WEEKLY F&I REPORT: Gen Y preferences could reshape dealerships' loan practices | Chase is committed to auto lending, not share | 3 tips for selling service plans in the service drive

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WEEKLY REPORT February 22, 2012 Tell a colleague about this newsletter         Contact Us            Gen Y preferences could reshape dealerships' loan practices Car buyers, especially younger ones, are more often applying for auto loans on the Internet, rather than at the dealership. And younger consumers are insisting on more transparency in auto loans. Over time, those two trends could undermine the traditional business model for indirect auto loans at dealerships, lenders at a recent conference said. ...  story  Q&A Chase is committed to auto lending, not share Chase Auto Finance is as committed as ever to auto lending, but it won't hunt market share, CEO Marc Sheinbaum says. It also won't chase leasing, he says. Sheinbaum spoke with Special Correspondent Jim Henry at the National Automobile Dealers Association convention this month in Las Vegas. ...  story  3 tips for selling service plans in the service drive Selling extended-service contracts in the service department can be tough. But dealerships can get better results if they do three things, say executives Bob Hymen and Tony Holbrook at Service Payment Plan Inc. ...  story  LEGAL FILE Chevrolet dealership in Oklahoma City faces court in GAP dispute A mandatory arbitration provision in a Chevrolet store's sales contract doesn't extend to a dispute over a GAP policy the customer bought from the dealership three days later, the Oklahoma Supreme Court has ruled. The decision clears the way for ... >> Story            F&I BY THE NUMBERS F&I revenue per vehicle climbs at Penske F&I revenue per vehicle increased for Penske Automotive in the fourth quarter and for 2011, mirroring the trend at other publicly traded new-car retailers.         4th quarter         2011 2010 Change F&I revenue per vehicle $965 $930 3.8% F&I % of revenue 2.4% 2.2%   F&I % of gross profit 15.1% 14.4%           Full year       F&I revenue per vehicle $977 $940 3.9% F&I % of revenue 2.4% 2.4%   F&I % of gross profit 15.2% 14.9%           Source: Penske Automotive   JIM HENRY Speak up for less paperwork   Jim Henry is a special correspondent for Automotive News The F&I Department floats on a sea of paper that seems to get deeper all the time. Can anybody do anything about it? The Consumer Financial Protection Bureau last week unveiled a new Web site aimed at getting public feedback on how to streamline regulations: consumerfinance.gov/regcomments. CFPB Director Richard Cordray said in an e-mail on Feb. 16 that the CFPB inherited regulations from seven federal agencies. The bureau wants public input on how to update, modify or even eliminate existing regulations. "Our aim is to see where we can reduce the burdens imposed by existing regulations without reducing actual value to consumers," Cordray said. Cordray didn't mention this complication, but some of those "legacy" agencies, such as the Federal Trade Commission, still retain a lot of power to regulate auto lending. The two agencies announced earlier that they would work to avoid redundancy. Less paperwork would be welcome. But it's hard to see how adding another regulator will result in less paperwork, instead of more. Is credit life dead? Not for one F&I chief Dealership Finance Director Loe Hornbuckle sells an F&I product that many stores won't touch. And he's getting impressive results. Last year, Hornbuckle and four other F&I officers at Holmes Motors in Shreveport, La., sold 185 credit life and disability polices with total premiums of $134,478. ...  story  F&I PRESS RELEASES » GM Financial Reports December Quarter Operating Results » Fitch: Consumer Drive for Autos Provides Banks Growth Opportunity DEALER JOB LISTINGS Finance and Insurance - Spitzer Toyota - Monroeville, PA: Spitzer Toyota FINANCE DIRECTOR - Unknown - Unknown, LA: Unknown FINANCE DIRECTOR - Unknown - Unknown, NC: Unknown F&I Manager/Director - Chrysler On Nicholasville - Nicholasville, KY: Chrysler On Nicholasville     F&I BY THE NUMBERS GM Financial's reliance on GM grows, delinquency rate drops in 2011 GM Financial generated a much greater share of General Motors loans and leases in the fourth quarter of 2011, with GM's leasing volume surging to $314 million from $10.7 million in the fourth quarter of 2010. The rate of loan delinquencies at the finance giant also dropped in 2011. GM bought the former AmeriCredit, a specialist in subprime loans, in October 2010. GM is turning GM Financial into a full-service captive finance company. ($ in millions)         4th quarter       GM % of GM Financial loan originations 2011 2010 Change New-vehicle loans 30.2% 18.1% 67% New-vehicle loans and leases 44.3% 19% 133%         Full year       Loan delinquency rate as % of receivables 7.2% 9%           Source: GM Financial >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207