| | | WEEKLY REPORT | January 23, 2013 |
| | | | | | | GAP prices should stay steady despite Sandy
GAP claims likely are spiking because of October's Hurricane Sandy, but some experts say that probably won't lead to any immediate increase in pricing for GAP for dealers or customers. In the long run, insurers may feel some upward pressure on pricing, but any effect on wholesale pricing to dealers should be small and gradual -- and maybe not even noticeable, said Tony Wanderon, an expert on ...  story
| Q&A
Warrantech hunts automaker tie-ups
 Warrantech Corp. expects to pursue more relationships with automakers this year, says Chris Murphy, executive vice president of sales for the automotive sector. He also says dealers can expect more regional pricing for tire-and-wheel policies since claims vary a lot from region to region. Sales in the service lane are another growing trend. ... story
| Banks boost auto lending
 Wells Fargo and Chase, two of the biggest auto lenders, continued to expand in the fourth quarter, while regional player Huntington Bank posted record volume. For dealers that means no letup in sight in the competition for their business among banks, captive finance companies and credit unions. ... story
| Chrysler near a deal for preferred lender
 Chrysler Group is close to signing a new preferred auto lender that promises to boost leasing for dealers. Chrysler-Fiat CEO Sergio Marchionne said the automaker is "in the final stretch" of negotiations with the financial services provider, which he did not name. ... story
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Store loses arbitration bid in suit over fees
A California dealership cannot force a customer to arbitrate his individual and class-action allegations of illegal fee collection and other claims, a state appellate panel has ruled.
Mandatory arbitration provisions in Stephen Norton's sales contract ... >> Story
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F&I BY THE NUMBERS
Auto loans rise
Auto loan originations increased in the fourth quarter from a year ago for Chase Auto Finance, Huntington Bank and Wells Fargo -- three of the biggest auto lenders. Dollars in billions. | | | | | | Bank | Q4 2012 | Q4 2011 | Change | | Chase Auto Finance | | | | | Originations | $5.50 | $4.90 | 12% | | Outstanding | $49.91 | $47.43 | 5% | | | | | | Huntington Bank | | | | | Originations | $0.88 | $0.78 | 12% | | Outstanding | $4.63 | $4.46 | 4% | | | | | Wells Fargo
Dealer Services | | | | | Originations | $5.4 | $5 | 8% | | Outstanding | $43.84 | $39.65 | 11% | | | | | | | Sources: The companies |
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JIM HENRY
Subprime lenders court Orlando magic
| |  | Jim Henry is a special correspondent for Automotive News | |
Dealers shopping for subprime lenders could wear out some shoe leather at the upcoming NADA Convention & Expo in Orlando next month.
Two years ago, I wrote that the list of NADA Expo exhibitors on the nada.org Web site that were subprime specialists was a little thin. That improved last year. It’s early yet, and this year’s list already is longer by one newcomer, Atlanta-based Global Lending Services, launched last summer.
Returning to the convention are American Credit Acceptance, Consumer Portfolio Services Inc., GM Financial, Nationwide Acceptance Corp., Santander Consumer USA Inc. and Westlake Financial Services.
Standard & Poor’s Ratings Services said at a conference in New York last week it expects prime and subprime auto lenders combined to raise about $75 billion from the sale of asset-backed securities in 2013 to make new loans, a 10 percent increase from 2012.
Subprime has been accounting for a bigger piece of that pie. In 2012, subprime issuers accounted for 27 percent of the total, up from 24 percent in 2011, the ratings agency said. That means that heading into next month’s convention there’s plenty of money available for subprime auto loans.
F&I PRESS RELEASES
» Toyota/Lexus Financial Services Kicks Off 2nd Annual 'GoGreen' Campaign, and Pledges Up To $100,000 for Boys & Girls Clubs of America
» Preferred Warranties Website Overhaul Draws Enthusiastic Response From Dealers
DEALER JOB LISTINGS
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F&I BY THE NUMBERS
ABS market still on rebound
There's plenty of money available for subprime auto loans, thanks to increasing volume in asset-backed securities. The ABS market is where subprime lenders primarily raise money to make new loans. In effect, lenders sell to investors the future income from a bundle of existing loans. Dollars in billions. | | | | | | U.S. subprime ABS originations | Year-ago
change | | 2012 | $18.5 | 57% | | 2011 | $11.8 | 35% | | 2010 | $8.7 | 236% | | 2009 | $2.6 | 19% | | 2008 | $2.2 | -86% | | 2007 | $15.3 | -29% | | | | | | Source: Standard & Poor's |
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