| | | WEEKLY REPORT | May 30, 2012 |
| | | | | | | Banks, credit unions win at captives' expense
 Banks and credit unions are winning market share in auto lending. Banks have increased their share of subprime auto loans, said Melinda Zabritski, director of automotive credit for Experian Automotive, in an analysis of auto loans originated in the first quarter of 2012. ...  story
| TD Auto Finance targets near-prime loans
 TD Auto Finance, the former Chrysler Financial, says it will pursue more near-prime loans in addition to the prime and superprime loans it has concentrated on buying. ... story
| Dealers must disclose reason for higher customer interest rate, judge rules
 The National Automobile Dealers Association suffered a legal setback when a federal judge in Washington last week ruled a dealer must disclose to a consumer whether the consumer is being charged a higher rate because of a negative credit rating -- regardless of whether the dealership assigned the loan to a third party. ... story
| Why an F&I system matters
 Expert Vince Santivasi, left, and dealer Bill O'Flanagan, will lead a session on bringing a formal management system to F&I operations during Automotive News F&I Week -- a free, online conference -- on June 21 LEARN MORE: Click here to watch a video of Automotive News Publisher Peter Brown explaining the value of F&I Week ... story
|
| |
| | | | |  | | |
F&I BY THE NUMBERS
Banks, credit union loan share climbs
Banks and credit unions gained share in auto loans made during the first quarter compared with a year ago. TD Auto, the former Chrysler Financial, was a big gainer, according to Experian Automotive. Chase Auto Finance, Capital One, U.S. Bank and PNC Bank also gained. Numbers are for new and used combined. | | | | | | | Lender type | Q1 loan share | Yr.-ago change | | Credit unions | 16.9% | 10.5% | | Banks | 40.2% | 7.5% | | Indpt. finance cos. | 14.8% | -3.8% | | Captives | 16.7% | -11.5% | | Buy here, pay here | 11.4% | -12.7% | | | | | | | Source: Experian |
|
|
|
| | | | |
JIM HENRY
Dealers can't slide on customer credit-score notices
| |  | Jim Henry is a special correspondent for Automotive News | |
A federal judge in Washington said last week that dealers must continue to provide notices to consumers about the use of credit scores in setting interest rates. That includes dealers who don't even look at the credit scores.
Paul Metrey, chief regulatory counsel for the National Automobile Dealers Association, said in many cases it's the lender, not the dealer, who obtains the customer's credit score and uses it to make credit decisions. NADA had asked the court whether in those cases, the dealer still has to send the notice.
The answer was yes -- even if the dealer never obtains, reviews or otherwise makes any use of the credit score, Metrey said.
He said NADA plans to appeal.
Metrey said it's clear that dealers who obtain a customer's credit score have to provide the notice; that wasn't in question.
The rules took effect last year. Consumers are entitled to a notice if unfavorable information on their credit report means they were offered "a higher interest rate than the most favorable terms available to the majority of consumers." Because that definition is so vague, NADA recommends that dealers should err on the side of caution and simply send everyone who gets approved a notice.
This is why people shudder when they hear: "I'm from the government and I'm here to help you."
Lenders easing credit standards, loan terms
 U.S. lenders gave car buyers some of the easiest credit terms since the financial crisis in the first quarter as they competed to make more loans to borrowers they see as safe. Lenders also provided more money to people with subprime credit scores, cut interest rates and granted more time to repay, Experian Automotive said in a report. ... story
|
F&I PRESS RELEASES
» Team One Announces Agreement With OptionSoft Technologies To Provide F&I Software Suite
» Santander Consumer USA Expands With Full-Spectrum Auto Lending
» Intersection Technologies, Inc. -- F&I Express Expands Leadership Team
» Consumer credit scores for auto loans drop to near prerecession levels, according to Experian Automotive
| | |  | | |
F&I BY THE NUMBERS
More money available for subprime
Subprime auto lenders are raising more money to make new loans by selling asset-backed securities. In effect, lenders sell a package of loans to investors instead of waiting for the loans to be paid off. At dealerships, this means more money is available for subprime loans. Dollars in billions. | | | | | | | Subprime ABS | Amount | Subprime,
% of industry ABS | | 2012, 4 mos. | $5.8 | 23% | | 2011, 4 mos. | $3.5 | 21% | | | | | | Full year | | | | 2011 | $11.8 | 24% | | 2010 | $8.7 | 18% | | 2009 | $2.6 | 6% | | 2008 | $2.2 | 4% | | 2007 | $15.3 | 21% | | 2006 | $21.4 | 24% | | | | | | | Source: Standard & Poor's Ratings Services |
|
|
|
|  | | >> Unsubscribe from this newsletter Copyright © Automotive News Designed by Templatesbox.com | | Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207 |
|
No comments:
Post a Comment