Pub. 16 2017-2018 Issue 1

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 2 , 2 0 1 7 8 new jersey auto retailer NADA Director’s MESSAGE | BY RICK DESILVA, SR. The Future of the Auto Industry In January, NADA had the honor of celebrating its 100th Anniversary. Seeing the thousands of passionate and hard-working dealers come together was truly memorable. It was a Convention for the history books…and we truly have made history! Last year, America’s franchised new-car and -truck dealers survived a bombardment of regulatory issues while working with lawmakers on preserving affordability in vehicle financing, emissions regulations, and the recall process. With a record of 17.5 million new cars and trucks sold in 2016, the U.S. retail auto industry proved once again that it is ready for the future. This year continues to hold many legal and regulatory unknowns. Between continued government overreach into the dealer business and other regulatory issues that negatively impact affordability in the retail auto business, New Jersey’s dealers will continue to experience unique challenges. Affordability is Key Over the past 20 years, the single biggest catalyst to vehicle price increases is not the OEM sticker price, or auto loans, or even interest rates. It’s government regulations and mandates, which is why NADA views regulatory challenges as a top priority. The ‘red tape’ around our industry makes it harder for us to do our jobs and negatively affects consumers. The challenge in Washington this year is AFFORDABILITY. Dealers have been emphasizing affordability for years because it’s essential. Cars and trucks are necessities for people but they are also very expensive. The average price of a new vehicle came close to $34,000 last year and the average monthly new-car payment is now $508. NADA’s concern is that excessive government mandates will further aggra- vate the situation. Our greatest challenge is to continue to preserve affordability in vehicle financing. Four years ago, the Consumer Financial Protection Bureau (CFPB) began an all-out assault on our industry that would drasti- cally change the way dealers and lenders provide financing for new vehicles. Over the past four years, NADA and its allies have been speaking to anyone who would listen, explaining why the CFPB’s approach was ill-informed and misguided. Fortunately, we had many allies in Congress too—from both sides of the aisle. Like us, they were concerned about how the CFPB would negatively impact consumers. I’m happy to report that after all this, our efforts are paying off! In a CFPB blog from last De- cember, the Bureau stated it has “shifted its focus” away from auto financing. Specifi- cally, it would no longer attempt to limit competition in the marketplace through government imposed consent orders. That is great news but the work continues and it’s up to all dealers across the nation to keep the momentum going.