Call your Senator today and tell them to vote for the Brownback Amendment Bill so that consumers have choices of where to get their financing when buying an automobile. Sen. Sam Brownback, R-Kan., is planning to offer an amendment to exempt auto dealers from the financial regulation bill when the Senate considers the proposed legislation as early as next week. The amendment preserves the ability of consumers to access credit at affordable rates. 94% of a automobiles are financed and there is a bill right now that is trying to take away the auto dealers right to provide financing. This will prove to give a handful of lenders even more power and control and customer less.
Auto dealers provide financing to millions of people each year that otherwise could not get financing. They also provide competition to customers through their programs that if removed would make banks and credit unions less competitive.
INDISPUTABLE POINTS:
1) Auto dealerships are not financial institutions. Dealers are not banks and are not direct lenders; they are simply facilitators of loans through lenders. Dealers provide optional retail finance services at their dealerships. They increase competition by providing consumers with a wide variety of options from multiple financing sources. This competition in dealer-assisted financing benefits the consumer because it increases access to credit while reducing the cost of credit.
2) Dealerships are small businesses. Dealers did not cause the economic meltdown in 2008; therefore, dealers shouldn't be subjected to the consequences of Wall Street's actions. Dealerships are small businesses with an average of 40 - 50 employees, hardly likening my business to the big financial institutions of Wall Street.
3) Car dealers are well regulated. The Federal Trade Commission (FTC), the Federal Reserve, State Attorneys General, and various other state entities currently monitor and regulate the financial transactions occurring in dealerships nationwide. The Brownback amendment would allow for these agencies and the full range of state consumer protection statutes to continue to regulate dealers.
4) According to data from the Federal Trade Commission in 2009, less than 2% of consumer complaints were auto related - only a portion of that 2% was related to auto finance.
Call your Senator today and tell them to pass the Brownback Amendment. Auto dealers did not cause the recent financial meltdown, it bank and major wall street firms that didn't properly regulate themselves. The independent auto dealer provide major sources of tax revenues to counties, cities and states to fund hospitals, police forces, firemen and city improvements not to mention provide major levels of employment.
This bill, if not passed will hurt consumers, increase interest rates on automobiles, and position banks to have even more control, less competitions and you the customer fewer choices. HAVEN'T THE BANKS BEING GIVEN ENOUGH ALREADY?
Call your senator tomorrow and tell them to support the Brownback amendment. For more information you can also contact 800-563-1556 or click here.http//www.nada.org/brownback
Grant Cardone, Author and Business Expert
Follow Grant Cardone on Twitter: www.twitter.com/grantcardone
a couple things:
- your link to the NADA website is missing a colon after the http and so the link appears to be broken.
- for those of us not in the know, could you walk us through an example? i financed a car through a dealership and it wound up at GMAC and they don't quite fit the mold of a small business with 50 or so people. could you explain how i would know if my financing was through a dealership that would be affected by this bill?
- regarding point 1, could you elaborate why i would care about increasing my access to credit while reducing the cost of credit? my understanding is that unsupervised access to credit is good for the short term, but is ultimately more costly in time.
- regarding point 4, of course only a portion of that 2 percent would be related to financing. what portion of that 2 percent? those numbers don't mean anything the way you have them written because anything less than all 2 percent would be considered "only a portion."
thank you -