| | | WEEKLY REPORT | February 1, 2012 |
| | | | | | | AutoNation plans service contract push
AutoNation Inc., the nation's largest dealership group, will push even harder to sell extended-service contracts and prepaid maintenance in 2012, on top of record F&I revenues per vehicle in 2011.
"There's going to be a continued or an even stronger focus on [F&I] products, and we've done a good job on products in the past," said COO Mike ...  story
| Q&A
CarFinance CEO: Direct loans won't hinder profit
 Subprime auto lender CarFinance.com is signing up dealers for a new direct-lending channel. The concept is to take credit applications online directly from customers and refer them to affiliated dealers.
CarFinance, of Irvine, Calif., launched indirect auto lending in May 2011. It already has more than 1,000 dealers signed up for indirect loans. ... story
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VIDEO
EasyCare's Larry Dorfman on how to improve F&I
 Larry Dorfman is CEO of EasyCare, a company that offers aftermarket products such as extended-service contracts and GAP policies, as well as dealership training. His 27-year career has given him a unique vantage point for watching dealerships at work, particularly F&I departments. ...
Watch the video
LEGAL FILE
Claims against S.C. stores OK'd for trial
For the second time, the South Carolina Supreme Court has cleared the way for trials on customers' class-action claims that dealerships statewide collected millions of dollars in illegal administrative fees from their customers.
Last month, the court unanimously reaffirmed its ... >> Story
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F&I BY THE NUMBERS
AutoNation's F&I revenue per vehicle tops $1,200
In 2011, for the first time, AutoNation's F&I revenues topped a per-vehicle average of $1,200 for a full year. The fourth quarter was the third period in a row the nation's largest dealership group exceeded the $1,200 mark. | | | | 2011 | 2010 | Change | | Full year avg. | $1,201 | $1,143 | 5.1% | | Q4 avg. | $1,223 | $1,160 | 5.4% |
| | Source: AutoNation |
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JIM HENRY
New regs a 2012 wild card
| |  | Jim Henry is a special correspondent for Automotive News | |
Auto lenders are cautiously optimistic about 2012. But they're worried about the potential for new government regulations -- which could affect auto dealers.
"The one big potential cloud is the regulatory environment," said Marguerite Watanabe, president of consulting firm Connections Insights. She was scheduled to moderate a panel discussion today at the American Financial Services Association's Auto Finance Conference in Las Vegas.
While auto finance is not the No. 1 target of the new Consumer Financial Protection Bureau or its director, "the auto financing sources will continue to watch and listen for anything that will impact the auto financing industry," Watanabe said.
Organizers expect record attendance of 500 or more at the conference. It runs through Friday, just prior to the NADA convention.
The Consumer Financial Protection Bureau was high on the group's list of concerns in San Francisco a year ago, too. In 2011 the Federal Trade Commission held public roundtable discussions in which consumer advocacy groups sharply criticized auto lenders and dealers. But the bureau avoided giving specific signals as to any new rules it may have in store for auto lenders.
That could start to change now that the bureau has a director, Richard Cordray, who was appointed last month by President Obama. The bureau couldn't address nonbanks, such as captive finance companies and independent auto lenders, until it had a director.
The bureau is off to a late start and the world has changed a bit in the past 12 months. For example, U.S. auto sales are stronger, and credit availability has improved, including for the subprime segment.
But that still leaves a potentially threatening cloud on the horizon.
Mercedes-Benz Financial to join DealerTrack credit application network
 Mercedes-Benz Financial Services said it plans to join the DealerTrack credit application network in March.
The move makes a longer list of lenders more easily available for Mercedes-Benz's approximately 350 U.S. dealers, and it eliminates some duplication of effort for dealers who use the captive finance company's electronic-documents system for ... story
| NADA PREVIEW
Big retailers anticipate boost in leases, stockpiles
 Four major public dealership groups expect automakers to boost leasing offers and vehicle inventories this year.
But the dealership executives say automakers are likely to remain disciplined in both areas. That means no big cash incentives on the leases, and no flood of vehicles that requires big discounts to sell.
"Manufacturers are much more rational now," AutoNation ... story
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F&I PRESS RELEASES
» Manheim signs agreement to purchase Dealer Services Corporation
» SFG Finance Launches Loyalty Program, Forms Alliance with Subprime Analytics
» Flagship Credit Acceptance announces new capital investment; renews and increases credit facility
» E-Credit Express partners with Carleton, Inc. for Dealer Document Support and Compliant Lending and Leasing Calculations
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Ford Credit gains share in retail financing
Ford Credit gained share in financing U.S. retail volume for the Ford and Lincoln brands in 2011. Contract volume also increased. Figures represent loans and leases for new and used vehicles. | | | | 2011 | 2010 | Change | Ford Credit share,
U.S. retail,
Ford/Lincoln | 36% | 32% | 13% | | | | | | | Contracts (thousands) | | | | | U.S. | 870 | 713 | 22% | | Worldwide | 1,420 | 1,218 | 17% |
| | Source: Ford Credit |
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