Auto Dealers Applaud Vote to Repeal CFPB Auto Lending Guidance
Senate Resolution Seeks to Undo Government Overreach
Alexandria, VA (April 18) – The American International Automobile Dealers Association (AIADA) today reacted with optimism to the United States Senate’s passage by a vote of 51-47 of a joint resolution annulling the Consumer Financial Protection Bureau’s controversial auto lending guidance, which sought to limit the retail margins dealerships could earn while arranging a vehicle loan. The House of Representatives is expected to vote on its version of the bill soon.
“The CFPB, established to regulate Wall Street, never should have involved itself in dealership operations,” said AIADA President and CEO Cody Lusk. “Today’s vote is confirmation to dealers everywhere that the agency overreached when issuing its 2013 indirect auto financing guidance. The agency concluded, without accurate supporting data, that dealerships were using race as a determining factor when issuing loans. Today the senate has righted a wrong.”
America’s 9,600 international nameplate auto dealers, the majority of which are family-owned businesses, employ more than 577,000 Americans, resulting in a payroll of $32 billion and an additional 527,000 indirect jobs. Last year, they sold 8.4 million vehicles to American consumers – 59 percent of total U.S. retail vehicle sales. For more on the impact of America’s international nameplate dealers on our economy visit AIADA.org/our-impact.
About AIADA: Established in 1970, AIADA is and continues to be the only association whose sole purpose is to represent America’s international nameplate automobile franchises that sell and service the following brands: Acura, Aston Martin, Audi, Bentley, BMW, Ferrari, Genesis, Honda, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Maserati, Mazda, Mercedes, MINI, Mitsubishi, Nissan, Porsche, Rolls Royce, Scion, Smart, Subaru, Toyota, Volkswagen, and Volvo. These retailers have a positive economic impact both nationally and in the local communities they serve, providing more than 500,000 American jobs. Visit AIADA online at www.aiada.org.