| | | WEEKLY REPORT | December 5, 2012 |
| | | | | | | Direct-loan channels expand, but no big impact on dealers -- so far
 Consumers have more and more opportunities to apply for direct loans online, but so far, direct loans don't seem to be making much of a dent in indirect loans negotiated at the dealership. That's an important distinction for dealerships because they typically make more from dealer reserve on indirect loans, in which the dealership earns a cut of the interest-rate profit, than they do from flat ...  story
| Q&A
With F&I, 'You can't hire from your gut'
 Dealers often complain about high turnover in the F&I department and elsewhere. But some dealers can be their own worst enemies in that regard, dealership trainer Becky Chernek says. ... story
| Subaru, Nissan look to avoid 84-month loans
 Executives for a couple of brands say they are reluctantly going along with consumer demand for longer-term loans, but they're still trying to draw a line and avoid going to 84-month paper. ... story
| New-car subprime financing, leasing grow
 The market share for nonprime, subprime and deep subprime lending for new vehicles expanded 13.6 percent in the third quarter over the same period a year ago, according to a report by Experian Automotive. ... story
| | |
| | | | |  | | |
F&I BY THE NUMBERS
Leasing rebounds at Nissan, Infiniti
Leasing, which took a hit during the downturn, is on the rebound at Nissan Motor Acceptance Corp., the captive finance unit for Nissan and Infiniti. | | | Nissan | | | | As of: | Lease contracts outstanding | Year-ago change | | June 30, 2012 | 405,471 | 12% | | | | | | Fiscal year-end (March 31) | | | | 2012 | 392,823 | 11% | | 2011 | 354,300 | 2% | | 2010 | 346,451 | -12% | | 2009 | 392,751 | -3% | | | | | | Infiniti | | | | As of: | Lease contracts outstanding | Year-ago change | | June 30, 2012 | 133,312 | 9% | | | | | | Fiscal year-end (March 31) | | | | 2012 | 127,196 | 4% | | 2011 | 122,715 | -1% | | 2010 | 123,799 | -16% | | 2009 | 147,404 | -11% | | | | | | | Source: NMAC |
|
|
|
| | | | |
JIM HENRY
Low delinquencies help dealers
| |  | Jim Henry is a special correspondent for Automotive News | |
Although delinquencies have shown a slight uptick lately, dealers should appreciate that late payments are still near historic lows.
Delinquencies are “defying gravity,” says Peter Turek, automotive vice president for TransUnion’s financial services business unit.
By that he means delinquencies remain low despite the recent increase in subprime lending. That’s partly because since the recession, households are being more careful about paying their bills on time.
That’s not just of academic interest to dealerships. Turek said low delinquencies are a direct benefit to dealers because low delinquencies encourage lenders to keep credit more easily available.
He said dealers also play a role in keeping delinquencies low by matching borrowers with “appropriate” vehicles, rather than encouraging them to stretch to buy cars they really can’t afford.
So the next time a customer wants to stretch, F&I managers should resist the urge and tell them to stick to their budget. Right?
R-i-i-i-i-ight.
WEBINAR
On our Web site today: Selling service contracts in service lane
Management buy-in is the key to success in selling extended-service contracts in the service lane, according to F&I trainer Rick McCormick. He is scheduled to conduct an Automotive News PowerTRAINING webinar today, Dec. 5, called “The Secret to Selling Service Contracts in the Service Drive,” starting at 2 p.m. Eastern. ... story
|
DEALER JOB LISTINGS
| | |  | | |
F&I BY THE NUMBERS
Delinquencies rise at GM Financial
Loans delinquent 30-plus days rose at GM Financial, the former AmeriCredit, in the third quarter for the first time since 2009. However, the level of delinquent loans remains lower than at the peak of the downturn. | | | As of: | Amount outstanding (billions) | % delinquent | | Sept. 30, 2012 | $10.85 | 7.1% | | Sept. 30, 2011 | $9.44 | 6.4% | | | | | | Year-end: | | | | 2011 | $9.68 | 7.2% | | 2010 | $8.65 | 8.6% | | | | | | Fiscal year-end (June 30) | | | | 2010 | $8.73 | 8.9% | | 2009 | $10.93 | 10.4% | | 2008 | $14.98 | 8.9% | | 2007 | $15.95 | 6.8% | | | | | | | Source: GM Financial |
|
|
|
|  | | >> 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