Compliance – a very serious issue
Despite the new Republican Congress, Dealers this year are facing the realities of the Dodd-Frank Wall Street Reform and Consumer Protection Act. What this means is that enforcement of OFAC, Risk-Based Pricing, Adverse Action Notice and other compliance issues will now be ENFORCED.
NADA has done a swell job in lobbying to hold these enforcments off, but there efforts to put off the inevitable are now in the past.
I have been working with Richard Wise who has become an expert in putting dealers on the path of compliance and protecting them from exposure. The potential disaterous fines looms very large and the processes needed to protect yourselves seem overwhelming, but Richard has found that by making these procedures a part of your Standard Operating Procedure, they can actually help you close deals and increase your F&I penetration.
That’s the good news. Lemonade can be made from these lemons.
Think about it. Dealers sell vehicles worth $50,000 and more today. That’s the cost of a luxury home 40 years ago. When you buy a home, you have closing attorneys, licensed brokers and agents and buy within a completely regulated environment. Does the home buyer have confidence in those providing these services? Car dealers can and will become the trusted entity that they should…as a result of these enforcements. The alternative is not an acceptable outcome.