| | | WEEKLY REPORT | January 2, 2013 |
| | | | | | | What will define F&I in 2013
 As 2013 gets under way, here are five F&I trends that experts say merit watching in the months ahead. The last two, greater volume and sharper competition, began in 2012 but are expected to accelerate as the year progresses. ...  story
| Q&A
BMW captive: Dealers want more than best price
 It's no accident that BMW Group Financial Services is an early mover in e-contracting and the use of iPads in the F&I office, and also No. 1 in dealer satisfaction,. So says Shaun Bugbee, vice president of sales and marketing at the captive finance company, based in Woodcliff Lake, N.J. ... story
| Credit unions gained ground in 2012
Credit unions are regaining share in auto lending. During the recession and credit freeze, credit unions gained share when banks and even some captive finance companies pulled back on auto lending. Credit unions lost share when the captives and banks came back. ... story
| Tailoring F&I to growing Hispanic market
 Auto dealers in markets with large Hispanic populations learned long ago that they often need to communicate with customers in Spanish. But the growing economic influence of Hispanic consumers in other markets means more dealerships must develop that capability. ... story
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F&I BY THE NUMBERS
Volvo, Lexus and Acura draw borrowers
with top-notch credit scores
Experian Automotive ranked brands by the credit score of consumers who originated new-vehicle loans in the third quarter of 2012. The credit bureau considers 740-plus to be superprime and 680-739 to be prime. Below prime are three categories of subprime based on Experian's ScorexPlus scale. | | | | Top 10 brands | Borrowers'
average credit score | | 1. Volvo | 818 | | 2. Lexus | 816 | | 3. Acura | 813 | | 4. (tie) Audi | 810 | | Infiniti | 810 | | Jaguar | 810 | | Porsche | 810 | | 8. (tie) Land Rover | 802 | | Mercedes-Benz | 802 | | 10. Lincoln | 801 | | | | Bottom 10 brands | Borrowers'
average credit score | | 1. Mitsubishi | 694 | | 2. Suzuki | 704 | | 3. Dodge | 718 | | 4. Kia | 721 | | 5. Scion | 723 | | 6. Nissan | 726 | | 7. (tie) Chevrolet | 737 | | Chrysler | 737 | | Ram | 737 | | 10. Fiat | 741 | | | Source: Experian Automotive |
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JIM HENRY
Time to take a risk
| |  | Jim Henry is a special correspondent for Automotive News | |
Suggesting a New Year’s resolution for someone else is risky business, but to me 2013 is the year dealerships should resolve to sell extended-service contracts in the service lane.
As an outsider, I may underestimate how hard it is to rejigger pay plans and job descriptions and adopt anything new in general.
But electronic menus and other computer programs make it much easier for service writers to wear two hats. The usual complaint is that service writers don’t have time to do a good job in service and a good job selling extended-service contracts. The process doesn’t have to be that time-consuming.
Also, the concept makes so much sense from a consumer point of view. Who better than a service customer to “get” the need for an extended-service contract?
Finally, all signs point to a relatively benign market for U.S. auto sales in 2013. Sales forecasts are up. Interest rates are low. Pent-up demand is high. Credit is available.
Maybe 2013 is the year to disprove how good habits are forged in bad times, and bad habits are forged in good times. Doesn’t it make more sense to acquire a “good” habit, like selling in the service lane, in a “good” year, when there’s less life-or-death pressure for it to succeed right away?
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F&I BY THE NUMBERS
Why consumers contact finance providers
Problems with payments were the biggest reason customers cited for contacting their finance providers, according to J.D. Power and Associates' 2012 Consumer Financing Satisfaction Study. Problems related to dealerships were relatively far down the list. | | | | Reason for contacting lender | % of customers who cited | | Issue posting a payment | 23% | | Did not receive/late statement | 11% | | Issue with late fee | 7% | | Dealership issue/complaint | 6% | | Collections issues | 6% | | Web site down, malfunctioning | 5% | | Insufficent time between bill and due date | 4% | | Incorrect account info | 3% | | Looking to refinance | 2% | | | | | Source: J.D. Power and Associates |
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