Pub. 17 2018-2019 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 8 10 new jersey auto retailer NADA Director’s MESSAGE | BY RICHARD A. DESILVA, SR. The NADA has long fought for the customers’ right to save money during the auto financing process, and for dealers to retain the ability to discount credit. For years, NADA has worked hard to educate members of Congress on how the auto retailing business operates, and how dealer-assisted financing benefits con- sumers and does not harm them. This education and re-education effort has paid off. Last month—thanks to dealer efforts—the U.S. Senate passed S.J. Resolution 57, a joint resolution introduced by Senator Jerry Moran (R-Kansas) to disapprove the Consumer Financial Protection Bureau’s (CFPB) flawed 2013 indirect vehicle financing guidance. The guidance is one of the most controversial policies implement- ed by the CFPB, created under President Obama in the wake of the 2009 financial crisis. The U.S. House also voted to curb the CFPB’s Guidance and the New Jersey delegation voted along party lines, with Republicans Frank LoBiondo, TomMacArthur, Chris Smith, Leonard Lance and Rodney Frelinghuysen voting in favor of the repeal and Democrats Donald Norcross, Josh Gottheimer, Frank Pallone, Jr., Albio Sires, Bill Pascrell, Donald Payne, Jr. and Bonnie Watson Coleman voting against repeal. The bill was signed into law on Monday, May 21, 2018 by President Trump. NADA’s work, along with the work of state associations across the country, have made the difference to finally rescind this deeply flawed and anti-consumer CFPB guidance. Even though the leg- islation is now law, there is still work ahead. Opposition interest groups have falsely taken the position that this resolution would set a precedent that could be used to repeal decades of federal rules and regulations. They have even tried to paint all auto dealers as working against customers based on their ethnicity. As dealers, we know that such a charge is as shameful as it is ridiculous. So we must redouble our efforts to educate the public, again, about what auto dealers do, whom we serve, and what we stand for. I’d like to thank all New Jersey dealers who contacted their elected officials and urged them to support S.J. Resolution 57. Thank you to those who reminded them that in November 2015, 332Members of Congress – including 88 Democrats – voted in favor of H.R. 1737 to repeal the CFPB’s flawed auto financing guidance, and in doing so voted to preserve important auto loan discounts for their constituents. Dealers need to continue explaining this resolution simply con- tinues the bipartisan effort that began years ago to keep auto loans affordable and accessible for all consumers. It also holds the CFPB accountable and mandates that it provides an open and public process before trying to upend fair credit and consumer affordability. The good news is that many members of Congress saw through the CFPB’s actions as a roundabout attempt to regulate dealers, even though dealers were exempt from the agency’s jurisdiction because there was bipartisan concern that additional costly and unneces- sary regulation would hinder auto loan availability. Enactment of S.J. Res. 57 prevents this attempt at regulatory overreach in our industry’s future—that’s not just good politics, it’s good policy. Finally, I’d like to commend NADA’s strong grassroots network and fellowNADABoardMembers and state association executives who have worked tirelessly to reach out to key legislators and ex- plain how auto financing works and how often it helps serves our customers in the car-buying process get better finance rates than they could get on their own. NADA looks forward to keeping auto financing convenient and competitive for all consumers. The CFPB’s Auto Financing Guidance Has Been Repealed