| | | WEEKLY REPORT | December 28, 2011 |
| | | | | | | Tips abound in year's most-read F&I stories
 The 10 most-read finance & insurance stories in Automotive News this year combined practical information for frontline F&I managers -- especially on compliance.
News stories, such as one about identity theft by a dealership insider and another on General Motors partnering with Wells Fargo on 0% financing, also were a draw.
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| Q&A
What it's going to take to make F&I products fly in the service lane
 Despite years of effort, selling F&I products in the service lane hasn't caught on, says Larry Dorfman, CEO of EasyCare, an Atlanta F&I vendor that sells service contracts and other F&I products.
"This is a 27-year mission for me," he says.
... story
| Default rate for auto loans continues to fall
Auto loans outperformed other major categories of consumer debt in November, part of an ongoing pattern in consumer behavior, according to figures released last week by Standard & Poor's and Experian.
The default rate for auto loans fell to 1.17 percent in November, down from 1.22 percent in October and 1.77 percent in November 2010, according ... story
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F&I BY THE NUMBERS
Loans reaching buyers with lower credit scores
The average credit score for auto loans in Q3 was down from a year ago, but still higher than pre-recession levels. Meanwhile, the average credit score for people financing used-car purchases is barely below prime. These scores are based on the Experian Scorex Plus scale: 740 and above is super prime; 680 and above is prime; 620-679 is nonprime; 550-619 is subprime; and anything 550 or lower is deep subprime. | | | | | | | Avg. credit score | New | Used | | Q3 2011 | 763 | 676 | | Q3 2010 | 769 | 683 | | Q3 2009 | 775 | 684 | | Q3 2008 | 762 | 670 | | Q3 2007 | 749 | 663 | | | | |
| | Source: Experian Automotive |
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JIM HENRY
TD Auto Finance had a big year; it needs another
| |  | Jim Henry is a special correspondent for Automotive News | |
TD Auto Finance, which includes the former Chrysler Financial, is on a roll.
Through the third quarter of 2011, TD Auto Finance's U.S. market share more than doubled from the same period last year, but it was still barely above 1 percent, according to Experian Automotive. To put that in context, No. 1 Ally Financial had a 7 percent share of the highly fragmented automotive-financing market.
The market share growth largely reflects TD Bank Group's April 2011 purchase of Chrysler Financial from Cerberus Capital Management for $6.3 billion. TD's auto finance unit was renamed TD Auto Finance after the acquisition.
Chrysler Financial was kicked to the curb in 2009 when the U.S. government bailed out General Motors, Chrysler and GMAC, which is now Ally Financial.
Without a government lifeline, Chrysler Financial continued to serve its existing portfolio of loans, but it shrank in size as loans were paid off faster than new loans could be originated.
Most of TD Auto's business is coming from Chrysler dealers with whom Chrysler Financial used to do business. And with Chrysler Group's U.S. sales up 25 percent through November, the coattails have proved long for TD Auto.
The new TD Auto Finance has said it hopes to generate around $20 billion in auto loans and leases by 2014. Through October, its U.S. auto portfolio was just under half that size -- at $9.8 billion.
To get to $20 billion that fast, TD Auto Finance will need to get even hotter in 2012.
McLaren selects lease specialist Putnam to aid return to U.S.
 Exotic automaker McLaren has picked Putnam Leasing to handle leases for the relaunch of the brand in the United States.
Putnam, of Stamford, Conn., specializes in financing small volumes of high-end new and rare collector cars, said Putnam CEO Steven Posner. Customers often "lease-to-own," meaning they buy their cars at the end of a lease. The ... story
| Older cars demand new F&I pitch
 The competitive used-vehicle market is prompting some dealerships to change the way they sell F&I products to buyers of high-mileage cars.
Vehicles with more than 80,000 miles will account for at least 20 percent of monthly used-vehicle sales at many franchised dealerships, say some dealers and vendors of aftermarket products. That's a huge increase from four years ago, ... story
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F&I PRESS RELEASES
» Genstar Capital Announces Acquisition of Innovative Aftermarket Systems
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Less inventory means fewer
Toyota Motor Credit contracts
Toyota Motor Credit Corp. originated fewer contracts and fewer contracts with incentives from Toyota Motor Sales in the second quarter, which ended Sept. 30. The captive finance company said in an SEC filing that new-vehicle stocks were low due to supply disruptions, so there was less need for incentives. Conversely, business increased for used-vehicle contracts. Volume in thousands of contracts. | | | TMCC contracts | | | Q2 2011 | Q2 2010 | % change | | New | 141 | 162 | -13% | | Used | 86 | 88 | -2% | | Lease | 61 | 106 | -43% | | Total | 288 | 356 | -19% | | | | | |
| | TMCC contracts with Toyota Motor Sales incentives | | | Q2 2011 | Q2 2010 | % change | | New | 75 | 100 | -25% | | Used | 24 | 11 | 118% | | Lease | 52 | 102 | -49% | | Total | 151 | 213 | -29% | | | | | |
| | % of contracts with incentives | | | Q2 2011 | Q2 2010 | % change | | New | 53% | 62% | -14% | | Used | 28% | 13% | 123% | | Lease | 85% | 96% | -11% | | Total | 52% | 60% | -12% | | | | | |
| | Source: Toyota Motor Credit Corp. |
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