| | | WEEKLY REPORT | December 21, 2011 |
| | | | | | | Auto lending should support steady sales growth, TransUnion says
 Auto financing should support slow and steady growth in sales through 2012, according to the TransUnion credit bureau.
"It's not double-digit growth," said Peter Turek, automotive vice president in TransUnion's financial services business unit. "But it's growth."
U.S. auto sales grew 11 percent last year as ...  story
| Battling F&I 'shenanigans' and other reader tips
The reputation of the F&I profession, proper ways of presenting menus and the ideal place for F&I products to be sold were topics that prompted much discussion throughout the year. Our readers chimed in on these and other issues as well. Here’s a sampling of excerpted, verbatim comments that appeared in the "Finance & Insurance Report" in 2011:
story
| Q&A
'Take the time to listen to customer complaints'
 Scandals at a few companies that sold extended-service contracts directly to consumers potentially reflect badly on the whole industry, including dealerships that sell the contracts.
Larry Hecker, an industry certification specialist, is campaigning to repair whatever damage may have been done to the reputation of the service contract industry.
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LEGAL FILE
'Fictitious down payment' snags dealership
A Connecticut dealership that listed a fictional down payment on a customer's sales contract owes her damages, a federal district judge in Hartford has ruled.
Don Mallon Chevrolet Inc. in Norwich, Conn., must pay plaintiff Agdaliz Negron $1,000 plus ... >> Story
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F&I BY THE NUMBERS
Off-lease bounty for VW, Audi dealers
Scheduled lease terminations are up this year at VW Credit. That gives dealers a ready source of off-lease VWs and Audis to sell. | | | | Scheduled lease terminations | Yr.-ago % change | | 9 mos., 2011 | 105,973 | 21.4% | | | | | | Full year | | | | 2010 | 103,199 | 6.9% | | 2009 | 96,559 | -16.1% | | | | |
| | Source: VW Credit |
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JIM HENRY
What leasing boom?
| |  | Jim Henry is a special correspondent for Automotive News | |
The leasing boom that wasn't gets my vote for "F&I Flop of the Year" for 2011. With used-car values and predicted residual values as strong as they are, lease penetration could have taken off this year.
To be sure, leasing has improved. Lease penetration for 2011 will probably be up about one percentage point for the year to an average of about 20 percent of new retail volume, based on data from J.D. Power's Power Information Network. And yes, that's a slightly bigger share of a bigger number, based on higher volumes overall. But those numbers don't say "boom."
That illustrates several things:
• Leasing wasn't that high even before the recession. Lease penetration was only 22 percent in the first quarter of 2008.
• If there was a leasing boom, it happened in 2010. Leasing plunged to about 10 percent of retail deliveries in the third quarter of 2009, then returned to normal levels in 2010.
• Automakers are trying to cut back on incentives, and that includes lease incentives.
Finally, with the economy still slow people are hanging onto their cars longer. That's the opposite of the lease concept in which you never pay off your car and get a new one every three years, whether you need it or not. For most people, the times are still too tough for that.
F&I PRESS RELEASES
» DealerTrack and Internet Brands Form Joint Venture to Provide Industry Leading Data Solutions to the Automotive Market
» RFG Fund I, LLC Closes on Excel Acquisition
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Ally less reliant on GM, Chrysler business;
discount loans from automakers still substantial
Discount loans and leases still account for a majority of the new-vehicle volume that Ally Financial acquires from Chrysler and GM dealers in North America. The former GMAC says it has reduced its dependence on Chrysler and GM business. | | | Subvented loans and leases | 9 mos. 2011 | 9 mos. 2010 | Full year 2009 | | | | | | | GM | | | | % of GM N.A. volume acquired by Ally
(new only) | 51% | 53% | 69% | % of total N.A. volume acquired by Ally
(all brands, new and used) | 25% | 26% | 48% | | | | | | | Chrysler | | | | % of Chrysler N.A. retail volume acquired by Ally
(new only) | 53% | 58% | 39% | % of total N.A. volume acquired by Ally
(all brands, new and used) | 11% | 16% | 4% | | | | | | | GM, Chrysler combined | | | | % of total North American volume, new and used,
acquired by Ally | 36% | 42% | 52% | | | | | |
| | Source: Ally Financial Inc. |
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