| | | WEEKLY REPORT | January 25, 2012 |
| | | | | | | Q&A
GM Financial's Birch: Lease growth plan includes educating dealers
 Revving up leasing in the U.S. market is a priority for GM Financial in 2012, says Kyle Birch, executive vice president of dealer services.
That means that General Motors dealerships in the United States should see greater emphasis on leasing from GM Financial this year. GM bought the lender, the former AmeriCredit, in October 2010.
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| EasyCare to introduce prepaid maintenance plan for service lane sales
 EasyCare will launch a new prepaid maintenance plan in the next 90 days, CEO Larry Dorfman says.
The new product is part of a larger trend to offer aftermarket products to service customers in the service drive, including extended-service contracts and prepaid maintenance.
... story
| Mercedes Financial adds price quotes to app
 NEW YORK -- Mercedes-Benz Financial Services is adding functions to its MBFS Mobile smartphone app, part of a growing effort by automakers and finance companies to reach customers through wireless services online and in showrooms.
... story
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F&I BY THE NUMBERS
Huntington Bank revs up auto lending
Ohio-based Huntington Bank has ramped up auto lending by expanding in the Midwest and moving into New England and eastern Pennsylvania. However, the bank's total auto loans outstanding declined at the end of the fourth quarter because it securitized $1 billion worth of auto loans on Sept. 15. On Dec. 31, the bank also reduced its outstanding balance by setting aside another $1.3 billion in auto loans for securitization in 2012. The bank exited auto leasing in 2008. ($ millions) | | | Full year | 2011 | 2010 | Change | Avg. auto loans
outstanding | $5,877 | $4,890 | 20% | | | | | | | Quarter | Q4 2011 | Q4 2010 | | Auto loans
outstanding | $4,458 | $5,614 | -20% | | Auto lease income | $4.7 | $10.5 | -55% |
| | Source: Huntington Bank |
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JIM HENRY
Myths and realities behind military loan 'horror stories'
| |  | Jim Henry is a special correspondent for Automotive News | |
Lender ethics on loans to military families is a hot topic that's going to get hotter in 2012.
For example, the upcoming Vehicle Finance Conference and Exposition for the American Financial Services Association has a Feb. 1 panel called "Myths vs. Reality: Financing Military Members and Families."
The background is that some consumer-advocate groups and the new Consumer Financial Protection Bureau are zeroing in on horror stories.
One horror scenario was related by Holly Petraeus, director of the bureau's Office of Servicemember Affairs, at a Federal Trade Commission roundtable on auto finance last summer. She said she had heard that a selling "technique" that's "still used occasionally" is for dealership personnel to offer service members rides to the dealership, then threaten to strand them at the distant car lot. The idea is to force them to buy a car so they can get back to the base.
Dealer groups and auto lenders are sticking up for the industry's ethics.
Here are my suggestions for a couple of myths and realities:
It's a myth that all service members are high-risk 18-year-olds. There are a lot of men and women on active duty who are long out of their teens, with responsible spending habits and good credit histories. That's not to mention millions of veterans whose service is behind them.
It's also a myth that every dealer wants to take advantage of service members. Some do. But reputable dealers want to stay that way.
F&I PRESS RELEASES
» Ally Financial Named Preferred Finance Source for The Vehicle Production Group
» Mercedes-Benz Financial Services Receives Over $50 Million in Payments Via Mobile Channels
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Repossessions, auto loan losses rise at Santander
Repossessions and net losses on auto loans climbed during the third quarter at Santander Consumer USA, though losses as a percentage of outstanding loans dropped. The bank's 2011 growth included loan acquisitions that were originated by other lenders. ($ millions) | | | Auto loans | Q3 2011 | Q3 2010 | Change | Total outstanding
(end of quarter) | $14,841 | $15,375 | -3.5% | | Avg. outstanding | $14,886 | $8,543 | 74% | | Repossessions | 83,314 | 59,582 | 40% | Repos, % of
avg. units outstanding | 8.8% | 11% | -20% | | Net losses | $517.5 | $451.5 | 15% | Net losses, % of
avg. $ outstanding | 4.6% | 7.1% | -34% |
| | Source: Santander |
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