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NADA working to improve auto-financing difficulties

November 17, 2010

By Ray Scarpelli Sr., Metro Chicago NADA Director

Annette Sykora, chairman of the NADA, issued this statement about the nation’s current credit crunch:

"America’s financial liquidity crisis, created by mortgage lending, is constraining the availability of auto credit, which is the lifeblood of both dealerships at the wholesale level and car buyers at the retail level. Industry experts agree that the economics of auto financing are sound and that vehicle financing did not cause the current crisis. 

"Nonetheless, banks and finance companies are reluctant to lend. Consumers—even those with good credit—are finding it increasingly difficult to get financing. To address the issue, the NADA is moving forward on several fronts.

"First, the NADA is meeting with the major associations representing the banking and financial services industries to emphasize the fundamental soundness of the existing auto-finance model and to highlight the fact that it is, therefore, in the economic interests of finance sources to continue making credit available for automotive retailing.

"In addition, the NADA is supporting congressional efforts to stabilize liquidity in the economy and provide government funding that would make available $25 billion in loans for the auto industry.

"Our message to the financial community and Congress is simple: Auto financing is sound. We just need liquidity to do our jobs."

In other NADA news . . .

• The NADA’s immediate customer follow-up and complaint-resolution program, NADA-24, recently completed its five-millionth interview. Launched in 2005, the program provides feedback to dealers the day after a customer buys or services a vehicle, enabling quick responses to customer problems and helping to build loyalty. Contacted customers are asked three questions to gauge their satisfaction level. Visit for more.

• Ford Motor Co. President and CEO Alan Mulally will give the keynote address at the opening session of the NADA’s convention, Jan. 24-27 in New Orleans. Before joining Ford in 2006, Mulally was executive vice president of the Boeing Co. and president and CEO of Boeing Commercial Airplanes. Other speakers include President George H.W. Bush and former NFL quarterback Archie Manning. For more, visit Ten hotels already are sold out.

• NADA Used Car Guide has introduced two additional trade-in value categories to help businesses better define used-vehicle pricing for a broader spectrum of vehicles.  The new "Rough Trade-In" and "Average Trade-In" values are included in all guide electronic products, and are part of the printed guidebook this month. The new categories complement the existing "Clean Trade-In," "Clean Loan" and "Clean Retail" values. The majority of vehicles in the wholesale market—about 50 percent—are considered "average" in condition, according to NADA market data. Vehicles in the "clean" category represent about 15 percent of the market, while those in the "rough" category—typically considerably damaged but not "salvage" vehicles—are about 20 percent. The remaining vehicles fall into the "extra clean" or "salvage" category.

For more on the guide’s vehicle value categories, as well as its full lineup of electronic and print products and services, visit

In regulatory news . . .

• The NADA has finalized two new publications to help dealers comply with several new federal legal requirements. All members will receive via mail a free printed copy of "A Dealer Guide to the FTC Affiliate Marketing Rule" and "Electronic Disclosure Rules for Dealership Online Commerce." However, because Oct. 1 was the compliance deadline for each of these new rules, NADA Management Education is making these two publications available immediately in PDF form. The PDF files are free to members upon request. Send an e-mail to Management Education at, and include your NADA member identification number with your request.

• Individuals and organizations with 25 or more trucks, tractors or other heavy vehicles used on highways are required to make their excise tax filings with the Internal Revenue Service electronically, rather than by paper. Form 2290, Heavy Highway Vehicle Use Tax Return, is used to report and pay highway-use excise taxes. E-filing of Form 2290 began in August 2007. Electronic filing streamlines the processing of Form 2290. It is safer and more reliable than paper filing and reduces preparation and processing errors. Another advantage of e-filing Form 2290 is that taxpayers don’t have to wait for a stamped version of the Schedule 1, Schedule of Heavy Highway Vehicles, to be returned by mail. They will almost instantly receive the equivalent of a stamped version electronically. For additional information, contact NADA/ATD Regulatory Affairs at To view the entire press release, visit,,id=185565,00.html