View Web Version

SPONSORED BY
NADA.org
September 17, 2015 FacebookTwitterFlickrRSSSEND TO A FRIENDPRINT
Inside this issue
New Video: Dealer Financing Benefits Consumers
Auto Dealers Step Up Lending Campaign
Credit Card Fraud Exposure Switching to Dealers Are You Ready?
GM to Pay $900 Million, Settle U.S. Criminal Case over Ignition Switches
Would a Rate Hike Slam the Brakes on Autos?
Will Sergio Marchionne Force a Merger With General Motors?
Auto Dealers Raise More Than $280,000 for Valerie Fund
Top Stories
New Video: Dealer Financing Benefits Consumers


Consumers tell their stories of saving on financing at the dealership in a new video from NADA.

The stories of real consumers who saved money by financing new vehicle purchases through local dealerships are at the center of a new NADA initiative to showcase the true economic value of optional dealer-assisted financing, and better inform opinion leaders, elected officials and the media about the debate over the elimination of dealer reserve.

Dealers have been fighting to preserve the fiercely competitive, pro-consumer financing model ever since it came under threat from the Consumer Financial Protection Bureau (CFPB) in 2013.

"Consumers save money every day when they finance through dealerships," said NADA President Peter Welch in announcing the new videos and webpage – www.nada.org/autofinance. "But that truth is getting lost in Washington, and that needs to change."

To view the video, visit www.nada.org/autofinance.
Source: NADA

Editor's note: In July, the House Financial Services Committee passed NADA-championed legislation, H.R. 1737, to rescind the CFPB’s flawed auto finance guidance that would limit or eliminate a customer’s ability to receive a discounted auto loan in the showroom. The bill passed by a bipartisan vote of 47-10 and the bill has increased momentum with 133 cosponsors (76 R's and 57 D's). H.R. 1737 will likely come up for a vote on the floor of the House of Representatives this fall. NADA is strongly encouraging dealers to contact their Democratic House members and ask them to cosponsor H.R. 1737, and support H.R. 1737 when it comes to the floor for a vote. Click here for a list of H.R. 1737 cosponsors. Click here for NADA's issue brief and visit www.nada.org/cfpb for more information.
Share: LinkedIn Twitter Facebook

[back to top]

Auto Dealers Step Up Lending Campaign

The National Automobile Dealers Association is out with a new ad push and webpage to try to fend off Consumer Financial Protection Bureau efforts to influence dealer discounting for financing auto loans. POLITICO Influence first reported this week that the group ran Snapchat ads during the GOP debate. NADA is making this latest push before its members descend on D.C. this month for a fly-in, so they can reinforce the message during meetings with lawmakers.
Source: POLITICO Transportation

[back to top]

Credit Card Fraud Exposure Switching to Dealers Are You Ready?

In-store credit card fraud is no joke. And by the time October rolls around, dealerships may face the associated liability. Is your dealership prepared for the risk?  By October 1st of 2015, retailers nationwide – including dealerships – will need to be ready for the payment networks’ liability shift associated with the EuroPay, MasterCard and Visa (EMV) standard for point of sale (POS) transactions.... As dealerships live under the large retail umbrella, the transition to EMV will require investment in new in-store POS technology capable of reading the circuits integrated in the new EMV cards. Failure to install and implement these systems could significantly increase the dealership liability resulting from credit card fraud.  While all card-issuing banks may not have replaced every customer card prior to the October 1 deadline, it is critical that retailers have the necessary EMV card reader machines ready.
Source: Dixon Hughes Goodman LLP

[back to top]

GM to Pay $900 Million, Settle U.S. Criminal Case over Ignition Switches

General Motors Co. has agreed to pay $900 million and sign a deferred-prosecution agreement to end a U.S. government investigation into its handling of an ignition-switch defect linked to 124 deaths, two sources told Reuters. The deal means GM will be charged criminally with hiding the defect from regulators and in the process defrauding consumers, but the case will be put on hold while GM fulfills terms of the deal, one source said. No individuals would be charged in the criminal case, one of the sources said.
Source: Reuters

[back to top]

Would a Rate Hike Slam the Brakes on Autos?

With speculation growing that the Federal Reserve could raise interest rates—and, by extension, push financing rates higher—there's a healthy debate as to whether such a move would stop consumers from buying a new or used vehicle. According to one expert, that's not likely. "If you take just a quarter-point increase, the average loan payment would go up less than $3 per month," said Jason Laky, senior vice president and auto business leader at TransUnion, which tracks the 72.4 million outstanding auto loans in the U.S. "I don't think that cuts much into the consumer's wallet."
Source: CNBC.com

[back to top]

Will Sergio Marchionne Force a Merger With General Motors?

The blunt and unorthodox CEO has already surprised Wall Street by making the merger of Fiat and Chrysler work. Will he pull off a merger of FCA with General Motors next?

Fiat Chrysler CEO Sergio Marchionne seems convinced of -- or perhaps obsessed with -- two ideas: (1) The global auto business needs further consolidation to thrive; and (2) A merger of FCA with General Motors would be great for both companies and the industry as a whole. The first idea makes a lot of sense. As for the second, there are some good reasons why GM isn't interested -- but Marchionne may be gearing up to force the issue.
Source: The Motley Fool

[back to top]

Auto Dealers Raise More Than $280,000 for Valerie Fund

New Jersey auto dealers have raised over $280,000 to date for The Valerie Fund and their $5 per car donations will continue through Oct. 31. The Valerie Fund has supported comprehensive health care services for children with cancer and blood disorders since 1976. The Valerie Fund treats the medical, emotional, social and developmental needs of children with cancer and has a staff of counselors, psychologists and specialists who treat the entire family. "We were astounded by the generosity New Jersey auto dealerships have exhibited for the children of The Valerie Fund. Over $1 million has been raised beginning in 2014. We are thankful for the continued support for a 2015 New Jersey Auto Retailers Unite campaign," said Bunny Flanders, director of marketing and communications at The Valerie Fund.
Source: New Jersey On-Line

[back to top]

More Articles
 
Quotable
"If you take just a quarter-point increase, the average loan payment would go up less than $3 per month."

    -- Jason Laky, senior vice president and auto business leader at TransUnion, commenting on speculation that the Federal Reserve could raise interest rates, CNBC.com, Sept. 16

Sponsored by

NADA Market Beat

August's SAAR Tops 17.7 Million New Light Vehicles
Chairman's Message
47-10: Fair Credit and Consumer Competition Wins a Round
Videos

NADA University Online: The Next Generation 
(NADA-TV)


Get the Facts: The Benefits of Franchised Auto Dealers


NADA Foundation: On the Go(Pro) with Canine Companions

 Sponsored by

NADA Webinars
NADA members can view past webinars on-demand at no charge at NADA University Online. Member must create NADA account before viewing.
 
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 publicaffairs@nada.org .