Categories
Industry Trends

Your 2018 To Dos

Contributing Author: John Stephens Executive Vice President EFG Companies
Contributing Author:
John Stephens
Executive Vice President
EFG Companies

It’s that time of year again when everyone evaluates their yearly accomplishments, both personally and professionally, and begins making their 2018 resolutions. So, what were the automotive industry’s accomplishments?

Despite a string of severe natural disasters, unit sales volume is roughly on par with last year’s volume. Both 2017 and 2016 represent some of the strongest sales numbers in over a decade. That’s a win in my book.

The Consumer Financial Protection Bureau (CFPB) is beginning to be reined in by Congress. After years of lobbying for more oversight over the CFPB, dealer and auto lending initiatives are finally making headway on the Hill. Talk about another reason to celebrate!

Going into 2018, pre-owned inventories are finally right-sized for consumer demand. There’s no longer too much or too little inventory. We’re now at “just right”. Because of this, pre-owned vehicles are holding their value, and dealers have a better opportunity to increase profitability through CPO programs.

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Categories
Compliance

2017 CFPB Round Up

Contributing Author: Steve Roennau Vice President Compliance EFG Companies
Contributing Author:
Steve Roennau
Vice President
Compliance
EFG Companies

In January of this year, President Trump issued an Executive Order which required agencies like the Consumer Financial Protection Bureau (CFPB) to re-address how they issue new regulations. The order required agencies to eliminate two regulations each time they issue a new one. Because of this, we saw very little activity coming out of the bureau on issuing new regulations.

In addition, criticism of the CFPB reached a tipping point, forcing politicians to take a hard look at the powers granted the bureau. A good example of this is the Arbitration Rule that the CFPB tried to force through Congress in the third quarter. While the rule initially passed Congress, it was nullified by President Trump in November.

The latest news surrounding the bureau focuses on the change of leadership, as Richard Cordray stepped down from the position of Director. With the CFPB embroiled in internal politics, we can expect another year of limited activity. This is all great news for the automotive industry. However, it does not mean that the auto finance environment will return to the golden age of the 1980s. From an auto lender standpoint, it is no longer fiscally sound for them to undo compliance practices that are years in the making.

So what’s the plan for 2018? Essentially, stay the course! Ensure all your processes are documented. Documenting your processes does not have to cost thousands of dollars in attorney fees and man hours. In fact, it can be as simple as taking a process, like insurance verification, and writing down the steps your team takes to complete that process. You don’t need legal language. And, each process doesn’t need to be a 20-page document. It’s just writing down what you already do every day.

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Categories
Featured

EFG Companies Launches Innovator of the Year Award-Winning Products

Packaging Service Drive Retention and Repeat Purchase In One Mobile App

EFG Companies, the innovator behind the award-winning Hyundai Assurance program, announced the launch of Driver’s Advocate, a mobile app representing the culmination of both the 2015 and 2016 Northwood University Innovator of the Year Award winning products. Driver’s Advocate was designed to foster greater consumer loyalty through service drive retention, while also providing theft protection and inventory management. For more information, visit: http://bit.ly/2AN4kO2.

Driver’s Advocate provides consumers with:Desktop-Header

  • a service scheduler;
  • direct, mileage-based messaging with service and maintenance reminders;
  • a loyalty point tracker, where loyalty points can be used for discounts on services provided, and/or as a down payment towards their next vehicle purchase with the selling dealership;
  • a theft tracker that alerts consumers when their vehicle moves while they are not in it;
  • an easy-to-use fuel finder, and much more.
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