Senate Holds Off on Brownback Until Next Week · Dealers aren’t banks and dealers aren’t...
Transcript of Senate Holds Off on Brownback Until Next Week · Dealers aren’t banks and dealers aren’t...
WANADA Bulletin # 19-10 May 14, 2010
Senate Holds Off on Brownback Until Next Week NADA sees Delay as “11th hour Momentum” to Keep Dealer F&I out of Finance Reform
The vote on the Brownback amendment in the U.S. Senate that was expected this week
has been put off until next week, which NADA’s Legislative Office sees as a positive
development and an indicator that dealers nationwide are reaching senators in the “eleventh
hour” with the message that the Finance Reform bill in the Senate needs to exclude dealers as
Brownback prescribes. NADA members are making headway on Brownback, despite formidable
opposition such as that put forth by President Obama and the chairman of the Senate Banking
Committee, Christopher Dodd (D-Conn.). An important part of the dealer momentum on passing
Brownback and the effort to exclude dealers from Finance Reform is the bipartisan support from
Republicans and moderate Democrats that is surfacing in the Senate, as it did successfully in the
House version of the legislation that excluded dealers.
Senate Democrats met Thursday to discuss the status of the Finance Reform legislation and
strategize an endgame for the bill. To no one’s surprise, Senate Majority Leader Harry Reid (D-
Nev.) wants to move quickly to final action on the bill. And for his part, Sen. Dodd has said he
will call for a cloture vote on the Finance Reform to prevent any further amendments, such as
Brownback.
Both Republicans and Democrats have been reticent to cut off the amendment process, however,
because many are eager to add their own ideas to the politically popular overhaul of the financial
system.
NADA and dealer associations across the country, including WANADA, have been in continual
contact the Senate offices making this same point as well as countering Obama’s assertions that
dealers should not be excluded. (Please click here for the WANADA Special Bulletin sent to all
members on Wednesday May 12)
Headlines… Senate Holds Off on Brownback Until Next Week A Fun Day on the Links at the 2010 WANADA Open FTC’s Red Flag Rule Begins June 1 – And this Time They Mean it! Fuel Economy Guide Display Requirement 2010 NHTSA Insurance Cost Booklet Display Requirement Grand Prix Auto Racing Coming to Baltimore in 2011 An historical perspective on persons who immigrate to the U.S.
WANADA Member Briefing, Chrysler, GM & the
Industry Turmoil
06/08/2009
WANADA Bulletin # 19-10 May 14, 2010 Page 2
The NADA Chairman’s Perspective
In an open letter this week to all senators, NADA chairman Ed Tonkin had this to say:
“The White House is continuing to issue misleading statements in its efforts to get auto
dealers wrongly included in Wall Street Reform legislation.
“The enormous set of consumer protection laws that currently governs dealers will be preserved
under the Brownback amendment. Despite what the Administration suggests, unfair and
deceptive practices are currently illegal and would remain so if the Brownback amendment is
passed. Moreover, all of the laws that dealers are currently subject to (e.g., Equal Credit
Opportunity Act, Truth In Lending Act, Federal Consumer Leasing Act, Fair Credit Reporting
Act, Gramm Leach Bliley Act, and Federal Trade Commission Act) would still exist and apply to
dealers if the Brownback Amendment is approved.
“At the core of the Administration’s attack on dealer-assisted financing is the assertion that
dealers routinely place consumers in ‘loans with higher interest rates than the borrower
qualifies for.’ This statement is patently false. What’s worse, it manifests either an inability or a
refusal on the part of the Administration to recognize how the market, which they claim needs
more regulations, actually works.
“Dealer-assisted financing regularly affords consumers more favorable terms than those
available through other sources. Yet, the Administration seeks to subject dealers to an agency
which is being directed to create an uneven playing field by declaring off-limits for dealers
practices that will be preserved for community banks, credit unions and other direct lenders.
“For the president, to malign an entire industry made up of Main Street businesses run by
dedicated men and women and their employees is shocking. We urge senators to resist this latest
round of scare tactics and vote in favor of the Brownback amendment to preserve affordable
auto finance options for consumers."
Sincerely yours,
Ed Tonkin
Chairman of NADA
11th Hour Talking Points for Dealers on Brownback
WANADA members are urged to join fellow dealers nationwide in keeping the pressure on
senators! What follows are talking points in the 11th
hour for dealers to press in continuing to
urge senators to support the Brownback Amendment:
1. Dealers don’t extend credit to car buyers and don’t belong in Finance Reform
Legislation designed to regulate those that do!
2. Dealers aren’t banks and dealers aren’t finance companies. Dealers sell and service
vehicles, providing an important value-added benefit to car buyers by arranging
auto loans where the consumer routinely gets the best credit terms.
3. The overwhelming majority of car buyers reap real benefits when the dealer they
buy their vehicle from also arranges the loan.
WANADA Bulletin # 19-10 May 14, 2010 Page 3
4. There are very few instances of customer dissatisfaction with dealers in the loan
arrangement process from car buyers at large, let alone service men and women as
some have alleged. When consumer complaints arise there are already a wide array
of federal and state consumer protection agencies that are readily available to
intervene on the consumer’s behalf.
To contact Maryland or Virginia senators electronically with follow-up or first time
communication on the Brownback amendment, refer to the Finance Reform legislation (S.3217)
and use the links below.
In Maryland, contact,
Sen. Ben Cardin (D-MD) http://cardin.senate.gov/contact/email.cfm
Sen. Barbara Mikulski (D-MD) http://mikulski.senate.gov/Contact/contact.cfm
In Virginia, contact,
Sen. Mark Warner (D-VA) http://warner.senate.gov/public/index.cfm?p=Contact
Sen. Jim Webb (D-VA) http://webb.senate.gov/contact.cfm
To register support for the Brownback amendment by phone, call your senator’s office via the
U.S. Capitol switchboard at (202) 225-3121.
Along with the dealer principal, key staff and employees should contact their senators as well.
Keeping the pressure on members of the Senate is important if we are to keep dealership F&I
operations out of the regulatory scheme envisioned in the Finance Reform Legislation.
Keep it Up!
A Fun Day on the Links at the 2010 WANADA Open VA Takes the Honors in the First MD/VA WANADA Cup Match
As has been the case for as long as anyone can remember, the day
dawned sunny and bright for The WANADA Open on Monday, May 10
and association members and guests enjoyed a spectacular day at
Lakewood Country Club in Rockville, Md. Over 112 golfers turned out
for the WANADA Open and were joined by additional members and
guests for the evening reception and dinner. Mixed into the day of
competition and camaraderie was the first ever WANADA Cup Match,
pitting dealer foursomes from Maryland and Virginia against one another
in what was billed as the “Match Between the States.”
“It’s pretty hard to complain about weather like this, a course like this,
competition like this and a fun day like this has been,” said Tony Santy of
Chesapeake Petroleum chairman of the WANADA Special Events Committee which organized
the Open. “We are very grateful to all our sponsors for making it possible,” he said.
WANADA Bulletin # 19-10 May 14, 2010 Page 4
“The Match Between the States” From the left, the Virginia team of Andy Heye, Chip Lindsay, Don
Bavely and Burke O’Malley and the Maryland team of Chip Doetsch, Rick Kelley, Bill Andrakakas and Vince Sheehy
The WANADA Cup
In the premier event of the
day, the WANADA Cup
team from Virginia,
composed of Chip Lindsay
of Lindsay Automotive
(Captain), Andy Heye of
Ourisman Chrysler, Dodge
Jeep, Burke O’Malley of
Sterling Chevrolet and Don
Bavely of Rosenthal
Automotive turned in a
sparkling 63, playing from
the championship tees, to
defeat the team from
Maryland composed of
Chip Doetsch of Apple
Ford, LM (Captain), Rick
Kelley of King Auto
Group, Bill Andrakakas of
Hersons Honda and Vince Sheehy of Sheehy Auto Stores, which shot 69. The winners will have
their names inscribed on the WANADA Cup plaque that will hang at association headquarters
and each player got an individual trophy to recognize their achievement.
General Tournament Winners!
Winning Team Shot 58
The winning foursome (pictured left,
from the left) is Rex Close from
Springfield Toyota, and Dick West and
Jeff Duce of Weaver Brothers Insurance.
(Not pictured is Mike Bennett from
Ourisman of Virginia)
Second Place Team Shot 60
The Runner-up Foursome (pictured right, from the
left) is Bob Reeser and his teammates Mike Bastain,
Chase Automotive Finance, Fred Cheyssari,
International Motors and David Kelly, Koons
Nissan.
WANADA Bulletin # 19-10 May 14, 2010 Page 5
Specialty Golf Event Winners
The Longest Drive
Dennis Stough, SunTrust and David Kelly, Koons Nissan
Closest to the pin
Jay Cunningham, Sheehy Auto Stores and Jack Blush of Lindsay Lexus of Alexandria
Ticket Contest Winners
Callaway Diablo Driver
Chip Doetsch, Apple Ford, LM
Ping Golf Bag
Mike Sundergill, B&R Associates
Golf Massage
Burke O’Malley, Sterling Chevrolet
Taylor Made R9 Driver
Jeff Duce, Weaver Brothers Insurance
Assoc.
Wine Basket
Edward Lawrence, M&T Bank
Scotty Cameron Putter
Jay Cunningham, Sheehy Auto Stores
Taylor Made Rescue Club
Jim Stolhman, Mercedes Benz of Alexandria
Titliest Vokey Golf Wedge
Gary Little, American Service Center
Opti Logic
Rex Close, Springfield Toyota
Maxfli Golf Bag
Dave White, DARCARS
50/50 Drawing ($735)
Earl Seboda, Congressional Motors
Grand Prizes
Flip Video
John Pesavento, PNC Bank
Apple iTouch
Pete Kolocunis, Leesburg Toyota
Panasonic 42” Plasma Digital HDTV
Nadar Darvish, DARCARS Waldorf
Samsung 50” Plasma Digital HDTV
Jay Cunningham, Sheehy Auto Stores
The “Awesome foursome” (from the left) Jim Tortorella, C-B-M, Corky Crovato, BG Products, Sam Weaver, Chevy Chase Cars, and John Bowes, Chevy Chase Cars
WANADA Bulletin # 19-10 May 14, 2010 Page 6
WANADA chairman George Doetsch with son Chip Doetsch of Apple Ford/LM on the putting green
First Annual WANADA Cup Winners
The Virginia Foursome
Open chairman Tony Santy (L) with Virginia winners Andy Heye, Ourisman C/D/J, Don Bavely, Rosenthal Companies, Chip Lindsay, Lindsay Automotive and Burke O’Malley,
Sterling Chevrolet
WANADA Bulletin # 19-10 May 14, 2010 Page 7
“Thank You” to our WANADA Open Partners & Sponsors
Things like the WANADA Open come together and go off as successfully as they do because of
a carefully formulated and executed plan organized each year by the Special Events Committee.
In addition to Chairman Tony Santy of Chesapeake Petroleum, committee members include Bob
Hydorn of Fitzgerald Auto Malls, Tom Parsons of DARCARS, Bob Reeser of Chase Automotive
Finance and Sam Weaver of Chevy Chase Automotive. The Open goes from good to great with
the generous support of sponsor organizations, many of which are part of WANADA’s Kindred
Line, all of which successfully service the Washington area new automobile dealer community.
In all, there were 32 this year whose sponsorships enhanced events and provided fabulous prizes.
Activities and Evening Sponsors
Dinner – Washington Post Media
Cocktail Reception – Comcast Spotlight, Crumback
& Associates, LLC
Lunch – Chesapeake Petroleum, DentaQuest,
SunTrust Bank, Unicare Life & Health
Golf Carts –CARFAX
Golf Balls & Tees – AutoTrader.com
Hole-in-One Sponsorship – $10,000 Prize – Kaiser
Permanente
Hole-in-one Sponsorship – 50” Plasma TV prize –
Morgan Stanley Smith Barney
Hole-in-one Sponsorship – Ping Woods and Bag
Prize – Injured Workers Insurance Fund
Hole-in-one Sponsorship – iPod Touch Prize – Helion Technologies
Driving Range – Councilor, Buchanan & Mitchell, PC
Putting Green – ABC 7/WJLA-TV
Bag Drop – M&T Bank
Beverage Stations – BG Products, Charapp &
Weiss, LLP
Sign Sponsor – Hargrove Decorators.
Hole Sponsors
ADESA Auctions
AutoTrader.com
Automotive Essentials
CARFAX
Comcast Spotlight
Crumback & Associates, LLC
Group Benefit Services
Hamilton & Hamilton, LLP
Hargrove, Inc.
JM&A Group
PNC Bank
Pomerance & Associates
Washington Post Media
Yoffe Exposition Services
Zurich Insurance
Grand Prizes
Platinum – The Washington Auto Show
Gold – WANADA Automobile Dealer Education Institute (ADEI)
Silver – WANADA Insurance Brokerage & Trust
WANADA Bulletin # 19-10 May 14, 2010 Page 8
The behind the scenes component of any successful WANADA Open are the imaginative and
talented association staff leaders “who keep the train running on time,” according to WANADA
president Gerard Murphy. This year, WANADA’s Open Staff included Ralph Frisbee (golf
consultant), Kristina Henry, Trish Frisbee, Isabel Garcia and John O’Donnell.
***
WANADA greatly appreciates the assistance of everyone noted above for their significant
contributions to the 2010 WANADA Open!
See more of the 2010 WANADA Open, at www.photoresponse.com/wanadaopen
FTC’s Red Flag Rule Begins June 1 – And this Time They Mean it!
The Federal Trade Commission (FTC) Red Flag Rule, which
requires dealerships to implement comprehensive and dealership-specific
Identity Theft Prevention Plans (ITPP), is going into effect June 1.
Originally proposed to go into effect in November of 2008, the rule
requires that dealership identity theft programs are updated regularly to
thwart advances in electronic identity theft by criminal elements. Dealers
should ensure that if they are using a checklist form as part of their ITPP that they update the
checklist when reviewing and updating the ITPP as required by the FTC regulations.
Fuel Economy Guide Display Requirement
WANADA dealer members are reminded that federal law requires that at every
showroom location where brochures are displayed that describe the vehicles sold there, copies of
the EPA’s Federal Fuel Economy Guide, or a notice stating where the customer may access an
electronic version of the Guide, must also be in plain view and, if appropriate, accessible.
If you display a notice instead of the physical guide, the notice must contain the link:
http://fueleconomy.gov, and must allow the consumer to view and print the guide at no cost.
Hard copies of the guide can be ordered online at:
http://www.afdc.energy.gov/afdc/vehicles/fuel_economy_order_form.html.
2010 NHTSA Insurance Cost Booklet Display Requirement
In addition to the display of the EPA Fuel Economy Guide, dealers must also display
NHTSA’s “2010 Relative Collision Insurance Cost Information Booklet.” These booklets
compare differences in insurance costs for vehicles within a similar class on the basis of damage
susceptibility, and are updated each year. There is no online equivalent of the booklet, so dealers
should be sure to order a sufficient number to meet consumer demand. The booklets can be
ordered by calling (202) 366-0846, or downloaded and printed at:
http://www.nhtsa.gov/staticfiles/administration/program_development/2010_Comparison_Indusr
ance_Costs.pdf.
WANADA Bulletin # 19-10 May 14, 2010 Page 9
An historical perspective on persons who immigrate to the U.S.
In the first place, we should insist that if the immigrant who comes here in good faith becomes an
American and assimilates himself to us, he shall be treated on an exact equality with everyone else, for it
is an outrage to discriminate against any such man because of creed, or birthplace, or origin. But this is
predicated upon the person's becoming in every facet an American, and nothing but an American.
There can be no divided allegiance here. Any man who says he is an American, but something else also,
isn’t an American at all. We have room for but one flag, the American flag. We have room for but one
language here, and that is the English language. And we have room for but one sole loyalty and that is a
loyalty to the American people.
--Theodore Roosevelt, 1907
Grand Prix Auto Racing Coming to Baltimore in 2011
Maryland based WANADA dealer members may have a new marketing opportunity on
hand now that the Baltimore city government has approved a five-year agreement to bring Indy
Car Racing to the streets of that city beginning in 2011.
The Baltimore Grand Prix would be run on a 2.4 mile course around the Inner Harbor and
Camden Yards beginning in August 2011. It will be a three-day event that should draw more
than 100,000 people and generate $11 million in tax revenue for the city.
Baltimore would become one of 17 stops on the Indy Racing League circuit, which includes
cities in Brazil, Japan, Australia and Long Beach, Calif.
Baltimore Racing Development LLC, is organizing the event and the city is proving $7.75
million for road upgrades along the course and the pit stop area at Camden Yards.
Washington Area New Automobile Dealers Association