On Site Auto Dealership Financing.
Yesterday more than 100 new car dealers were in Washington voicing their concerns over some of the new proposed financial regulations.
It appears that the finance departments may be severely restricted and limited with their ability to provide on site auto financing. This goes way beyond the scope of regulating home loans and mortgages. It could also cause job losses and hurt an economic recovery.
The dealerships played no part in the mortgage meltdown. Why should the convenience of on site financing be taken away from consumers? Why force the consumer back into the bank? Maybe the government will also restrict a homeowner from using funds from a home equity line of credit to be used when purchasing a new vehicle. Good move or bad move to use home equity to make this purchase, it should be the homeowner's decision to use their equity in a manner they see fit.
The dealerships are in business to provide a service and product. They are also there to make a profit and be successful. Why put restrictions on this? The P-Word (profit) is such a bad word these days...
At the end of the day, if a dealerships best price on a car is too high a shopper will continue to shop rather than buy. Likewise, if they feel the finance rates are too high, they will shop their bank or credit union. This is the free market, let the consumer decide what a fair price is not gov't regulation.
Occasionally a car manufacturer offers 0% financing, I can't recall the last time I saw a bank offer that rate...
I think regulation of this nature could push some dealerships out of business. More regulations and fees could make purchasing a new vehicle more expensive for the consumer. More jobs could be lost.
All of which could further delay an economic recovery.
If you purchase a new computer or tv at Best Buy, they will offer you credit through their store credit card. Best Buy may even suggest an extended warranty or service plan. Wal-mart offers a store credit card too, will big regulation go after these retailers also...?
Jason E Potrzeba
Acadia Advisory Group, LLC
50 Grassy Plain Road
Riverside RI 02915
(401) 580-7612 Cell
(401) 633-6226 Fax