For optimal viewing through your web browser or PDA, click here.

SPONSORED BY
Click Here
NADA.org
Wednesday, May 12, 2010 RSSSEND TO A FRIENDPRINT
nada.orgAdvocacyAffiliates | Convention | Jobs | Programs | Publications | Services | Training
Top Stories
Financial Overhaul Pits Military Against Car Dealers
Consumer Advocates Take Aim at Dealer Finance Profits
Auto Dealers Press US Senate for Watchdog Exemption
Senate Votes to Increase Oversight of Federal Reserve
Opinion: Congress Should Not Include Auto Dealers in Wall Street Reform
Top Stories
Financial Overhaul Pits Military Against Car Dealers

In the battle to overhaul the nation's financial regulations, a lobbying effort by the world's most powerful military force may have met its match in the local car dealer. (Read more)
Source: The Washington Post

Editor's Note: With a vote on the Brownback amendment imminent, NADA’s legislative affairs office is urging dealers and their employees to call BOTH of their senators today. The Brownback amendment to the Wall Street reform bill, which preserves access to affordable financing options for car buyers, is under attack from the military, community bank and credit union associations along with senators seeking to defeat it. When talking to your senators and their staff, here are key points to make in favor of the Brownback amendment:

(1) Small business automobile dealers are not banks or financial institutions, yet, they would be covered under S. 3217, because of the bill’s broad definition of “consumer financial product or service.”

(2) The Brownback auto dealer amendment helps preserve auto finance competition for dealership customers.

(3) All auto lenders and all loans will be fully regulated by the Bureau of Consumer Financial Protection, as well as financing provided by “Buy-Here-Pay-Here” dealers and auto title lenders.

(4) The practices targeted by opponents of the Brownback amendment are already illegal, and will remain illegal if the Brownback amendment is adopted.

(5) The Brownback amendment helps level the playing field with community banks and credit unions. Support for the Brownback amendment helps keep car loans affordable for consumers.

Senators can be reached through the Capitol switchboard at (202) 224-3121. For more information, visit www.NADA.org/Brownback, e-mail legislative@nada.org or call (800) 563-1556.

[back to top]

Consumer Advocates Take Aim at Dealer Finance Profits
By Donna Harris

It's been a few years, but consumer advocates are back again with guns aimed squarely at dealers' finance profits. Did I say guns? Well, certainly the language is loaded.

As they lobby Congress to regulate car dealership finance with a proposed new consumer financial protection agency, consumer groups are accusing car dealers of charging "hidden fees" and taking "kickbacks" from financial institutions.

Kickbacks? Hidden fees? Could they be referring to the interest rate markup? Dealers commonly make money by marking up the wholesale interest rate they pay the financial institution that finances the auto transaction.

The vast majority of lenders -- and even some dealers -- cap those markups to curtail abuse.

Also, the fact that dealers make this profit is widely disclosed. Several years ago, the National Automobile Dealers Association and the American Financial Services Association jointly crafted written disclosures that typically appear in finance documents.

So, are consumer advocates objecting to dealers making a profit?
Source: Automotive News

[back to top]

Auto Dealers Press US Senate for Watchdog Exemption

WASHINGTON - Auto dealers on Tuesday increased pressure on U.S. senators to be exempt from a proposed consumer protection bureau that is a key part of legislation to reform Wall Street. (Read more)
Source: Reuters

[back to top]

Senate Votes to Increase Oversight of Federal Reserve

Senate lawmakers voted unanimously Tuesday to increase oversight of the Federal Reserve, but the two parties diverged on whether a bill to rewrite financial regulations should include an overhaul of government-backed mortgage giants Fannie Mae and Freddie Mac. (Read more)
Source: The Washington Post

[back to top]

Opinion: Congress Should Not Include Auto Dealers in Wall Street Reform
By Geoff Pohanka

Congress is right to consider legislation that would prevent Wall Street banks from creating another financial meltdown. But in its effort to target Wall Street, the Senate bill is so broad it even covers a fixture on Main Street, too – auto dealers. (Read more)
Source: The Washington Examiner

[back to top]

 
Quotable
 
"The public wants Congress to focus on Wall Street bankers, not Main Street auto dealers. Our customers know first-hand how we help customers from all walks of life find affordable options to buy or lease a car."

    -- NADA Chairman Ed Tonkin, on why dealers should not be lumped in with banks and other lenders, Reuters, May 12

Video Highlights
 

NADA Issues Legislative Call to Action for Brownback Amendment


Dealers to Senators: We Are Not Banks


CBS Evening News: NADA Chairman Says Dealers Are Not Banks


C-SPAN: Sen. Brownback on Need to Exclude Auto Dealers from Financial Reform

NADA Marketplace 
 

NADA University: 'We Build Champions'


Red Flags Deadline Draws Near

With the revised June 1, 2010 enforcement date for the FTC Red Flags Rule rapidly approaching, NADA University has three ways you can find out if your dealership is adequately prepared. (Read more)


 
Think Speed. Think Savings. Think Lenovo!

NADA members may now use eCoupon USXMAYSAVINGS for an additional 5 percent off the sale price of the T410, X201, Y Series IdeaPad and K Series IdeaCentre. To see this promotion and all discounted products from Lenovo
, visit NADA's PC Purchase Program site (member log in required).

 

Only $549 for HP’s ProBook 4415s Notebook

Isn't it time to replace your worn-out PC? NADA members can save $388 on HP’s ProBook 4415s Notebook PC while supplies last. Included are the new Windows® 7 Professional, a full 14.0-inch display and a full-sized keyboard. To see this promotion and all discounted products from HP, visit NADA's PC Purchase Program site (member log in required).

Click Here
Search Back Issues | Unsubscribe | Subscribe | Manage your subscription | email us
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.