GNYADA July 2014 Newsletter

Auto Credit Must Remain Affordable and Accessible for Car Buyers By NADA Chairman Forrest McConnell, III

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ers to secure discounted financing. Most troubling is that the CFPB has even admitted that it has not studied how this change would impact consumers. Members of Congress have taken notice. Rep. Marlin Stutzman, R-Ind., introduced H.R. 4811, The Bureau Guidance Transparency Act, which passed the House Financial Services Committee on a bipartisan vote on June 11, thanks to strong grassroots support from NADA and other industry trade groups. The bill would require the CFPB to be more transparent by requiring prior public notice for other future guid- ance. The bill would also rescind the CFPB’s auto finance guidance issued in March 2013 that threatens to elimi- nate a dealer’s ability to offer interest rate discounts in the showroom.

Franchised new-car dealers do much more than sell cars. We provide serv- ice for the long term. And we offer our customers competitive financing options. Dealer-assisted financing provides great value and competitive advan- tages, which saves our customers bil- lions of dollars each year. And the proof is in the numbers. Despite the fact that dealer-assisted financing is always optional, a large majority of consumers still choose to finance their vehicles through dealers. But in March 2013 – without prior notice or public comment – the Consumer Financial Protection Bureau (CFPB) issued guidance that could eliminate the flexibility that dealers have to negotiate lower auto financing rates for the benefit of con- sumers. Instead, the CFPB is pressur- ing auto finance sources to compen- sate dealers with a flat fee, which would weaken the ability of car buy-

sources, NADA released its Fair Credit Compliance Policy & Program last January. This optional program provides a dealership which adopts it with a viable means of managing its fair credit risk, while still allowing for pricing flexibility. Chris Stinebert, the president and CEO of the American Financial Services Association, issued a state- ment on July 9 that strongly support- ed NADA’s program, calling it “a legitimate tool that helps provide lenders with evidence that there are legitimate non-discriminatory reasons for pricing differences.” NADA is working to protect dealers – and our customers – by making sure auto loans remain affordable and accessible while still addressing fair credit risks. For more information, visit www.nada.org/cfpb .

To help address the fair credit risk to consumers, dealers and finance

McConnell is president of McConnell Honda/Acura, Montgomery, Alabama .

13 Technicians who repair or service motor vehicle air-conditioning (MVAC) systems must have completed an EPA-approved air condition- ing repair training program. Recordkeeping Requirements Under EPA rules, dealers must keep records showing that only trained technicians are operating dealership refrigerant recycling equipment. Dealers must keep tech’s “609 Certificates at the deal- ership for a minimum of three years. EPA has recently audited dealerships in our region for those records. Best Practice GNYADA suggests dealers review their files immediately to ensure copies of each AC tech’s certificate is kept in a file of MVAC certifi- cates for as long as the tech works at your dealership plus at least three years after the tech no longer works at the dealership. EPA Auditing NY Technicians

Franchise Law Update SEPT 24, 2014 9:30am -12:30pm Center for Automotive Education & Training Presented by: Douglas Clark, Esq., Wilson, Elser, Moskowitz, Edelman & Dicker LLP and Richard Sox, Esq., Bass Sox Mercer To register contact Ann Daly at 718.746.5900 or ann@gnyada.com

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The Newsletter • July 2014 7