| | | WEEKLY REPORT | August 22, 2012 |
| | | | | | | Consumers make car payments a priority
More people are making an effort to pay their auto loan ahead of other debt, credit bureau TransUnion says. Nationally, auto loan delinquencies of 60 days or greater -- those that are most likely to be written off -- hit a record low in the second quarter of 2012, for the second quarter in a row, TransUnion said this week. ...  story
| Subprime lenders face tougher battle for dealers' used-car business
 Competition is getting tougher for a growing number of subprime auto lenders seeking used-car business with new-car dealers. For example, Westlake Financial, an independent subprime lender based in Los Angeles, has lost ground to captive finance companies and other lenders going after more used-car business, its president, Ian Anderson, said. ... story
| Public retailers explain F&I to Wall Street
 Finance and insurance got a lot of attention last week at an auto conference for Wall Street analysts and investors. Lithia Motors CFO Chris Holzshu told conference attendees that the retail group sells F&I products not only because they're profitable but also because they drive parts and service business. ... story
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F&I BY THE NUMBERS
Ally's Q2 F&I revenue rises slightly
Ally Financial's revenue from extended-service contracts and other F&I products rose slightly in the second quarter. Ally also paid out more to dealers who participate in reinsurance, in which dealers share in underwriting profit. That's the money left over after claims and other costs. "Other F&I" includes GAP, excess wear-and-tear policies for leases, and other products, the company said. Dollars in millions. | | | | Q2 2012 | Q2 2011 | Change | | Service contracts | | | | | New | $109 | $93 | 17% | | Used | $133 | $137 | -3% | | Reinsurance | -$31 | -$24 | 29% | | Total service contracts | $211 | $206 | 2% | | | | | | | Wholesale (inventory insurance) | $31 | $30 | 3% | | Other F&I | $41 | $41 | 0% | | Total, North American Operations | $283 | $277 | 2% | | | | | | | | Source: Ally |
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JIM HENRY
Consumer confidence is sales 'wild card'
| |  | Jim Henry is a special correspondent for Automotive News | |
The availability of credit is no longer an issue holding back auto sales, even in subprime, a Toyota exec says.
Bob Carter, senior vice president of automotive operations for Toyota Motor Sales U.S.A., told attendees at a JPMorgan Chase & Co. auto conference in New York last week that there's "plenty of credit." Pent-up demand and low interest rates are also positive factors, he said.
That leaves consumer confidence as the missing ingredient to a full recovery, he said. Toyota expects U.S. light-vehicle sales of about 14.3 million this year, he said. That's an increase of about 1.5 million from 2011 but still low by pre-recession standards.
"In terms of the overall industry in the second half, I'll characterize it this way: The car business is all about the 'Three C's' -- cars, credit and confidence. We have two of the three," Carter said. "The wild card is consumer confidence ... and it's crucial."
F&I PRESS RELEASES
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DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Hyundia, Kia sales growth boosts Hyundai Capital
Vehicle sales increases and fewer delinquencies at Hyundai and Kia are helping build loan volumes and minimize losses at Hyundai Capital America. The company is the parent of Hyundai Motor Finance and Kia Motors Finance. Dollars in billions. | | | Hyundai | Outstanding loans at period end | Year ago change | Rate of delinquencies (30+days) | | Q1 2012 | $5.89 | 17% | 1.11% | | 2011 | $5.81 | 25% | 1.62% | | 2010 | $4.65 | 74% | 1.68% | | 2009 | $2.68 | -3% | 3.44% | | | | | | | Kia | Outstanding loans at period end | Year ago change | Rate of delinquencies (30+days) | | Q1 2012 | $2.58 | 91% | 1.25% | | 2011 | $2.24 | 85% | 2.14% | | 2010 | $1.21 | -2% | 3.80% | | 2009 | $1.23 | -8% | 4.98% | | | | | | | | Source: Hyundai Capital America |
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