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Top 10 Stories
'Cash-for-Clunkers' Payments Continue to Accelerate, Transportation Department Reports
'Clunkers' Probably Boosted Retail Sales: U.S. Economy Preview
Financial Reform on a Rough Road
NADA: Don't Need New Lending Watchdogs
Car Dealers Fight Slow Sales After End of Clunkers
NHTSA Clarifies Clunker Profit Stance for Dealers, Auctions
Deep Freeze for Dealership Deals
G.M. Rescinds White-Collar Pay Cuts
IRS to Host a Free Webinar Sept. 16 on Cash Reporting
NADA Convention: Only 5 Days Left to Save Money on Advance Registration
Top 10 Stories
'Cash-for-Clunkers' Payments Continue to Accelerate, Transportation Department Reports

WASHINGTON – The pace of “Cash-for Clunkers” payments continues to accelerate, according to the U.S. Department of Transportation's latest report. Dealers were reimbursed for 42.4 percent of “clunkers” transactions for a total of $1.2 billion. To help speed up the claims review process, the transportation department has increased the number of examiners processing applications to 5,000 (up from 225 at the beginning of the program). The additional examiners, coupled with a deadline of Sept. 30 to pay all valid claims, have resulted in a sense of urgency to pay claims faster. NADA’s own informal surveys have confirmed two encouraging trends—that the number and pace of payments are increasing, and claims under review are declining.
Source: NADA Newswire

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'Clunkers' Probably Boosted Retail Sales: U.S. Economy Preview

The U.S. government’s auto trade-in program probably lifted retail sales in August to their biggest gain in more than three years and boosted factory output, economists said before reports this week. Total purchases climbed 1.9 percent, the most since January 2006, according to the median of 60 estimates in a Bloomberg News survey ahead of Commerce Department figures due [Tuesday]. “The production recession is over and the housing recession is over," [said Brian Bethune, chief financial economist at IHS Global Insight in Lexington, Mass.] "When you combine those two, they add up to a fair amount of traction in the overall economy.”
Source: Bloomberg

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Financial Reform on a Rough Road

One year after the collapse of Lehman Brothers, President Barack Obama will travel to Wall Street [today] to push for new rules to ensure such a crisis doesn’t happen again. But legislation to crack down on the financial industry faces long odds on Capitol Hill ... Unease among Democrats prompted House Financial Services Chairman Barney Frank (D-Mass.) to postpone a markup on the Consumer Financial Protection Agency proposal scheduled before the August recess. Some heavy hitters have joined the financial services trades to oppose the CFPA concept, including the National Association of Home Builders, the Business Roundtable, the U.S. Chamber of Commerce and the National Automobile Dealers Association.
Source: POLITICO

Editor's Note: With legislative action expected within the next couple of weeks on whether to create a Consumer Financial Protection Agency, now is the time for dealers to remind their members in Congress that many state and federal consumer protections already exist governing dealer-assisted financing. Congress should also consider that creating a massive new bureaucracy, with new rules and fees, may prevent many car buyers from finding financing at competitive rates.

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NADA: Don't Need New Lending Watchdogs

WASHINGTON -- The National Automobile Dealers Association will mobilize members this week to try to block creation of a consumer financial-protection agency backed by the Obama administration. NADA contends that dealer-assisted loans shouldn't be lumped with complex products that proved susceptible to manipulation and deception and that contributed to the U.S. financial crisis. At NADA's Washington conference this week, the group will ask its 19,000 members to urge their members of Congress to oppose the bill...
Source: Automotive News

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Car Dealers Fight Slow Sales After End of Clunkers

YPSILANTI TOWNSHIP, Mich. -- As Gene Butman Ford opened its doors Saturday, salesmen outnumbered the shoppers looking at a depleted stock of cars and trucks, and it didn't appear that many customers were ready to buy. Like many dealers across the country, the dealership in Ypsilanti Township is suffering from a Cash for Clunkers hangover, and Sales Manager Paul Grahl isn't sure when it will end. "We're getting some traffic, but my business is a long way from healthy," said the longtime salesman. "We suspect it's going to be 90 days before we get back to any kind of normalcy."
Source: The Detroit News

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NHTSA Clarifies Clunker Profit Stance for Dealers, Auctions

FREDERICK, Md. — In response to a memo from ABS Auto Auctions that — according to the National Highway Traffic Safety Administration — suggested that dealers were allowed to keep all of the profits from scrapped clunkers in CARS deals, NHTSA's David Sparks issued an explanation in a National Auto Auction Association press release to clarify the official ruling. ... The ABS document reads: "Many dealers believed you could only make $50; others believed any profits would have to go back to the customer. After several weeks, the answer was finally announced, yes, you can keep the profit made on the clunkers. Furthermore, dealers are not required to give any money back to their customers."
Source: AutoRemarketing

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Deep Freeze for Dealership Deals

Stores are dirt-cheap, but credit crunch has killed the market
The value of Detroit 3 dealerships has been sinking for two years. Now even some premium import-brand dealerships are worth less than half of what they were a year ago, according to investment bankers who specialize in car dealership transactions. The result is a stagnant market in which few buyers have the finances to make purchases and sellers are reluctant to let their dealerships go at bargain-basement prices.
Source: Automotive News

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G.M. Rescinds White-Collar Pay Cuts

DETROIT — General Motors, in an effort to keep employees happy as it tries to climb back to profitability, has rescinded white-collar pay cuts it made last spring, when it was working to conserve cash and avoid filing for bankruptcy protection. The struggling automaker was losing staff members because its pay scales were no longer competitive with other automakers and manufacturing companies, a spokesman, Tom Wilkinson, said Friday. The pay restoration, which began Sept. 1, will be financed primarily with government dollars, at least for now.
Source: The Associated Press

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IRS to Host a Free Webinar Sept. 16 on Cash Reporting

The Internal Revenue Service is hosting a free Webinar covering cash reporting and Form 8300. The Webinar, "When Businesses Should File Form 8300 For Cash Transactions," will be held on Wednesday, Sept. 16. There is no cost to participate. Click here to sign up. Click here for more detailed information about the Webinar. Click here for an IRS handout on Form 8300. NADA members can find more information on cash reporting at www.nada.org/regulations.
Source: NADA Newswire

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NADA Convention: Only 5 Days Left to Save Money on Advance Registration

There are only five days remaining to take advantage of the money-saving “early bird” registration rates for the NADA Convention & Exposition in Orlando, Fla. from Feb. 13-15. Fees will increase after Friday, Sept. 18, so don’t delay. Did you know a brand new Executive Track of speakers has been slated for the NADA convention? They will cover topics on the economy, financial markets, organizational change and managing the new generation and business growth. It’s another reason for you to “go to know!” Click here to register today.
Source: NADA Newswire

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Quotable
 
"What we really need to do is get the message out there that this bill goes well beyond consumer protection. It's essentially a way to regulate the entire business community."

    -- Ryan McKee, senior director of the U.S. Chamber of Commerce's center for capital markets, on a House measure to create a Consumer Financial Protection Agency, which the Chamber opposes, POLITICO, Sept. 14


"The production recession is over and the housing recession is over. When you combine those two, they add up to a fair amount of traction in the overall economy."

   
-- Brian Bethune, chief financial economist at IHS Global Insight in Lexington, Mass., Bloomberg, Sept. 13


"Because the cash-for-clunkers program was there, we were able to squirrel away a nut for winter."

   
-- Dan Mahan, desk manager of Riverside Auto Mall in Marquette, Mich., The Detroit News, Sept. 13

Video Highlights
 

NADA Chairman on Success of 'Clunkers' (Fox Business)


Helping Dealers Left Out of New GM (Fox Business)



Media Coverage: The Tragedy of Dealer Closings (NADA-TV)



NADA's New Buy Now Campaign



No Dent in Demand for Some U.S. Cars (NBC)



NADA on Floorplan Credit Crisis (NADA-TV)


 Senate Testimony on Floorplan Loans (NADA-TV)
 Banks Turning on American Car Dealers? (WTNH)
 NADA Tackles Industry Crisis (NADA-TV) 
 Demise of Dealerships Leaves Big Dent (NBC)
NADA on the Front Lines  (NADA-TV)


Click here for more video reports.
2010 Convention
 
 

Did you know?

As a bonus for attending the NADA convention, you can attend two workshop sessions on Friday afternoon before the convention starts at no extra charge!

Click here for more money saving ideas or visit www.nada.org/convention and click the $$$ Savings icon. And for airline discounts, check out our airfarewatchdog in the money saving section.

Be in the know at the 2010 NADA Convention & Expo in Orlando, Fla., Feb. 13-15.

 
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Take Advantage Now of 'Early Bird' Discounts on Advanced Registration for the 2010 NADA Convention & Expo

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NADA For more information on NADA, visit www.nada.org or contact NADA, 8400 Westpark Drive, McLean, VA 22102. This email may contain an advertisement of NADA products and services. Any opinions or statements contained herein do not necessarily reflect the views of NADA. Factual errors are the responsibility of the listed publication. If you are a franchised new-car or -truck dealer and would like to become a member of NADA, please visit the Join NADA section of www.nada.org. Questions or comments concerning NADA Headlines content may be directed to media@nada.org.