Automotive News Finance and Insurance Feed News, blogs and commentary from the leader in North American automotive news en-us Sun, 28 May 2017 06:00:00 EST TD Auto Finance moves down from superprime, even as others tighten lending standards Wed, 24 May 2017 11:07:00 EST One-time superprime specialist TD Auto Finance is increasing its portfolio by expanding its prime and near-prime loan segments and originating more used-vehicle loans. How vehicle data could help drive FandI sales Wed, 24 May 2017 11:00:00 EST In the future, vehicles will send data to dealerships and FandI product vendors directly, helping them to determine which products car owners need and when, industry insiders predict. Short-circuiting customer disputes Wed, 24 May 2017 11:27:50 EST Mishandling customer disputes can cost dealerships more in negative word-of-mouth than the disputed item is worth. Here's how some dealers work to ensure that at their stores, the customer is always right. Should dealerships go back to the basics for best FandI results? Wed, 24 May 2017 11:29:57 EST Whether it's a customized presentation, a digital menu or online FandI product intros, many FandI companies have suggested an adjusted approach for today's consumer. But for some dealerships, it may be best to stick to the basics, an FandI expert says. Santander checked income on just 8% of subprime auto borrowers for bond issue Wed, 24 May 2017 09:03:54 EST Santander verified income on just 8 percent of borrowers whose loans it recently bundled into $1 billion of bonds, according to Moody's Investors Service. Nissan finance ordered to pay ex-dealer $256 million for fraud Tue, 23 May 2017 19:17:04 EST After years of legal wrangling, ex-Nissan dealer Mike Kahn has been awarded $256 million by a jury against Nissan Motor Acceptance Corp. Lexus patient with fixed-price program Mon, 22 May 2017 00:01:00 EST A year into the Lexus Plus no-haggle pricing program, the expected waves of dealers joining are only ripples. But brand executives say a slow and steady pace has its benefits. FandI departments would do well to tap high schoolers Wed, 17 May 2017 12:00:00 EST Automakers and suppliers have established partnerships with high schools to breed the next generation of talent and give teenagers an industry education. Can the same be done in the FandI world? Former store owner, fugitive sentenced to 10 years for fraud Wed, 17 May 2017 13:40:05 EST The criminal prosecution of Eminiano "Jun" Reodica Jr. came to a close this week when he was sentenced to 10 years in prison. N.Y. Fed flags rising auto financing delinquencies Wed, 17 May 2017 12:05:14 EST The New York Federal Reserve flagged what it termed a "significant" upward trend in the last few years in the rate at which auto loans and leases combined are entering delinquency. Ford Credit staffers spared from cuts Wed, 17 May 2017 12:15:00 EST Ford Motor Co. plans to cut 10 percent of its salaried ranks in North America and Asia to cut costs amid slowing U.S. sales and growing outlays for new technology, but 7,300 workers at Ford Motor Credit Co. will keep their jobs. Auto loan delinquencies rise despite consumers giving payments priority Wed, 17 May 2017 12:00:00 EST When consumers pay down debt, car loans tend to get priority, Still, auto delinquencies rose in the first quarter, TransUnion says. APR hits marker not seen since 2010 Wed, 17 May 2017 12:00:00 EST The average interest rate on a new-vehicle loan in April topped 5 percent, marking the first time since 2010 that the average U.S. interest rate has exceeded that level for two straight months. Rising interest rates could hurt U.S. Sonic tweaks rollout of no-haggle selling Sat, 13 May 2017 00:01:00 EST Sonic Automotive is switching plans for the rollout of its One Sonic-One Experience program to its 112 dealerships. Auto loan fraud is soaring in a parallel to the housing bubble Wed, 10 May 2017 10:24:22 EST Borrower fraud in U.S. auto loans is surging, and may approach levels seen in mortgages during last decade's housing bubble. FandI vendors take aim at used vehicles Wed, 10 May 2017 11:30:00 EST The trend toward used vehicles has extended beyond financing. It's become a focus in the FandI product world, too. Auto lenders unite to fight fraud Wed, 10 May 2017 11:30:00 EST Major lenders, representing more than a third of U.S. auto loan originations, have begun to share internal auto lending data and experiences to combat fraud. Ninety percent of the lenders say fraud is a growing concern. Online intros could draw Gen Y to FandI products Wed, 10 May 2017 11:30:00 EST Millennials are more cost-conscious than Gen Xers or baby boomers, according to a Cox Automotive study, but transparency and online FandI product introductions could sway them to open their wallets for add-ons. Geely takes big stake in Denmark's Saxo Bank Tue, 9 May 2017 05:43:20 EST A co-founder of Denmark's Saxo Bank has agreed to sell his 26 percent stake in the company to a subsidiary of Chinese automaker Geely Holding, marking the group's first foray into financial services. Toyota Financial growing -- and moving Mon, 8 May 2017 00:01:00 EST Toyota Financial Services is issuing more contracts for protection products than financing as it tries to both extend its lead as the nation's top auto lender and complete its move to Plano, Texas. Stair-steps are the elephant in the room that we can't ignore Mon, 8 May 2017 00:01:00 EST Star-step incentive programs often negatively affect dealerships, the value of their brands and their collective integrity, NADA Chairman Mark Scarpelli writes. Survivors of DMS shifts tell their tales Mon, 8 May 2017 00:01:00 EST Changing a dealership management system can be a grueling process that touches every level of a store. But sometimes a switch has to be made. Most public retailers boost Q1 FandI Mon, 8 May 2017 00:01:00 EST Five of the 6 publicly traded new-vehicle dealership groups improved their average FandI gross profit per vehicle retailed in the first quarter. Santander has dropped 800-plus dealerships Mon, 8 May 2017 00:01:00 EST Santander Consumer USA has terminated more than 800 dealerships since 2015, based on 'performance-related issues,' the lender said. The cost of life-saving tech: Totaled cars Sun, 7 May 2017 00:01:00 EST Safety features such as lane-departure warning systems and multiple airbags prevent deaths and injuries from vehicle crashes. But they're also driving up the number of vehicles deemed to be total losses following accidents. 70% of AutoNation sales staffers opt for new pay plan Sat, 6 May 2017 00:01:00 EST AutoNation's new pay-plan option, which offers sales staffers a base salary plus bonuses, went into effect last quarter and has been embraced by 70 percent of the sales staff. Robust leasing, when managed right, still offers benefits Wed, 3 May 2017 09:00:00 EST While the high level of leasing has set some industry insiders on edge, it could still be beneficial if managed correctly. Public dealership groups improve Q1 FandI results Wed, 3 May 2017 09:00:00 EST Five of the six public new-vehicle retailers improved their FandI performance in the first quarter. Among the reasons cited for the gains: acquisitions, FandI product sales and working more closely with the sales team. Santander cuts ties to more than 800 dealerships Wed, 3 May 2017 09:00:00 EST Santander Consumer USA has terminated more than 800 dealerships since 2015, based on 'performance-related issues,' the company said. Detroit 3 lenders show mixed Q1 results Wed, 3 May 2017 09:00:00 EST Profits were mixed at the main lenders for the Detroit 3 automakers in the first quarter. Profits rose sharply at GM Financial but fell at Ford Credit and Santander Consumer USA. Ally continues to grow used business Wed, 3 May 2017 09:00:00 EST Ally Financial increased its lease originations in the first quarter. But rather than aggressively seeking growth in its leasing business, Ally is prioritizing used-vehicle financing, executives said. Making free oil changes pay off Mon, 1 May 2017 00:01:00 EST Lester Glenn Auto Group used to give away unlimited free oil changes with vehicle purchases, but it became costly and unmanageable. Now the group limits the amenity and pairs it with a pitch for pre-paid maintenance. 17 million or bust? Red flags for retailers Mon, 1 May 2017 00:01:00 EST The industry has crossed the line into risky territory on automaker incentives, leasing levels and new-vehicle inventory, said AutoNation CEO Mike Jackson. Several other public dealership group executives agreed. 'Car Dogs' have their day on screen Sat, 29 Apr 2017 00:01:00 EST A new feature film about a day in the life of a car dealership resonated with some store employees who could identify with the long hours, the hypercompetitive atmosphere and the sense of camaraderie among stressed-out salespeople. Ally's Q1 net falls 14% on increased loan-loss provision Thu, 27 Apr 2017 14:19:45 EST Ally Financial's first-quarter net income dropped 14 percent from a year earlier primarily because of an increased provision for auto losses Wells Fargo, JPMorgan wary of auto loans, pack them in bonds Thu, 27 Apr 2017 11:05:44 EST Depending whose money they're using, Wells Fargo and JPMorgan Chase either love subprime car loans or fear them. How to respond to an FandI skeptic Wed, 26 Apr 2017 11:30:00 EST FandI managers know there's at least one constant in their jobs: Car buyers remain wary of finance and insurance. So it's imperative FandI managers and dealership staff develop presentation styles that help FandI skeptics sort through their misgivings. What Protective gained when it bought U.S. Warranty Wed, 26 Apr 2017 11:30:00 EST When Protective Asset Protection's parent acquired U.S. Warranty Corp. last year, the purchase came with a value proposition: expertise in helping dealers design their own FandI products. Now Protective plans to expand that business. Lenders are shifting. Keep up. Wed, 26 Apr 2017 11:30:00 EST Early first-quarter data show that lenders aren't as full-throttle on auto loans as before. It behooves FandI managers to keep close tabs on who's pulling back. AutoNation Q1 FandI results soften Wed, 26 Apr 2017 11:30:00 EST AutoNation's FandI results eased slightly in the first quarter, and the company expects a flat or slight downward trend to continue this year as its used-vehicle volume expands as a share of total unit sales. New-car glut weighs on prices, profits Mon, 24 Apr 2017 00:01:00 EST A glut of vehicles is threatening the industry's good times. But contrary to the predictions and pundits, it's not too many used vehicles. It's too many new ones. Import stores outpace domestics in FandI as share of new revenues Wed, 19 Apr 2017 11:45:00 EST Import-brand dealerships outpaced their domestic-brand rivals in finance and insurance income as a percentage of total new-vehicle department revenue, a study found. The gap is widening. Captives poised to gain ground on banks Wed, 19 Apr 2017 11:30:00 EST Captive finance companies are set to continue taking auto-financing market share from banks this year. Here's why. Bank programs could alter dealership-customer relations Wed, 19 Apr 2017 11:45:00 EST New car-shopping programs from Bank of America and Chase aim to provide leads to dealerships. But what are the risks? Lithia reports FandI gains in first quarter Wed, 19 Apr 2017 11:30:00 EST Lithia Motors' finance and insurance revenue rose 12 percent to $86.8 million in the first quarter. Legal system must provide better info Mon, 17 Apr 2017 00:01:00 EST Removing some tax lien and civil judgment data could artificially inflate credit scores, putting more loans at risk. It's not FandI markup, it's reimbursement Mon, 17 Apr 2017 00:01:00 EST The difference between the wholesale rate and the retail rate isn't FandI markup or hidden dealer profit -- it's reimbursement for the cost of originating the transaction. CarMax hikes loan-loss provisions Wed, 12 Apr 2017 12:15:00 EST CarMax raised its provision for loan losses 50 percent in the quarter ended Feb. 28 but cautioned against reading too much into the increase. Bank of America pilot links customers, dealerships Wed, 12 Apr 2017 12:00:00 EST Bank of America will pilot an online platform to match its customers with its dealership clients next month. The online program follows similar moves by Chase Auto Finance and Ally Financial. FCA store in North Carolina fails to fend off ID theft case Wed, 12 Apr 2017 12:15:00 EST A Fiat Chrysler Automobiles store in Charlotte, N.C., that sold two vehicles to an identity thief and a bank that financed one of the deals failed last month to rid themselves of a lawsuit by the ID theft victim. %]