Categories
Compliance

The Supreme Court Upholds Disparate Impact. Now What?

Contributing Author: John Stephens

 

Contributing Author: John Stephens, Senior Vice President, Dealer Services, EFG Companies

Last month was a big month for the CFPB. The Supreme Court of the United States held in the case of Texas Department of Housing and Community Affairs et al. v. Inclusive Communities Project, Inc., that “disparate-impact claims are cognizable under the Fair Housing Act.” The CFPB established their Larger Participant Rule, putting captive finance companies under their jurisdiction. And, BB&T announced the launch of a nondiscretionary dealer compensation program that prohibits dealer markup and offers a flat-fee dealer compensation program.

Right now, you can’t read the news without seeing an article about the CFPB and speculation on what the industry will look like in the coming months. Rumors abound that three captives currently under CFPB investigation, Honda, Nissan and Toyota, will cap dealer markup.

Just recently, Honda Finance Corporation reached a resolution with the Consumer Financial Protection Bureau (CFPB) and the Department of Justice (DOJ), where it agreed to change its pricing and compensation system to “substantially reduce dealer discretion and minimize the risks of discrimination,” and to pay $24 million in restitution to affected minority borrowers. While the jury is still out on Nissan and Toyota, lenders have a unique opportunity to take advantage of all this activity.

Continue reading “The Supreme Court Upholds Disparate Impact. Now What?”
Categories
EFG Companies Featured

NAMAD and EFG Companies Announce First Annual Northwood University Scholarship Recipient

Northwood Sophomore, Javante Dilworth Selected Based on Scholastic Merit, Leadership & Fortitude

northwood_university_logoEFG Companies, the innovator behind the award-winning Hyundai Assurance program, together with the National Association of Minority Automobile Dealers (NAMAD), selected Javante Dilworth as the recipient for their Northwood University private donor scholarship.

The annual NAMAD scholarship will fund the remainder of Dilworth’s four-year tuition while he attends the Automotive Management Program at Northwood University, representing an investment of up to $100,000 from EFG. Dilworth is currently enrolled at Northwood pursuing a bachelor’s degree in Automotive Marketing and Management, and will be entering his sophomore year this fall.

Namad“When I first found out that I was the recipient of the NAMAD Scholarship I was amazed and overfilled with joy,” said Javante Dilworth, sophomore, Automotive Marketing & Finance, Northwood University.  This is really important to me because it opens up opportunities that are not always available.  It is truly a great blessing.”

Dilworth was raised by his mother in Detroit, Michigan, and was accepted to Northwood based upon academic merit, without family or dealership connections. During his first year of matriculation, his mother was tragically taken from him. This thrust Dilworth into a very adult situation in which he quickly learned how to provide for himself. Throughout the year, he sought out various projects, volunteer opportunities and jobs on campus, including Northwood’s 2014 phone-a-thon, where he consistently demonstrated maturity for his age and strong leadership. Despite the challenge of losing his mother and having to support himself, Dilworth maintained a 3.0 GPA.

Continue reading “NAMAD and EFG Companies Announce First Annual Northwood University Scholarship Recipient”
Categories
Dealership Training Economy

Positioning Leasing vs. Buying

Hollis Goode Blog Headshot

Contributing Author: Hollis Goode, Regional Vice President, Dealer Services, EFG Companies

Leasing continues to gain considerable ground in the automotive space as manufacturers place greater emphasis on lease incentives. Is your team taking advantage of this trend?

According to a recent report from Experian, leasing hit a record of 26.7 percent of U.S. new-vehicle volume in the first quarter of 2015. This represents a 1.1% year-over-year growth and the fourth time in the past five quarters when lease penetration topped 25 percent. With this growing trend, we can expect more manufacturer lease incentives in the second half of this year, meaning now is the time to ensure your sales team can not only close a sale, but also a lease.

Ask yourself, does my team know how to positional leasing versus financing? Not sure? Refresh your team by focusing on the basics.

Help customers understand depreciation. While they probably know that all vehicles depreciate as soon as they leave the lot, they probably don’t make the connection that vehicles depreciate at the same rate whether they lease or buy. The only difference lies in what they pay for. With leasing, customers only pay for the time/miles they drive. However, with buying customers commit to the entire cost of the vehicle, no matter how far they drive it or how long they keep it.

Continue reading “Positioning Leasing vs. Buying”