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Inside this issue
Second N.H. Senate Vote Sends “Dealer Bill of Rights” Bill to Hassan's Desk
13 House Dems Want Details on Auto Lending Review
Self-Driving Cars Spark New Guidelines
Why New-Car Buyers Should Care About Used-Car Prices, And Why Today That's Mostly Good News
Cheap Leases Offered to Spur Electric Car Sales
US Army Vet & Auto Sales Trainer Makes Donation To Help Place Canine Companions with Wounded Veterans
Click here for more auto industry news at NADAFrontPage.com. .
Top Stories
Second N.H. Senate Vote Sends “Dealer Bill of Rights” Bill to Hassan's Desk

An expansion of New Hampshire's “Dealer Bill of Rights” is headed to Gov. Maggie Hassan's desk. The Republican-led Senate passed the bill, which would offer sweeping new protections for auto and equipment dealers in the Granite State, on a 21-2 vote. The House then passed a modified version on a 338-30 vote. This afternoon, the Senate concurred with the House's changes on a voice vote. That sends the bill, which is supported by auto dealers but opposed by automakers, to Hassan's desk. Hassan, a Democrat, hasn't said if she'll sign the legislation. But the question may be moot: both chambers of the Legislature passed the bill with majorities sufficient to override a veto.
Source: Concord Monitor (Concord, N.H.)
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13 House Dems Want Details on Auto Lending Review

Washington Thirteen House Democrats want the Consumer Financial Protection Bureau to disclose more details about its investigation into auto lending practices. The bureau, created by Congress as part of the Dodd-Frank financial reform bill, has been investigating major auto lenders — including Detroit-based Ally Financial Inc — and whether minority car buyers are being treated unfairly by auto dealers. The bureau has been investigating whether minority buyers are subject to higher interest rates than white buyers. Dealers routinely arrange financing for customers. They are often allowed by lenders to mark up the interest rate charged to consumers, allowing them to keep the difference. The CFPB wants to make sure dealers aren't charging minority buyers a higher rate than white buyers. In March, CFPB issued guidance urging banks to avoid discriminatory practices and said lenders may want to consider corrective action against dealers, including restricting or eliminating dealer markup or excluding dealers, as well as compensating buyers. House members want to know how the CFPB is identifying different groups of consumers, the factors attributable to pricing and the threshold for disparate impact on different ethnic groups. The members sought an answer by June 7. The 2010 law expressly said dealers weren't directly covered by the bureau, which came after a contentious battle between the National Auto Dealers Association and the Obama administration, but the law allows regulation of the banks that lend to owners.
Source: The Detroit News

Editor's note: To view the letter, click here.
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Self-Driving Cars Spark New Guidelines

Federal highway-safety regulators on Thursday sent a dual message about the prospect of more self-driving cars on the roads, encouraging experimentation with the nascent technology but cautioning against proceeding too far too fast. In its most comprehensive response yet to experiments with self-driving cars by Google Inc. and some major car makers, the National Highway Traffic Safety Administration said states should require drivers of prototype self-driving cars to get extra training and special licenses to show they can safely operate the vehicles on public roads. For now, the agency says states shouldn't allow operation of self-driving vehicles on public roads except for testing purposes. The NHTSA, however, warned states against imposing too many specific regulations on a technology that is evolving rapidly. At a recent industry conference, executives said that by 2020 they expected consumers will be able to buy vehicles offering limited self-driving capability, and that by 2025 fully autonomous cars could be available in significant numbers.
Source: The Wall Street Journal

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Why New-Car Buyers Should Care About Used-Car Prices, And Why Today That's Mostly Good News

New-car buyers have a lot of reasons to care about used-car prices. For starters, there's the value of your trade-in, assuming you have a trade-in and you're not coming out of a lease. According to the used-car auction firm ADESA Inc., Carmel, Ind., in April the average used-vehicle wholesale price was $10,096, down 4.5 percent from a year earlier. That number hit a recent peak in March 2012 at $10,625, so the current level still isn't bad. Average used-car prices bottomed out at an average of $8,628 in October 2008, according to ADESA data. In an uncertain world, one thing that's completely predictable is how many 3-year-old used cars there will be, three years from now. The answer is, the number of new cars being built today. U.S. new-vehicle sales fell by close to 3 million units in 2008, and almost another 3 million in 2009. Sales started increasing in 2010, but they're still low by recent historical standards. Those factors drove up the price of used cars, but the shortage of late-model used cars is starting to abate.
Source: Forbes
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Cheap Leases Offered to Spur Electric Car Sales

Auto companies are hoping lower lease prices can put a charge into sluggish electric car sales. Honda announced Thursday that it's slashing the monthly lease cost of its tiny Fit EV by one third, following similar moves by other automakers. Honda also is throwing in other goodies, such as a free home charging station and unlimited mileage. Electric vehicles once were billed as the answer to high gas prices and dependence on foreign oil. But U.S. oil production is rising and gasoline supplies are abundant. Pump prices have remained relatively stable the past three years, while gas-powered cars have gotten more efficient, making consumers reluctant to give them up. There's also the worry that an electric car could run out of juice on longer trips.
Source: Associated Press
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US Army Vet & Auto Sales Trainer Makes Donation To Help Place Canine Companions with Wounded Veterans

Just after the country celebrated Memorial Day, U.S. Army Veteran and automotive sales trainer Joe Verde announced his donation of $37,900 to help place canine companions with wounded veterans. The donation will benefit Canine Companions for Independence, an organization which helps place companion dogs with physically disabled military veterans. A portion of the recent donation came from a recent auction at the National Automobile Dealers Association annual convention in Orlando, Fla. Verde was the highest bidder on a 2011 Fat Boy Harley-Davidson motorcycle, which went for $26,000. All of the proceeds from the live auction event sponsored by NADA and ADESA benefited the Wounded Veterans Initiative of Canine Companions for Independence and went toward the cost of providing specially-trained service dogs to assist disabled U.S. veterans, officials explained. Verde also recently sold the motorcycle for $11,900, and the funds were donated to the aforementioned organization at their most recent quarterly graduation ceremony in Oceanside, Calif.
Source: Auto Remarketing
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Quotable
"There's still a great deal of pent-up demand that needs to work its way through the system. On the whole, we're still looking at another two years of outperformance for the auto industry as it relates to the broader economy." 

      ---  Brian Sponheimer, an auto analyst with Gabelli & Co., Reuters, May 30

Chairman's Column
CFPB Guidance Lacks Transparency and Research
Videos

Video: NADA Analyst Jonathan Banks Predicts Strong Auto Sales in 2013 (NADA-TV)


Automotive Forum 2013: Industry Leaders Convene in NYC (NADA-TV)

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- June 5: DMS Access: Practical and Regulatory Concerns

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- June 26: Advertising Checklist: Check Ten Boxes to Win!

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