Finance

JAMIE LaREAU

Another case for bundling

12:01 am U.S. ET | April 24, 2013
F&I managers like to bundle products, with good reason. The practice typically spurs sales of other products.... Read More »

 

AutoNation Q1 earnings soar; acquisitions continue

6:30 am U.S. ET | April 18, 2013
AutoNation said first-quarter net income rose 14 percent to $83 million, up from $73 million a year ago. With profits up in all categories of its business during the first quarter, particularly finance and insurance and parts and service, AutoNation is snapping up more dealerships.... Read More »

 

JIM HENRY

Who's the No. 1 lender? Gimme an A …

12:01 am U.S. ET | April 17, 2013
Who's No. 1 in auto finance? It depends on who's doing the telling.... Read More »

 

PSA bank rating cut to junk by Moody's on Europe car-sales slump

April 16, 2013 11:04 CET
PSA's bank was cut to one level below investment grade by Moody's Investors Service today, which said the auto-financing unit can't escape the European car-market contraction plaguing its parent.... Read More »

 

JIM HENRY

Lots of chatter on CFPB and dealer reserve

12:01 am U.S. ET | April 10, 2013
The Consumer Financial Protection Bureau’s effort to cut dealer reserve is sparking a fair amount of online debate.... Read More »

 

JAMIE LaREAU

Strange question? Not really

12:01 am U.S. ET | April 10, 2013
Should an F&I officer or a salesperson explain the risks of a big down payment to a lease customer?... Read More »

 

FINANCE & INSURANCE

Service lane focus lifts Lithia's F&I sales

12:01 am U.S. ET | April 8, 2013
New software and a boost in spiffs have made it easy -- and lucrative -- for Lithia Motors Inc.'s service advisers to sell extended service contracts and lifetime oil change plans.... Read More »

 

How the Fed fueled an explosion in subprime auto loans

12:01 am U.S. ET | April 7, 2013
Jeffrey Nelson was able to put up a shotgun as down payment on a car. At car dealers across the United States, loans to subprime borrowers like him are surging. Subprime auto lenders are showing up in a lot of personal bankruptcy filings, too. The Federal Reserve has made it all possible.... Read More »

 

JAMIE LaREAU

Should dealers give lease customers tutorials on down payment risk?

4:05 pm U.S. ET | April 4, 2013
A friend recently wanted my advice on leasing a new car. I've only leased a car once, but I knew enough to want to put zero cash down. I let the lender bear the depreciation risk. But many customers don't know about that risk, and few dealerships explain it to them.... Read More »

 

Q&A: Musk talks about Tesla's financing plan, company's future

9:18 am U.S. ET | April 3, 2013
On Tuesday, Tesla Motors announced a guaranteed-residual-value financing plan starting at $1,051 a month for the base 60 kWh Model S electric sedan. While paying off the 63-month loan, consumers can trade in the car after 36 months for a guaranteed price. After the announcement, Tesla founder and CEO Elon Musk spoke with Automotive News West Coast Editor Mark Rechtin about the plan, as well as other Tesla topics.... Read More »

 

JAMIE LaREAU

Worried about the CFPB? Stay calm

12:01 am U.S. ET | April 3, 2013
Everyone stay calm. That's David Westcott's message to finance and insurance professionals, even though the chairman of the National Automobile Dealers Association admits he is very concerned.... Read More »

 

JIM HENRY

Worried about the CFPB? You should be

12:01 am U.S. ET | April 3, 2013
Dealers and lenders are upset that the Consumer Financial Protection Bureau is demanding greater transparency from them, but isn't reciprocating.... Read More »

 

Tesla offering special financing plan for Model S sedan

5:18 pm U.S. ET | April 2, 2013
Tesla Motors has joined forces with USBank and Wells Fargo Bank to create vehicle financing and leasing products that allow consumers to lease a Model S electric sedan for a net payment of about $500 a month after a 10 percent down payment and calculated savings. CEO Elon Musk said he would personally guarantee the value of the cars.... Read More »

 

GM Financial completes $2.6B deal for Ally units in Europe, Latin America

11:14 am U.S. ET | April 2, 2013
Ally Financial said it completed the sale of most of its operations in Europe and Latin America to General Motors Financial for about $2.6 billion. Ally, in a statement today, said it will get about $2.4 billion at closing and about $190 million in dividends prior to closing from the GM unit.... Read More »

 

Fed agency: We're watching auto lending

12:01 am U.S. ET | April 1, 2013
For more than two years, the Consumer Financial Protection Bureau kept mum on its plans related to auto lending. But at the end of March, it showed that it intends to aggressively oversee the sector.... Read More »

 

GM targets higher resale values to boost profits, margins

12:19 am U.S. ET | March 30, 2013
GM, seeking to boost its profit margins, says it can save as much as $200 million annually by improving resale values of its vehicles and further narrowing the gap with competitors who don't have to spend as much to offer lease deals.... Read More »

 

JIM HENRY

The CFPB's new, scary truth

12:01 am U.S. ET | March 27, 2013
Last week the Consumer Financial Protection Bureau and Director Richard Cordray threw cold water on a common notion among advocates for dealers and lenders: The CFPB doesn't understand how the business works and everything would be OK if the feds were just “educated.”... Read More »

 

U.S. financial regulator warns auto lenders on markup discrimination

3:11 pm U.S. ET | March 21, 2013
The Consumer Financial Protection Bureau today issued a warning to auto lenders: Make sure dealer participation in interest rates does not lead to discrimination or face the consequences.... Read More »

 

Ally to sell remaining mortgage servicing rights to Quicken

12:21 pm U.S. ET | March 21, 2013
Ally Financial, the former GMAC lending unit that had its capital plan rejected last week by the Federal Reserve, agreed to sell its remaining agency mortgage servicing rights to Quicken Loans Inc. for about $280 million.... Read More »

 

JIM HENRY

Dealers and credit unions: Strife or synergy?

12:01 am U.S. ET | March 20, 2013
Is there peace or war between auto dealers and credit unions -- or something in between? From many angles it looks like peace.... Read More »

 

JAMIE LaREAU

A case for a la carte menus

12:01 am U.S. ET | March 20, 2013
Many F&I managers believe bundling is their best friend. By bundling, they can offer customers several F&I products in a package costing less than buying each product individually. A bundle might consist of an extended-service contract, key fob protection and GAP, all for a single price.... Read More »

 

JIM HENRY

F&I survey gives all dealerships a voice

12:01 am U.S. ET | March 13, 2013
It’s March. Time to work on tax returns -- and the annual U.S. Dealer Financing Satisfaction Study from J.D. Power.... Read More »

 

Cordray nomination at stalemate as senators refuse to negotiate

10:05 am U.S. ET | March 12, 2013
A Senate hearing today on Richard Cordray's second nomination to head the Consumer Financial Protection Bureau was less about his leadership than Republican distaste for the bureau itself.... Read More »

 

Q&A: TRIP HALL, PRESIDENT, CAPITAL ONE AUTO FINANCE

Diamond program propels Capital One

12:01 am U.S. ET | March 11, 2013
Capital One Auto Finance booked a record $16 billion in auto loan originations last year. Much of that success, says President Trip Hall, stemmed from the lender's Diamond Dealer incentive program, which was launched in 2010.... Read More »

 

FINANCE & INSURANCE

Arbitration angst

12:01 am U.S. ET | March 11, 2013
U.S. dealerships, which increasingly ask car buyers to sign binding arbitration agreements in the finance and insurance office, soon could be barred from using that dispute-resolution provision.... Read More »