Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Sun, 23 Jul 2017 06:00:00 EST Wells Fargo auto originations drop 45% on tighter loan criteria http://www.autonews.com/article/20170719/FINANCE_AND_INSURANCE/170719693/wells-fargo-auto-originations-drop-45-on-tighter-loan-criteria Wed, 19 Jul 2017 11:42:29 EST Wells Fargo's auto originations plummeted 45 percent to $4.5 billion in the second quarter, reflecting the lender's tightened underwriting criteria. Leasing slips in first half http://www.autonews.com/article/20170719/FINANCE_AND_INSURANCE/170719691/leasing-slips-in-first-half Wed, 19 Jul 2017 11:00:00 EST Leasing fell in the first half of this year from the year-earlier period, the first such drop since the first half of 2012, Edmunds said. FCA, Santander -- a case study in subprime http://www.autonews.com/article/20170719/FINANCE_AND_INSURANCE/307199995/fca-santander-a-case-study-in-subprime Wed, 19 Jul 2017 00:01:00 EST FCA and Santander's experience in subprime illustrates the industry's controversial involvement in the subprime sector. The best FandI managers have a knack for people http://www.autonews.com/article/20170719/BLOG13/170719696/the-best-fi-managers-have-a-knack-for-people Wed, 19 Jul 2017 11:38:22 EST FandI is a people person job. It may sometimes hide under the guise of being a numbers profession, but most effective FandI managers succeed because they are good with people. Buyers facing fewer scripted FandI pitches http://www.autonews.com/article/20170719/FINANCE_AND_INSURANCE/170719694/buyers-facing-fewer-scripted-fi-pitches Wed, 19 Jul 2017 11:41:49 EST Word tracks, once a standard in the FandI industry, may be falling by the wayside, and for good reason, according to a recent survey and FandI experts. Credit bureau changes could put some loans at risk http://www.autonews.com/article/20170719/FINANCE_AND_INSURANCE/170719695/credit-bureau-changes-could-put-some-loans-at-risk Wed, 19 Jul 2017 11:00:00 EST The three major credit bureaus' decision this month to eliminate civil judgment and tax lien data from their reports means those credit bureaus will have fewer pieces of information on which to score borrowers. BMO Harris adds office for Northeast http://www.autonews.com/article/20170718/FINANCE_AND_INSURANCE/170719719/bmo-harris-adds-office-for-northeast Tue, 18 Jul 2017 14:24:03 EST In its third expansion within a year, BMO Harris has extended its dealership finance business to the Northeast. Will CFPB's ban on arbitration clauses stand? http://www.autonews.com/article/20170717/RETAIL07/170719802/cfpb-ban-mandatory-arbitration-clauses Mon, 17 Jul 2017 00:01:00 EST Industry players hope the CFPB's new arbitration rule will never take effect, and they may be right. But it's also unlikely to disappear immediately. First Shift: States back dealers in ratings battle http://www.autonews.com/article/20170717/VIDEO/307179974/first-shift-states-back-dealers-in-ratings-battle Mon, 17 Jul 2017 08:30:00 EST States side with dealers in performance-ratings battle; Wells Fargo curtails car lending; Musk calls for regulating AI; Carmakers' dirty dilemma; Honda's Disney-themed 'Minnie' van. Auto financing via smartphone is smart move http://www.autonews.com/article/20170712/BLOG13/170719869/auto-financing-via-smartphone-is-smart-move Wed, 12 Jul 2017 11:29:35 EST Consumers have long been able to check their credit and get preapproved for financing through a dealership or lender website, but getting approved on-the-go through mobile devices may become many consumers' first choice when considering an auto loan. BMO Harris drops single-rate dealer pay for tiered model http://www.autonews.com/article/20170712/FINANCE_AND_INSURANCE/170719870/bmo-harris-drops-single-rate-dealer-pay-for-tiered-model Wed, 12 Jul 2017 11:20:40 EST Three years after implementing a single flat fee to compensate dealerships for arranging auto loans, BMO Harris Bank has moved to a three-tier model and may soon begin originating near-prime loans. Portfolio Group scoops up Finance Concepts, looks for more purchase targets http://www.autonews.com/article/20170712/FINANCE_AND_INSURANCE/170719871/portfolio-group-scoops-up-finance-concepts-looks-for-more-purchase Wed, 12 Jul 2017 11:18:00 EST Portfolio Group's acquisition of Finance Concepts last month may be its latest move in a wider acquisition strategy. CFPB arbitration rule draws industry ire http://www.autonews.com/article/20170712/FINANCE_AND_INSURANCE/170719875/cfpb-arbitration-rule-draws-industry-ire Wed, 12 Jul 2017 11:07:39 EST The CFPB's arbitration rule, issued this week, could put dealerships and auto lenders at risk for class-action lawsuits -- if it ever takes effect. Conn. dealer sees in-house insurance office as a 'no-brainer' http://www.autonews.com/article/20170710/FINANCE_AND_INSURANCE/170719994/allstate-fi-schaller Mon, 10 Jul 2017 00:01:00 EST Retailer Art Schaller Jr. was reluctant to drop his FandI provider and switch to Allstate-branded FandI products. But branding has paid off. When he heard about Allstate's dealership insurance agency program, he opted for both. VW Credit invests in app developer AutoGravity http://www.autonews.com/article/20170710/FINANCE_AND_INSURANCE/170719987/vw-credit-investment-autogravity Mon, 10 Jul 2017 00:01:00 EST The lender said the $30 million investment aligns with its goal to create a digital experience for its customers. Seizing opportunities as competitors move upmarket http://www.autonews.com/article/20170710/FINANCE_AND_INSURANCE/170719991/td-auto-finance-credit-pool Mon, 10 Jul 2017 00:01:00 EST The lender is expanding its portfolio with more used-vehicle loans and more prime and near-prime customers, even as some rivals flee upmarket. New CFPB rule prohibits lenders from forcing arbitration http://www.autonews.com/article/20170710/OEM11/170719937/new-cfpb-rule-prohibits-lenders-from-forcing-arbitration Mon, 10 Jul 2017 19:19:34 EST The CFPB banned banks and other financial services companies from including mandatory arbitration clauses in contracts to prevent consumers pursuing claims of wrongdoing from joining class-action lawsuits. VW Credit invests in AutoGravity http://www.autonews.com/article/20170706/FINANCE_AND_INSURANCE/170709883/vw-credit-invests-in-autogravity Thu, 6 Jul 2017 11:10:03 EST VW Credit is taking an equity stake in AutoGravity, a car shopping and financing mobile app and Web platform. New-vehicle loan terms hit all-time high http://www.autonews.com/article/20170705/FINANCE_AND_INSURANCE/170709902/new-vehicle-loan-terms-hit-all-time-high Wed, 5 Jul 2017 11:22:55 EST The average new-vehicle loan term rose slightly to a record 69.3 months in June as buyers continued to keep monthly payments low while financing ever more expensive vehicles. #8203;#32; http://www.autonews.com/article/20170705/FINANCE_AND_INSURANCE/170709899/beware-of-hard-to-detect-synthetic-id-fraud Wed, 5 Jul 2017 12:30:00 EST Compliance has been on the minds of dealers and lenders. But at least one fraud type has been largely overlooked, and it's costing hundreds of millions of dollars in losses annually across the credit industry, Experian says. A flat tire taught me a warranty lesson http://www.autonews.com/article/20170705/BLOG13/170709903/a-flat-tire-taught-me-a-warranty-lesson Wed, 5 Jul 2017 10:41:23 EST One of the several lessons I learned from a flat-tire experience last week was be more aware of my warranty. Auto finance growth in Canada exceeds expectations http://www.autonews.com/article/20170705/FINANCE_AND_INSURANCE/170709904/auto-finance-growth-in-canada-exceeds-expectations Wed, 5 Jul 2017 10:28:49 EST Auto lending continued to be one of the fastest-growing segments of the Canadian credit market in the first quarter of 2017 as the country's auto industry saw multiyear growth, according to TransUnion's latest Canada Industry Insights Report. Nissan, Infiniti shuffle finance unit executives http://www.autonews.com/article/20170705/FINANCE_AND_INSURANCE/307059934/nissan-infiniti-shuffle-finance-unit-executives Wed, 5 Jul 2017 00:01:00 EST Mark Kaczynski, after six years as president of Nissan Motor Acceptance, is leaving his post to become vice president of administration and finance for Infiniti. Auto-debt risk reaches Europe as leases create used-car glut http://europe.autonews.com/article/20170630/ANE/170639996/auto-debt-risk-reaches-europe-as-leases-create-used-car-glut Fri, 30 Jun 2017 04:25:51 EST A shift in how Europeans finance their cars is threatening to expose bondholders in the region to the same risk that's been building in the U.S. for decades. Nissan, Infiniti shuffle finance unit executives http://www.autonews.com/article/20170628/OEM02/170629745/nissan-infiniti-shuffle-finance-unit-executives Wed, 28 Jun 2017 19:52:39 EST Mark Kaczynski, after six years as president of Nissan Motor Acceptance, is leaving his post to become vice president of administration and finance for Infiniti. CarMax captive boosts income, revs marketing for online finance http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/170629759/carmax-captive-boosts-income-revs-marketing-for-online-finance Wed, 28 Jun 2017 11:38:59 EST Income at CarMax's captive finance arm rose 8.5 percent to $109.4 million in the company's 2018 fiscal first quarter, ended May 31, even as its financing penetration fell. When FandI stumbles http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/170629753/when-fi-stumbles Wed, 28 Jun 2017 12:19:10 EST Most FandI errors are caught before they leave the store. But when they aren't, dealers walk a line between customer dissatisfaction and financial loss. Big auto lenders save up for higher losses http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/306289996/big-auto-lenders-save-up-for-higher-losses Wed, 28 Jun 2017 00:01:00 EST Some of the biggest U.S. auto lenders are socking away significantly more money to cover higher losses ahead. The upshot for dealers and customers is likely to be tighter credit down the road, especially in subprime. Are consumers' vehicle aspirations too high? http://www.autonews.com/article/20170628/BLOG13/170629763/are-consumers-vehicle-aspirations-too-high Wed, 28 Jun 2017 11:23:08 EST Consumers may be trying to bite off more than they can chew. Swapalease.com approved fewer than half of lease applicants in May because consumers applied for leases on out-of-budget, high-end vehicles. Leasing's exotic side http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/170629760/leasings-exotic-side Wed, 28 Jun 2017 11:37:33 EST Canadian companies thrive on quality low-mileage lease returns while creating a captive audience. The disconnect between vehicle price and affordability http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/170629762/the-disconnect-between-vehicle-price-and-affordability Wed, 28 Jun 2017 11:30:02 EST The average price tag on a new car is too high for median-income households in 24 of the 25 largest U.S. metro areas, according to a Bankrate.com study. Upside-down buyers' next moves vary by brand http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/306289997/upside-down-buyers-next-moves-vary-by-brand Wed, 28 Jun 2017 00:01:00 EST Levels of negative equity vary by brand. So do buyers' actions when they discover that they owe more on their trade-in than it's worth, an informal survey found. Big groups' FandI sales top vehicle volume in '16 http://www.autonews.com/article/20170628/FINANCE_AND_INSURANCE/306289995/big-groups-fi-sales-top-vehicle-volume-in-16 Wed, 28 Jun 2017 00:01:00 EST FandI revenue at the nation's 150 largest dealership groups rose more than sales volume did in 2016, but the pace of growth for FandI slowed from prior years. Roadster to add accessories to its online FandI stores http://www.autonews.com/article/20170626/RETAIL07/170629906/roadster-accessories-online Mon, 26 Jun 2017 00:01:00 EST A tool from the online vehicle seller allows shoppers to see how add-ons such as spoilers, LED fog lights or moon-roof visors affect the price. A case for recapping FandI http://www.autonews.com/article/20170621/BLOG13/170629951/a-case-for-recapping-fi Wed, 21 Jun 2017 11:23:05 EST At the end of the car-buying process, many customers want to rush through FandI, get in their new car and drive away. It may pay off to visit FandI again later. AutoGravity launches national TV ads http://www.autonews.com/article/20170621/FINANCE_AND_INSURANCE/170629949/autogravity-launches-national-tv-ads Wed, 21 Jun 2017 11:26:55 EST AutoGravity, a car shopping and financing mobile app and web platform, is aiming to catch the eyes of more consumers with a national TV campaign debuting this week. Westlake expands lending footprint with Credit Union Leasing deal http://www.autonews.com/article/20170621/FINANCE_AND_INSURANCE/170629953/westlake-expands-lending-footprint-with-credit-union-leasing-deal Wed, 21 Jun 2017 11:15:34 EST Westlake Financial Services acquired Credit Union Leasing of America, expanding its portfolio to include leasing and a more prime customer base. Credit unions lead auto balance growth http://www.autonews.com/article/20170621/FINANCE_AND_INSURANCE/170629952/credit-unions-lead-auto-balance-growth Wed, 21 Jun 2017 11:21:56 EST Credit unions as a group reaped higher auto balance growth in the first quarter than any other lender type, according to Experian. More used, fewer new sales could improve negative-equity levels http://www.autonews.com/article/20170621/FINANCE_AND_INSURANCE/306219996/more-used-fewer-new-sales-could-improve-negative-equity-levels Wed, 21 Jun 2017 00:01:00 EST Experts have mixed views on the future of negative-equity levels, but most agree that it will largely depend on used-vehicle values and the new-vehicle sales rate. Negative equity adds to GAP losses http://www.autonews.com/article/20170621/FINANCE_AND_INSURANCE/306219998/negative-equity-adds-to-gap-losses Wed, 21 Jun 2017 00:01:00 EST Guaranteed Asset Protection claims #8212; and losses #8212; are on the rise, and ballooning negative equity appears to be partially to blame. Hyundai Capital: Burying buyers in debt is dangerous http://www.autonews.com/article/20170621/FINANCE_AND_INSURANCE/306219997/hyundai-capital-burying-buyers-in-debt-is-dangerous Wed, 21 Jun 2017 00:01:00 EST In this QandA, Hyundai Capital Vice President Mark Abbasi talks about how to turn a negative-equity situation into a positive one. American Honda pays fine for Canadian dealings with Cuba http://www.autonews.com/article/20170619/FINANCE_AND_INSURANCE/170619734/american-honda-pays-fine-for-canadian-dealings-with-cuba Mon, 19 Jun 2017 16:18:33 EST The U.S. slapped American Honda Finance with a fine for a violation of U.S. sanctions against Cuba even though the transactions occurred in Canada. More upside-down customers won't bring doom http://www.autonews.com/article/20170614/BLOG06/170619856/more-upside-down-customers-wont-bring-doom Wed, 14 Jun 2017 11:54:10 EST With 32. CFPB reformers move forward http://www.autonews.com/article/20170614/FINANCE_AND_INSURANCE/170619855/cfpb-reformers-move-forward Wed, 14 Jun 2017 12:01:03 EST Within the past week, the U.S. RouteOne exceeds $200 billion in e-contract funding http://www.autonews.com/article/20170614/FINANCE_AND_INSURANCE/170619862/routeone-exceeds-200-billion-in-e-contract-funding Wed, 14 Jun 2017 11:15:32 EST Funding via RouteOne's e-contracting platform surpassed the $200 billion mark last week. The milestone reflects the industry's shift toward e-contracting, RouteOne CEO Justin Oesterle said. VW Credit creates new chief digital officer post http://www.autonews.com/article/20170614/FINANCE_AND_INSURANCE/170619857/vw-credit-creates-new-chief-digital-officer-post Wed, 14 Jun 2017 11:32:31 EST Banking veteran Charles Moore will join VW Credit as senior vice president of marketing and chief digital officer July 5. Subprime falls, scores rise on tighter lending criteria http://www.autonews.com/article/20170614/FINANCE_AND_INSURANCE/170619860/subprime-falls-scores-rise-on-tighter-lending-criteria Wed, 14 Jun 2017 11:16:48 EST The share of auto loans rated subprime hit a first-quarter 10-year low and the average credit score rose as lenders adjusted financing criteria, according to Experian's latest Why so many motorists are underwater http://www.autonews.com/article/20170612/FINANCE_AND_INSURANCE/170619991/why-so-many-motorists-are-underwater Mon, 12 Jun 2017 00:01:00 EST Negative-equity levels are at record highs as lengthening loan terms, rising transaction prices and falling used-vehicle values combine to take a toll on consumers and the industry. More buyers are upside down. Will it pull down the industry? http://www.autonews.com/article/20170612/FINANCE_AND_INSURANCE/170619973/more-buyers-are-upside-down-will-it-pull-down-the-industry Mon, 12 Jun 2017 00:01:00 EST As negative equity has ballooned to record levels, dealers have learned to cope with getting underwater customers financed, and lenders are kept loan terms in check. Can those efforts keep the industry strong? Negative equity just 1 factor for credit risk, lenders say http://www.autonews.com/article/20170612/FINANCE_AND_INSURANCE/170619974/negative-equity-just-1-factor-for-credit-risk-lenders-say Mon, 12 Jun 2017 00:01:00 EST Auto lenders are keeping an eye on negative equity, but amid tougher approval standards, reducing risk from subprime loans is a higher priority. %]