WEEKLY F&I REPORT: Penske says rise in leasing depressed F&I revenue | For lenders, higher losses are the price of sharper competition | GM Financial ups GM new-car financing

CLICK HERE TO OPEN THIS NEWSLETTER IN A WEB BROWSER

WEEKLY REPORT November 7, 2012 Tell a colleague about this newsletter         Contact Us            Penske: Rise in leasing dinged F&I revenue Lease customers rarely buy F&I products such as extended-service contracts or GAP, and with leasing on the rise, that's one of the main reasons Penske Automotive Group was the only public group whose per-vehicle F&I revenues declined in the third quarter, according to Chairman Roger Penske. ...  story  For lenders, higher losses are the price of sharper competition Ally Financial and Ford Credit joined a growing trend toward slightly higher delinquencies or credit losses in the third quarter, as credit eases for subprime customers and auto lenders compete with sharper elbows. ...  story  GM Financial ups GM new-car financing GM Financial is expanding its new-car loan and lease business with General Motors dealers. But non-GM dealers selling mostly used cars still account for more than 50 percent of originations, the lender says. ...  story  Ally listed as Suzuki's biggest unsecured creditor Ally Financial, American Suzuki's preferred lender in the United States, was one of Suzuki's biggest creditors when the automaker filed for Chapter 11 bankruptcy protection this week. ...  story  LEGAL FILE Dealer ordered to pay customers for finance fraud A Brooklyn, N.Y., dealer and four of his dealerships must pay $510,000 in penalties and restitution to customers for fraudulent and illegal financing and sales practices that were “extensive and unsettling,” a judge has ruled. Those ... >> Story            F&I BY THE NUMBERS Ford Credit delinquencies, repos edge up Ford Credit delinquencies and reposessions rose slightly in the third quarter, but remain low.     Delinquencies (over 60 days) Repos 2012     Q3 0.18% 1.36% Q2 0.13% 1.19% Q1 0.12% 1.54%       2011     Q4 0.14% 1.83% Q3 0.15% 1.93% Q2 0.13% 1.71% Q1 0.16% 1.98%       2010     Q4 0.15% 2.22% Q3 0.16% 2.46%   Source: Ford Motor Credit Co.   JIM HENRY Nissan captive, other lenders step up after Sandy   Jim Henry is a special correspondent for Automotive News Based on an unscientific round of calls, F&I managers at Nissan and Infiniti dealerships may have the best post-Hurricane Sandy finance offer: Current customers whose cars were totaled are eligible for employee pricing on new vehicles on top of existing factory incentives. Granted, it's a little soon to think about turning destruction into commercial advantage. And no doubt, Nissan Motor Acceptance Corp. and other lenders are moved by civic duty as well as business. Still, Nissan's post-storm offer is eye-catching. Many other auto lenders, including several banks, mostly responded to the storm by waiving late fees for payments from customers in the damaged areas. Dale Walker, director of consumer services and privacy for Nissan Motor Acceptance, said earlier this week that the captive learned through experience what disaster-struck customers need following hurricanes Katrina and Rita in 2005 and many other, smaller-scale calamities. "This is not our first sort of event like this," Walker said by phone. "We try to be good corporate citizens." Another offer came from Ford, a $500 cash incentive for storm victims. In addition, Ford Motor Credit Co. will allow qualified customers to delay one or two monthly payments. Toyota Financial Services donated $1 million to the American Red Cross on top of offering a 90-day, deferred-first-payment option on replacement vehicles for customers in 13 states and the District of Columbia, designated disaster areas by the Federal Emergency Management Agency. Ally Financial Inc. announced today that through Jan. 2, 2013, it will allow customers in areas affected by the hurricane to defer their first payment on a new-vehicle loan up to 90 days. The offer applies to all General Motors and Chrysler Group vehicles, including Fiats. That's in addition to a separate offer from GM and Chrysler of a $500 cash incentive for the same affected areas. Sure, the finance offers are good for business, but customers -- and dealers -- probably appreciate the gesture, too. F&I PRESS RELEASES » Ally Financial Announces 90-Day First Payment Deferral for Disaster Relief » Mercedes-Benz Financial Services Named on Great Place to Work 2012 Best Small & Medium Workplaces List DEALER JOB LISTINGS FINANCE DIRECTOR - TOWBIN DODGE - Henderson, NV: TOWBIN DODGE Finance Director - Confidential - AZ: Confidential CONTROLLER - CHRYSLER JEEP DODGE RAM - FL: CHRYSLER JEEP DODGE RAM     F&I BY THE NUMBERS Indirect financing inches back Indirect auto financing via dealerships has slowly picked up share in the last two years, which means cash sales and direct-to-consumer financing have dropped a bit.     Indirect loan Lease Total indirect 2012         Q3 59.3% 20.3% 79.6%   Q2 58.5% 20.8% 79.3%   Q1 58.5% 20.2% 78.7%         2011         Q4 58.0% 19.7% 77.7%   Q3 59.1% 19.1% 78.2%   Q2 57.9% 19.8% 77.7%   Q1 57.3% 22.0% 79.3%         2010         Q4 58.0% 20.3% 78.3%   Q3 58.6% 18.6% 77.2%   Source: Power Information Network >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207