dealers who get warning letters from lenders accusing them of loan discrimination should resist the temptation to stick the letters in a drawer or, worse, fire off angry replies on their own, said panelists last week at a legal compliance workshop... Ally Premier Protection enables 'one product, one system and one brand' http://www.autonews.com/article/20150128/FINANCE_AND_INSURANCE/301289992/ally-premier-protection-enables-one-product-one-system-and-one-brand Wed, 28 Jan 2015 11:00:00 EST Ally Financial is phasing in Ally Premier Protection brand for service contracts and other FandI products, plus an updated technology platform to help market and administer them. Lending by credit unions, others grew in 2014 http://www.autonews.com/article/20150128/FINANCE_AND_INSURANCE/301289993/lending-by-credit-unions-others-grew-in-2014 Wed, 28 Jan 2015 11:00:00 EST Credit unions and other lenders are beginning to release data that confirm what the industry knows: Last year, when U.S. new light-vehicle sales rose 6 percent, was a very good year for vehicle lending. Auto lenders cite discipline with U.S. sales booming http://www.autonews.com/article/20150128/BLOG13/301299999/auto-lenders-cite-discipline-with-u-s-sales-booming Wed, 28 Jan 2015 11:00:00 EST 'Discipline' was the watchword for auto lenders in panel discussions and interviews in and around the National Automobile Dealers Association convention. Leasing keeps growing; lenders debate possible peak http://www.autonews.com/article/20150128/FINANCE_AND_INSURANCE/150129816/leasing-keeps-growing-lenders-debate-possible-peak Wed, 28 Jan 2015 11:00:00 EST Leasing, aided by low interest rates and factory incentives, is expected to keep increasing in 2015, but experts are divided on how high lease penetration will go. CU Direct Connect Breaks $1 Billion in Indirect Funding in 2014 http://www.autonews.com/article/20150128/ADREP01/150129819/cu-direct-connect-breaks-1-billion-in-indirect-funding-in-2014 Wed, 28 Jan 2015 00:01:00 EST CENTENNIAL, Colo. -- (BUSINESS WIRE) -- CU Direct Connect (CUDC) announced today their 2014 year-end results. It was a strong year for the business as auto loan application volume was up +25. Spending billions but coming up short on the trust scale http://www.autonews.com/article/20150125/BLOG06/150129847/spending-billions-but-coming-up-short-on-the-trust-scale Sun, 25 Jan 2015 09:00:00 EST To really make customers more comfortable while buying a new car, dealers should take a close look at every step of the transaction process they put a consumer through, and figure out where trust is leaking out. Hyundai's ready for cars coming off lease http://www.autonews.com/article/20150125/FINANCE_AND_INSURANCE/301269968/hyundais-ready-for-cars-coming-off-lease Sun, 25 Jan 2015 00:01:00 EST Hyundai Motor America, despite concerns from some analysts, is ready to handle a wave of vehicles coming off lease, CEO Dave Zuchowski promises. GM and Ally compete to grow FandI http://www.autonews.com/article/20150124/RETAIL06/150129860/gm-and-ally-compete-to-grow-fi Sat, 24 Jan 2015 12:34:22 EST GM is on a hiring binge to build a direct sales force for its branded FandI products as the company seeks a foothold in the competitive space. Phony deals cost dealers reputation, vehicles and lenders http://www.autonews.com/article/20150124/RETAIL06/301259975/phony-deals-cost-dealers-reputation-vehicles-and-lenders Sat, 24 Jan 2015 14:00:00 EST For employees in a dealership's finance and insurance office, spotting a potentially fraudulent deal is top priority. A mistake not only can cost a dealership a vehicle, it can hurt the store's reputation and its relationships with lenders. At Miami store, no more 'beat up' customers http://www.autonews.com/article/20150124/RETAIL06/301259978/at-miami-store-no-more-beat-up-customers Sat, 24 Jan 2015 14:00:00 EST FandI managers at Dadeland Dodge-Chrysler-Jeep in Miami are responsible for the gross profits from both vehicle sales and FandI and handle vehicle purchase negotiations with customers as well as financing. They also get a cut of both to motivate them. Loan application blasts could be a blow to dealers http://www.autonews.com/article/20150124/RETAIL06/301259983/loan-application-blasts-could-be-a-blow-to-dealers Sat, 24 Jan 2015 14:00:00 EST Technology makes it easy for finance and insurance managers to blast credit applications across a wide spectrum of lenders, called shotgunning, rather than matching the right consumer with the right lender. Outsmart the fake pay stub http://www.autonews.com/article/20150124/RETAIL06/301259989/outsmart-the-fake-pay-stub Sat, 24 Jan 2015 14:00:00 EST Missing pay stubs are pitfalls for finance and insurance managers. Finance managers don't want to ask a potential customer to go home and get a couple of pay stubs to verify his or her income. That customer may not come back. Finance managers found on showroom floor http://www.autonews.com/article/20150124/RETAIL06/301259990/finance-managers-found-on-showroom-floor Sat, 24 Jan 2015 14:00:00 EST After working as a sales representative for almost two years at Atlantic Hyundai in West Islip, N.Y., Russell Williamson was ready for more responsibility and the chance to earn more money. FandI departments need a farm team http://www.autonews.com/article/20150124/RETAIL06/301259991/fi-departments-need-a-farm-team Sat, 24 Jan 2015 14:00:00 EST The term 'succession planning' is usually applied to dealer principals, but it can apply to FandI managers, too. GM Financial is up to the full-service task http://www.autonews.com/article/20150123/RETAIL06/301249953/gm-financial-is-up-to-the-full-service-task Fri, 23 Jan 2015 18:53:08 EST GM Financial will become the exclusive provider of subsidized leases for Buick-GMC dealerships on Feb. 3. Cadillac and Chevrolet will follow. '15 shapes up as crucial year for lenders http://www.autonews.com/article/20150123/HOLD/301249960/15-shapes-up-as-crucial-year-for-lenders Fri, 23 Jan 2015 17:52:57 EST How lenders react in 2015 to higher interest rates, longer loan terms and tougher competition will affect business years down the road, said a panel of auto lenders at the J.D. Power and Associates Automotive Summit on Thursday. Where are you spending your dollars on digital? http://www.autonews.com/article/20150123/BLOG06/301249962/where-are-you-spending-your-dollars-on-digital Fri, 23 Jan 2015 17:00:00 EST The impact of digital tools on dealerships' marketing has grown exponentially. Those tools have been a hot topic at the last few NADA conventions. But it may be time for the focus to shift. FCA projects 10% growth in U.S. retail sales for '15, extending streak http://www.autonews.com/article/20150123/RETAIL06/301239969/fca-projects-10-growth-in-u-s-retail-sales-for-15-extending-streak Fri, 23 Jan 2015 15:45:00 EST FCA US dealers were told to anticipate as much as 10 percent growth in their U.S. Building a new fortress to protect data http://www.autonews.com/article/20150123/BLOG06/301249967/building-a-new-fortress-to-protect-data Fri, 23 Jan 2015 14:00:00 EST When it comes to protecting sensitive data against hackers, the days of building thick digital walls and moat are over. How some customers cheat themselves http://www.autonews.com/article/20150123/RETAIL06/301249975/how-some-customers-cheat-themselves Fri, 23 Jan 2015 14:00:00 EST When Hennessy Buick-GMC in Georgia signed up this year for an Equifax system that automatically verifies employment and income, Finance Director Blake Bailey thought the system would mostly identify people who had overstated their income. Dealers prying payments from some lenders http://www.autonews.com/article/20150123/RETAIL06/301249979/dealers-prying-payments-from-some-lenders Fri, 23 Jan 2015 14:00:00 EST Dealers are still seeing big differences in how quickly lenders pay them on contracts in transit, despite awareness and technology campaigns aimed at speeding payments to dealers when retail customers finance vehicle purchases and leases. GM takes charge of its branded FandI products http://www.autonews.com/article/20150123/RETAIL06/301249983/gm-takes-charge-of-its-branded-fi-products Fri, 23 Jan 2015 14:00:00 EST General Motors is bringing the sales of its branded FandI products in-house, taking over responsibility from captive finance company GM Financial, in a move designed to give those sales a shot in the arm and get those products on more GM dealerships'... Old repair bill is a powerful tool for FandI team http://www.autonews.com/article/20150123/RETAIL06/301249988/old-repair-bill-is-a-powerful-tool-for-fi-team Fri, 23 Jan 2015 14:00:00 EST When the air conditioning compressor in LeAnna Cowan's car failed in the Las Vegas heat, the $1,250 repair bill wasn't a hardship. Dealers, captives battle in statehouses http://www.autonews.com/article/20150123/RETAIL06/301249991/dealers-captives-battle-in-statehouses Fri, 23 Jan 2015 14:00:00 EST A battle is heating up in several state capitals as dealer associations face off against carmakers and their captive finance companies over proposed state laws governing the sale of FandI products. Why the 72-month auto loan isn't causing jitters -- yet http://www.autonews.com/article/20150122/RETAIL06/301239973/why-the-72-month-auto-loan-isnt-causing-jitters-yet Thu, 22 Jan 2015 12:00:00 EST Lenders are boosting auto sales and commanding higher transaction prices by extending loan terms. Is the industry flirting with another 2008, or is the risk limited? Pay disparities are hurting morale, dealership retention, expert warns http://www.autonews.com/article/20150122/RETAIL06/301239979/pay-disparities-are-hurting-morale-dealership-retention-expert-warns Thu, 22 Jan 2015 12:00:00 EST Rising disparities in pay between the FandI and sales departments are leading to morale problems and high turnover at dealerships, a noted FandI authority said at a conference in Las Vegas. Faster is better in FandI, Power survey shows http://www.autonews.com/article/20150122/RETAIL06/301239981/faster-is-better-in-fi-power-survey-shows Thu, 22 Jan 2015 12:00:00 EST The latest J.D. Power Sales Satisfaction Index Study underscores how important it is to get customers in and out of the FandI office as quickly as possible. What's an FandI pro worth? http://www.autonews.com/article/20150122/RETAIL06/301239991/whats-an-fi-pro-worth Thu, 22 Jan 2015 12:00:00 EST On average, FandI managers earn fatter paychecks than people in any other key dealership position except the general manager, according to the 2013 NADA Dealership Workforce Study Industry Report. Some dealers are beginning to rethink that. After decades of store confinement, the FandI office is inching digital http://www.autonews.com/article/20150122/RETAIL06/301239992/after-decades-of-store-confinement-the-fi-office-is-inching-digital Thu, 22 Jan 2015 12:00:00 EST Lou Bregou, a director of operations at Driver's Village in Cicero, N.Y., says he has embraced putting financing tools on the dealership group's e-commerce website. Big banks slow auto lending http://www.autonews.com/article/20150121/FINANCE_AND_INSURANCE/301219996/big-banks-slow-auto-lending Wed, 21 Jan 2015 11:00:00 EST Wells Fargo and Chase, two of the biggest banks in auto lending, posted increases in consumer auto originations in 2014 but at a slower rate of growth than in 2013. Auto finance, sales look strong for 2015 http://www.autonews.com/article/20150121/FINANCE_AND_INSURANCE/150129989/auto-finance-sales-look-strong-for-2015 Wed, 21 Jan 2015 11:00:00 EST The good outweighs the bad in the outlook for auto finance. For dealers, the high points are that U.S. light-vehicle sales are expected to keep on growing in 2015, for the sixth consecutive year, reaching as high as 17 million units, analysts say. The lesson of the pizza delivery man http://www.autonews.com/article/20150121/BLOG13/301219994/the-lesson-of-the-pizza-delivery-man Wed, 21 Jan 2015 11:00:00 EST Here's a lesson for dealerships that run security cameras in the FandI office and elsewhere: Treat all store visitors well. Strong job market defangs default threat http://www.autonews.com/article/20150121/FINANCE_AND_INSURANCE/301219998/strong-job-market-defangs-default-threat Wed, 21 Jan 2015 11:00:00 EST There's a simple economic reason not to worry about auto-loan delinquencies, says Tom Webb, Manheim's chief economist. Removing FandI roadblocks http://www.autonews.com/article/20150121/VIDEO/150129976/removing-fi-roadblocks Wed, 21 Jan 2015 00:01:00 EST Three automotive industry leaders discuss why increased use of online tools can help decrease the time consumers spend in the finance and insurance department while they're buying a car. Nicolosi returns to Volvo Financial with broader duties http://www.autonews.com/article/20150121/FINANCE_AND_INSURANCE/301229997/nicolosi-returns-to-volvo-financial-with-broader-duties Wed, 21 Jan 2015 09:00:00 EST Tony Nicolosi has been named president of Volvo Cars Financial Services of the Americas, 16 months after he became CEO of Volvo Cars of North America. Loan terms will grow, making price increases more affordable, FCA's Bigland says http://www.autonews.com/article/20150121/FINANCE_AND_INSURANCE/301219993/loan-terms-will-grow-making-price-increases-more-affordable-fcas Wed, 21 Jan 2015 00:01:00 EST Fiat Chrysler Automobiles' head of US and Canadian sales says loose credit terms will continue to drive new vehicle sales, even as pent-up demand dwindles in a recovered economy. Pressures on franchise system put retailers in a bunker mentality http://www.autonews.com/article/20150119/RETAIL06/301199988/pressures-on-franchise-system-put-retailers-in-a-bunker-mentality Mon, 19 Jan 2015 00:01:00 EST Some dealers say the pressures -- threats, even -- to the franchise system have never been greater. And some worry that those pressures could damage the dealer model beyond repair. Welcome growth for GM Financial http://www.autonews.com/article/20150119/FINANCE_AND_INSURANCE/301199938/welcome-growth-for-gm-financial Mon, 19 Jan 2015 00:01:00 EST General Motors' move to steer all subvented leases for Cadillac and Buick-GMC through GM Financial as part of the captive's ongoing buildup was welcome news for dealers, Cadillac dealer Howard Drake says. What keeps leadership dealers awake at night? http://www.autonews.com/article/20150117/BLOG06/150119754/what-keeps-leadership-dealers-awake-at-night Sat, 17 Jan 2015 00:01:00 EST Even in good times, there are things that will keep most dealers awake at night. FCA's Bigland says loan terms will grow, making price increases more affordable http://www.autonews.com/article/20150114/OEM09/150119808/fcas-bigland-says-loan-terms-will-grow-making-price-increases-more Wed, 14 Jan 2015 18:10:09 EST Fiat Chrysler Automobiles' head of US and Canadian sales says loose credit terms will continue to drive new vehicle sales, even as pent-up demand dwindles in a recovered economy. Larry H. Miller Group takes its FandI products nationwide http://www.autonews.com/article/20150114/FINANCE_AND_INSURANCE/150119838/larry-h-miller-group-takes-its-fi-products-nationwide Wed, 14 Jan 2015 11:45:00 EST Auto retailer Larry H. Miller Group of Cos. is expanding its proprietary FandI products to dealerships nationwide. Dealers applaud GM Financial's ongoing buildup to full captive http://www.autonews.com/article/20150114/FINANCE_AND_INSURANCE/301149958/dealers-applaud-gm-financials-ongoing-buildup-to-full-captive Wed, 14 Jan 2015 11:45:00 EST General Motors' move to steer all Cadillac and GMC/Buick lease incentive money to GM Financial as part of the captive's ongoing buildup was welcome news for dealers, dealers say. Sales and leasing forecast to grow more slowly in 2015 http://www.autonews.com/article/20150114/FINANCE_AND_INSURANCE/301149957/sales-and-leasing-forecast-to-grow-more-slowly-in-2015 Wed, 14 Jan 2015 11:00:00 EST Sales will keep growing in 2015 on favorable economic conditions. But automakers also will boost incentives and turn slightly more to leasing. Lending practices face new scrutiny: States http://www.autonews.com/article/20150114/BLOG13/301159997/lending-practices-face-new-scrutiny-states Wed, 14 Jan 2015 11:30:00 EST State officials aren't far behind the federal government in the present crackdown on auto lenders, especially in the subprime segment. Sloppiness with sensitive info can be costly http://www.autonews.com/article/20150112/FINANCE_AND_INSURANCE/301129999/sloppiness-with-sensitive-info-can-be-costly Mon, 12 Jan 2015 00:01:00 EST Experts say many dealerships do not do enough to protect customer paperwork in the showroom or to secure their data management system from infiltration. GM to use GM Financial for subsidized leases, drop Ally, U.S. Bank http://www.autonews.com/article/20150109/FINANCE_AND_INSURANCE/150109877/gm-to-use-gm-financial-for-subsidized-leases-drop-ally-u-s-bank Fri, 9 Jan 2015 15:19:56 EST General Motors plans to make GM Financial its preferred lender for subsidized leases, a big step toward elevating its in-house lending arm into a full-line captive finance provider to enhance GM dealers' ability to sell vehicles. 'Flat-rate model,' yes. Flat fees, maybe not. http://www.autonews.com/article/20150107/BLOG06/301089994/flat-rate-model-yes-flat-fees-maybe-not Wed, 7 Jan 2015 11:00:00 EST One veteran FandI vendor predicts that in 2015 more lenders will probably adopt a 'flat-rate model' to pay dealerships for arranging auto loans. FandI manager welcomes dogs, closes deals http://www.autonews.com/article/20150107/FINANCE_AND_INSURANCE/301089995/fi-manager-welcomes-dogs-closes-deals Wed, 7 Jan 2015 11:30:00 EST At some Subaru dealerships, the staff goes all out to help customers finalize and finance a new-car deal, including dog sitting. More thin files? Technology can help http://www.autonews.com/article/20150107/FINANCE_AND_INSURANCE/312309996/more-thin-files-technology-can-help Wed, 7 Jan 2015 11:45:00 EST Dealerships and auto lenders are encountering an increase in 'thin files' -- loan applicants who don't have enough credit history to generate a credit score using traditional methods, experts said in a series of interviews and... %]