Consumers who bought hybrid vehicles in an effort to go green now seem to be going in another direction. Almost two-thirds of U.S. hybrid buyers returning to the market in 2011 chose something besides another hybrid, according to a Polk study released this week.

The biggest challenge for hybrid makers? Less expensive conventional fuel-efficiency technologies have caught up with hybrid engines. Buyers aren’t as willing to pay more for hybrid options when conventional vehicles offer the same advantages for less. That may be why hybrids accounted for just 2.4 percent of total U.S. auto sales last year, down from a peak of 2.9 percent in 2008.

What patterns have you noticed in your loan approvals? Do your members buy for fuel efficiency, or do other factors come in to play? Have you created loan promotions based on member purchase patterns?

When funds get tight, consumers may have to choose which bills will be paid promptly, and which accounts will fall behind. Now, reports indicate that payment priorities have shifted – consumers are making their car payments before paying mortgage or credit card bills.

A 2011 TransUnion study revealed that, while keeping current on all other accounts, 39 percent of consumers were delinquent on mortgage payments, 17 percent were delinquent on credit cards and 10 percent were delinquent on auto loan payments.

Does this trend hold true for your accounts? What steps are you taking to limit delinquency?

Lending has always been about the big picture. How consumers handle all of their accounts – not just a select few – has been factored into loan approval, rates and terms. Now, the focus may be changing.

Instead of looking at the big picture, dealers and captive finance companies argue that consumers should be evaluated primarily on their auto loan payment history. Bill Underriner, 2012 chairman of the National Automobile Dealers Association, emphasized this at an auto finance conference in February.

“It’s important that the lender looks at the people and not the credit score,” Underriner said. “In many cases they’re good people; they just hit a rock. They’ve never had this happen to them in their life. The lenders need to look at some other things, other than their credit score.”

Ezra Becker, vice president of research and consulting at U.S. credit bureau TransUnion, tempered these sentiments. “The auto dealer just wants to sell the car,” Becker told Automotive News. “The lender – especially if it’s a bank, as opposed to a captive – only wants to make the loan if there’s a reasonable probability it’ll get paid back.”

Can credit union financing put the focus back on balanced lending? When reviewing a credit application, what do your loan officers consider beyond a standard credit report?

WASHINGTON (Reuters) – The Obama administration is seeking substantially higher fines for auto safety violations even as automakers are quicker to report defects to U.S. regulators in the wake of Toyota Motor Corp.’s recall crisis.

David Strickland, the government’s top auto safety official as administrator of the National Highway Traffic Safety Administration (NHTSA), said the current maximum fine of $17 million per case is inadequate.

“We feel it’s high time the penalties are reflective of the size of the industry,” he told a House Energy and Commerce subcommittee hearing.

A provision in transportation legislation approved by the Senate last week would increase civil penalties for the first time in more than a decade to a maximum of $250 million.

A competing House bill does not include the proposal, which automakers call excessive in an era of increased vehicle safety with motorists traveling more than 3 million miles on U.S. road annually.

Republicans who run the House consider the proposed increase overly prescriptive and potentially detrimental to an industry returning to profitability after a historic downturn. Rep. Marsha Blackburn, R-Tenn., and vice-chairman of the commerce, manufacturing and trade subcommittee, said “more mandates” were not the answer, adding it would be “very difficult” to find support among Republicans for higher fines.

“We need to think about the best ways to incentivize safety that makes sense and works for everyone,” she said.

U.S. law currently gives auto manufacturers five business days to notify NHTSA of any defects in cars, trucks or motorcycles sold in the United States.

Tire and wheel protection policies are becoming increasingly popular in the automotive market. With road conditions declining and the cost of tires and wheels increasing, these plans are attracting attention from even the most conservative buyers.

Tire and wheel protection policies aren’t cheap, but neither is the potential cost of hitting a pothole. Even the cost for a luxury car policy can add up to savings:

Cost of a five-year policy to dealer: $700
Cost of that policy to consumers: $1,200
Cost to replace a tire and wheel rim: Roughly $1,500

What experience have you had with plans like these?

Generational marketing is nothing new for vehicle brands, but Acura is mixing things up in the luxury market. Rather than targeting its existing customer base of baby boomers, the brand is seeking to connect with younger buyers in the coming year.

According to Acura Division General Manager Jeff Conrad, Acura’s average customer age is already two to four years younger than those of other premium brands. Now, they’re focusing on consumers ages 19 to 31. These buyers are concerned with “value for the money” above features like quality, reliability and fun-to-drive handling.

Conrad told AutomotiveNews.com that the redesigned Acura line will feature the technology and performance that appeal to younger buyers, such as Bluetooth, Pandora and SMS text messaging. “The real key is not that we offer it, but that we offer it and put it on a vehicle and make it intuitive to use,” he said.

Do you think Acura will appeal to younger buyers? How do you target this generation in your business efforts?

Generational marketing is nothing new for vehicle brands, but Acura is mixing things up in the luxury market. Rather than targeting its existing customer base of baby boomers, the brand is seeking to connect with younger buyers in the coming year.

According to Acura Division General Manager Jeff Conrad, Acura’s average customer age is already two to four years younger than those of other premium brands. Now, they’re focusing on consumers ages 19 to 31. These buyers are concerned with “value for the money” above features like quality, reliability and fun-to-drive handling.

Conrad told AutomotiveNews.com that the redesigned Acura line will feature the technology and performance that appeal to younger buyers, such as Bluetooth, Pandora and SMS text messaging. “The real key is not that we offer it, but that we offer it and put it on a vehicle and make it intuitive to use,” he said.

Do you think Acura will appeal to younger buyers? How do you target this generation in your business efforts?

Generational marketing is nothing new for vehicle brands, but Acura is mixing things up in the luxury market. Rather than targeting its existing customer base of baby boomers, the brand is seeking to connect with younger buyers in the coming year.

According to Acura Division General Manager Jeff Conrad, Acura’s average customer age is already two to four years younger than those of other premium brands. Now, they’re focusing on consumers ages 19 to 31. These buyers are concerned with “value for the money” above features like quality, reliability and fun-to-drive handling.

Conrad told AutomotiveNews.com that the redesigned Acura line will feature the technology and performance that appeal to younger buyers, such as Bluetooth, Pandora and SMS text messaging. “The real key is not that we offer it, but that we offer it and put it on a vehicle and make it intuitive to use,” he said.

Do you think Acura will appeal to younger buyers? How do you target this generation in your business efforts?

Generational marketing is nothing new for vehicle brands, but Acura is mixing things up in the luxury market. Rather than targeting its existing customer base of baby boomers, the brand is seeking to connect with younger buyers in the coming year.

According to Acura Division General Manager Jeff Conrad, Acura’s average customer age is already two to four years younger than those of other premium brands. Now, they’re focusing on consumers ages 19 to 31. These buyers are concerned with “value for the money” above features like quality, reliability and fun-to-drive handling.

Conrad told AutomotiveNews.com that the redesigned Acura line will feature the technology and performance that appeal to younger buyers, such as Bluetooth, Pandora and SMS text messaging. “The real key is not that we offer it, but that we offer it and put it on a vehicle and make it intuitive to use,” he said.

Do you think Acura will appeal to younger buyers? How do you target this generation in your business efforts?

Consumers take note – now is a great time to buy a new vehicle!

Buyers are enjoying the most attractive rates in four years, with average interest rates on new vehicles dropping to 4.52 percent. This level is the lowest since researcher Experian Automotive began tracking the figure in 2008.

This is due, in part, to the Federal Reserve’s commitment to keep short-term rates near zero through at least 2014. However, borrowers also have a hand in their own good fortune. The balance of loans to borrowers who fell behind on auto payments is down 8 percent in the past year, and more than 25 percent since the end of 2009. These favorable risk statistics encourage lenders to keep the affordable loans coming!

Is your financial institution making rate adjustments in consideration of low delinquency levels and deposit rates? Do you see lending guidelines expanding to incorporate people who were once viewed as too risky for loans?