The National Automobile Dealers Association (NADA) recently produced a new video containing testimonials from consumers who saved money by financing new vehicle purchases through their local dealerships. The new video, which can be viewed at www.nada.org/autofinance, showcases the true economic value of dealer-assisted financing. Dealers have been fighting to preserve the fiercely competitive, pro-consumer financing model ever since it came under threat from the Consumer Financial Protection Bureau (CFPB) in 2013.
Dealers across the country save consumers money every day and regulators fail to understand the negative impact on consumers, if competition is stifled and dealers are prevented from offering discounts on financing.
Currently, local dealerships are able to shop a customer’s credit application to dozens of lenders all competing for the same loan. As a result, dealers usually offer better interest rates than consumers can find on their own. Additionally, dealers also have the ability to discount their rates to meet or beat a competing credit offer, which results in further savings for consumers.