Marcie Belles's Blog – July 2009 Archive (13)

History Repeating

A year after exiting the leasing sector, GM is already talking about a return.

GM Vice Chairman Bob Lutz said earlier this week that the automaker would likely start to lease again, as early as Aug. 1. Though details have yet to be finalized, Lutz said GM would focus on leasing for luxury vehicles — those with higher sticker prices that consumers generally have a harder time paying for in full.

“We will get back into leasing, but we are not going to use massive subsidized… Continue

Added by Marcie Belles on July 30, 2009 at 1:00pm — 2 Comments

Price Points: New Deals and Offers as of July 30

Here’s a look at some recent auto loan programs:

GMAC

Program: Leasing, to start as early as Aug. 1

Details: Specifics are still being hammered out, but leases would probably be available on luxury vehicles like the Cadillac CTS.

• • •

Mazda

Program: "Cash for Clunkers" Add-On

Details: $500 cash incentive on top of the $3,500 or $4,500 CARS incentive.

• • •

Pentagon Federal Credit… Continue

Added by Marcie Belles on July 30, 2009 at 11:30am — No Comments

A Good Sign?

Go figure. Sales of light vehicles are lagging, yet the latest figures from an index of motorcycle and recreational and marine vehicle stocks are on the rise.

The Recreational Vehicle Stocks Index, which includes Winnebago [ticker: WGO], Harley Davidson [ticker: HOG], and Marine Products [ticker: MPX], among others, climbed 20% last month, according to investing web site Tickerspy.com. The index outpaced the S&P 500 by 12%,… Continue

Added by Marcie Belles on July 28, 2009 at 12:00pm — 1 Comment

Auto Finance Summit Debuts Leasing Track

To address the disarray in the leasing sector, the Auto Finance Summit has developed a specialized track of sessions geared toward lessors.

Speakers will discuss topics like what the retrenchment of the Detroit Three means for leasing and the latest in fleet financing. A trio of panelists will address collateral values, with specific insights on what’s new from the auction lanes and a report on residual values.

Attendees will also hear finance company senior… Continue

Added by Marcie Belles on July 24, 2009 at 4:00pm — 3 Comments

Price Points: New Deals and Offers as of July 23

Here’s a look at some recent auto loan programs:

Infiniti

Program: Limited Engagement Summer Event, through Aug. 31

Details: Special lease rates and 0% financing on 2009 Infiniti performance luxury vehicles (except the Infiniti G37 Convertible)

Example: A 39-month lease on a 2009 Infiniti EX Journey model with the Around View Monitor (AVM) Package and Bose and Navigation Package is $399 per month.

Extra:… Continue

Added by Marcie Belles on July 23, 2009 at 11:00am — No Comments

AFN.net to Host Audio Conference Featuring Economist Bill Strauss

The economy has been in a funk for months, with consumer spending and vehicle sales in the dumps. To help make sense of the future outlook, Bill Strauss, an economist at the Federal Reserve Bank of Chicago and a Member of AutoFinanceNews.net, will provide a comprehensive view of the U.S. economy and its effects on the auto finance sector.

Strauss joined the Chicago Fed in 1982, and his chief responsibilities include analyzing the current performance of both the Midwest economy and… Continue

Added by Marcie Belles on July 20, 2009 at 1:15pm — No Comments

Price Points: New Deals and Offers as of July 16

Here’s a look at some recent auto loan programs:

Bank of America has hooked up with Tesla Motors Inc. to finance the company’s $109,000 flagship electric sports car.

Details: BofA will finance as much as 75% of the purchase price. A five-year loan -- the maximum term -- at 5% interest would translate to a $1,700 monthly payment after putting down $27,500 (though buyers would receive a $7,500 tax credit) .

* * *

Lockheed Federal Credit… Continue

Added by Marcie Belles on July 16, 2009 at 11:30am — No Comments

Judge Rejects DealerTrack’s Patent Claims

After three years of legal wrangling, Finance Express can put DealerTrack’s patent-infringement claims behind it.

In a July 7 decision, the U.S. District Court for the Central District of California ruled that Finance Express does not infringe on any of DealerTrack’s asserted patents. The court also ruled that one of DealerTrack’s patents was invalid. (Another DealerTrack patent was previously invalidated.)

Both DealerTrack and Finance Express offer online systems that… Continue

Added by Marcie Belles on July 13, 2009 at 12:37pm — 2 Comments

GM Barrels Out of Bankruptcy

With $48 billion less debt and healthcare obligations, post-bankruptcy General Motors Co. is open for business today.

The “new” company will have four brands — Chevrolet, Buick, Cadillac, and GMC — and will be owned by the United Auto Workers’ union, and the U.S. and Canadian governments. The company plans to launch 10 vehicles in the U.S. in the next 18 months, and ratchet down the number of nameplates to 34 from 48.

With the 40-day bankruptcy proceedings complete, Ed… Continue

Added by Marcie Belles on July 10, 2009 at 11:30am — No Comments

Direct Delinquencies Spike

Late payments on direct auto loans shot up 98 basis points in the first quarter — nearly 50% — the highest jump for any asset class tracked by the American Bankers Association.

First-quarter direct-auto delinquencies were 3.01%, compared with 2.03% in the final quarter of 2008.

In general, ABA Chief Economist James Chessen said the higher delinquencies are a result of rising unemployment. “The No. 1 driver of delinquencies is job loss,” he said, adding that “delinquencies… Continue

Added by Marcie Belles on July 8, 2009 at 11:30am — 4 Comments

GM Edges Closer to Bankruptcy Exit

From The New York Times:

A federal judge late on Sunday approved a plan by General Motors to sell its best assets to a new, government-backed company, a crucial step for the automaker to restructure and complete its trip through bankruptcy court.

The decision by the judge, Robert E. Gerber, of Federal Bankruptcy Court in Manhattan, came after three days of hearings… Continue

Added by Marcie Belles on July 6, 2009 at 12:34am — 1 Comment

Incentive Magic

Incentives last month shot up 20% compared with June 2008, yet year-over-year vehicle sales plunged 28%. Despite the divergence, and a relatively low level of vehicle sales, incentives still seem to be doing their job.

June incentives averaged $2,930 per vehicle, according to fresh data from Edmunds.com. Vehicle sales, meanwhile, dropped to 860,101. In June 2008, the average incentive was $2,356 on 1.2 million vehicle sales.

Historically, though, even single-digit… Continue

Added by Marcie Belles on July 2, 2009 at 2:54pm — No Comments

SBA Starts to Accept Floorplan Apps Today

Dealers in need of inventory financing can tap a new federal program starting today.

The Dealer Floorplan Pilot Program, an initiative of the Small Business Administration, will guarantee inventory lines of credit between $500,000 and $2 million. The agency will start to review and approve applications starting next week.

Here are some guidelines of the program:

• Dealers of titleable assets — including autos, motorcycles, boats, RVs, and manufactured houses —… Continue

Added by Marcie Belles on July 1, 2009 at 12:00pm — 3 Comments