WEEKLY F&I REPORT: 5 trends we watched in 2012 and how they fared | Volvo's captive launches retail lending, broadens programs | Product tips, Gen Y, Ally were hot topics in 2012

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WEEKLY REPORT December 26, 2012 Tell a colleague about this newsletter         Contact Us            5 trends we watched in 2012. How'd they do? In January, we identified five trends that experts said were likely to affect your finance and insurance business this year. Most held up well. The last one -- new regulations from the Consumer Financial Protection Bureau -- didn't pan out. But it still has potential for 2013. ...  story  Q&A Volvo's new captive launches retail lending, broadens programs Volvo's new captive finance arm, Volvo Cars Financial Services U.S., completed its launch goals this year with the start of retail lending services Dec. 1. The captive began commercial lending in May. U.S. Bank has been Volvo's preferred lender in the United States since late 2009. Before that, Volvo used Ford Credit. Ford Motor Co. bought Sweden's Volvo Cars in 1999 but sold it to Zhejiang Geely ...  story  Product tips, Gen Y, Ally were hot topics in 2012 The 10 most-read finance and insurance stories in Automotive News this year were heavy with practical information for frontline F&I managers. How-to features ranged from tips for selling service contracts and tire-and-wheel plans to how to outsmart consumers using smartphones in the F&I office to compare deals. ...  story  Preloading products boosts per-car F&I sales Some dealers see a downside. Here's why Besides protecting their inventory, many dealers say that preloading products on vehicles brings in thousands of additional finance and insurance dollars monthly. But there are pitfalls. The practice can make a dealer trade for a non-preloaded vehicle difficult. ...  story            F&I BY THE NUMBERS Loan terms grow to keep payments flat Car buyers, even though they are borrowing slightly more, are keeping payments roughly flat by spreading payments out over longer terms.   Avg. new-vehicle loan Q3 2012 Q3 2011 Term 64 mos. 63 mos. Payment $452 $457 Rate 4.53% 4.55% Amount financed $25,963 $25,873   Avg. used-vehicle loan Q3 2012 Q3 2011 Term 60 mos. 59 mos. Payment $350 $349 Rate 8.64% 8.60% Amount financed $17,577 $17,359   Source: Experian Automotive   Product caps grow amid ethics concerns More dealerships are capping the markup allowed on aftermarket products in the finance-and-insurance office. One retailer's explanation for the trend? "Large pigs go to slaughter." It's another way to say the extra money isn't worth the risk. Excessive markups on products can lead to lawsuits by customers, scrutiny by regulators and a bad reputation in the dealership's community. ...  story  F&I PRESS RELEASES » "Disciplined Consumers" Drive Consumer Credit Levels Up 33 Percent » Ally Financial Repays Remaining $4.5 Billion of Debt Issued Under TLGP » Westlake Partner Releases Major Update to DealerCenter Website DEALER JOB LISTINGS Finance & Insurance Director - Unknown - NA: Unknown     F&I BY THE NUMBERS TD Auto indirect loans grow TD Auto Finance's lending activity continued to grow through fiscal year 2012, which ended Oct. 31. Toronto-based TD Bank bought the former Chrysler Financial in the second quarter of fiscal 2011. Numbers show U.S. indirect loans originated at dealerships. Dollars in billions.   Fiscal year 2012 Outstanding indirect loans Q4 $13.4 Q3 $12.4 Q2 $11.5 Q1 $10.9   Fiscal year 2011 Outstanding indirect loans Q4 $10.2 Q3 $10.2 Q2 $5.9 Q1 $3.4   Source: TD Bank >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207