F&I REPORT: Pa. store to pay more than $2M for fraud | Dealers balance rapport, efficiency | N.Y. stores fined for deceptively selling F&I add-on product | Will rising rates threaten captive share?

TODAY'S F&I TIP Pose F&I products as reactive and proactive choices when selling to lease customers. Scroll down. September 5, 2018 View in a Web browser | Forward to a colleague
Pennsylvania dealership to pay more than $2 million after bank fraud scheme A Pennsylvania dealership has agreed to pay more than $2 million in fines and restitution after bank fraud accusations. Dealers refine the balance between rapport and efficiency Dealers and an F&I director share strategies for keeping customer conversations positive and the F&I workflow moving. BLOGS JACKIE CHARNIGA Could rising interest rates threaten captives' market share? One-time, short-term incentives could become a more equitable approach to spiffs than subvention for automakers and captives. Two New York dealerships ordered to pay for deceptively selling F&I add-on product Two New York dealerships have been ordered to stop deceptively selling vehicle etch products to customers. The dealerships will also be required to pay restitution, damages and civil penalties, the New York attorney general's office said. Monthly payments hit record high in Q2 Monthly payments for new- and used-vehicle loans hit record highs during the second quarter, but customers are still making their payments on time, Experian said. 0 percent interest deals face sunset A financing tradition established by GM after the Sept. 11 attacks is seeing its sunset as interest rates rise. In July, 0 percent financing dipped to its lowest level for any July since 2005. Quarterly webinars take place on Wednesdays at 2 p.m. ET. ARCHIVED WEBINARS Santander to settle consumer watchdog auto-finance claims, report says Santander agreed to settle claims by the Bureau of Consumer Financial Protection that it misled drivers about the costs of auto loans and the coverage of related insurance policies, Reuters reported, citing three people with direct knowledge of the matter. Advertisement CNA National Voted #1 for Over a Decade When our company started over 35 years ago, we decided right from the start to focus on being the best F&I provider, rather than the biggest. That's why we have been voted Best Service Contract Provider or Best Reinsurance Provider in the Dealers' Choice Awards for 13 years. We are committed to delivering a hassle-free claims experience, so service advisors can spend more time focused on their customers. Plus, our dealers have earned over $600 million in participation programs. Contact us at info@cnanational.com, or visit www.cnanational.com to learn more. BY THE NUMBERS Average new-vehicle interest rate, down payment rise in August The average interest rate on new-vehicle financing rose 1 percentage point in August as the number of 0 percent offers continued to decline. The average amount financed and down payment also increased on new-vehicle loans last month.   August 2018 August 2017 Term (in months) 68.74 69.33 Monthly payment $536 $507 Amount financed $30,972 $30,473 APR 5.81 4.85 Down payment $3,967 $3,667 Source: Edmunds SPONSORED CONTENT F&I Represents the 2nd-Largest Opportunity for Margin Growth Protective Asset Protection, a provider of F&I programs, services, and dealer-owned warranty programs, released a survey addressing dealer concerns and opportunities with F&I product offerings. Behind financing, additional F&I offerings represent the second-largest opportunity for margin growth for dealers (57.6%). The results show that the majority of dealers are concerned with falling auto sales, as well as dealership consolidation and administrative challenges to their current roster of F&I products. Learn more about the dealer survey results here. F&I TIP Explain how F&I products benefit lease customers Remind lease customers of their primary responsibilities: making payments, maintaining the vehicle, keeping insurance in force and returning the vehicle in satisfactory condition, said F&I trainer Gerry Gould. Then explain how F&I products can help in a reactive or proactive way. “Reactive includes product that pays for the repair or replacement as the lease matures, while proactive pays for excess wear and use at the lease end.” ... » GO TO ACCESS F&I  > Have a good F&I tip to share? Email Hannah Lutz at hlutz@crain.com MOST-READ F&I STORIES (last 7 days) 1. Santander to settle consumer watchdog auto-finance claims, report says 2. 0 percent interest deals face sunset 3. Sonic to pilot online financing tool 4. Most recent car buyers deem F&I process transparent 5. Senate panel votes to advance Trump pick to head consumer watchdog F&I PRESS RELEASES Equifax Helps Banks Become CECL Compliant with SmartReserve Fair Sees 40% Month-Over-Month Customer Growth Like what you see in this newsletter? Get 24/7 access to trusted, in-depth news you can't find anywhere else. SUBSCRIBE NOW Connect with Automotive News Cars & Concepts OEM/Suppliers Dealers Data Center Blogs Events Click here to unsubscribe from this newsletter. Manage your email preferences. Automotive News 1155 Gratiot Ave. Detroit, MI 48207-2997 United States customerservice@autonews.com

Share this post