| | | WEEKLY REPORT | October 3, 2012 |
| | | | | | | Tire-and-wheel balancing act: Affordable prices, high claims
 F&I administrators are looking for ways to avoid across-the-board price increases on tire-and-wheel policies despite a high level of claims in some markets. One obvious fix is to charge customers in those markets more, and administrators are doing exactly that, experts say. Markets with a high level of claims include the New York, New Jersey and Connecticut metropolitan area and Southern ...  story
| Q&A
TD Auto's growth plan starts with near prime
 U.S. dealers can expect TD Auto Finance to keep moving down-market into near-prime and subprime loans as it expands, but don't look for it to offer leasing any time soon. That's the word from Paul Clark, the lender's new CEO. In July, Clark succeeded Chrysler Financial veteran Tom Gilman, who retired at age 60. ... story
| First Investors sold as private equity snaps up another subprime lender
Private-equity group Aquiline Capital Partners in New York has agreed to acquire Houston-based First Investors Financial Services, an independent, subprime auto lender, in a $100 million deal. ... story
| Consumer credit scores vary from what lenders see
One in five U.S. consumers is likely to receive a credit score different from the one given to lenders, potentially closing off access to credit for millions of Americans, the Consumer Financial Protection Bureau found in a new study released last week. ... story
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F&I BY THE NUMBERS
First Investors' originations on the rise
Originations -- helped by the addition of new dealers and markets -- have rebounded at First Investors Financial Services since late 2008, when credit largely dried up. First Investors makes subprime auto loans via franchised dealers. Dollars in millions. | | | | | Fiscal yr.
ended Apr. 30 | Originations | Active dealer agreements | Active states | | 2012 | $257.2 | 1,117 | 36 | | 2011 | $143.5 | 605 | 25 | | 2010 | $49.5 | 464 | 22 | | 2009 | $86.7 | 491 | 16 | | 2008 | $250.6 | 437 | 10 | | | | | | | Source: First Investors |
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JIM HENRY
A reason to cheer the CFPB
| |  | Jim Henry is a special correspondent for Automotive News | |
The Consumer Financial Protection Bureau has given auto lenders a lot to worry about in the past year, though so far, its bark has been a lot worse than its bite.
Even so, in a Sept. 25 press release, the CFPB said it's concerned because "one out of five" consumers get potentially misleading scores when they check their own credit scores.
That's partly because consumers get a generic credit score when they order one for themselves. The generic score can be significantly different than specialized scores for particular industries, including the auto industry. Auto lenders can request a special auto score, on which they partly base their credit decisions, the CFPB said.
FICO auto scores, however, correlate highly with generic FICO scores, according to the CFPB. So customers who review their own FICO scores are probably going to get a realistic idea of the score that really counts as far as auto lenders are concerned.
So there's a bit of positive input from the CFPB, for a change. All information that helps consumers better understand their auto credit scores helps dealerships in the long run.
Mopar adds used-vehicle service plans
 Mopar is offering several inexpensive service plans for pre-owned vehicles, part of a rebranding of its service contract business. ... story
| Orange Motors teams F&I, sales staffs to win big
 Dealer Carl Keegan lets finance and insurance managers take risks and make mistakes. And that's made all the difference at his store, Orange Motors in Albany, N.Y. ... story
| Q&A
Ford Credit stays on mission -- and gets results
 While its Detroit competitors were buffeted by bankruptcy and the loss of their captive finance arms during the 2009 financial crisis, Ford Motor Credit Co. soldiered on doing what it was created to do when it was founded in 1959: provide funds for Ford dealers and their customers. The consistency has paid off. ... story
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F&I PRESS RELEASES
» RouteOne Endorsed As Credit Application Management System Of Choice By National Independent Automotive Dealer Association
» Equifax's New National Credit Trends Report Reveals More Growth And Stability In Automotive And Credit Card Finance
» BMW Financial Services Partners with Manheim on the Brand’s First-Ever Simulcast Everywhere Sale
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
Ford Credit lease volume rebounds
Ford Credit's outstanding lease volume has rebounded this year but remains well below what it was before credit markets froze in Sept. 2008. Data reflect U.S. retail leases. | | | | | | | Avg. number of leases outstanding | Yr.-ago change | | 1st half 2012 | 388,121 | 18.6% | | Year | | | | 2011 | 330,953 | -24.5% | | 2010 | 438,324 | -35.2% | | 2009 | 676,511 | -19.5% | | 2008 | 840,310 | 8.3% | | | | | | | Source: Ford Credit |
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