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What’s Hillary Clinton Got To Do With It?
Ward's Auto ^ | September 17, 2013 | Steve Finlay

Posted on 09/17/2013 5:28:18 PM PDT by 2ndDivisionVet

The program billing says National Automobile Dealers Assn. Chairman David Wescott “will offer a spirited defense of the indirect financing model.” He does that, then opens the floor to questions.

First question from an attendee of the F&I Conference and Expo in Las Vegas: “Why is Hillary Clinton speaking at the NADA convention?”

Well, so much for the pressing issue that a relatively new government agency might muscle banks to end the practice of letting dealers tack on a percentage point or two to auto-loan rates. Called dealer reserve, it is the centerpiece of indirect financing whereby dealers as middlemen facilitate car-buying credit, as they do 80% of the time.

A lot of people beefed a couple of months ago when NADA announced Clinton will deliver a keynote speech at the trade group’s annual convention in January. Obviously, some still are stewing.

Clinton is a former First Lady and immediate past Secretary of State. She also is an unofficial Democratic candidate for the 2016 Presidential election. The latter is what has some critics continually asking why NADA, with a largely Republican membership, would tap her as a convention speaker.

Wescott, a Southern gentleman from North Carolina, begins to answer the question by noting past NADA keynoters have included public figures such as Bill Clinton, both George Bushs and former Secretary of State Condoleezza Rice.

The questioner at the floor mike interrupts the NADA chairman’s answer. “This speaker is running for president,” he says of Hillary Clinton, who actually hasn’t said she is running but is doing a lot of stretching exercises. “It sounds like you are endorsing her.”

“This is a top-level speaker,” Wescott says before giving up and going on to other questions. Those deal more with the topic of his conference speech about why the indirect-financing model is great for everybody: the market, customers and dealers; so what’s the government’s problem?

“The financing model has worked for a century but now it is being threatened,” he says, referring to the Consumer Finance Protection Bureau’s disdain of dealer reserve.

The CFPB indicates the practice possibly contributes to disparate impact, or alleged unintended patterns of discrimination. The bureau prefers flat fees as a way to pay dealers for helping customers get loans from third-party lenders.

Maybe it is my junior high school debating club experience, but I could argue both sides of the issue.

In defense of dealer reserve, the average add-on is less than 1%. It is a fallacy to assume a car buyer would get a lesser loan rate with dealer reserve out of the picture.

Lenders offer dealers wholesale rates. In turn, dealers offer customers retail rates. The wholesale rate is not available to consumers, any more than someone can drive into a BP service station and request the wholesale rate for gasoline.

In defense of flat fees, they could solve a lot of problems, simplify things and eliminate dealer defensiveness.

At last year’s F&I Conference and Expo, Tyler Corder, CEO of the Findlay Automotive Group dealership chain, said he thought flat fees were coming and dealers could live with them.

But Wescott says, “Having the government push everyone to this model isn’t a good idea.” He may be right about that.

He also says, “Some people don’t understand dealer-assisted financing.” He’s definitely right about that. Some consumer advocates have portrayed the dealer-reserve system as akin to street muggings.

After Wescott’s speech entitled, “Preserving the Benefits of the Indirect Financing Model,” attendees talk about the pros and cons of it and also wonder why the heck the government is stepping into it. They also talk about the guy with the Hillary Clinton question.

“I didn’t think the question necessarily was rude, however it was asked rudely,” says one attendee.

Another says: “Yeah, but he’s right. She is running for president.”


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: 2016; automobiles; automotive; hillary
The fix is in.
1 posted on 09/17/2013 5:28:18 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

2 posted on 09/17/2013 5:33:14 PM PDT by KC_Lion (Build the America you want to live in at your address, and keep looking up.-Sarah Palin)
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To: 2ndDivisionVet

I’ll raise you a what’s Hillary got to do with it, with a what difference does it make!


3 posted on 09/17/2013 5:39:02 PM PDT by goodwithagun (My gun has killed fewer people than Ted Kennedy's car.)
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To: goodwithagun

Depends on the definition of “it”...


4 posted on 09/17/2013 5:40:37 PM PDT by bigbob
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To: 2ndDivisionVet

Bengazi ? Hitlerly has NADA to say.


5 posted on 09/17/2013 5:40:56 PM PDT by beethovenfan (If Islam is the solution, the "problem" must be freedom.)
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To: 2ndDivisionVet

It is truly depressing to consider that she is the odds on favorite to be the next President of the United States.

Truly depressing. I don’t know what more to say and if the NADA is this stupid they better not gripe when she enforces a racial quota system on car loans. This is what the Clintonista crowd did to throw gasoline on the housing bubble and lending debacle. That worked out pretty well.

Maybe someone will ask Hillary why she wanted Ken Lay prosecuted for financial shenanigans at Enron, but she was completely silent about the mega-million dollar bonuses obtained by former Clinton admin officials who cooked the books at Freddie/Fannie to achieve the bonuses. Oh, that’s right - they are friends of hers. Biggest fraud ever right in front of our face executed by members of the Clinton inner-circle and nobody cares. Nobody.

I wonder what the former NADA members who were put out of business by the Obama administration think....

Buckle up gang.... we are screwed.


6 posted on 09/17/2013 6:10:20 PM PDT by volunbeer (We must embrace austerity or austerity will embrace us)
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To: 2ndDivisionVet
....wanna watch her scatter?...like stomping a foot when a rats around....BENGHAZI...and she scurry's away for a few days..
7 posted on 09/17/2013 6:16:19 PM PDT by Doogle (USAF.68-73..8th TFW Ubon Thailand..never store a threat you should have eliminated))
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To: volunbeer
It is truly depressing to consider that she is the odds on favorite to be the next President of the United States.

Won't happen ... this deceitful, wretched, lying women will never attain the highest political office in this country. The liberal MSM may push her candidacy forward aggressively but she has way too much baggage ... Hildabeast is over, big time. Guaranteed ...

8 posted on 09/17/2013 6:21:21 PM PDT by BluH2o
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To: BluH2o

You may well be right. Easy to forget that Hillary was a “lock” in Jan 2008 when some unknown guy from Kenya by way of Chicago snuk in and stole the kishka.

I have to believe she can crush SlowJoe and Cuomo early on, but who knows if the Chicago Mob has another wildcard candidate?


9 posted on 09/17/2013 6:24:37 PM PDT by nascarnation (Democrats control the Presidency, Senate, and Media. It's an uphill climb....)
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To: BluH2o

Won’t happen ... this deceitful, wretched, lying women will never attain the highest political office in this country. The liberal MSM may push her candidacy forward aggressively but she has way too much baggage ... Hildabeast is over, big time. Guaranteed ...


Not so fast FRiend... lest we forget, we elected a community organizer with a Muslim name who had no real achievements beyond voting “present”. In fact, the only thing I could see that he ever did in the public arena was secure government funds for his slumlord benefactor who is now in Federal prison and shake down others based on liberal principles. His one major achievement was a wildly unpopular and frightening thing called Obamacare. No real foreign policy achievements either.

We then elected him again despite a first term that was less than stellar - especially regarding the economy.

This nation may again elect whomever promises the most free stuff. Mrs. “It takes a village” will promise the stars, the sun, and the moon. We also have that diversity thing going for us again - i.e. time for a female President.

While I hope you are right, I don’t have much faith in my fellow citizens after the last two elections.


10 posted on 09/17/2013 6:42:49 PM PDT by volunbeer (We must embrace austerity or austerity will embrace us)
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To: 2ndDivisionVet

Hillary wants to be President, but she doesn’t want to serve as President. She can’t pass the physical and everyone knows it. Watch who she picks as VP. Hillary will win it, and then resign for health reasons. The VP will be who the Democrats want to govern.


11 posted on 09/17/2013 7:58:47 PM PDT by blueunicorn6 ("A crack shot and a good dancer")
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