WEEKLY F&I REPORT: Rosy outlook for auto loans | Toyota Financial's risky lease strategy pays off at dealerships | New Lincoln captive ranks best in luxury leasing

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WEEKLY REPORT December 19, 2012 Tell a colleague about this newsletter         Contact Us            Rosy outlook for auto loans Several factors look good for auto finance growth in 2013, TransUnion says. They are low interest rates, low delinquencies, more and bigger auto loans, sharper competition among auto lenders, and high replacement demand. ...  story  Q&A Toyota Financial's risky lease strategy pays off at dealerships In the past few years, Toyota Financial Services CEO George Borst has outlined in speeches and interviews the benefits of sticking with leasing during the downturn when most other auto lenders cut back or even fled the business. ...  story  New Lincoln captive ranks best in luxury leasing Ford Motor Credit and its year-old Lincoln Automotive Financial Services unit were winners in leasing in the 2012 Consumer Financing Satisfaction Study from J.D. Power and Associates. ...  story  A woman's touch is rare in F&I Several dealers say they would like to hire more female F&I managers. But for a variety of reasons women in F&I are few and far between. ...  story            F&I BY THE NUMBERS Best, worst lenders J.D. Power and Associates, after a 4-year hiatus, revived and redesigned the Consumer Financing Satisfaction Study for 2012. The last CFS study was completed in 2008. The study rates consumer satisfaction with auto lenders on a 1,000-point scale. Many lenders were not ranked due to small sample size. To be ranked, a lender needed at least 100 complete surveys. Volume brands Highest Ranked /Score Lowest Ranked /Score Loan VW Credit/865 Fifth Third Bank/662 Lease Ford Credit/827 Nissan Motor Acceptance Corp./745 Luxury brands Highest Ranked /Score Lowest Ranked /Score Loan Mercedes-Benz Financial Services/853 Bank of America/745 Lease Lincoln Automotive Financial Services/826 Infiniti Financial Services/760 Source: J.D. Power   JIM HENRY Keep deals square at tax refund time   Jim Henry is a special correspondent for Automotive News Add the start of tax season to those holiday milestones that seem to get earlier every year, like Christmas decorations right after Halloween. It’s still December, and I have already read a couple of online articles on tax refund season, aimed at buy-here, pay-here dealerships. The idea is that tax refund time is the best time all year for the hardest-up customers to make a down payment on a car -- maybe the only time they can afford it. This isn’t limited to buy-here, pay-here dealers. Mainstream subprime auto lenders also report that tax refund time is their busy season. Tax time is earlier than you may think. Most of us associate April 15 with taxes, but according to H&R Block, taxpayers who can’t wait can start filing electronic tax returns as early as Jan. 22. (That sounds early, but it’s actually about a week later than in 2012, H&R Block said.) Here’s hoping that the vast majority of dealers and lenders continue to show some restraint with the poorest customers. Square dealing can head off tougher regulations, and besides, it’s good business in the long run.   DEALERS, LENDERS: A WORKING RELATIONSHIP What dealers want from lenders ... These items topped dealers' financing wish lists in interviews and panel discussions at F&I conferences in the past two years. ...  story  ... What lenders want from dealers These items topped lenders' wish lists in interviews and panel discussions at F&I conferences in the past two years. ...  story  F&I PRESS RELEASES » Credit Union Member Rewards Program, General Motors Reach Landmark of 500,000 Vehicles Sold » Toyota Financial Services Announces Promotions of Six Senior Executives » Settlement with FTC Puts Alleged Marketer of Fraudulent Auto Loan Modifications Out of Business     F&I BY THE NUMBERS Delinquencies poised to rise in 2013 TransUnion expects a small increase in auto loan delinquencies of 60-plus days next year, but the rate would still be lower than it was two years earlier. 2013 estimates Auto loans 60+ days delinquent Change from a year ago Change from 2 years ago Q4 0.37% 2.8% -19.6% Q3 0.39% 2.6% -17.0% Q2 0.33% 0.0% -25.0% Q1 0.34% -5.6% -30.6% 2012 Q4* 0.36% -21.7% -39.0% Q3 0.38% -19.1% -34.5% Q2 0.33% -25.0% -37.7% Q1 0.36% -26.5% -45.5% 2011 Q4 0.46% -22.0% -43.2% Q3 0.47% -19.0% -42.0% Q2 0.44% -17.0% -39.7% Q1 0.49% -25.8% -41.0% * Estimate Source: TransUnion >> Unsubscribe from this newsletter                        Copyright © Automotive News                        Designed by Templatesbox.com Automotive News is located at 1155 Gratiot Ave., Detroit, Michigan, 48207