WEEKLY F&I REPORT: Ford Credit bucks trend toward longer, riskier loans | Suzuki, Ally 0% deals OK'd by court | Selling F&I after a natural disaster is tricky

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WEEKLY REPORT November 21, 2012 Tell a colleague about this newsletter         Contact Us            Ford Credit bucks shift to longer, riskier loans Ford Credit says it will keep providing Ford Motor Co. steady subprime support, but it's shying away from expanding those deals or offering longer loans -- a strategy rivals, including General Motors, appear to be pursuing. ...  story  Suzuki, Ally 0% deals OK'd by court In a silver lining for dealers, U.S. Bankruptcy Court in Santa Ana, Calif., last week gave American Suzuki Motor permission to carry on with 0 percent financing offers, which could help clear out unsold inventories. ...  story  Q&A Prestige Financial: Growth, minus the blazing guns Prestige Financial Services of Salt Lake City is among a growing group of independent, subprime auto lenders that are expanding nationwide from a regional footprint. ...  story  ANALYSIS Selling F&I after a natural disaster is tricky Some East Coast dealers say vehicle sales are picking up after Hurricane Sandy struck last month. But they can't say the same yet about sales of finance and insurance products. ...  story            F&I BY THE NUMBERS Ford Credit ups business with dealer network Ford Credit volume and market share among its U.S. dealers increased in the third quarter and the first nine months of 2012. Contracts are new and used, loan and lease.   Q3 2012 Q3 2011 Change U.S. contracts 259,000 227,000 14% Share of U.S. Ford, Lincoln new retail volume 42% 38% 11%           9 mos., 2012 9 mos., 2011 Change U.S. contracts 740,000 645,000 15% Share of U.S. Ford, Lincoln new retail volume 39% 36% 8%         Source: Ford Motor Credit Co.   JIM HENRY Give thanks for pent-up demand, lender rivalry   Jim Henry is a special correspondent for Automotive News This Thanksgiving, dealerships can be grateful for pent-up demand and sharper competition among auto lenders. Those factors show no sign of letting up any time soon, according to research and consulting firm Frost & Sullivan. The company estimates that the total number of new and used vehicles financed at U.S. dealerships will grow to 33.6 million by 2018. That's an increase of about 32 percent from 25.5 million in 2011, the company said. Stephen Spivey, Frost & Sullivan's program leader for automotive and transportation, said last week that banks, captives and credit unions are all motivated to fight for share in a growing market. "With the market rebounding," Spivey said, "now competition will intensify." F&I PRESS RELEASES »  BMW Group Financial Services Offers Assistance To Customers and Dealers Impacted by Hurricane Sandy » New Auto Loan Offering for Qualified Borrowers with Bad Credit Provides No-Hassle Finance for Car Funding » The Warranty Group Expands Call Center Operations » LoJack Corporation Issues Vehicle Theft Trendwatch Based On FBI's Uniform Crime Report » National Credit Default Rates Increased in October 2012 According to the S&P/Experian Consumer Credit Default Indices DEALER JOB LISTINGS FINANCE DIRECTOR - TOWBIN DODGE - Henderson, NV: TOWBIN DODGE Finance Director - Confidential - AZ: Confidential     F&I BY THE NUMBERS Ally Financial insurance revenue climbs Revenue rose at Ally Financial's insurance operations in North America in the third quarter. Extended-service contracts were up, offset by an increase in the amount Ally paid out in reinsurance -- programs in which dealers can share in the money left over after claims and other costs. Whole insurance for inventory increased, but "other F&I," which includes GAP, excess-wear plans and other products, slipped. Dollars in millions.   Q3 2012 Q3 2011 Change Service contracts       New $106 $101 5.0% Used $131 $130 0.8%         Reinsurance -$31 -$24 29% Total service contracts $206 $207 -0.5%         Wholesale (inventory insurance) $41 $32 28% Other F&I $38 $41 -7.3% Total, North American Operations $285 $280 1.8%         Source: Ally Financial Inc. >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207