Independent dealers representing the NIADA held conversations with members of the Federal Trade Commission and Consumer Financial Protection Bureau Tuesday morning.
The meetings requested by NIADA were held in the agencies’ offices and allowed dealers to share information about the industry, their dealerships and their consumers.
“It was a great conversation. They were very receptive and not intimidating,” said Jack Carter of Turn and Burn Motors in Austell, Georgia, who was with the group of dealers meeting with the CFPB. “It was a roundtable discussion where they were seeking to understand our industry.”
Lisa Marshall of North Main Motors in Marysville, Ohio, Tim Ehde of Carhop in Kirkland, Washington, Nick Markosian of Markosian Motors in Salt Lake City, Utah, and Dan Grosvenor of 5 Star Auto Plaza in St. Charles, Missouri, took part in a panel discussion with NIADA CEO Jeff Martin about the agency meetings.
Dealers helped bring awareness to the work they do on behalf of consumers.
“They felt enlightened on what we are doing for consumers,” said Marshall, who met with FTC officials. “We are very much for the consumers. We need their referrals and their repeat business.”
Marshall also stressed how dealers work with consumers to allow them to purchase a vehicle within their monthly budget.
“[The FTC] is laser-focused on getting the offering price. We are definitely going to disclose the all-in price, but we want to play to the needs of our customers,” Marshall said. “For them, the budget is what matters. They are interested in a payment that fits within their household budget.”
Ehde said the conversation with the FTC broached the Combatting Auto Retail Scams (CARS) rule and the record retention requirements.
“They didn’t understand the change in recordkeeping,” Ehde said. “One of the people we met with helped draft the CARS rule, and they didn’t know the burden.”
The CFPB meeting included questions about access to capital.
Grosvenor said they were able to share information about the price of capital to issue loans to consumers. They were asked about possibly borrowing from community banks. Dealers stressed the framework is not established for the banks to issue loans to dealers offering financing to subprime borrowers.
“I got the sense they want a collaborative relationship,” Grosvenor said. “It was the best back-and-forth conversation we have had with the CFPB.”
Greg Zak of Dixon Motors in Houston, Texas, went through a deal jacket with members of the CFPB to convey the large amount of paperwork that is part of selling a vehicle.
“What we were able to convey is it’s hard on everybody, and the more paperwork required, the less effective it becomes,” said Nick Markosian.
Dealers were encouraged by the conversations and the possibility to continue communications with the agencies.
“We’re not going to be able to agree on all the issues, but we can continue that dialogue,” Marshall said.
