December 21, 2015
ON THE WEB: Shoppers Will Pay for Certified Pre-Owned
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2015 MOVERS AND SHAKERS
According to a survey by Edmunds.com, 88 percent of the 2,017 adults polled said that if they were to consider a used car, they would be willing to pay more for a certified preowned vehicle. Edmunds.com data estimates that CPO vehicles are $1,400 more expensive, on average, than similar non-CPO vehicles.
Wholesale Prices End Streak of Increases
Wholesale used vehicle prices ticked down in November after increases in each of the previous five months. The Manheim Used Vehicle Value Index stood at 125.1 for November, down from 125.3 in October.
Small Businesses Face Large Cost Increases
Small businesses continue to face huge cost increases and struggle to navigate significant confusion and complexity under the Affordable Care Act, according to a recent survey.
Rush - Dated Material
Richard Blumenthal The Connecticut Senator has made auto recalls one of his personal crusades and this led to an attempt to add an amendment to the Highway Bill that would have prevented dealers from selling vehicles with unrepaired recalls. The amendment was defeated, although the final version of the law does ban dealers from renting vehicles with unrepaired recalls. After trade associations helped defeat his amendment, Blumenthal accused car dealers of putting their economic concerns before the safety of the general public.
Don Foss The auto finance pioneer was inducted into the National Alliance of Buy-Here, Pay-Here Dealers Hall of Fame last spring. The son of a car dealer, Foss has been involved with the used-car business for almost 50 years. The honor doesn’t mark the capping of his career, though, as Foss is in the middle of growing a new venture, Carite, a chain of lease-here, pay-here stores he plans to grow across the nation. Foss remains chairman of the board of Credit Acceptance Corp, the finance company he founded. Credit Acceptance was on pace to fund 300,000 deals in 2015.
David Vignes KAR’s executive vice president of enterprise optimization said he “freaked out” the first time he visited an auto auction and realized what a dangerous place it could be. Vignes set about using his experience from working at The Walt Disney Co. to create a training program for KAR employees to improve workplace safety, The program centers around a mascot named Safe T Sam and offers targeted training for different positions.The National Auto Auction Association has adopted the program and is making it available to all its members.
House Passes Bill to Hold CFPB Accountable for Costs The U.S. House of Representatives recently voted to rein in the Consumer Financial Protection Bureau’s oversight of automotive finance. The Reforming CFPB Indirect Auto Financing Guidance Act passed by an overwhelming majority, 332-96. The bill challenges the bureau’s claim of racial discrimination on the part of dealers. It also requires the CFPB to open up its rule-making process and study the costs and impacts of the guidance to consumers and women-owned, minority-owned and small businesses. “If the CFPB truly cares about policies in the best
interests of consumers, the agency should reissue guidance that is clear, fair and respects due process,” said Rep. Frank Guinta, the bill’s main sponsor. “My bill would open the CFPB’s data to neutral experts and the public, solicit comments according to normal procedure, and require more economic study of the CFPB’s rush to regulate an important economic sector.” The bill now heads to the Senate, where it will face opposition from Sen. Elizabeth Warren, the CFPB’s main architect. Also, President Obama has threatened to veto any bill that makes fundamental changes to the way the CFPB operates.
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