Joint Effort Stops Bad Bill For Independent Dealers
In a recent update published by NIADA, a bill that would have negatively impacted California's auto finance industry . . .
In a recent update published by NIADA, a bill that would have negatively impacted California's auto finance industry was rejected this month by the California Assembly. Bill AB 2501 would have “prohibited creditors from repossessing vehicles until January 1, 2023 and required them to provide loan forbearance for up to nine months for customers unable to make payments.”
Recognizing the negative impact this bill would have on independent dealers and auto finance companies to extend credit to consumers, the Independent Automobile Dealers Association of California (IADAC) and NIADA worked together to oppose the bill. Through involvement from these associations and other groups, the Assembly rejected the bill. In its update, NIADA added:
In a letter to Limón and the Assembly, NIADA pointed out auto lenders assume significant risk in extending credit, which is minimized only by their ability to repossess the collateral in the event of a default.
Without that ability they would be far less likely to provide credit – and those most likely to be harmed would be the most vulnerable and financially disadvantaged consumers.
Good work, IADAC and NIADA—it's another example of the kind of impact independent dealers can and continue to have on our industry.
“This is a great team victory for everyone in the industry” said TIADA Executive Director, Jeff Martin. “If this bill passes in California it would spread like wildfire. This should make every dealer in the country join their association.”