| | | WEEKLY REPORT | January 18, 2012 |
| | | | | | | Subprime rivalry bodes well for dealers
 Subprime auto lending should continue to grow in 2012. But the big percentage gains that several major subprime lenders saw in 2011 aren't likely to be repeated, and that suggests competition will heat up in the segment.
It could be good news for dealers if lenders are competing harder for their business. Dealers have fretted as the comeback in ...  story
| Q&A
Financing vehicles 'that others won't touch' pays off for subprime lender Westlake
 Subprime auto loans are on the upswing and so is Westlake Financial Services, a subprime auto lender owned by Hankey Group in Los Angeles.
Westlake got its start in 1978 as the buy-here, pay-here division of Hankey Automotive Group. Today Westlake buys contracts from more than 13,000 new- and used-car dealerships in 49 states, says Kyle Dietrich, ... story
| Hyundai's 'huge' rise in residuals may spur leases
 The Hyundai brand made a big jump in predicted residual values for calendar 2012, according to ALG Inc., a widely used benchmark for residual values on leases.
Hyundai's residual values have risen as the brand's quality has improved and as Hyundai Motor America has rolled out new models, ALG said.
In the long ... story
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LEGAL FILE
Ohio store prevails in truth-in-lending spat
A federal judge has tossed out a truth-in-lending and equal credit opportunity suit against a Bedford, Ohio, dealership, ruling that the customer signed a valid arbitration agreement.
The agreement precludes court litigation on claims arising from a ... >> Story
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F&I BY THE NUMBERS
Asbury ranks F&I commissions in the middle
At Asbury Automotive Group, commission rates paid to F&I employees fall in the middle compared with commissions for other dealership personnel. The retailer provided a rare look at its compensation structure in a recent presentation for investors. | | | Category | % range | | Sales commission (new and used vehicles) | 19 to 23 | | F&I commission | 13 to 17 | | Sales manager compensation | 10 to 14 |
| | Source: Asbury |
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JIM HENRY
Get ready for F&I menus on iPad
| |  | Jim Henry is a special correspondent for Automotive News | |
The traditional printed menu of aftermarket products could be the next F&I tool to move to hand-held electronic devices, such as the Apple iPad.
One company, iTapMenu, said it expects this month to launch an iPad-based menu system that can be used by third-party administrators marketing F&I products via dealerships.
"It was kind of time for a menu innovation," said Shawn McCool, co-founder of the new company, based in Carmel, Ind.
Other companies also are working on iPad integration, he said, during an online demonstration of the new system.
The iTapMenu system uses the iPad touch screen to allow customers to pick and choose among features and levels of coverage. Customers also can drill down into more information, which in the future could include videos, he said. Price quotes change as customers make their selections, McCool said.
More and more F&I functions are moving to portable electronic devices. Mercedes-Benz Financial Services USA and BMW Financial Services rolled out the use of iPads in 2011 to handle several dealership functions, starting with lease returns. Finance managers for both brands said customers like the convenience, especially the fact that the iPad is portable and doesn't trap the customer in the F&I office.
VW Group, amid European finance push, plans slower approach with Audi in U.S.
 Volkswagen AG plans to increase financial backing for its vehicles in Europe by one-third to strengthen customers' loyalty while taking a slower approach with the Audi brand in the United States.
The automaker will finance or lease 40 percent of new VW, Seat, Skoda and Audi models delivered in Europe within four years compared with 30 percent in ... story
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F&I PRESS RELEASES
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DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Verano, Mazda3, Passat, Camry
score high residuals
Residual values for the Buick Verano, VW Passat, Toyota Camry and Mazda3 are expected to match or exceed the average residual value for their brand and market segments, according to ALG's latest industry report for January and February. Residual values reflect predicted value as a percentage of sticker price after 36 months. | | | | | | | 2012
nameplate | 36-mo.
residual | 36-mo.
brand avg. | 36-mo.
segment avg. | | Buick Verano | 52% | 45% | 50%
(mid-compact car) | | Mazda3 | 56% | 48% | 50%
(mid-compact car) | | VW Passat | 50% | 50% | 48%
(mid-sized car) | | Toyota Camry | 51% | 51% | 48%
(mid-sized car) | | | Source: ALG |
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