62 in House Call for Auto Dealer Exemption in Finance Reform
WASHINGTON - A group of 62 House Democrats today urged party leaders to insist that auto dealers be exempted from regulation under a sweeping financial overhaul, The Detroit News reported.
In December, the House voted to exempt the nation's 17,000 auto dealers from oversight under a new Consumer Financial Protection Agency. The Senate included the dealers -- but separately approved a non-binding resolution calling on its leaders to agree to the House language on auto dealers.
Rep. Bill Owens, D-N.Y., sent a letter to Rep. Barney Frank, the chairman of the House Financial Services Committee, urging him to exempt the dealers.
"Many auto dealerships are locally owned and operated and played no part in creating the crisis on Wall Street that caused millions to lose their jobs," Owens said. "During tough economic times when our local dealers are trying to expand their business and create jobs, they do not need new and uncertain regulations from Washington." The dealer provision hasn't yet been discussed by the negotiators for the House and Senate, said Rep. Gary Peters, D-Bloomfield Township, who is one of the House negotiators. He said he "doesn't have a good sense" of whether the dealers will be dropped from the bill.
Auto dealers praised the effort.
"Consumers in upstate New York and across the country will ultimately benefit from this effort to preserve dealer-assisted financing as an affordable, convenient and competitive option for financing a car or truck," said William McBride Sr., president of Bill McBride Chevrolet and Subaru of Plattsburgh, N.Y. "Maintaining dealer-assisted financing increases access for consumers and decreases the cost of an auto loan."
But the White House and the Pentagon strongly back regulating auto lending, saying it's necessary -- especially to protect young service members from exploitation from unscrupulous auto dealers.
No Michigan members of Congress signed the letter circulated by Owens.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →