The National Automobile Dealers Association (NADA) is celebrating its 100th anniversary starting today. Founded in 1917, NADA was formed when a group of local dealers set out to fight Congress on levying a luxury tax on new automobiles. Thirty dealers from state and local associations traveled to Washington, D.C., and set up base at the Willard Hotel. NADA says that by convincing Congress that cars were not luxury items as they were classified, but instead were vital to the economy, succeeded in reducing a proposed 5% luxury tax to 3%.
“It’s not every day that a national trade association reaches its 100-year anniversary, yet NADA is still as strong and relevant as the day it was founded,” says 2016 NADA Chairman Jeff Carlson. “For the past 15 years, more than 90% of all new-car and -truck dealerships in the United States have been NADA members. Few, if any, other associations have sustained those membership numbers,” Carlson added.
Carlson speaking to the Automotive Press Association in Detroit last fall said politicians and regulators in Washington, D.C. are implementing regulations that would make buying, financing, trading-in and servicing vehicles harder and more expensive for consumers. Some of the regulations – The Consumer Protection Financial Bureau financing disclosure regulations comes to mind here – are proposed or being implemented because of abuses by auto dealers, of course. Only 36% of NADA dealer members have adopted NADA’s own credit compliance policies that could have headed off the regulations. As it stands now, there is a fierce lobbying battle in Washington to get the regulations rescinded. (NADA Opposes Credit Reform on Auto Lending Practices, NADA – Washington Policy Goals Thwarted by Regulations)
Solutions to other problems require nuanced thinking and practical, non-traditional methods. These, in AutoInformed’s wearying experience, can be beyond the intellectual capabilities of lobbying or pressure groups, regulators and politicians. And – of course – some political groups are downright opposed to reform, no matter what their public posture is.
Take the safety recall rate completion rate problem. About 70% of recalls are fixed nationally because R.L Polk can only supply new car registration data. After a couple of years, tracking ownership registration becomes murky. The obvious solution is to go to a national registration and driver’s licensing system. Good luck with that, as the states use their motor vehicle departments as a giant source of revenue with varying degrees of competence.
Mark Scarpelli, president of Raymond Chevrolet and Raymond Kia in Antioch and co-owner of Ray Chevrolet and Ray Chrysler-Jeep-Dodge-Ram in Fox Lake, Ill., officially becomes chairman of NADA during the 2017 NADA convention on Saturday, January 28.
NADA says Scarpelli’s top priorities for 2017 include advocating on legislative and regulatory issues in Washington, D.C., promoting the consumer benefits of local dealerships, meeting with auto manufacturer executives, and getting the next generation of dealers involved in their trade associations and on Capitol Hill.
“We’re advocating for clarity with the new administration and Congress, whether it’s related to auto financing, new tax proposals, vehicle recall policy or fuel economy rules,” Scarpelli said. “We’re concerned about vehicle affordability for consumers, period. We have to make sure we keep our customers top of mind when dealing with these issues.”
(See NADA Opposes Credit Reform on Auto Lending Practices or CFPB Scoffs at NADA FOIA Request on Auto Lending or FTC Says Sage Auto Group Uses Deceptive Tactics or Predatory Credit Charges on Used Cars Filed by DOJ Financial Protection Bureau Auto Loan Regulation Anti-Consumer Says NADA)
TYSONS, Va. (Jan. 30, 2017) – Today, the National Automobile Dealers Association (NADA) launched a new initiative designed to promote the benefits of local new car and truck dealerships for consumers, local communities and manufacturers alike.
The new MyDealership.org initiative includes a website and social media channels and features videos of real consumers and dealership staff voicing the benefits of local dealerships in their own words. Videos include:
· My Dealership Saves Me Money: Econometric research has shown that when same brand dealerships compete in proximity to each other, consumers save hundreds of dollars on the price of a new vehicle.
· My Dealership Creates Jobs: Local dealerships provide nearly 1.1 million jobs in sales, service and management average more than $69,000 in compensation per year across occupations – in fact, dealerships employ more workers than auto manufacturers operating in America.
· My Dealership is Local: Approximately half of America’s 16,500 dealerships are companies that own two stores or less. Thousands of dealership groups are locally owned and operated businesses rooted in their communities.
· My Dealership is Modern: Local dealerships offer a modern service and sales experience, with online tools and digital platforms dedicated to making the purchasing experience as easy and convenient as possible.
· My Dealership is Diverse: Local dealerships reflect the communities they serve, and can be incredibly diverse workplaces, employing workers from all background in sales, service and management occupations, and with opportunities for advancement.
“Local dealerships benefit consumers and local communities alike – through price competition that drives down prices, and good paying jobs that drive local economies,” said NADA chairman Mark Scarpelli, who operates four dealerships near Chicago, Illinois. “But MyDealership.org doesn’t come from the perspective of dealers – it comes from the perspective of real consumers, dealership staff and community leaders who have seen the benefits of local dealerships first hand.”
The initiative is being taken up by state and local dealership associations across the country. Robert Glaser, who runs the North Carolina Automobile Dealers Association and chairs Automotive Trade Association Executives (ATAE), plans to be the first state association to take up the initiative. “Local dealerships benefit consumers and local communities in North Carolina and across America,” said Glaser. “NCADA is taking up this initiative, and we encourage local dealerships and dealer associations to promote it as well.”