| | | WEEKLY REPORT | July 3, 2012 |
| | | | | | | Drop in lease returns threatens brand loyalty
 A drop in returning lease customers, reflecting a drop in lease originations during the recession, is a headwind for captive finance companies and dealers trying to rebuild leasing and the brand loyalty that goes with it. ...  story
| Why F&I videos beat brochures: A dealer's view
Video is the way to go when it comes to F&I product presentations, a Pennsylvania dealer says. Bill O'Flanagan, president of Reedman Toll Auto World in Langhorne, Pa., said that in the past few years his F&I revenue per vehicle has grown to more than $1,000, from around $350, after adding video presentations and reorganizing the F&I workflow around those presentations. ... story
| Don't let up on identity 'red flags,' experts say
 Federal officials don't seem to be going out of their way to routinely monitor whether dealerships are complying with the Red Flags Rule, which went into effect last year, but that doesn't mean dealers can relax about identity theft. ... story
| Storm clouds gather over dealer reserve
Will regulatory pressure force switch to flat fees?
The dealer reserve on indirect auto loans is the subject of intense debate among auto lenders, dealers, consumer advocates and government regulators. Some experts, including even some auto lenders, say a time may come when one-size-fits-all flat fees could replace the dealer reserve, which can vary from customer to customer within certain limits, depending on what the market can bear. ... story
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If you missed the Automotive News F&I Week last month, you can still catch the shows.
 All six F&I Week Webinars can be replayed at your convenience over the next 12 months. Play them again at fandiweek.com |
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F&I BY THE NUMBERS
Leasing drives brand loyalty
When it comes to leasing a new vehicle, customers coming off a lease are much more brand-loyal than customers who purchased their previous vehicle. Model year runs Oct.-Sept. Data for 2012 model year are from Oct.-Dec. 2011. | | | | | | | Model year | Lease Penetration | Lease to Lease | Purchase to Lease | | 2012 | 15% | 63% | 31% | | 2011 | 16% | 58% | 28% | | 2010 | 14% | 58% | 26% | | 2009 | 10% | 53% | 23% | | 2008 | 17% | 54% | 26% | | 2007 | 17% | 59% | 28% | | | | | | | Source: Maritz Research |
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JIM HENRY
Highlights turn out to be lowlights
| |  | Jim Henry is a special correspondent for Automotive News | |
Oops. It turns out that an idea touted as an F&I "best practice" may violate the federal Truth in Lending Act, not to mention be sexist and in poor taste.
That's according to Julie Becker-Myers of Northwood University in Midland, Mich., who teaches classes in F&I, with a heavy emphasis on legal compliance.
Earlier this year, at the invitation of Automotive News, she agreed to review a collection of F&I tips submitted by readers. The ideas were solicited as part of a search for dealership managers who would discuss their best practices during the F&I Week online conference last month.
While picking a trio of "how-to" panelists, Becker-Myers discovered a "what not to do" as well.
Someone suggested highlighting the signature lines on a customer's finance contract. But Becker-Myers says certain things need to be disclosed on the contract and are already in bold type to stand out. If a dealership highlights other areas, the items that must be disclosed may no longer be the most-noticed items.
Not only that, the suggestion was to highlight -- in blue -- items for a man to sign and to highlight -- in pink -- items for a woman to sign. Says Becker-Myers: "That's just wrong."
F&I PRESS RELEASES
» AIADA Endorses Wells Fargo Dealer Services
» Black Book and Twenty Twenty Analytics Join Forces to Provide Enhanced Data Analytics for Credit Unions
» DealerTrack Credit Application Network Now Exceeds 1,200 Active U.S. Lenders
» Auto Loan Volume increases 25-49% From Recession Lows
» Westlake Renames and Simplifies Finance Programs
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Pace of auto lending advances
The rate of growth in U.S. auto lending picked up in the first quarter compared with the year-ago quarter. Dollars in billions, including loan and lease, new and used. | | | | | | | First Quarter | Originations | Year-ago change | | 2012 | $38.6 | 15% | | 2011 | $33.6 | 12% | | 2010 | $30.1 | 27% | | 2009 | $23.7 | -33% | | 2008 | $35.5 | -5% | | 2007 | $37.5 | -3% | | | | | | | Source: Equifax |
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