P&A Online

January 19, 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.

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SaaS or Build: Which Admin System Is Best For You?

While internally developed IT systems may be the right approach for some providers and administrators, outsourced solutions are another option worth considering…

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Independent Inspections Offer Expertise and Efficiency

The mechanical damage inspection industry has gone through dramatic changes in the last 25 years since the need for an independent inspection process became evident.

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National Suppliers Strengthen Providers' Relationships

If you are managing a number of dealerships by state, region or nationally, it might be time to consider a national supplier to offer a product line you do not currently offer…

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F&I Admin Execs: Connectivity, Service and Efficiency Are Keys to Greater Market Share

Trinder and Kathinokkula explain how the industry can pick itself up even when sales volumes are down. Despite the tough times the auto industry has been facing, David Trinder …

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The Time for Self-regulation Is Now

Regulations are a fact of life for businesses in the automotive industry, and providers of vehicle service contracts and other value-added products are no exception. Fortunately, we still have time to take the initiative …

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Edmunds.com Advises Consumers to Buy GAP Coverage

Edmunds.com is urging consumers to purchase GAP as part of its Auto Finance tips and advice column. The online resource for automotive information issued its recommendation Jan. 15. We strongly recommend GAP insurance for anyone who leases a vehicle, makes a down payment of less than 20 percent, finances a lengthy loan term or a vehicle [...] Read Full Story

Congressional Panel Criticizes GMAC Bailout

WASHINGTON – The Congressional Oversight Panel is criticizing the government’s $17.2 billion bailout of GMAC that’s come in three separate rounds — with the latest $3.8 billion infusion on Dec. 30. In doing so, the Treasury Department acquired a 56 percent majority stake in the company, up from its 35.4 percent stake, reported The Detroit [...] Read Full Story

Obama Wants Banks to Pay for Auto Bailout Losses

The White House wants the nation’s largest financial institutions to repay taxpayers for the costs of bailing out banks and automakers, reported The Detroit News. Under the proposal, the largest 50 banks — including GMAC — would pay $90 billion over 10 years to cover taxpayer losses under the $700 billion Troubled Asset Relief Program. Despite [...] Read Full Story

US Fidelis Purchased by Service Contract Financer, Faces Civil Suit

Chicago-based Mepco Finance Corp. has purchased the Wentzville, Mo.-based property of US Fidelis at a foreclosure auction held outside of St. Charles County’s courts administration building, reported the St. Louis Post-Dispatch. Mepco, a subsidiary of the publicly traded, Michigan-based Independent Bank Corp., financed most of the extended auto-service contracts sold by US Fidelis, which once claimed [...] Read Full Story

Japan to Allow U.S. Vehicles in its ‘Clunkers’ Program

WASHINGTON – Japan’s embassy has announced that the country will open its “cash for clunkers” program to Detroit’s Big Three automakers, reported The Detroit News. The Japanese Embassy, under heavy pressure from Congress, defended its program as nondiscriminatory but agreed to let Detroit’s Big Three take part. The three automakers use special import rules to sell [...] Read Full Story

Sonic Automotive Completes $521 Million in Credit Facilities

CHARLOTTE, N.C. - Sonic Automotive Inc. has entered into new syndicated credit facilities with various financial institutions that mature in August 2012. In addition, Sonic has entered into new floorplan arrangements with several manufacturer-affiliated finance companies for floorplan financing of both new and used vehicles. These new lending arrangements replace Sonic’s existing syndicated credit facility, which [...] Read Full Story

Spyker Cars Said to Be Lone Remaining Bidder for GM’s Saab Unit

Dutch supercar maker Spyker Cars NV is the lone remaining bidder for General Motors Co.’s Saab Automobile unit, two people close to the situation told Bloomberg.com. Saab is among four brands, along with Pontiac, Saturn and Hummer, that the Detroit-based automaker is unloading to focus on Chevrolet, Buick, GMC and Cadillac in the U.S. after its [...] Read Full Story

GM to pay ex-Wall Street Analyst $900k a Year in Stock

General Motors Co. will pay former Wall Street analyst Stephen Girsky $900,000 per year in company stock for his services as adviser to the chairman, reported The Associated Press. The automaker said in a filling with the Securities and Exchange Commission that Girsky will get $75,000 per month in stock as part of the company’s employee [...] Read Full Story

Congress Puts Pressure on Japanese ‘Clunkers’ Program

WASHINGTON – A group of 40 House Democrats — part of the New Democrat Coalition — wrote a letter Friday to the Japanese ambassador to the United States, Ichiro Fujisaki, calling for the country to allow U.S. manufacturers to participate in Japan’s “cash for clunkers” program, while Congress is planning two hearings on the issue [...] Read Full Story

Western Sierra and Experian Help Dealers Reach Creditworthy Consumers

SCHAUMBURG, Ill. — Western Sierra Acceptance Corp., a consumer lender based in Northern California that specializes in automotive financing, and Experian Automotive will provide credit prescreen services to dealers to help them more easily and effectively market to auto finance consumers. Using Experian’s credit prescreening service, iScreen, enhances Western Sierra’s wide range of automotive services available [...] Read Full Story

Nationwide Acceptance Corp. Joins RouteOne

FARMINGTON HILLS, Mich. — RouteOne LLC has completed integration with independent subprime lender Nationwide Acceptance Corporation (NAC) and dealers in all markets served by NAC may now process credit applications electronically to NAC through the RouteOne platform. NAC comprises a group of companies specializing in the underwriting and point-of-sale purchase of nonprime and subprime automobile sales [...] Read Full Story

Auto ABS Performs Well in 2009 Despite Pressure from High Unemployment

The U.S auto loan ABS sector has performed relatively well in 2009 compared to other ABS asset classes despite the increase in unemployment, bankruptcies of GM and Chrysler and the volatility in the used car market, according to ratings firm DBRS. Late 2008 and 2009 vintages in particular are performing better than 2006 through early 2008 [...] Read Full Story