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Posts Tagged ‘auto lending news’

Dealers Reject Fed Plan Single Interest Rate for Car Buyers

NADA’s McConnell says idea will raise costs to consumers.

by on Oct.08, 2014

NADA Chairman Forrest McConnell claims a plan to charge car buyers the same interest rate will raise prices.

A proposal to mandate a single interest rate auto lenders can charge car buyers to ensure minorities weren’t discriminated against would only cause all buyers to pay more for a car, according to the National Automobile Dealers Association.

In a speech at an Automotive Press Association luncheon in Detroit, Forrest McConnell, president of McConnell Honda Acura in Montgomery, Alabama, and chairman of NADA, said the recommendation by the Consumer Financial Protection Bureau (CFPB) to require auto dealers to use a standard interest rate for all financed purchases denies buyers “their right” to a discounted interest rate.

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“The government is trying to take away a customer’s right to get a discount,” he said. “The Consumer Financial Protection Bureau, CFPB, is working on statistical anomalies.” (more…)

Auto Sales Jumping as Banks Loosen Credit Reins

Despite rise in subprime lending, defaults at near-record lows.

by on Jul.31, 2014

Banks have loosened the credit lines and as a result auto sales are booming in 2014.

It’s becoming clear that one of the primary reasons that new car sales are booming this year is that Americans are able to more easily get credit to finance their purchases. The total amount of outstanding auto loans has increased by 10% in 2014.

According to Equifax and its National Consumer Credit Trends Report, there is $902.2 billion in outstanding auto loans, which is a new record.

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“Auto lending continues to thrive, accounting for more than 50% of all new non-mortgage lending through April of 2014,” said Dennis Carlson, Deputy Chief Economist at Equifax. (more…)