Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Mon, 27 Apr 2015 06:00:00 EST Loans are at a healthy, rational level http://www.autonews.com/article/20150427/FINANCE_AND_INSURANCE/304279972/loans-are-at-a-healthy-rational-level Mon, 27 Apr 2015 00:01:00 EST While it's worthwhile to remember key lessons from the 2008 financial crisis, today's conditions in automotive subprime bear virtually no resemblance to the mortgage issues that precipitated that fateful bubble, says Raj Sundaram, co-president of... States' varying auto insurance rates play with the car-buying equation http://www.autonews.com/article/20150427/RETAIL07/304279967/states-varying-auto-insurance-rates-play-with-the-car-buying-equation Mon, 27 Apr 2015 00:01:00 EST Want $7,700 more to spend on a new car? Move from Michigan to Maine before you insure it. GM Financial Q1 net rises as lease volume skyrockets http://www.autonews.com/article/20150423/FINANCE_AND_INSURANCE/150429894/gm-financial-q1-net-rises-as-lease-volume-skyrockets Thu, 23 Apr 2015 14:17:12 EST Captive finance company GM Financial had a giant increase in lease volume in the first quarter, as parent company GM switched to GM Financial as its exclusive preferred lender for Buick, Cadillac, Chevrolet and GMC subsidized leases. Midsize with a four-banger or large and loaded? How auto insurance affects consumers' buying power http://www.autonews.com/article/20150423/BLOG06/150429906/midsize-with-a-four-banger-or-large-and-loaded-how-auto-insurance Thu, 23 Apr 2015 11:32:48 EST Want $7,700 more to spend on a new car? Move from Michigan to Maine before you insure it. That's because U.S. insurance premiums on a new vehicle vary wildly by state, according Insure.com Lawmakers back NADA in battle with CFPB http://www.autonews.com/article/20150422/VIDEO/304159973/lawmakers-back-nada-in-battle-with-cfpb Wed, 22 Apr 2015 00:01:00 EST Two lawmakers have introduced a bipartisan bill to nullify a 2014 bulletin issued by the Consumer Financial Protection Bureau. Dealers missing out on digital FandI sales, study finds http://www.autonews.com/article/20150422/FINANCE_AND_INSURANCE/150429948/dealers-missing-out-on-digital-fi-sales-study-finds Wed, 22 Apr 2015 11:30:00 EST Consumers want FandI product information online rather than all-at-once at the end of their vehicle purchases, a new study finds. Auto finance critic Warren stands firm on CFPB dealership oversight http://www.autonews.com/article/20150422/BLOG13/304239999/auto-finance-critic-warren-stands-firm-on-cfpb-dealership-oversight Wed, 22 Apr 2015 11:15:00 EST Sen. Elizabeth Warren is once again calling for direct regulation of auto dealerships by the Consumer Financial Protection Bureau. Asbury, Sonic see below-average FandI revenue at new-initiative stores http://www.autonews.com/article/20150422/FINANCE_AND_INSURANCE/304229998/asbury-sonic-see-below-average-fi-revenue-at-new-initiative-stores Wed, 22 Apr 2015 11:30:00 EST Two of the nation's biggest publicly traded dealership groups said early, small-scale results from their nontraditional dealerships -- either stand-alone used-vehicle stores or ones that use techniques such as no-haggle pricing -- showed below... Some auto lenders let others pursue volume http://www.autonews.com/article/20150422/FINANCE_AND_INSURANCE/304229999/some-auto-lenders-let-others-pursue-volume Wed, 22 Apr 2015 11:15:00 EST Some auto lenders are choosing not to chase volume. Consumer Portfolio Services and PNC Bank are consciously passing up volume to protect profits and their credit standards. Wells Fargo made a similar statement this month. Ally change saves dealers big money http://www.autonews.com/article/20150420/RETAIL/304209965/ally-change-saves-dealers-big-money Mon, 20 Apr 2015 00:01:00 EST The 4,200 dealerships that finance their vehicle inventory through Ally Financial are seeing savings from Ally's recent shift to peg interest rates to LIBOR rather than a prime-rate benchmark. New Black Book exec looks to help dealers close loans, leases faster http://www.autonews.com/article/20150415/FINANCE_AND_INSURANCE/304159999/new-black-book-exec-looks-to-help-dealers-close-loans-leases-faster Wed, 15 Apr 2015 11:15:00 EST Barrett Teague, Black Book's new vice president of lender solutions, says dealership FandI managers are never far from his mind. In part that's because he's been an FandI manager himself. Teague, 43, joined Black Book on April 6. Dealership gross profits see bigger impact from FandI http://www.autonews.com/article/20150415/FINANCE_AND_INSURANCE/304159998/dealership-gross-profits-see-bigger-impact-from-fi Wed, 15 Apr 2015 12:00:00 EST The average dealership gained more from FandI last year, even though retailers' overall sales penetration for products such as extended service contracts and GAP dropped a fraction of a percentage point. On average, FandI accounted for 39. Women in automotive seek more peers http://www.autonews.com/article/20150415/BLOG13/304169999/women-in-automotive-seek-more-peers Wed, 15 Apr 2015 12:15:00 EST A lot of dealer principals and general managers swear by their female salespeople and FandI managers and wish they had more. But in the business world at large, auto industry careers for women are a 'best-kept secret.' Wells Fargo, Chase adopt different lending approaches http://www.autonews.com/article/20150415/FINANCE_AND_INSURANCE/150419942/wells-fargo-chase-adopt-different-lending-approaches Wed, 15 Apr 2015 12:00:00 EST Wells Fargo and JPMorgan Chase, two of the biggest banks in auto finance, adopted opposite lending strategies in the first quarter. Penske targets 'I' in FandI to boost per-vehicle revenue http://www.autonews.com/article/20150413/FINANCE_AND_INSURANCE/304139984/penske-targets-i-in-fi-to-boost-per-vehicle-revenue Mon, 13 Apr 2015 00:01:00 EST Penske Automotive Group Inc. is refining its training process on insurance product sales to boost overall finance and insurance revenues. Some dealers prep for flat fees http://www.autonews.com/article/20150413/FINANCE_AND_INSURANCE/304139983/some-dealers-prep-for-flat-fees Mon, 13 Apr 2015 00:01:00 EST Dealer Mike Thompson believes he might soon lose the ability to make a healthy profit from finance reserves. His concern is well-founded. Lenders' outcry against CFPB 'narratives' is justified http://www.autonews.com/article/20150408/BLOG13/304089993/lenders-outcry-against-cfpb-narratives-is-justified Wed, 8 Apr 2015 00:01:00 EST It's no wonder auto lenders cried foul last month when the CFPB announced its plan to begin posting consumers' first-person tales of their grievances with auto loans later this year. Mercedes' captive boosts dealership training on branded FandI products http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/304089994/mercedes-captive-boosts-dealership-training-on-branded-fi-products Wed, 8 Apr 2015 11:00:00 EST Mercedes-Benz Financial Services' U.S. insurance unit is gearing up to train more dealership FandI managers to sell its First Class-branded FandI products. FICO pilot holds promise for auto financing http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/304089996/fico-pilot-holds-promise-for-auto-financing Wed, 8 Apr 2015 11:45:00 EST The results of a pilot program between Fair Isaac Corp. and 12 big credit-card companies could ultimately help dealerships get auto loans approved for so-called thin files -- that is, customers with little or no credit history. Low rates will continue to help auto sales, financing in 2015, experts say http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/304089997/low-rates-will-continue-to-help-auto-sales-financing-in-2015-experts Wed, 8 Apr 2015 11:45:00 EST Interest rates should remain low for the rest of 2015, helping auto dealerships sell vehicles, experts say. CarMax finance arm won't become major subprime player http://www.autonews.com/article/20150408/FINANCE_AND_INSURANCE/150409877/carmax-finance-arm-won-t-become-major-subprime-player Wed, 8 Apr 2015 11:30:00 EST CarMax's finance arm will continue its subprime lending test and might expand it in the future. But the unit won't become a 'full player' in that space, says company CEO Tom Reedy. The new sticker shock: High costs to fix high-tech http://www.autonews.com/article/20150406/RETAIL05/304069994/the-new-sticker-shock-high-costs-to-fix-high-tech Mon, 6 Apr 2015 00:01:00 EST We all know about showroom sticker shock. But here's another side of the affordability problem: the hefty repair costs for minor accidents. Apple is a no-show at the New York show http://www.autonews.com/article/20150402/BLOG06/150409930/apple-is-a-no-show-at-the-new-york-show Thu, 2 Apr 2015 10:19:55 EST Apple's CarPlay and Google's Android Auto are finally here! Well, almost here. Feds put add-on products in their cross hairs http://www.autonews.com/article/20150401/FINANCE_AND_INSURANCE/150339957/feds-put-add-on-products-in-their-cross-hairs Wed, 1 Apr 2015 11:00:00 EST The Federal Trade Commission has set its sights on what it calls add-on products: FandI products sold at dealerships such as anti-theft etching or biweekly payments. CFPB keeps wary eye out for subprime-lending abuses http://www.autonews.com/article/20150401/FINANCE_AND_INSURANCE/150339943/cfpb-keeps-wary-eye-out-for-subprime-lending-abuses Wed, 1 Apr 2015 11:00:00 EST The Consumer Financial Protection Bureau sees the combination of easier credit, a rise in credit losses from historic lows and longer terms in subprime auto loans as an 'emerging' risk worth keeping an eye on, said Steven Antonakes,... NYC aims to remove dealers as middlemen on used-car loans http://www.autonews.com/article/20150401/FINANCE_AND_INSURANCE/150339947/nyc-aims-to-remove-dealers-as-middlemen-on-used-car-loans Wed, 1 Apr 2015 11:00:00 EST The City of New York is campaigning to remove dealer reserve from used-vehicle financing. And it's enlisting lenders' help to do it. No such thing as 'little' lies on credit apps http://www.autonews.com/article/20150401/BLOG13/150409981/no-such-thing-as-little-lies-on-credit-apps Wed, 1 Apr 2015 11:00:00 EST The Federal Trade Commission served up a forceful reminder last week that inflating a customer's income on a credit application isn't just a little white lie, even if it's intended to 'help' the customer. Ally to relocate its headquarters in downtown Detroit http://www.autonews.com/article/20150331/FINANCE_AND_INSURANCE/150339946/ally-to-relocate-its-headquarters-in-downtown-detroit Tue, 31 Mar 2015 15:52:24 EST Ally Financial, along with Detroit political and business leaders, said today it plans to move its headquarters and 1,300 employees to a signature office building in downtown Detroit. Ally touts dealership camaraderie in new ad campaign http://www.autonews.com/article/20150331/RETAIL03/150339954/ally-touts-dealership-camaraderie-in-new-ad-campaign Tue, 31 Mar 2015 14:44:46 EST Ally Financial is touting the camaraderie it has with dealerships in a new ad campaign that puts an emphasis on storytelling. Fired Honda store FandI staffer wins new whistleblower trial http://www.autonews.com/article/20150330/LEGALFILE/303309989/fired-honda-store-fi-staffer-wins-new-whistleblower-trial Mon, 30 Mar 2015 00:01:00 EST A former Honda dealership employee in Florida who was fired after notifying the store's corporate parent of suspected fraudulent FandI and warranty practices at his workplace has won the opportunity to retry his whistleblower lawsuit. Ex-dealership staffers face prison http://www.autonews.com/article/20150330/RETAIL07/303309969/ex-dealership-staffers-face-prison Mon, 30 Mar 2015 00:01:00 EST Several former sales staffers at a Birmingham, Ala., Nissan store face federal prison time as part of a federal crackdown on fraudulent practices in car dealerships. If dealers don't weigh in, they can't gripe http://www.autonews.com/article/20150325/BLOG13/303259993/if-dealers-dont-weigh-in-they-cant-gripe Wed, 25 Mar 2015 12:30:00 EST Dealers have a chance right now to weigh in on what they like and donandrsquo;t like about their lenders, and they shouldnandrsquo;t miss the opportunity. Dealer groups charge CFPB is unresponsive http://www.autonews.com/article/20150325/FINANCE_AND_INSURANCE/303259996/dealer-groups-charge-cfpb-is-unresponsive Wed, 25 Mar 2015 12:00:00 EST Dealer trade groups are asking members to seek help from their elected representatives to prod the Consumer Financial Protection Bureau into responding to a lender study released last fall that was highly critical of its method of determining... Lenders raise red flags over CFPB plan to publish consumer complaints http://www.autonews.com/article/20150325/FINANCE_AND_INSURANCE/150329930/lenders-raise-red-flags-over-cfpb-plan-to-publish-consumer-complaints Wed, 25 Mar 2015 12:00:00 EST Auto lenders are lining up to oppose the Consumer Financial Protection Bureau's plan to publish consumer complaints with financial services providers on its website. Credit union pilot targeting subprime borrowers shows promise http://www.autonews.com/article/20150325/FINANCE_AND_INSURANCE/303259997/credit-union-pilot-targeting-subprime-borrowers-shows-promise Wed, 25 Mar 2015 12:30:00 EST A small pilot program to encourage credit unions to do more subprime auto lending has helped participants gain some business but is still several steps away from providing a model for a larger effort. Volvo's young captive explores new territory http://www.autonews.com/article/20150325/FINANCE_AND_INSURANCE/303259994/volvos-young-captive-explores-new-territory Wed, 25 Mar 2015 00:01:00 EST Volvo Car Financial Services U.S. is a young captive finance company, in business only since late 2012. But its leadership is seasoned. Store tweaks sales, FandI strategy for Gen Y http://www.autonews.com/article/20150325/FINANCE_AND_INSURANCE/303259995/store-tweaks-sales-fi-strategy-for-gen-y Wed, 25 Mar 2015 00:01:00 EST Dealership managers Austin Salinas and Chris Gottselig know how to sell to Gen Y. That's because they fall into that category themselves. Land Rover adds Range Rover Sport HST for 2016 http://www.autonews.com/article/20150324/OEM04/150329940/land-rover-adds-range-rover-sport-hst-for-2016 Tue, 24 Mar 2015 12:15:44 EST Land Rover is set to introduce the new Range Rover Sport HST limited edition at the New York Auto Show next week. The new, 380-hp model will slot in between the 340-hp base model and the 550-hp supercharged version. Insurance rates on aluminum F-150 hold for now http://www.autonews.com/article/20150323/FINANCE_AND_INSURANCE/303169989/insurance-rates-on-aluminum-f-150-hold-for-now Mon, 23 Mar 2015 00:01:00 EST For now, motorists' yearly insurance premiums for the 2015 aluminum-bodied F-150 are about the same as for the 2014 steel model -- good news for Ford. Size of average tax refund makes a decent down payment http://www.autonews.com/article/20150318/BLOG13/303189987/size-of-average-tax-refund-makes-a-decent-down-payment Wed, 18 Mar 2015 11:45:00 EST For anybody keeping track -- which is to say, anybody interested in subprime auto lending #8211; U.S. tax refunds have fallen a bit more behind than they were a few weeks ago. GM dealers: Warranty, maintenance cuts could help FandI, hurt service http://www.autonews.com/article/20150318/FINANCE_AND_INSURANCE/150319864/gm-dealers-warranty-maintenance-cuts-could-help-fi-hurt-service Wed, 18 Mar 2015 11:00:00 EST General Motors' dealers don't seem especially disturbed by the automaker's decision to scale back its powertrain warranty and free maintenance visits on Buick, Chevrolet and GMC vehicles. Consistent FandI pricing key to compliance http://www.autonews.com/article/20150318/FINANCE_AND_INSURANCE/303189991/consistent-fi-pricing-key-to-compliance Wed, 18 Mar 2015 11:00:00 EST As regulators scrutinize auto lending practices, companies in the FandI space have made compliance with state and federal rules a priority too. Dealers, lenders still angling over laws governing FandI tactics http://www.autonews.com/article/20150318/FINANCE_AND_INSURANCE/303189937/dealers-lenders-still-angling-over-laws-governing-fi-tactics Wed, 18 Mar 2015 11:00:00 EST Dealers and auto lenders are keeping a close eye on various dealer-backed state laws that seek to restrict what automakers' captive finance companies can do to induce dealerships to sell FandI products backed by the factory or a specific vendor. Mercedes store wins suit over English-only documents http://www.autonews.com/article/20150318/LEGALFILE/303189990/mercedes-store-wins-suit-over-english-only-documents Wed, 18 Mar 2015 11:00:00 EST A trial court and the California Court of Appeal have ruled in favor of a California Mercedes dealership in a suit brought by a Spanish-speaking couple over their sales and financing experience. VW finance arm eyes record profit in 2015, CEO says http://europe.autonews.com/article/20150318/ANE/150319860/vw-finance-arm-eyes-record-profit-in-2015-ceo-says Wed, 18 Mar 2015 06:34:07 EST Volkswagen's finance division is targeting 2015 operating profit that will not be below last year's record result of 1.7 billion euros ($1.80 billion), its CEO Frank Witter said. Jump-starting car sales from the service lane http://www.autonews.com/article/20150317/FINANCE_AND_INSURANCE/303199999/jump-starting-car-sales-from-the-service-lane Tue, 17 Mar 2015 00:01:00 EST Mike Bowsher uses software at the service desk to help him jump-start the sales process at his stores. Stakes are high for Ally's new CEO http://www.autonews.com/article/20150317/FINANCE_AND_INSURANCE/303199998/stakes-are-high-for-allys-new-ceo Tue, 17 Mar 2015 00:01:00 EST New Ally Financial CEO Jeffrey Brown must hit the ground running. Along with a sizable to-do list, he must deal with a shrinking share of business supported by incentives from former parent GM. As GM trims warranties, will buyers even notice? http://www.autonews.com/article/20150316/RETAIL05/303169957/as-gm-trims-warranties-will-buyers-even-notice Mon, 16 Mar 2015 00:01:00 EST One dealer said "it really didn't work." An analyst called it a useful enticement to draw consumers to Chevrolet and GMC. Those were just some of the responses to General Motors' decision to scale back its generous powertrain warranties. Penske launches digital sales pilot http://www.autonews.com/article/20150316/RETAIL07/303169963/penske-launches-digital-sales-pilot Mon, 16 Mar 2015 00:01:00 EST Penske Automotive Group is launching an online sales pilot program it calls "Preferred Purchase," which enables customers to handle much of a transaction online. Ally adds 7-year loans, as debate over risk heats up http://www.autonews.com/article/20150311/FINANCE_AND_INSURANCE/303119997/ally-adds-7-year-loans-as-debate-over-risk-heats-up Wed, 11 Mar 2015 00:01:00 EST The slow march toward 84-month loans is adding fuel to the debate over whether auto lending is getting too risky, possibly threatening the economy the way subprime mortgages did during the run-up to the 2008-09 financial crisis. %]