WEEKLY F&I REPORT: Lenders offer longer terms, lower rates as market heats up | GM expands low-APR loan program | A former marine counsels on lending to military personnel

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WEEKLY REPORT February 15, 2012 Tell a colleague about this newsletter         Contact Us            Competition forces auto lenders to lengthen terms, reduce rates Auto lenders are accepting more risk as competition heats up in auto finance. That makes loans cheaper, which bodes well for dealers. But it makes lenders nervous that delinquencies and losses will pick up from near-historic lows, prompting the pendulum eventually to swing back. ...  story  GM expands West Coast low-APR loan program GM revived and expanded a program last month to offer 0 percent loans and other subvented deals for new cars via Wells Fargo Dealer Services. ...  story  Q&A Chase's veterans affairs chief on how to lend to military personnel How auto lenders and dealers treat members of the military has been an early and consistent focus of the Consumer Financial Protection Bureau. Major auto lenders do a lot of business with military members and their families says Nate Herman, a former Marine who is executive director of veterans affairs for JPMorgan Chase & Co. ...  story            F&I BY THE NUMBERS Chase made fewer auto loans in 2011 Loan originations at Chase Auto Finance rose slightly in the fourth quarter but fell for the year. Charge-offs for bad loans dropped. Chase ranks No. 3 in overall U.S. retail loan volume behind top lender Ally Financial and Wells Fargo. Originations ($ billions) 2011 2010 Change Q4 $4.9 $4.8 2.1% Full year $21 $23 -8.7%         Charge-offs for bad loans ($ millions) 2011 2010 Change Q4 $44 $71 -38% Full year $152 $298 -49% Source: JPMorgan Chase   JIM HENRY Clock is ticking on Chrysler's finance deal with Ally   Jim Henry is a special correspondent for Automotive News It's no wonder talk is heating up (see story below) about the possibility that the Chrysler Group may be shopping for a new partner to handle its captive finance functions: The clock is ticking. According to SEC documents, the Chrysler Group has until April 20 to decide whether it wants to make a change in its current arrangement that makes Ally Financial its go-to source for retail financing. The agreement between Chrysler and Ally runs through April 20, 2013. Either party can decide not to renew, but the agreement requires 12 months' prior notice. Otherwise, the agreement calls for automatic one-year renewals. More competition for dealers' business should be good news for dealerships. Dimension, National Administrative form new service contract provider Two extended-service contract administrators that already had the same owner are merging to form a new company and brand: Allegiance Administrators. The two companies, both in Dublin, Ohio, are Dimension Service Corp. and National Administrative Service Co. Pre-merger, their finance and insurance products have been sold separately to dealers across the country via independent agents. ...  story  Chrysler finance arm would buoy expanding sales Chrysler is the only one of the three Detroit automakers without a dedicated financing arm. Now, sources say, it's looking to change that, in a move designed to bolster already strong sales by providing attractive financing rates for car and truck buyers. ...  story  F&I PRESS RELEASES » Auto Affordability Improves in Fourth Quarter 2011, Comerica Bank Reports » AUL Corp. Partners with Ace Motor Acceptance for New 'BHPH in A Box' Program 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 Administrative / accounting assistant - gm patel - AL: gm patel FINANCE MANAGER - Confidential - MEDFORD, OR: Confidential CONTROLLER - Confidential - Tampa, FL: Confidential Automotive GSM and F&I Manager - Lynnes Nissan West - Stanhope, NJ: Lynnes Nissan West     F&I BY THE NUMBERS Asbury, Group 1 post higher F&I revenue per unit F&I revenue per vehicle rose at Asbury Automotive and Group 1 in the fourth quarter, part of a positive trend among publicly traded new-vehicle retailers. Group 1 said its F&I revenue per vehicle set a record for the quarter and for the full year.   Q4 2011 Q4 2010 Change Asbury Automotive   F&I revenue per vehicle $1,147 $1,017 13% F&I as % of revenue 3.4% 2.9%   F&I as % of gross profit 20.4% 17.8%           Group 1 Automotive       F&I revenue per vehicle $1,184 $1,075 10% F&I as % of revenue 3.3% 3.1%   F&I as % of gross profit 21.6% 20.4%   Sources: Company reports >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207