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October 17, 2016
www.usedcarnews.com
NADA Chief Calls Possible Recall Policy a Tax
CHAIRMAN: NADA Chairman Jeff Carlson takes in the sights at this year’s convention. Carlson recently spoke in Detroit about a range of topics, including the government’s approach to recalls, financing and franchise laws.
By Ed Fitzgerald
Rush - Dated Material
NADA Chairman Jeff Carlson greeted a Detroit audience by saying that in order to keep cars affordable consumers must not feel they’re being taxed to death. “If Washington wanted to implement a policy that would add $600 to the cost of financing a new car, what would you call that?� Carlson asked members of the Automotive Press Association. “What about a policy that would take anywhere from $1,200 to $6,000 out of a customer’s pocket when they went to trade in a used vehicle in order to buy a new one?
“Do you think that customer feels like they just got taxed? You’re darn right they do.� Carlson said he objects to any federal policy “that would add thousands of dollars to every single new vehicle that every manufacturer makes, up and down their entire lineups, right out of the gate. “We’re trying to take the message to policymakers that whatever they need to do, they need to keep cars affordable,� he said. Carlson, a Ford and Subaru dealer in Colorado, offered an example. “You have a 2009 Toyota Corolla that you want to trade in. You get a good idea of what it’s worth, you go
to the dealership, and your dealer tells you: ‘This car has an open recall for an irregularity in the lubrication process for the power window master switch that may cause the switch assemblies to malfunction. Toyota hasn’t manufactured a fix yet, and we don’t know when it’s coming.’ And although both Toyota and (the government) have said this vehicle is fine for you or a future owner to continue driving while waiting for a fix, Washington told me that, in the meantime, I can’t resell or even wholesale it. “That’s going to knock off $1,044 from the value of your trade-in. Sounds like Washington just taxed
that customer $1,000, doesn’t it?� Carlson said the NADA doesn’t oppose all objectives proposed by Washington. “In fact, what NADA has said to leaders in Washington is this: We understand your goals, and we agree with many of your goals, but we cannot accomplish these goals on the backs of our customers.� Despite the obstacles created by recalls, Carlson said it’s important – for both the dealer and the customer – that those recalls be resolved. “We need the customer to learn that if recalls aren’t done then the trade-in value of their car goes down,� he said.
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