Consumer Financial Protection Bureau creates Larger Participant Rule

WASHINGTON, D.C. -
What the Consumer Financial Protection Bureau officially will consider to be a “larger participant” in the auto finance market took another significant step forward today.

The CFPB published a rule that will allow the agency to supervise larger nonbank auto finance companies for the first time. The CFPB also released the examination procedures that regulators will use to ensure that auto finance companies are following the law.

“Auto loans and leases are among the most significant and complex financial transactions in a typical consumer’s life,” CFPB director Richard Cordray said. “Today’s rule will help ensure that larger auto finance companies treat consumers fairly.”

The CFPB estimated auto loans are the third largest category of household debt, behind mortgages and student loans. The bureau added American consumers had about $900 billion in auto loans outstanding in the fourth quarter of 2014.

Currently, the bureau supervises auto financing at the largest banks and credit unions. Today’s rule extends that supervision to any nonbank auto finance company that makes, acquires or refinances 10,000 or more loans or leases in a year.

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Financial Solutions

NABD Completes Another Successful BHPH Conference!

NABD Completes Another Successful BHPH Conference!

HOUSTON, TEXAS - The National Alliance of Buy Here, Pay Here Dealers (NABD) today announced the successful completion of their 17th annual National BHPH Conference at the Wynn, Las Vegas, Nevada on May 19-21. Operators and experts from around the nation and Canada gathered to hear more than 70 speakers and panelists during the three-day event.

            The conference theme was 'The Very Best of Buy Here, Pay Here' and featured an NABD Hall of Famers panel who shared tips, best practices and their visions on how to operate successfully. The panel included newly inducted Don Foss of Credit Acceptance Corporation and CARite, Ed Bass of Overland Bond, Chicago, Illinois, Julian Codding, Reliable Autos, Oklahoma City, Oklahoma, and John Linnehan, Jr. of Credit Now Auto Company, Ellsworth, Maine.  Conference Chairman and NABD founder Ken Shilson said 'these men have exhibited a lifetime of achievement and success.  Their leadership and knowledge made the industry better in the past and their insights here will make us better in the future!'

            The educational sessions featured fourteen (14) different workshops covering: website best practices, regaining market share ideas and irregular payment tax refunds, payment device best practices, an IRS update, sourcing and financing . . .

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Financial Solutions

Used Car News

Five used-car lots in Detroit have been shut down for trafficking stolen cars and stolen auto parts.

The Secretary of State suspended operating licenses at Hende Auto Parts, Best Price Auto Sale, Sold Auto Sales, Big 3 Auto Sales and A One Auto Sales.

Investigations found suspicious transactions by dealers, such as trying to obtain clean titles for salvage vehicles.

At one dealer, stolen parts were discovered and 30 cars were seized by police.

Tesla is now selling used electric cars 

Elon Musk now sells used cars. The billionaire's electric car company, Tesla Motors, quietly launched a pre-owned vehicle program at the end of April — a new scheme that offers older versions of its Model S sedan for lower prices than new models. The used cars still come with Tesla maintenance and reliability checks, and like other high-end car makers, Musk's company gives a 4-year or 50,000-mile warranty on pre-owned vehicles.

A Tesla spokesperson told The Wall Street Journal that the used cars would be stored at a Tesla location, allowing customers to collect their car directly, or have it delivered to their home. For now, limited supplies of the used Model S electric cars mean that the new scheme is currently only available in 11 US cities, with supplies coming from display models or owners who traded their older sedans in for new all-wheel-drive models under Tesla's trade-in schemes. But the company can expect an influx of older vehicles soon, as owners who bought their first-generation Model S on a three-year lease in 2013 return the car to the manufacturer.

• The Safest Used Cars for Under $10K, According to Consumer Reports

• Chevrolet Malibu (2009-2012, 4-cyl.): Starting at $8,125
• Ford Fusion (2010-2012, 4-cyl. and hybrid): Starting at $8,325
• Hyundai Sonata (2006-2014, 4-cyl., non-turbo): Starting at $5,450
• Kia Soul (2010-2011): Starting at $8,925
• Toyota RAV4 (2004-2012, 4-cyl.): Starting at $5,590

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