| | | WEEKLY REPORT | December 12, 2012 |
| | | | | | | Surprise! Auto-loan delinquencies decline
 Auto loan delinquencies fell in the third quarter from a year earlier, extending a streak that goes back to the fourth quarter of 2009, according to Experian Automotive. ...  story
| Do's and don'ts for selling service contracts in the service drive
 With top management's support, proper training and a maximum of two levels of coverage to sell, service writers can significantly boost their dealerships' sales of service contracts, F&I trainer Rick McCormick says. ... story
| Q&A
How Nissan Acceptance snagged more dealers
 Nissan Motor Acceptance Corp., the U.S. captive finance company for Nissan and Infiniti, has boosted its share of dealer business to 67 percent for the six months ended Sept. 30, up from 46 percent three years earlier. ... story
| Dealers boost F&I profits in Sandy's wake
 Adam Kraushaar is making more money selling finance and insurance in the midst of mayhem. Kraushaar owns six dealerships in Toms River, N.J., one of the areas most forcibly struck by Hurricane Sandy in October. Despite the devastation, Kraushaar and other East Coast dealers say they are boosting F&I revenue right along with selling more cars. ... story
| | |
| | | | |  | | |
F&I BY THE NUMBERS
Delinquencies drop
Loan delinquencies of 60-plus days declined overall in the third quarter compared with a year ago. But independent finance companies, which specialize in the riskiest subprime customers, saw a slight rise in delinquencies during the latest period. Share of outstanding loans delinquent 60-plus days: | | | | | | | Type of lender | Q3 2012 | | Q3 2011 | | Bank | 0.41% | | 0.43% | | Captive | 0.29% | | 0.40% | | Credit union | 0.25% | | 0.28% | | Independent finance co. | 1.58% | | 1.57% | | Total | 0.50% | | 0.53% | | | | | | | | Source: Experian Automotive |
|
|
|
| | | | |
JIM HENRY
Dealerships can make or break auto lender, factory reputations
| |  | Jim Henry is a special correspondent for Automotive News | |
J.D. Power and Associates has reaffirmed that the dealership F&I experience has a big effect on what customers think of the factory and the lender that finances the deal.
The research and consulting firm is about to unveil results of the 2012 Consumer Financing Satisfaction Study. The survey was redesigned and revived after a four-year hiatus. Paid subscribers to the study were expected to see the results starting Tuesday, Dec. 11. J.D. Power planned to release excerpts to the public Thursday, Dec. 13.
Based on a separate survey, the 2012 Dealer Financing Satisfaction Study, there's also a high correlation between dealers' satisfaction with auto lenders and customers' loyalty to the same lenders, J.D. Power said.
After all, the "dealer finance manager plays a strong role in recommending lenders and impacts lender retention," J.D. Power said in a written presentation last week.
These are good arguments, if any are needed, for factories and lenders to make nice with dealerships.
F&I PRESS RELEASES
» Auto Affordability Better In Third Quarter, Comerica Bank Reports
| | |  | | |
F&I BY THE NUMBERS
Subprime loans recover ground
Subprime's share of third-quarter loan and lease originations increased for the third year in a row, but it's still below the third quarter of 2007, just before the downturn. Subprime is defined as scores below 680 on Experian's ScorexPlus credit scale. | | | | | | | Q3 data: | Subprime | | Prime | | 2012 | 42.1% | | 57.9% | | 2011 | 39.9% | | 60.1% | | 2010 | 36.7% | | 63.3% | | 2009 | 34.0% | | 66.0% | | 2008 | 40.2% | | 59.8% | | 2007 | 43.4% | | 56.6% | | | Source: Experian Automotive |
|
|
|
|  | | >> 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