WEEKLY F&I REPORT: Dealers rely more on F&I sales, less on reserve, as scrutiny grows | 3 trends that spell F&I opportunities | Why dealers shy away from electronic F&I

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WEEKLY REPORT September 19, 2012 Tell a colleague about this newsletter         Contact Us            Dealers rely more on F&I sales, less on reserve, as scrutiny grows Many dealerships realize they'll need to sell more F&I products to make up for a potential drop in dealer reserve, according to panelists at the F&I Industry Summit in Las Vegas last week. The fear that tougher regulations could limit or even eliminate dealer reserve is part of the reasoning. Dealer reserve is the amount the dealership is allowed to add to the final interest rate on an auto loan ...  story  3 trends that spell F&I opportunities Dealerships can’t afford to overlook three industry trends in pursuing healthier F&I product sales, a panel of F&I executives said here last week. ...  story  Why dealers shy away from electronic F&I Dealers appear to be in no hurry to adopt trendy technologies such e-contracting, electronic menus or video presentations for F&I products, judging by comments made at last week's F&I Industry Summit here. ...  story  Subprime lenders rising after recession-era cuts Independent subprime auto lenders are on the rise, propelled by several positive factors that yield them more money to lend. Several independents report they are signing up franchised new-car dealers across the country. ...  story  LEGAL FILE Lawyer must pay VW store for 'frivolous' suit A plaintiff's lawyer in Texas must pay sanctions to a Garland dealership for pursuing a baseless lawsuit that accused the store of illegally financing a buyer's negative equity as part of the purchase price of a new vehicle. The Texas Court of ... >> Story            F&I BY THE NUMBERS Ally ramps up leases, used-vehicle loans With some quarterly ups and downs, Ally Financial has gradually added a greater share of leases and used-vehicle loans to its U.S. originations. Columns may not add up due to rounding. Ally U.S. loan originations % New % Used % Lease 2012 Q2 57% 24% 19% Q1 56% 27% 17% 2011 Q4 61% 25% 14% Q3 59% 23% 17% Q2 56% 22% 22% Q1 61% 20% 19% 2010 Q4 71% 14% 15% Q3 75% 15% 12% Q2 75% 15% 10% Q1 72% 17% 12% Source: Ally   JIM HENRY Regulation threat keeps F&I'ers up at night   Jim Henry is a special correspondent for Automotive News Dealers and F&I vendors fretted about possible tougher regulations last week at an F&I conference. The Consumer Financial Protection Bureau, the Federal Trade Commission and state attorneys general all have auto finance in the cross-hairs, said speakers at the F&I Industry Summit in Las Vegas, hosted by Bobit Business Media. "They're after us. They're after our livelihood, they're after our industry," said Pete DeLongchamps, F&I chief at the Group 1 Automotive dealership group. He said regulatory compliance is the thing that most "keeps me up at night." Alan Bond, vice president of national sales at GSFSGroup, said the Consumer Financial Protection Bureau uses leading questions to solicit consumer complaints. Examples include "Did you get discriminated against?" and "Did you get turned down for credit?" GSFSGroup administers and sells F&I products and training. "They lead the consumer down this path for things a consumer might not even have thought of," Bond said. "I think it's pretty scary from our perspective." Savvy F&I managers match menus to their customers At Dimmitt Chevrolet, customers often view a menu of packaged finance and insurance products then ask for those packages to be broken up and sold separately. And Dimmitt's finance manager is more than happy to do it. ...  story  Ally Financial CEO joins Autobytel board Ally Financial CEO Michael Carpenter has joined the board of directors of Autobytel, an online auto shopping service and lead provider. ...  story  F&I PRESS RELEASES » Consumer Credit Default Rates Remain Near Recent Lows in August 2012 According to the S&P/Experian Consumer Credit Default Indices » docuPAD Technologies Receive Two Patents; Other Patents Pending » Lease Returns Easier, More Convenient Now for Nissan and Infiniti Customers DEALER JOB LISTINGS F & I Director - Large, high-line automotive group - NA: Large, high-line automotive group F&I Manager/Director - Cleo Bay Honda - Killeen, TX: Cleo Bay Honda Accounting Clerk/Administrative/Customer Service/Data Entry - GM - AL: GM Corporate Trainer - World Car Auto Group - TX: World Car Auto Group Experienced F&I - Vaden Nissan - Savannah, GA: Vaden Nissan Chief Financial Officer - ATLANTIC AUTO GROUP - Long Island, NY: ATLANTIC AUTO GROUP Chief Financial Officer - ATLANTIC AUTO GROUP - Long Island, NY: ATLANTIC AUTO GROUP Controller - Confidential - St. Louis, MO: Confidential F & I Manager - Victory Automotive Group - San Francisco, CA: Victory Automotive Group   >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207