| | | WEEKLY REPORT | January 11, 2012 |
| | | | | | | F&I paperwork at 'ridiculous' levels, Group 1's Hesterberg says
 State and federal regulations that mandate extra paperwork on F&I transactions have reached "ridiculous" proportions, said Earl Hesterberg, CEO of the Group 1 Automotive dealership group.
For instance, because of tougher rules for so-called "adverse action" notices that took effect in 2011, he said, Group 1 is sending out more than 9,000 ...  story
| Lincoln wear-and-tear plan is part of broader branding strategy
 Ford Motor Credit Co. is tailoring its F&I products for Lincoln customers.
Ford Credit launched Lincoln Automotive Financial Services in November as part of a strategy to polish Lincoln's credentials as a luxury brand and gain a degree of separation from the Ford brand.
The strategy is starting to extend to ... story
| Sell F&I on Facebook? Dealers make it work
 Using Twitter or Facebook to sell vehicles is daunting enough. But using them to boost F&I may seem like a herculean chore. Nevertheless, some dealerships are doing just that.
The key is to post finance deals and aftermarket products right alongside vehicle photos and, most important, customer testimonials on social media sites, say dealers and social media experts.
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F&I BY THE NUMBERS
U.S. Bank leasing business grows
faster than auto loans
In Q3, U.S. Bank's total oustanding leases increased from a year ago, surpassing its percentage growth in auto loans. U.S. Bank handles leases for General Motors and Volvo. Dollars in billions. Subtotals may not add up due to rounding. | | | | | | | | | Q3, 2011 | Q3, 2010 | % change | | Loans | $11.5 | $10.7 | 7.3% | | Leases | $5.2 | $4.3 | 19.4% | | Total | $16.6 | $15.0 | 10.8% |
| | Source: U.S. Bancorp |
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JIM HENRY
3 aftermarket areas that should rise
| |  | Jim Henry is a special correspondent for Automotive News | |
Three aftermarket product areas should see a boost this year based on market trends:
1. Wear-and-tear policies. The comeback in leasing should encourage the sale of protection policies that cover lease customers from lease-end charges. Toyota Financial Services confirmed recently it expects to launch Toyota-branded wear-and-tear policies in early 2012.
2. Extended-service contracts for older cars. Many customers are keeping their cars longer. At the same time, there's a relative shortage of newer used cars, reflecting the drop in new-car sales in 2008 and 2009. Service plan vendor American Auto Guardian Inc. expects F&I products for higher-mileage used cars to be hot in 2012, says Jeff Teuscher, vice president of sales.
3. Products that bring customers back for service. The downside of the comeback in new-car sales is that new-car margins will probably come under increasing pressure. That makes service absorption -- the degree to which the service and parts department can pay a dealership's fixed costs -- more important than ever.
Lithia Motors Inc., the nation's ninth-largest dealership group, says one of its goals for 2012 is to increase sales penetration of its Lifetime Oil and Filter product. The idea is to keep customers coming back to the dealership for service. Penetration was 36 percent in the third-quarter of 2011, up from 34 percent from a year earlier, the company said.
All in all, the market for F&I looks rosier for 2012.
Q&A
F&I vendor's new owner retains CEO, studies expansion
 Texas F&I vendor Innovative Aftermarket Systems may have a new owner, but for now, at least, not much will change.
"If it ain't broke, don't fix it," says Ryan Clark, managing director of private-equity firm Genstar Capital in San Francisco, which announced late last year that it had acquired IAS. The terms of the deal were not disclosed.
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F&I PRESS RELEASES
» Consumer Delinquencies Fall In Most Categories In Third Quarter 2011
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Ally new/used mix steady as business grows
Ally Financial has maintained a steady 80-20 split between contracts for new and used vehicles for the last four years, even as its total U.S. business has grown tremendously. | | | | | | | | NEW | | | | | | Contracts
oustanding | Yr.-ago change | %
new | | 9 mos., 2011 | 922,000 | 70% | 80% | | 9 mos., 2010 | 542,000 | | 80% | | | | | | | Year end | | | | | 2010 | 670,000 | 125% | 80% | | 2009 | 298,000 | 103% | 80% | | 2008 | 147,000 | 4% | 78% | | 2007 | 141,000 | 24% | 83% | | | | | | | USED | | | | | | Contracts
outstanding | Yr.-ago change | %
used | | 9 mos., 2011 | 236,000 | 70% | 20% | | 9 mos., 2010 | 139,000 | | 20% | | | | | | | Year end | | | | | 2010 | 164,000 | 125% | 20% | | 2009 | 73,000 | 78% | 20% | | 2008 | 41,000 | 46% | 22% | | 2007 | 28,000 | 75% | 17% |
| | Source: Ally Financial |
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