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Dealer Associations: CFPB/Honda Consent Order Severely Reduces Consumers’ Ability to Negotiate Lower Auto Loan Rates
MCLEAN, Va. (July 14, 2015) - Leaders of the National Automobile Dealers Association (NADA), the National Association of Minority Automobile Dealers (NAMAD), and the American International Automobile Dealers Association (AIADA) issued the following statements in response to a July 14 consent order entered into by the government and American Honda Finance Corp.:
“Today's government-imposed order will hamstring the ability of thousands of consumers to negotiate lower interest rates with their local auto dealership,” said NADA Chairman Bill Fox. “This enforcement action artificially constrains the right of consumers to benefit from interest rate reductions of up to 1% of the APR on their next auto loan.”
“Every person deserves to be treated honestly and fairly when purchasing and financing their next car or truck - no exceptions and no excuses,” said NAMAD President Damon Lester. “Today's restriction of consumer rights is entirely unnecessary because a better alternative exists - the Fair Credit Compliance Policy & Program recommended by our associations. That alternative, which is modeled on prior Department of Justice consent orders, fully addresses fair credit concerns without displacing the ability of consumers to obtain discounted rates.”
“There's no getting around the fact that this enforcement action is going to reduce the savings consumers depend on when financing a new vehicle,” said AIADA Chairman Brad Hoffman. “Everyone in our industry is mystified as to why the government continues to overlook its own common-sense approach in favor of the anti-consumer methods forced on Honda Finance.”
Established in 1970, AIADA is the only association whose sole purpose is to represent America's 10,000 international nameplate automobile franchises that sell and service the following brands: Acura, Aston Martin, Audi, Bentley, BMW, Ferrari, Honda, Hyundai, Infiniti, Jaguar, Kia, Land Rover, Lexus, Maserati, Maybach, 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.
Since 1980, NAMAD has proudly taken a leadership role as advocates for diversity and inclusion in all aspects of the automotive industry. NAMAD collaborates with local, regional and national policymakers as well as domestic and international manufacturers to establish business protocols which are meaningful, equitable and sustainable for our nation's minority entrepreneurs and employees currently and potentially working within the automotive industry in America. For more information, visit www.namad.org.