Auto lenders' kill switches being probed by U.S. regulator
A U.S. regulator is looking at whether auto finance companies that use sophisticated technology like ignition kill switches are illegally harassing subprime borrowers that have fallen behind on their payments.
Finance portal offers 'one-stop shop' for dealership staffs
To help dealership employees access data needed to close deals faster, ChannelNet, with Hyundai Capital America, has upgraded its dealer portal, adding mobile use and customizing it to fit the duties of multiple staffers.
Helping subprime customers fosters loyalty
Train sales and F&I staff to help subprime consumers get into the right car with the right financing arrangement, advises Brien Joyce of EFG Cos. Many subprime consumers “are essentially good people who’ve fallen on hard times,” he said. “After they pick themselves back up, they will remember how they were treated when they were struggling, and they will be that much more loyal to the companies who treated them well.”
Used-car leasing fails to meet expectations
In spring 2016, the idea of used leasing buzzed around the National Automobile Dealers Association convention and the American Financial Services Association Vehicle Finance Conference in Las Vegas. Nearly a year later, used leasing is still only a sliver of the market.
VIDEO: Overcoming compliance fears
Many dealers are afraid of making compliance a priority, and that fear could be getting in the way of better performing F&I managers, according to Greg Kostern, business operations director at Johnson Automotive.
Thoughts on leasing from dealer council chairs
Ahead of January's National Automobile Dealers Association convention in New Orleans, Automotive News interviewed 25 dealer council chairs, or dealers holding the equivalent position, representing 31 brands. Here's a roundup of what some of them said about the outlook for leasing at their brand in 2017.
F&I sales are tougher without common ground
When a customer objects to buying an important F&I product, find common ground, suggests Rick McCormick of Reahard & Associates. “You can’t sell anything to anybody when you disagree,” he says. “When a customer knows you can relate to how they feel, they will listen to what you’re talking about.”
Trump orders review of Dodd-Frank, potentially impacting CFPB, Cordray
UPDATED: 2/3/17 2:40 pm ET - adds details
President Trump ordered a sweeping review of the Dodd-Frank Act rules enacted in response to the 2008-09 financial crisis, a move that could impact the Consumer Financial Protection Bureau and auto lending.
Why Audi's Keogh keeps leasing in check
Leasing accounts for a majority of Audi's sales in the U.S., but Audi of America President Scott Keogh says he wouldn't want the brand to get to a point where captive finance leasing dominates Audi's book of business.
In Canada, 8-year terms 'push the ceiling'
More than half of Canadian car buyers who opt to finance take a loan of 84 months or longer.
Showroom intros, videos plant the F&I product seed
With squeezed new-vehicle margins, many dealers are relying on F&I for profit, but customers are often skeptical of F&I products. By introducing F&I products on the showroom floor or in videos, dealers can educate customers on product value before they step into the F&I office.
F&I masters employ emotion
In F&I, use emotion, then logic, suggests Rick McCormick of Reahard & Associates. "The only people that master the F&I craft are the people who use emotion at a very high level. Logic is only used to wrap up the sale," he said.
AutoGravity expands financing app, websites to 46 states
Car buyers across the country can now select a vehicle and financing offer through AutoGravity's mobile app and web platform. Consumers in 46 states will be able to access up to four financing offers through the company's smartphone app, website or partnering dealership websites. AutoGravity is working to obtain licenses in the remaining states of Connecticut, Pennsylvania, New Jersey and North Dakota.
F&I buys drive dealer, brand loyalty, study finds
Car buyers who purchase F&I products are more loyal to the dealership and brand and are more satisfied than those who choose not to buy products, according to a study by The Warranty Group.
Robust leasing starts with employee training
To boost lease profit, train employees regularly on the benefits of leasing vs. buying, suggests Todd Cooper, vice president of training services for EFG Cos. Employees need to learn to explain the value of leasing based on the customer's driving and buying habits.
Dealers see limited upside from F&I in 2017
An unscientific, online survey by Automotive News shows that dealers see a more limited upside potential in their F&I departments in 2017 compared with prior years.
Ford Credit program makes dealer visit optional
Ford Motor Credit customers will soon be able to purchase and finance new vehicles from a dealership's website, thereby making a visit to the store optional.
N.J. law would restrict use of starter-interrupt devices
The New Jersey Legislature has passed a bill that imposes disclosures and restrictions on the use of starter-interrupt devices, which auto lenders sometimes require be installed in vehicles when they approve loans to consumers with poor credit.
Trended data better at assessing auto loan risk, analysis shows
Auto loan accounts could jump 11 percent a year if lenders use trended data, according to Equifax.
Incentives to rise, be more strategic in 2017
Incentives not only will climb in 2017, they'll be more strategically placed, too, experts at the North American International Auto Show said.
Shoppers will pay more for the right tech, study finds
Car shoppers, especially millennials, are willing to pay more for the technology they want in a vehicle, a study found. And those who plan to finance their vehicle are willing to pay slightly more than cash buyers.