Big Brother Seeks To Tighten Grip On Industry By Regulating Dealer Financing

Dealer-assisted financing of customers' car purchases would be regulated by a new consumer protection office under a financial-regulation bill passed by a Senate committee yesterday.

The provision is markedly different from one that passed the House in December, which would exempt dealers from regulation by a new independent consumer protection agency.

The 1,336-page Senate Banking Committee bill, which now goes to the Senate floor, would create a Consumer Financial Protection Bureau inside the Federal Reserve.

Oversight of auto financing by a new agency was pushed by consumer groups and the Pentagon over objections by the National Automobile Dealer Association.

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thstone - 3/24/2010 4:52:46 PM

+2 Boost

Dealers have no one to blame except themselves.

LauderdaleDriver - 3/24/2010 7:44:55 PM

+1 Boost

Dears commit gross fraud in financing transactions. This is way overdue.

Agent009 - 3/25/2010 10:13:32 AM

0 Boost

People are all too quick to absolve themselves of responsibility.

The rules are simple:

1. Know what you are going to pay for the car before going in to the dealer.
2. Know what your credit score is and what interest rate you should qualify for.
3. Figure out what your payment should be.

If there are any discrepancies then ask questions.

4. If you have a trade in then know what the real world value is.

Too many people walk in to the dealerships with unrealistic expectations and totally unprepared.

CarCrazedinCali - 3/24/2010 8:38:36 PM

0 Boost

thstone, lauderdale- Blindly blaming dealers is not the answer. Just because you said yes to a deal you may shouldn't have does not mean it's the dealers fault. I swear, customers are too quick to point the finger of blame at the dealer because of a few bad experiences with idiots they should have never been doing business with to begin with.

Dealers are middlemen between customers and lenders, we only assist with the loan process and make a small profit for doing so.

Maybe we should just go back to cash or check at dealers. You get your own loans and quit complaining about negotiating- don't if you don't like to, and if the dealer is not being fair- leave! Simple!

LACMAN - 3/25/2010 2:47:32 PM

0 Boost

You make it sound so honest and innocent. REALITY: Dealers want to make as much money as they possibly can WHILE AT THE SAME TIME sounding fair. In NO WAY do dealers want to make a "small profit".

Thanks for the chuckle though! :D

bfghemicuda - 3/24/2010 9:49:40 PM

+2 Boost

What happened to the day when a consumer was responsible for reading any and all contracts before signing and doing due dilligance when picking a dealer? I guess the answer today is REGULATE the free enterprise system to death. Just what we need, another Bureau to regulate what the Bureau its under is to be regulating.