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Jon Klippel
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I've been employed as a finance manager in the auto industry for over twenty five years. I've probably placed over 15,000 auto loans or leases for consumers over that time. I cringe when I hear people make statements regarding regulation. Yes auto dealers are in the business to make money. Yes we may earn income from placing loans for our customers. For some reason you believe this is evil. Have you ever spent any time in a automobile agency and walked through the sales process? I pride myself on offering more competitive loan rates then my clients can obtain through their own financial institutions. I do it on a daily basis. I may save them money. I definitely save them time and make the sales process easier. What scares me is when "experts" make statements like "we don't know what type of regulations to instill, but we know the industry needs regulation", or your take that subsidized low interest rates lead to dumb choices by consumers. Your twisted way of thinking and proposed solutions will eventuality lead us to bigger government, less choices, and higher costs to consumers. You state that consumers may obtain their own loan, but doubt that many do. So am I to believe that your opinion is factual? Why didn't you back up your spiel with some data? The examples you used as the dealers way of doing business are probably illegal. Loan packing, already illegal. Hidden fees? The only fee I've ever charged is a dealer document fee which is already capped by regulation at $55. Every client pays the same document fee. Bait and switch? Never happens in the agency I work for. That type of behavior is unethical. Shame on anyone guilty of that practice. Consumers should walk away if they find themselves exposed to that situation. You want to regulate the practice. I know of no dealers that offer credit life insurance. I doubt that many offer rustproofing. I work and live in California. Rust isn't an issue for most people. Why didn't you mention the current Regulation Z. This "truth in lending" regulation requires the complete disclosure of every penny spent on an automobile purchases? All loan contracts already are under this regulation. Did you conveniently overlook the regulation or intentionally fail to explain it on the radio broadcast. I could go on further but I have to sign up a client for his new .9 APR auto loan.
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Jun 24, 2010