MENU
SEARCHSome lenders say the recent legal settlements limiting undisclosed surcharges on loans may delay the elimination of the surcharges by validating the overall concept.
Some lenders say the recent legal settlements limiting undisclosed surcharges on loans may delay the elimination of the surcharges by validating the overall concept.
The latest settlements with four lenders received preliminary approval from a federal judge in U.S. District Court in Nashville, Tenn., reported The Charlotte Observer.
The lenders agreed to cap the amount of the surcharge that dealers can add to loans, and to require that dealers tell customers clearly that a surcharge may be included in the price of the loan. But dealers are not required by the lenders to disclose the amount of any surcharges.
Markups have never been popular with lenders because they are essentially interest-free loans given to the dealer and repaid by the customer. But lenders say they must offer dealers the ability to charge markups to compete for their business, the newspaper reported.
About 75 percent of auto lenders sometimes pay dealers a flat fee, according to a study by the Consumer Bankers Association. About 75 percent also sometimes pay dealers a markup. On average, the lenders allow a maximum markup of 3 percentage points.
The settlement sets a maximum markup of 2.5 percentage points on auto loans by Bank of America, JP Morgan Chase & Co. and U.S. Bancorp. Other lenders have agreed to similar limits.
For dealer-owned reinsurance entities, avoiding volatility entirely can mean falling behind inflation and missing market rebounds that drive long term surplus growth. Missing just a handful of strong market days can materially impact cumulative returns—an important reminder for long horizon trust and investment strategies.
Read More →
In this video, Ryan Ruff explains the rule that elite sales professionals use to turn ordinary conversations into unforgettable customer experiences.
Read More →
What’s the atmosphere saying about you to your customers? You can make minor adjustments and additions that transform your space into one that creates trust with the people on the other side of the desk.
Read More →
How can auto dealerships help F&I managers fulfill their vital role in the most effective ways? Industry expert Rick McCormick shares his insights on the best ways to train these professionals and help them maintain good habits.
Read More →
More consumers and businesses are opting for all-season options for various reasons as safety, sustainability and convenience push practical change.
Read More →
It’s time to take the next digital step to free F&I managers to handle the most challenging aspects of customer meetings.
Read More →
Some of it should be given to the customer, but that doesn’t mean the F&I office relinquishes the process. In fact, a different approach both builds trust and boosts sales.
Read More →
Talk to F&I customers like you’d talk to a friend, without industry lingo or sales-like questions, and use hard proof to show, not tell, them about a need.
Read More →
Helping F&I customers understand complementary offerings is likely to lead to more sales, based on the success of a high-performing practitioner of the philosophy.
Read More →