Automotive News Finance and Insurance Feed http://www.autonews.com News, blogs and commentary from the leader in North American automotive news en-us Thu, 22 Feb 2018 06:00:00 EST BMW settles U.S. lawsuit claiming it refused to refund leases to military personnel http://www.autonews.com/article/20180222/FINANCE_AND_INSURANCE/180229923/bmw-military-lawsuit-refunds-finance-insurance Thu, 22 Feb 2018 14:30:03 EST BMW Financial Services North America has agreed to pay more than $2 million to resolve allegations that it violated the Servicemembers Civil Relief Act. Don't fret over data security; try these steps http://www.autonews.com/article/20180221/FINANCE_AND_INSURANCE/180229959/dont-fret-over-data-security-try-these-steps Wed, 21 Feb 2018 11:00:00 EST One of the biggest security hazards for dealerships and their vendors is a data breach, but many are unsure of the best ways to protect their information, EFG says. Why sweet lease deals are going away http://www.autonews.com/article/20180221/FINANCE_AND_INSURANCE/180229960/why-sweet-lease-deals-are-going-away Wed, 21 Feb 2018 11:00:00 EST A flood of off-lease vehicles, including SUVs and crossovers, and other factors will make it more difficult for automakers to offer tempting lease deals. Auto balance growth rate slows http://www.autonews.com/article/20180221/FINANCE_AND_INSURANCE/180229962/auto-balance-growth-rate-slows Wed, 21 Feb 2018 11:00:00 EST Last quarter, auto borrowers' total loan balance outstanding grew at the lowest rate since the second quarter of 2012, while delinquency rates plateaued, TransUnion says. Still putting off buying cyber insurance? http://www.autonews.com/article/20180221/BLOG13/180229964/still-putting-off-buying-cyber-insurance Wed, 21 Feb 2018 11:00:00 EST Will cyber liability insurance become more widespread among dealerships? Considering the number of security breaches across many industries today, it should. Two big auto lenders rethink their fee structure http://www.autonews.com/article/20180219/FINANCE_AND_INSURANCE/180219770/consumer-financial-protection-bureau-auto-lenders Mon, 19 Feb 2018 00:01:00 EST Two lenders that ditched dealer reserve in favor of flat fees, when the Consumer Financial Protection Bureau favored the latter, have revised their policies. Ivanka Trump talks about lending issue with Pa. auto dealer http://www.autonews.com/article/20180216/RETAIL/180219774/ivanka-trump-dealer-pennsylvania-lending-politics Fri, 16 Feb 2018 12:37:05 EST Do auto retailers befuddled by the Military Lending Act clarification now have the ear of the White House? Pennsylvania dealer Corina Straub Diehl thinks so. Credit scores rise as auto lenders cut back on riskier consumers http://www.autonews.com/article/20180214/FINANCE_AND_INSURANCE/302149926/credit-scores-rise-as-auto-lenders-cut-back-on-riskier-consumers Wed, 14 Feb 2018 00:01:00 EST Average credit scores on car loans rose to a six-year high in the fourth quarter, a new report says, a sign that lenders are raising standards as more borrowers fall behind on their bills. Canvas looks to boost dealer ties http://www.autonews.com/article/20180214/FINANCE_AND_INSURANCE/180219853/canvas-looks-to-boost-dealer-ties Wed, 14 Feb 2018 11:38:40 EST Canvas, the vehicle subscription affiliate of Ford Motor Credit Co., will focus on expanding and strengthening dealership partnerships in 2018. BBandT reverts to traditional finance reserve http://www.autonews.com/article/20180214/FINANCE_AND_INSURANCE/180219852/bbt-reverts-to-traditional-finance-reserve Wed, 14 Feb 2018 11:40:26 EST BBandT Dealer Finance, one of at least two major auto lenders to launch a flat-fee dealer compensation model after a Consumer Financial Protection Bureau crackdown on finance reserve, will end its flat-fee program in March in favor of a traditional... Facing down the prospect of dwindling reserve http://www.autonews.com/article/20180214/BLOG13/180219850/facing-down-the-prospect-of-dwindling-reserve Wed, 14 Feb 2018 12:00:02 EST Shrinking finance reserve means dealers will have to make FandI product sales even more of a priority to maintain profitability, but likely, many are prepared. Synthetic identity fraud is hot today, but think about the bigger picture http://www.autonews.com/article/20180214/FINANCE_AND_INSURANCE/180219851/prevent-auto-financing-synthetic-id-fraud Wed, 14 Feb 2018 11:46:13 EST Auto lenders should develop a holistic approach to fighting fraud rather than react to the "fraud of the moment," experts say. Fed rate hikes squeezing even the hottest automaker in the U.S. http://www.autonews.com/article/20180214/FINANCE_AND_INSURANCE/180219891/fed-interest-rate-hike-subaru Wed, 14 Feb 2018 00:01:00 EST The Federal Reserve's interest rate hikes are making it costlier for even the hottest automaker in the United States to sell cars. Huntington counts on 'boots on the ground' to drive success http://www.autonews.com/article/20180212/FINANCE_AND_INSURANCE/180219991/huntington-bank-dealerships Mon, 12 Feb 2018 00:01:00 EST Huntington Bank's new president of auto finance will focus on driving more business to dealerships and leveraging Huntington's local model. AutoNation FandI profit hits high http://www.autonews.com/article/20180212/FINANCE_AND_INSURANCE/180219992/autonation-finance-insurance Mon, 12 Feb 2018 00:01:00 EST AutoNation's FandI gross profit per new vehicle retailed reached an all-time high in the fourth quarter, lifted by branded product sales and a training approach that boosts weaker stores' results. Ford seeks German banking license due to Brexit http://www.autonews.com/article/20180208/OEM/180209765/ford-seeks-german-banking-license-due-to-brexit Thu, 8 Feb 2018 20:50:37 EST Ford has applied for a banking license in Germany to ensure its car financing business can continue on the continent once Britain leaves the European Union. Keep an eye on compliance under CFPB's new chief, experts say http://www.autonews.com/article/20180207/FINANCE_AND_INSURANCE/180209813/keep-an-eye-on-compliance-under-cfpbs-new-chief-experts-say Wed, 7 Feb 2018 13:10:29 EST With uncertainty surrounding the CFPB's regulatory oversight under Acting Director Mick Mulvaney, auto dealers should keep an eye on compliance and the potential for fraud or other abusive practices. Social media can help dealers, lenders cultivate millennials http://www.autonews.com/article/20180207/FINANCE_AND_INSURANCE/180209814/social-media-can-help-dealers-lenders-cultivate-millennials Wed, 7 Feb 2018 12:26:57 EST Millennials are saving up to buy vehicles, and when they do, most will get advice and share their own experience with their social media network, according to Ally Financial and the Center for Generational Kinetics. The case for a bespoke approach to auto retail http://www.autonews.com/article/20180207/BLOG13/180209815/the-case-for-a-bespoke-approach-to-auto-retail Wed, 7 Feb 2018 12:25:46 EST To keep up with retailers in other industries, dealers would be wise to provide the personal touches that consumers have come to expect. Dent-and-ding products added to Power portfolio http://www.autonews.com/article/20180205/RETAIL07/180209961/jd-power-brand-extensions Mon, 5 Feb 2018 00:01:00 EST J.D. Power continues to pursue brand extensions. Here are some recent examples. GM Financial fights fallout from tech glitch http://www.autonews.com/article/20180205/FINANCE_AND_INSURANCE/180209950/gm-financial-fights-fallout-from-tech-glitch Mon, 5 Feb 2018 00:01:00 EST Glitches stemming from a systemwide technology upgrade at GM Financial has led to several hundred customers being incorrectly charged on their monthly auto payments. Wells Fargo, seeking fresh start, renames beleaguered auto unit http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/301319996/wells-fargo-seeking-fresh-start-renames-beleaguered-auto-unit Wed, 31 Jan 2018 11:15:00 EST Wells Fargo is renaming its auto-loan business a year after it was beset by regulatory scandals and operational hurdles. Penske ponders the costs of FandI managers http://www.autonews.com/article/20180131/BLOG13/180139961/penske-ponders-the-costs-of-fi-managers Wed, 31 Jan 2018 11:30:00 EST Penske Automotive Group's used-only stores generate $300 to $400 more gross profit per vehicle than the group's franchised stores. One reason: no FandI managers. Why investors can't get enough Tesla car bonds http://www.autonews.com/article/20180131/OEM05/180139952/musk-tesla-bonds-asset-backed-wall-street Wed, 31 Jan 2018 13:41:20 EST Days after Elon Musk put 20,000 flamethrowers on sale to help pay for his proposed transportation tunnels, investors are clamoring to get their hands on a more conventional source of funds for Tesla. GM Financial customer accounts disrupted after computer upgrade http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/180139954/gm-financial-customer-accounts-disrupted-after-computer-upgrade Wed, 31 Jan 2018 12:50:57 EST GM Financial experienced servicing issues this month, including overcharging and undercharging customers and intermittent phone problems, Automotive News has learned. How subprime leasing can unlock a new customer pool http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/180139965/how-subprime-leasing-can-unlock-new-customers Wed, 31 Jan 2018 10:06:58 EST To help build a stable of loyal customers, put in extra effort for customers with poor credit scores who want to lease, dealership insiders advise. Santander to take equity stake in AutoFi http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/180139955/santander-to-take-equity-stake-in-autofi Wed, 31 Jan 2018 12:00:00 EST Santander Consumer USA is joining AutoFi's online vehicle sales and financing platform and a unit of the bank's parent is acquiring an undisclosed equity stake in the digital lending platform based in San Francisco. Ally Q4 net income takes 27% hit as tax expense dents profits http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/180139964/ally-q4-net-income-takes-27-hit-as-tax-expense-dents-profits Wed, 31 Jan 2018 10:15:34 EST Ally Financial's fourth-quarter net income took a hit as the lender absorbed a multimillion-dollar tax expense prompted by late-year changes to the U.S. tax code. Overall, Ally expects to boost its bottom line with tax-related savings in 2018. CFPB wins appeals court ruling on independence http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/180139956/cfpb-ruling-favors-independence-appeals-cordray Wed, 31 Jan 2018 12:16:06 EST The Consumer Financial Protection Bureau regained a measure of independence when a federal appeals court said the president's power to remove the agency's head is limited to specific reasons. Underwater on your trade-in? No problem, auto lenders say http://www.autonews.com/article/20180131/FINANCE_AND_INSURANCE/301319995/underwater-on-your-trade-in-no-problem-auto-lenders-say Wed, 31 Jan 2018 11:15:00 EST A growing share of the trade-ins that U.S. auto dealers and lenders accept for car-purchase financing are worthless on paper, a sign that banks and finance companies are making riskier loans to keep up revenue as vehicle sales slow. Tailgate thefts on decline, report shows http://www.autonews.com/article/20180130/RETAIL05/180139987/tailgate-thefts-declining-study-says Tue, 30 Jan 2018 10:30:29 EST Tailgate thefts reported to insurance companies declined 5 percent in 2017, a report shows, although it's unclear how many such thefts go unreported. For Tesla buyers, no arm and leg http://www.autonews.com/article/20180129/RETAIL01/180129800/for-tesla-buyers-no-arm-and-leg Mon, 29 Jan 2018 00:01:00 EST Luxury buyers are among the least-stretched in meeting monthly car payments, a study found. Ally commits $750 million for retail contracts at DriveTime http://www.autonews.com/article/20180124/FINANCE_AND_INSURANCE/180129877/ally-commits-750-million-for-retail-contracts-at-drivetime Wed, 24 Jan 2018 12:00:00 EST Ally Financial said it will commit $750 million to finance retail contracts for used-vehicle retailing giant DriveTime this year. J.D. Power launches branded FandI products http://www.autonews.com/article/20180124/FINANCE_AND_INSURANCE/180129892/j-d-power-launches-branded-fi-products Wed, 24 Jan 2018 10:00:00 EST J.D. Power has begun offering FandI products, labeled J.D. Power Automotive Protection Products, for new-car buyers across the U.S. Wrestling with Military Lending Act? Insiders offers help http://www.autonews.com/article/20180124/FINANCE_AND_INSURANCE/180129879/military-lending-act-compliance Wed, 24 Jan 2018 11:12:12 EST Dealerships and lenders that have been grappling with the latest interpretation of the Military Lending Act may have solutions that will help them remain compliant with the guidelines. Speak up! http://www.autonews.com/article/20180124/BLOG13/180129890/speak-up Wed, 24 Jan 2018 10:00:00 EST Dealers, lenders and other industry players may finally have their shot at sharing their opinions with the CFPB. Watch payments, not unit sales, economist says http://www.autonews.com/article/20180124/FINANCE_AND_INSURANCE/180129889/watch-payments-not-unit-sales-economist-says Wed, 24 Jan 2018 10:00:00 EST The industry counts vehicle sales as a broad measure of consumers' economic health, but the monthly payment may provide a better assessment, an economist said. CFPB launches policy review under Trump appointee http://www.autonews.com/article/20180124/FINANCE_AND_INSURANCE/180129881/cfpb-mulvaney-reform-trump Wed, 24 Jan 2018 09:44:16 EST The Consumer Financial Protection Bureau launched a public review of its operations, indicating broad changes could be coming to the agency after President Donald Trump appointed an interim director. Turo bets Vegas tourists will drive rental program http://www.autonews.com/article/20180122/MOBILITY/180129991/turo-rental-las-vegas-mobility Mon, 22 Jan 2018 00:01:00 EST Globally, the peer-to-peer car rental program has 4 million customers. Zurich pulls back on some dealerships' insurance http://www.autonews.com/article/20180119/FINANCE_AND_INSURANCE/180119641/zurich-dealership-insurance Fri, 19 Jan 2018 15:26:20 EST Zurich North America no longer will offer property and casualty insurance to independent dealerships and some franchise dealerships. FandI products are not affected. Cox sees strong 2018 auto sales http://www.autonews.com/article/20180117/OEM09/180119706/cox-automotive-retail-forecast-world-congress-detroit Wed, 17 Jan 2018 16:11:23 EST Cox Automotive's chief economist sees strong 2018 auto sales, despite rising interest rates, but a shift toward used cars amid a torrent of off-lease vehicles. 'Incorporate a certain amount of fear' and other advice from an FandI insider http://www.autonews.com/article/20180117/FINANCE_AND_INSURANCE/180119715/incorporate-a-certain-amount-of-fear-and-other-advice-from-an-fi Wed, 17 Jan 2018 11:34:45 EST In his new book, "Perfect Dealership," Max Zanan, president of Total Dealer Compliance, lays out his recommendations for auto retailers. Here are edited excerpts from his chapter on FandI. Chase Auto Finance joins AutoFi retailing platform http://www.autonews.com/article/20180117/FINANCE_AND_INSURANCE/180119713/chase-auto-finance-joins-autofi-retailing-platform Wed, 17 Jan 2018 11:59:34 EST Dealership websites that use AutoFi's vehicle sales and financing platform will be able to show financing options from Chase Auto Finance beginning in the first half of this year. Scrutiny continues http://www.autonews.com/article/20180117/BLOG13/180119714/scrutiny-continues Wed, 17 Jan 2018 11:37:18 EST The CFPB may have been defanged, but dealerships' role in arranging loans is still being scrutinized. A report last week was a timely reminder. Cheap leases take toll on used market http://www.autonews.com/article/20180115/RETAIL04/180119879/used-midsize-sedans-auctions Mon, 15 Jan 2018 00:01:00 EST It's easy to see why wholesale prices for used midsize sedans are declining: aggressively priced, subvented leases adopted two and three years ago to clear out the cars as consumer preferences shifted to crossovers and SUVs have begun to ripple... Tool targets consumers with expiring leases http://www.autonews.com/article/20180115/FINANCE_AND_INSURANCE/180119941/propensity360-pearl-technology-germain-toyota Mon, 15 Jan 2018 00:01:00 EST A tool by Pearl Technology Holdings and Experian helps dealerships target prospects based on what they're paying or driving, and helps stores know what to stock. Discriminatory financing found at auto dealerships http://www.autonews.com/article/20180112/FINANCE_AND_INSURANCE/180119909/discrimination-auto-dealers-retail-financing Fri, 12 Jan 2018 09:02:13 EST A report by the National Fair Housing Alliance found discriminatory pricing tactics in car sales and financing by dealerships. Ally hosts online trivia at Detroit auto show http://www.autonews.com/article/20180111/RETAIL03/180119928/ally-detroit-auto-show-trivia Thu, 11 Jan 2018 15:46:44 EST Ally Financial is partnering with History Channel's Danny Koker to host a limited-run trivia promotion that will be filmed at the Detroit auto show. Military members deserve fast resolution on lending http://www.autonews.com/article/20180110/BLOG13/180119981/military-members-deserve-fast-resolution-on-lending Wed, 10 Jan 2018 11:52:26 EST Dealers and lenders are facing significant challenges following the Department of Defense's latest interpretation of the Military Lending Act, but until the DOD clarifies the interpretation, an act that was designed to protect service members may... Murky Military Lending Act requirements leave industry scrambling http://www.autonews.com/article/20180110/FINANCE_AND_INSURANCE/180119982/murky-military-lending-act-requirements-leave-industry-scrambling Wed, 10 Jan 2018 11:50:51 EST The Department of Defense's latest interpretation of the Military Lending Act, published last month, includes a murky set of rules that could retroactively put dealers and lenders in regulatory jeopardy, attorneys, compliance experts and...