NADA Working to Improve Auto-Financing Difficulties

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, NADA is moving forward on several fronts. 

First, 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, 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. — Annette Sykora, NADA chairman

Colorado Automobile Dealers Association
 290 East Speer Boulevard Denver, CO  80203
 Telephone:  303.831.1722  |  Facsimile: 303.831.4205
 www.cadaonline.org