WEEKLY F&I REPORT: Lenders strike balance between growth, discipline | Credit unions: Join 'em | Chicago stores ordered to pay Cap One for 'non-genuine, invalid' loans

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WEEKLY REPORT October 17, 2012 Tell a colleague about this newsletter         Contact Us            Lenders strike balance between growth, discipline -- so far The auto financing trends that supported higher U.S. car sales this year -- easier credit, more subprime lending and higher loan-to-value ratios -- should persist into 2013, but auto lenders are expected to stay relatively conservative. ...  story  Q&A Can't beat credit unions? Join 'em Credit unions account for more than half of the loan volume at Dick Hannah Dealerships in the Pacific Northwest. F&I director Ralph Larson says high credit union penetration is typical for the region, and says the dealership group, which has 13 locations and 19 franchises and is based in Vancouver, Wash., takes that historical link to credit unions a step further. ...  story  COMMENTARY A little too much end-of-lease contact? The lease on one of my family cars is coming to an end. In December I'll need to hand over the keys after 36 months. I've really enjoyed the car more than I expected. ...  story  BMW lets U.S. lessees skip payments in drive to pass Mercedes BMW AG, falling behind Daimler AG's Mercedes-Benz in U.S. luxury auto sales, is introducing an incentive program through the end of this month that lets lease owners skip payments if they buy a new vehicle. ...  story  LEGAL FILE Stores ordered to pay Capital One for 'non-genuine, invalid' loans Two Chicago-area dealerships with common ownership must pay Capital One Auto Finance $722,624 for failing to repurchase contracts for loans that had been approved based on falsified information or information obtained from identity theft, a federal judge in Illinois has ordered. >> Story            F&I BY THE NUMBERS Delinquencies rise at subprime lender Santander Delinquencies for subprime auto lender Santander Consumer USA rose in the first half of 2012 compared with the same period a year earlier. That hasn't happened for a full year since 2008. Dollars in billions.   Amount outstanding at period end Delinquencies (31+ days) 1st half 2012 $15.0 12.1% 1st half 2011 $14.3 11.4%   2011 $14.1 13.5% 2010 $14.8 13.6% 2009 $6.9 22.3% 2008 $6.1 23.5% 2007 $4.9 22.7%   Source: Santander   JIM HENRY Conventional wisdom, unconventional advice   Jim Henry is a special correspondent for Automotive News I deal with reputable carmakers, retailers and auto lenders nearly all the time, so sometimes what passes for "conventional wisdom" about car dealerships and auto finance comes as a shock. While I was researching a story recently, somebody who ought to know better told me the conventional wisdom is "you should never get financing at the dealership." Really? Nearly 80 percent of U.S. car buyers get an indirect loan or a lease at the dealership, J.D. Power and Associates says. So the conventional wisdom so far appears to be circulating only among the 20 percent or so of buyers who pay cash or get a direct loan. Maybe the 20 percent know what they're doing when they skip 0.0, 1.9 or 2.9 percent subvented loans from the factory. It takes all kinds, and I can accept that some people like shopping around on their own at different lenders to find a deal instead of having an F&I manager do it for them. Of course, there are a few bad apples among dealerships who get themselves in legal trouble, and over the years I've written about them, too. So I guess that makes me part of the reputation problem for dealerships. But when consumers ask my advice, I tell them that indirect financing at a dealership is usually the best deal -- even though, yes, the dealership makes money on it. Some people accept that, but some people look at me like I have two heads. The next thing you know, somebody's going to tell me people don't trust reporters, either. F&I PRESS RELEASES » Equifax Launches True In-Market Propensity (TIP) Scores™ for Auto Lenders » Exeter Finance Expands and Extends Warehouse Credit Facility » Regions Bank Launches Regions Auto Center and Auto Buying Service Powered by TrueCar DEALER JOB LISTINGS CONTROLLER - CHRYSLER JEEP DODGE RAM - FL: CHRYSLER JEEP DODGE RAM F&I Manager - Butler Automotive Group - Macon, GA: Butler Automotive Group CONTROLLER - Confidential - Tampa, FL: Confidential Chief Financial Officer - Leedom Management Group - Sarasota, FL: Leedom Management Group Finance Manager - Chrysler, Jeep Dodge, Ram Dealer - Detroit, MI: Chrysler, Jeep Dodge, Ram Dealer   >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207