In the last issue, we reported on the attack by the Consumer Financial Protection Bureau on dealer participation in financing. Based on the bulletin from the CFPB to large lenders, many experts and industry critics have declared that dealer reserve is dead and that flat fees are imminent. But the motor vehicle dealer industry is […]
Oh, what a difference a few years make. In late 2008, many auto pundits lamented that we might never again see sixteen million annual new vehicle sales. Proving that their memories are as faulty as their predictions, in 2012 they told us that, just like they always expected, sixteen million annual sales are on the […]
Car people speak in their own shorthand that is not always precise. For example, a franchisor is the “factory”, even though the franchisor may simply be a distributor that does not manufacture anything. Or an extended service contract is often referred to as an “extended warranty”, even though it is not a warranty at all […]
Have you wondered why industry publications are writing with increasing frequency about the expected demise of finance “markup”? The answer is simple – proponents of flat fees are working to sell the concept that “markups” are evil to regulators like the federal Consumer Financial Protection Bureau and the Federal Trade Commission with the hope that […]
The Office of the New Mexico Attorney General recently adopted new spot-delivery regulations. The regulations took effect June 1 and impose a wide-range of dealer requirements related to spot-delivery practices. The actual regulations can be downloaded using the following link. New Mexico Spot Delivery Regulations (12.2.13).
The best strategy for protecting against a franchise termination is to aggressively make your case when you get the first factory letter critical of your performance. If you wait until the termination notice is issued, you may cripple your defense. Dealers are confident that their state franchise statutes will protect them from termination. That confidence […]