| | | WEEKLY REPORT | November 28, 2012 |
| | | | | | | Auto-loan amounts reach 6-year high
 Auto loans recovered from the latest recession faster than any other type of consumer credit, according to credit bureau Equifax. The good news for dealerships is that the average amount per auto loan has grown along with the increase in unit volume, Equifax data show. ...  story
| Q&A
Exploiting mistrust of big banks to win loans
 Credit Union Direct Lending, better known as CUDL, is attracting more dealerships to list their inventory on its AutoSMART shopping Web site. The site, cudlautosmart.com, enables car shoppers to browse the dealership listings and then apply for a pre-approved loan through a credit union. ... story
| Ford's small-car stumbling block: Young, credit-strapped buyers
 Ford says getting young buyers financed is a potential impediment to its ongoing small-car strategy, including the launch next year of the face-lifted 2014 Ford Fiesta with an all-new three-cylinder variant. Besides having lower incomes and fewer savings for a down payment, many of Ford's small-car buyers are so-called thin files, having little or no credit history. Those factors can make it ... story
| Ally selling Europe, Latin America operations to GM
 Ally Financial is selling its Europe and Latin America operations to GM Financial, a unit of General Motors, for about $4.2 billion. The combined operations in Europe and Latin America represented about $16.1 billion in assets at the end of the third quarter, Ally said in a statement last week. ... story
|
 Have you given up on selling service contracts in the service drive? Avoided the idea entirely? Attend this webinar to get started - or get better - now!
This workshop from F&I trainer Rick McCormick is your opportunity to learn a winning strategy. You will leave with 10 intentional steps to implement immediately. Get the secrets! |
| |
| | | | |  | | |
F&I BY THE NUMBERS
Loans of 73 to 84 months jump
Most auto loans are 60 or 72 months, but loans of 73 to 84 months showed the most growth in the third quarter compared with a year ago. Numbers may not add to exactly 100 percent. | | | | | | | | Term (mos.) | Q3 2012 | Q3 2011 | Change | | Up to 36 | 8.1% | 8.3% | -2% | | 37 to 48 | 9.8% | 9.7% | 1% | | 49 to 60 | 29.6% | 33.5% | -12% | | 61 to 72 | 39.5% | 37.9% | 4% | | 73 to 84 | 12.8% | 10.3% | 24% | | 85-plus | 0.3% | 0.3% | 0% | | | | | | | | Source: Experian Automotive | | | |
|
|
|
| | | | |
JIM HENRY
5 signs of robust F&I
| |  | Jim Henry is a special correspondent for Automotive News | |
Here are five signs that dealership F&I profits will stay strong:
1. Warranty Group, a leading administrator, has had double-digit year-over-year growth in the number of service contracts sold in 2012, said marketing vice president Bob Bean.
2. Demand for extended-service contracts and other F&I products is so good that the company recently opened a new servicing center in Champaign, Ill., to supplement its headquarters operations in Chicago.
The new servicing center has about 30 positions filled, but it is built to hold as many as 200 employees, Bean said. Besides handling added demand, the new service center also is a backup for the headquarters operation in the event of a disaster.
3. Bean said the Warranty Group is increasing its "attachment rate," which means customers are buying more F&I products per unit.
4. The company is signing up more dealerships -- mostly franchised, new-vehicle dealerships, but also independent, used-car dealerships, he said.
5. Finally, for the company that does business as Resource Dealer Group and was formerly known as Pat Ryan & Associates, growth is based on steadily increasing vehicle sales.
Said Bean: "The sheer volume of cars being moved has certainly benefited all dealerships."
F&I PRESS RELEASES
» AutoCalcubot Uses Facebook As An Auto-Loan Generator
» Missouri Attorney General Koster reaches $125,000 agreement with automotive finance company
» TransUnion: National Auto Loan Delinquency Rate Rises, Though Remains Relatively Low
» Dealertrack Launches New Brand Identity
» Westlake Announces New Credit Facility With Japanese Firm
DEALER JOB LISTINGS
| | |  | | |
F&I BY THE NUMBERS
Subprime delinquencies edge up
As subprime customers have gotten easier access to credit, delinquencies have increased for subprime auto loans, Fitch Ratings says. Fitch tracks loans that have been bundled and sold to investors as asset-backed securities. The September increase was partly seasonal. There's usually an increase from August to September, Fitch said. Data show delinquencies of 60+ days. | | | | | | | | | Sept. 2012 | Aug. 2012 | Sept. 2011 | | Subprime % delinquent | 3.48% | 3.24% | 3.18% | | | | | | | | | | |
|
|
|
|  | | >> Unsubscribe from this newsletter Copyright © Automotive News Designed by Templatesbox.com | | Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207 |
|
No comments:
Post a Comment