Tag Archive | "National Automobile Dealers Association"

NADA Forecasts a Record 17.7 Million New-Car Sales in 2016

DETROIT – U.S. sales of new cars and light trucks will set an all-time record in 2016, said Steven Szakaly, chief economist of the National Automobile Dealers Association.

“More than 17.7 million new light vehicles will be purchased or leased this year, about a 2-percent increase from 2015, and setting back-to-back records,” Szakaly said. “It will be the seventh consecutive year of auto sales growth.”

In 2015, a record 17.4 million new light vehicles were retailed, up 5.8 percent from 2014, according to WardsAuto. The average transaction price of a new car and light truck was $33,269 in 2015, according to NADA.

“We are living peak auto sales right now, and we will see one more year of that growth in 2016,” Szakaly added. “But only because of rising incentives that will keep consumers coming into showrooms. The real worry now is whether we’re starting to pull sales ahead from future years.”

Szakaly explained that, in the battle for market share, automakers are expected to increase incentives this year to manage increased manufacturing capacity, and to offset the effects of a slowing global economy, especially in emerging markets.

“If we were looking at a market with stable global growth and no increases in manufacturing, auto sales might actually fall in 2016,” he said. “But we have a situation where plants have been built, demand is slowing, and the U.S. market remains the most profitable in the world. Growth in places like Mexico will offer some temporary reprieve, but it won’t be sufficient to offset falling demand from Brazil, South Africa and other emerging markets. This means incentives will rise to stoke demand.”

Sustained sales momentum in 2016 is also dependent on expectations that auto financing rates will remain competitive, with interest rates rising modestly – by less than 1 percentage point – by the end of 2016; wages will grow about 2.5 percent this year; and the economy will add more than 2 million net new jobs in 2016, Szakaly added.

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Colorado’s Jeff Carlson Elected NADA Chairman for 2016

PALM BEACH, Fla. — The National Automobile Dealers Association (NADA)’s board of directors has elected Jeff Carlson as chairman for 2016.

Carlson, who is currently serving as NADA vice chairman, is president of Glenwood Springs Ford and Glenwood Springs Subaru in Glenwood Springs, Colo., and co-owner of Summit Ford in Silverthorne, Colo. His term as chairman officially begins in January 2016. The ceremonial event of “passing the gavel” will occur at the 2016 NADA Convention and Expo in Las Vegas.

“This is a great honor, and I’m eager to lead NADA as we continue the important job of protecting the interests of America’s 16,500 franchised new-car dealerships, and the more than 1 million people they employ nationwide,” said Carlson, who represents Colorado’s new-car dealers on NADA’s board.

Mark Scarpelli, who represents Metropolitan Chicago’s new-car dealers on NADA’s board, was elected vice chairman. He is president of Raymond Chevrolet and Kia in Antioch, Ill., and is co-owner of Ray Chevrolet in Fox Lake, Ill.

Bill Willis, president of Willis Automotive Group (Chevrolet, Buick and Ford) in Smyrna, Del., was elected secretary. Neale Kuperman, president of Rockland Toyota in Blauvelt, N.Y., was elected treasurer.

The election took place at NADA’s board meeting in Palm Beach, Fla.

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NADA Files Second Request for Internal CFPB Documents

MCLEAN, Va. — The National Automobile Dealers Association (NADA) filed a Freedom of Information Act (FOIA) request today, asking the Consumer Financial Protection Bureau (CFPB) to release internal documents acknowledging that the agency intended to regulate the auto finance market through enforcement action, and eschewed evidence that its methods for estimating disparate impact were deeply flawed.

This is the second time in less than three months that the NADA has requested internal CFPB documents leaked to American Banker. A request filed in July asked that the bureau turn over documents that allegedly stated the CFPB’s “goal” in the auto lending arena was to significantly limit dealer discretion, despite the fact that the regulator is specifically prohibited from regulating auto dealers under the Dodd-Frank Wall Street Reform and Consumer Protection Act. The CFPB denied the NADA’s request three days later.

On Sept. 17 and Sept. 24, American Banker published articles that made numerous references to internal CFPB documents. Those documents supposedly show that the CFPB based its understanding of vehicle financing on a now-discredited study conducted by the Center for Responsible Lending. The bureau also allegedly acknowledged in the documents that the proxy methodology it uses to determine the presence of discrimination in auto lending is flawed, yet it continues to use the results to reach large settlements with finance companies like Honda Finance Corporation and Fifth Third Bank.

“These documents demonstrate a lack of transparency and accountability that should be deeply troubling to anyone concerned about how significantly a regulator can influence a market that affects millions of consumers,” said NADA President Peter Welch in a statement on the NADA’s website. “Consumers benefit tremendously from the discounts they get from dealers, and they have every right to demand that their voices be included in — not willfully excluded from — the debate about how to regulate the auto finance market.”

Earlier this month, during the bureau’s semi-annual report to Congress, CFPB Director Richard Cordray was challenged by lawmakers over the methods the bureau is using to bring enforcement actions against auto lenders. The regulator noted that “‘Accurate’ is in the eye of the beholder,” and that the CFPB is working to find the most reliable method possible to determine the presence of discrimination in auto lending.

However, Cordray was not forthcoming about the internal documents cited by American Banker, telling members of Congress he was only “roughly familiar” with the memos.

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NADA Expands Effort to Protect Dealer-Assisted Financing

WASHINGTON, D.C. — The National Automobile Dealers Association (NADA) has launched a new initiative to highlight the true economic value of dealer-assisted financing, including video testimonials and a new website, officials announced this week.

On the new site, users can view testimonials from real consumers who benefited from receiving financing through a dealership.

“Consumers save money every day when they finance through dealerships, but that truth is getting lost in Washington, and that needs to change,” said NADA President Peter Welch. “The stories that we’re highlighting are far from unique. Dealers across the country save consumers money every day, and right now Washington is failing to understand what’s at stake for these consumers and millions more if competition is stifled and dealers are prevented from offering discounts on financing.”

In today’s vehicle finance market, local dealerships are able to shop a customer’s credit application to dozens of lenders all competing for the same loan. As a result, dealers usually offer better interest rates than consumers can find on their own. Furthermore, dealers have the ability to discount their rates to meet or beat a competing credit offer, which results in further savings for consumers.

“Most consumers know that financing is available at their local dealership, but what many don’t know is that dealer-assisted financing usually saves them money,” Welch added. “Many policymakers might not realize this either, but once the savings that comes from dealer discounting is made clear, it will be hard for Washington to turn a blind eye.”

The initiative is part of the NADA’s effort to stop the Consumer Financial Protection Bureau from restricting or eliminating the ability of dealers to provide competitive financing. The regulator has been targeting dealer markups, which it believes cause minorities to pay higher rates. But NADA officials have said the CFPB’s actions will have a negative effect on consumers’ ability to secure affordable auto loans.

Earlier this year, Reps. Frank Guinta (R-N.H.) and Ed Perlmutter (D-Colo.) introduced legislation — H.R. 1737 — that would promote transparency at the CFPB in order to help ensure that its policies do not unintentionally hurt consumers. In July, the legislation, which has 55 Democratic and 71 Republican cosponsors, passed the House Financial Services Committee on a 47-10 vote. The bipartisan vote included the support of 13 of the committee’s 26 Democrats, and House Republicans have indicated that the bill may come to the floor for a vote within the coming weeks.

“Our message is getting out, the facts are on our side, and people are starting to take notice,” Welch said. “But there’s too much at stake for consumers, so we don’t intend to take our foot off the gas until we know that consumer rights and consumer savings are adequately protected.”

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NADA Urges Dealers to Review FCC’s TCPA Ruling

WASHINGTON, D.C. — The National Automobile Dealers Association (NADA) is urging dealers to review their telephone and text marketing practices to ensure that they are in line with the Federal Communications Commission’s omnibus ruling and order regarding the Telephone Consumer Protection Act.

Issued on Friday, the ruling will affect a number of areas related to “autodialed” and pre-recorded telephone calls. Among the changes that could affect dealers, the NADA said this week, is the TCPA’s interpretation of the term “automatic telephone dialing system,” which encompasses “any technology with the capacity to dial random or sequential numbers.”

“The interpretation and several others in the order could require changes in dealers’ telephone and text messaging practices,” the NADA warned. “Dealers should review those practices and the system used to make calls and send text messages in light of these changes, and should consult with councel to ensure compliance with the new rulings.”

Dialing equipment that simply has the capacity to store or produce as well as dial random or sequential numbers would meet the TCPA’s definition of an autodialer. Predictive dialers also meet the definition of autodialer.

“Dialing equipment generally has the capacity to store or produce, and dial random or sequential numbers (and thus meets the TCPA’s definition of ‘autodialer’), even if it is not presently used for that purpose,” the commission said.

The ruling also puts the burden on the calling party to prove it obtained prior express consent should questions arise. It also requires that consent be obtained from the subscriber of the phone service, not the intended recipient of the call.

For telemarketing calls, prior-express-written consent requirements apply for each call made to a wireless number, rather than to a series of calls to wireless numbers made as part of a marketing campaign.

The commission also clarified whether telemarketers may make autodialed or prerecorded message calls to a wireless number that was initially linked to a wireline service. “Porting a telephone number from wireline service to wireless service does not revoke prior express consent,” the commission said. “If the consumer who gave consent to be called and later porter his wireline to wirless no longer wishes to be called because he may incur charges on his wireless number, it is the consumer’s prerogative and responsibility to revoke the consent.”

To review the FCC’s ruling, click here.

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Service Group Tabs Dupaquier as Director of Training Center

AUSTIN— Service Group announced today that F&I trainer and automotive expert Tony Dupaquier will lead the company’s national training center, called The Academy. He will teach classes and develop the school’s curriculum and marketing outreach, reports F&I and Showroom.

“We are very excited to add Tony D to our training team,” says Matt Woods, director of training solutions for Service Group. “He brings an additional level of experience and expertise to an already top-notch team. His desire to help others maximize their own performance aligns with Service Group’s objective of giving people the power to perform.”

Dupaquier brings a wealth of training experience to Service Group. He recently celebrated his 25th year in the car business. He’s held nearly every position in variable operations, from salesperson to general manager, and is a former Nissan National Walk-Around Champion. Dupaquier most recently served as director of American Financial and Automotive Services’ F&I school, where he was responsible for content, direction and marketing.

The F&I trainer has also been a featured workshop presenter at the National Automobile Dealers Association’s annual convention and has spoken at numerous 20 Groups and state dealer associations.

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