P&A Online

April 7, 2010

Welcome to P&A Online, a monthly eMagazine dedicated to the interests and concerns of providers and administrators of automotive finance and insurance products.

P&A Online is your source for industry news and updates as well as original feature articles to keep you well-informed of best practices and trends.

Be sure to visit P&A's website at www.pa-magazine.com regularly for the latest updates.

You can also join the P&A Linkedin Group here.

Subscribe to P&A Online's eMagazine FREE

Providing Comprehensive Service to Dealers through Online Solutions

In the last issue, we discussed the options available for connectivity to menu systems. It is clear that the safest route is to connect to all menus. Unfortunately, this is also the most technically challenging and complex solution to deliver; it requires a standard interface …

Read Full Story »

Beyond the Failure Rate: How Psychology Impacts VSC Claims

When an administrator develops a new product, the actuary must simultaneously find a price that will be competitive in the marketplace, incentivize production and provide enough funds to settle all the claims. While all these concerns are critical, it is …

Read Full Story »

Great Product Needs Great Process

As providers of F&I products, you’ve invested capital in the creation of a suite of offerings that you must now turn into revenue. To realize this revenue, you must consider a crucial component that is largely out of your control: the dealership – and more specifically …

Read Full Story »

Today’s Challenges Require an Investment in Knowledge

These are interesting times we live in. Who would have thought just a few short years ago that today two of the Big Three automakers would be largely owned by the U.S. government? Who could have guessed that GMAC would provide wholesale financing for Chrysler?

Read Full Story »

Interstate National Launched as Umbrella Holding Company

ATLANTA, Ga. – The formation of Interstate National, a portfolio company of Golden Gate Capital, was announced as an umbrella holding company to house a family of seven powerful brands. Interstate National Corp. (IN) comprises Interstate National Dealer Services, National Warranty Corp./Payment Insured Plan, Inc., MBAC, Provida Group, RpmOne and INDS Canada. “This umbrella company will offer ... Read More »

Ford Motor Credit Sells Bonds as Junk Rallies for 14th Month

Ford Motor Co.’s finance arm sold $1.75 billion of five-year debt, taking advantage of investor demand for high-yield bonds, on pace for the longest rally since 1996, Bloomberg reported. Ford Motor Credit Co., the biggest issuer of speculative- grade securities last year and the only one of the three largest U.S. automakers to avoid bankruptcy, ... Read More »

GMAC Financial Services Selected as the Preferred Retail Finance Provider for Thor Industries

DETROIT - GMAC Financial Services today announced that it will provide consumer financing for recreation vehicles and has been selected by Thor Industries as the preferred financial provider for its retail customers. Thor is the world’s largest manufacturer of recreation vehicles, including brands such as Damon, Four Winds, Airstream, Dutchmen, Komfort, Breckenridge, CrossRoads, General Coach and ... Read More »

P&A Magazine Names Jacobi Publisher

Diana Jacobi has been named the publisher of P&A Magazine. She brings more than 10 years of experience in the automotive finance industry. Jacobi earned a degree from Indiana University and has served in accounting, marketing and management roles for a number of organizations throughout her career. “I am looking forward to addressing the needs of providers ... Read More »

Daimler, Renault-Nissan Create Partnership for Small Cars, Powertrains

TOKYO – Daimler AG, Renault SA and Nissan Motor Co. agreed to a global share-swapping alliance that will have the German automaker and its French-Japanese partner cooperating on the development of small cars, commercial vehicles and future powertrains, Automotive News reported. Under the agreement, Daimler plans to take a 3.1 percent stake each in Nissan and ... Read More »

GM Reports $4.3 Billion Loss

DETROIT - General Motors Co. incurred a $4.3 billion loss in the second half of 2009 as the company grappled with weak U.S. sales and began to repay government loans, reported The Wall Street Journal. Despite the loss, Chief Financial Officer Chris Liddell said GM still stands a good chance of being profitable in 2010 ... Read More »

Automaker Pensions Underfunded by $17 Billion

DETROIT - The pension plans at General Motors and Chrysler are underfunded by a total of $17 billion and could fail if the automakers do not return to profitability, according to a government report released Tuesday, The New York Times reported. Both companies need to make large payments into the plans within the next five ... Read More »

Toyota Doesn’t See Incentives Above March Levels

Toyota Motor Corp. officials haven’t decided how long to offer generous incentives to bolster demand but said they did not expect discounts to exceed the high levels in March, The Detroit News reported. “In March, we thought it was important to see customers driving Toyota vehicles and feeling that they were safe,” Takahiko Ijichi, senior ... Read More »

UAW Suit Says GM Owes $450 Million

The United Auto Workers union sued General Motors Co. in federal court Tuesday, contending the Detroit automaker owes a union-run retiree health care fund $450 million, The Detroit News reported. The suit, filed in U.S. District Court in Detroit, contends that General Motors Corp. agreed in June 2007 to pay $450 million to settle a ... Read More »

AutoNation Lifts First-Quarter Profit Forecast

AutoNation Inc. increased its profit forecast for the first quarter, a sign that the auto retailer is seeing continued gradual improvement from the bottom of the recession, The Wall Street Journal reported. The company, which is based in Fort Lauderdale, Fla., said it now estimates it earned 32 cents to 35 cents a share during ... Read More »

Toyota Widens Free Maintenance, Extends 0% Loan Offer

LOS ANGELES – Toyota Motor Corp. is extending no-interest loans and discount leases for another month on some U.S. models and expanding an offer of two years of free maintenance to hold onto sales gains after record recalls, Automotive News reported. The incentives include zero-percent financing for as long as five years on 2010 Camry, ... Read More »

Reynolds Adds New Capability for Dealerships to Market Vehicle Inventory on Facebook

DAYTON, Ohio – The Reynolds and Reynolds Co. has announced the availability of "MyShowroom" - a new, additional mobile marketing feature from Reynolds Web Solutions that enables dealerships to easily display their new- and used-vehicle inventories on Facebook. Mobile marketing solutions from Reynolds Web Solutions already extend the marketing reach of a dealership’s online vehicle inventory by making their ... Read More »

Cast Your Vote

Question 1: How many people touch a service contract claim from origination to payment?

Question 2: How long, on average, is a service contract claim open?

Question 3: From whom do you recover cancellation refunds when a dealer has gone out of business?