Down Payment Assistance Loans

Auto Lending News Reports:

There was more good news for Ford on the product quality front in the US this week from Consumer Reports which confirms the strides in build quality/reliability made in recent years. And Alan Mulally is right to accentuate the positives in Ford's corporate performance. There are some encouraging signs of progress. But there could be a UAW sting in the tail as an agreement between Ford and the UAW leadership faces ratification.

Some at the UAW, it seems, are certainly getting the message that Ford is different and hearing the positive noises coming out of Dearborn. However, they are then making the connection that Ford doesn't need the same concessions as those given to GM and Chrysler. That's dangerous thinking that could tempt Ford to greater outsourcing to maintain cost competitiveness.

Ford's relative success in Detroit terms is just that. Yes, it has stayed out of Chapter 11 and is forging a strategy to get back to full-year profitability in 2011. But it isn't quite there yet and 2010 won't see a sharp bounce-back to the US auto market. It will be a slow recovery, subject to uncertainties over what happens to the global economy.

In many parts of this industry - and especially in the US - we're still in a recession-induced crisis, even if it's not as bad today as it looked a year ago. It's still not over and anyone who thinks that we're getting back to the 'good old days' could be in for a rude awakening.

US: Six Ford plants nix UAW concessions

Provided by the Auto News RSS Feed: Ford's UAW dissidents

Auto Lending News Reports:

I'm not a massive fan of Formula One, but I occasionally get sucked in, for one reason or another - the technology, the politics, the drivers etc. Good to see Murray Walker is still as enthusiastic as ever, doing a video blog for the BBC. I really enjoyed his Abu Dhabi preview - below link. Abu Dhabi, eh? How times have changed. Apparently they don't appreciate the Flintstones in much of the Middle East. But the people of Abu Dhabi do. (I heard Dawn French crack that joke.)

My Abu Dhabi Grand Prix preview

Provided by the Auto News RSS Feed: Abu Dhabi F1

Auto Lending News Reports:

In what appears to be the first acquisition in the auto finance space in quite some time, payday lender Dollar Financial Corp. agreed yesterday to buy Dealers’ Financial Services LLC for $118 million.

Lexington, Ky.-based DFS is an auto-loan facilitator for U.S. military personnel. As part of its MILES Program, DFS helps active duty military service members secure autos from a network of 545 franchised and independent auto dealerships. U.S. Bank underwrites the loans and maintains the portfolio.

DFS generates revenue from loan-application fees, warranty and GAP insurance commissions, and an interest rate spread between the bank’s rate and what the borrower pays. Since its founding in 1996, DFS has facilitated vehicle purchases for 75,000 military personnel.

Meanwhile, Berwyn, Pa.-based Dollar is a payday lender with 1,200 stores in the U.S., Canada, the U.K., Ireland, and Poland.

Here’s a comment from Jeff Weiss, Dollar’s chairman and CEO, about the acquisition: "We are very excited about the acquisition of this well-established business and its unique operating model, which provides the borrowers a competitive lending rate from a well known national bank, in addition to a number of consumer protection mechanisms. We intend to operate DFS as a standalone business unit of Dollar, in order to focus on leveraging the existing dealership network and lending platform to other customer segments through a number of proprietary strategic growth initiatives. We are pleased to welcome the entire management team of DFS, who along with their proven business model and strong dealership network, are well positioned to enhance DFS’s share of this growing market. This acquisition extends our multi-country, multi-product, and multi-channel business model, and is consistent with our strategy to pursue additional diversified investment opportunities to increase shareholder value."

The deal is slated to close in early December.

Provided by the Auto News RSS Feed: A $118 Million Ray of Hope