Captive Finance Companies

Ally Financial IPO could generate $2.7 billion for U.S. Treasury

9:00 am U.S. ET | March 27, 2014
Ally Financial, the former GMAC auto lender rescued by the federal government during the 2008 financial crisis, is helping the Treasury Department divest its stake by seeking as much as $2.7 billion in an initial public offering.... Read More »

 

Ally names Jeffrey Brown to replace Muir as CEO of dealer financial unit

5:01 pm U.S. ET | March 13, 2014
Ally Financial has appointed Jeffrey Brown as CEO of Ally Dealer Financial Services, succeeding the veteran Bill Muir, who will retire later this year.... Read More »

 

JIM HENRY

The disconnect lingers between auto finance and the CFPB

12:01 am U.S. ET | Feb. 26, 2014
The auto finance industry and the Consumer Financial Protection Bureau have a fundamental disconnect. The auto finance industry sees itself as unique while the CFPB sees it as just one more consumer finance sector, essentially not that different from mortgages, credit cards or student loans.... Read More »

 

Fiat seeks to turn financing unit into a bank, report says

Feb. 16, 2014 16:54 CET
Fiat has asked the Bank of Italy's permission to turn its financing unit into a bank. The move would make Fiat more competitive against rivals such as VW and PSA, which already have their own internal banks.... Read More »

 

Ally says Q4 net income falls, GM relationship extended

12:35 pm U.S. ET | Feb. 6, 2014
Ally Financial said today it has posted fourth-quarter net income of $104 million and lower pretax income for its auto finance business. The lender also said its preferred-lender relationship with General Motors, set to expire Dec. 31, was extended while the companies negotiate a new pact.... Read More »

 

JAMES B. TREECE

Flawed study has lessons for F&I managers

12:01 am U.S. ET | Feb. 5, 2014
There’s a lot not to like about a new study on discrimination in car loans. But there also are a few nuggets in it that indicate problems in the F&I office.
The study is titled "Non-Negotiable: Negotiation Doesn’t Help African Americans and Latinos on Dealer-Financed Car Loans" and was conducted by the nonprofit Center for Responsible Lending in Durham, N.C.... Read More »

 

Westcott: Keep defending reserve

5:51 pm U.S. ET | Jan. 25, 2014
NADA must continue to defend in-dealership financing or the car-buying public will suffer, outgoing NADA Chairman David Westcott told dealers today.... Read More »

 

JAMES B. TREECE

What happens in 2016 if interest rates rise?

12:01 am U.S. ET | Jan. 24, 2014
2014 will be a good year for the industry. But what about 2016? Some scenarios to consider as interest rates rise.... Read More »

 

JIM HENRY

Ally, more independent, can better focus on dealers

12:01 am U.S. ET | Dec. 26, 2013
It's time to stop thinking of Ally Financial as GM's captive finance company and get used to the fact that it's an independent bank.... Read More »

 

Ally wins U.S. approval to alter holding structure to keep insurance, vehicle-auction site

11:49 am U.S. ET | Dec. 23, 2013
Ally Financial won regulatory approval to change its holding-company status, allowing the firm to keep an insurance business and a vehicle-auction Web site. Ally, majority owned by the U.S. government, warned in July that regulators might not allow the shift as an exemption ends this month, potentially imposing a “material adverse” effect on earnings.... Read More »

 

CFPB chief concedes need for balance in auto-loan oversight

4:24 pm U.S. ET | Nov. 12, 2013
Richard Cordray, director of the Consumer Financial Protection Bureau, said he wants more “openness and transparency” for the agency's oversight of auto lending, but added that the agency still has strong concerns about how dealerships arrange loans.... Read More »

 

Next at auctions: Multiple platform sales

12:01 am U.S. ET | Oct. 28, 2013
Listing used vehicles for sale simultaneously on multiple online remarketing platforms is the next big thing in used-vehicle wholesaling.... Read More »

 

Toyota leverages stellar credit rating for financing edge

12:01 am U.S. ET | Oct. 23, 2013
Toyota's in-house lender is leveraging the automaker's AA- credit rating and cash to offer low rates and keep customers coming back. The company's $37 billion cash pile and credit ratings that outrank GM and Ford enable its Toyota Financial Services unit to offer more loans and take on riskier borrowers.... Read More »

 

Nissan joins Hyundai in giving customers a break during U.S. shutdown

4:32 pm U.S. ET | Oct. 3, 2013
Nissan Motor Acceptance, the automaker's captive finance arm in the United States, is taking a page out of Hyundai's book and giving customers a break on loan and payments during the federal government shutdown.... Read More »

 

Ally raises $611 million from sale of Brazil operations

9:34 am U.S. ET | Oct. 2, 2013
Ally Financial has completed the sale of its Brazil operation to General Motors Financial for about $611 million.... Read More »

 

Automakers' lending practices probed by U.S. agencies for bias

10:35 am U.S. ET | Sept. 23, 2013
The Consumer Financial Protection Bureau and the Department of Justice are examining the lending operations of major auto manufacturers for possible discrimination in lending, according to regulatory filings and three people briefed on the inquiry.... Read More »

 

Experian says easier credit, growth in leasing continue

8:30 am U.S. ET | Sept. 3, 2013
The good news continues in auto finance with easier credit terms, growth in leasing and increased average loan amounts, according to second-quarter statistics released today by Experian Automotive.... Read More »

 

Toyota's cheap-lease gamble

12:01 am U.S. ET | Sept. 2, 2013
Eager to regain market share in the price-sensitive compact segment, Toyota is cutting customer lease payments on the redesigned 2014 Corolla by setting residual values much higher than in the past, according to dealers and lease trackers. It's a risky move. Toyota and its finance captive are counting on lease-end values to be well above those of competing cars that have long enjoyed stronger residuals than the Corolla.... Read More »

 

Ford pursues record certified-used sales

12:01 am U.S. ET | Sept. 2, 2013
Ford Motor Co. is on track for record certified used-vehicle sales this year, the company's general manager of Ford and Lincoln sales said.... Read More »

 

Ally plans $5.9 billion buyback to help lender exit U.S. bailout

10:21 am U.S. ET | Aug. 20, 2013
Ally Financial, the auto lender seeking to repay its government bailout, is raising $1 billion in a private placement and said it will pay $5.9 billion in a plan to buy back preferred shares held by the Treasury Department.... Read More »

 

Low loan losses buoy subprime

12:01 am U.S. ET | Aug. 19, 2013
Even as subprime lending has picked up, resulting in more vehicle sales to credit-challenged customers, delinquencies and repossessions have fallen to record lows, data from Experian Automotive show.... Read More »

 

Dealers rank BMW, Mercedes and Ford captive financiers tops in satisfaction

3:15 pm U.S. ET | July 30, 2013
Auto dealers ranked BMW Group Financial Services tops for leasing and Mercedes-Benz Financial Services best for floorplanning in JD Power's annual financing satisfaction study released today.... Read More »

 

JIM HENRY

'Last resort' means something good

12:01 am U.S. ET | May 15, 2013
In a recent blog, I referred to GM Financial as a “lender of last resort” for parent company General Motors. I meant simply that GM regards GM Financial as a lender GM can count on, no matter what.... Read More »

 

Ally clears barrier for IPO with plan to resolve mortgage claims

1:59 pm U.S. ET | May 14, 2013
Ally Financial moved closer to repaying its government bailout as the auto lender reached agreement with creditors of its bankrupt mortgage unit.... Read More »

 

FINANCE & INSURANCE Q&A: TOM DUNDON

Chrysler Group seeks an edge with Chrysler Capital

12:01 am U.S. ET | May 13, 2013
Chrysler Capital, the private-label arrangement between Santander Consumer USA and Chrysler Group, began operating in the United States May 1 as the preferred lender for Chrysler Group. Chrysler Capital will offer prime and subprime retail loans and leasing through Chrysler dealers, as well as floorplanning and construction loans to dealers.... Read More »

 

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How a Texas Toyota store solved used-car-supply challenge

How a Texas Toyota store solved used-car-supply challenge

Mike Shaw Toyota in Corpus Christi, Texas, struggled to find good used cars. So it started providing free appraisals to service customers and offered to buy their vehicles on the spot. Mon., April 14
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