In June I attend the American Financial Services Association (AFSA)/NADA Executive Forum in
Washington, DC. These two trade association sponsor this event each year to discuss topics that affect automotive lending. Almost all captive and large automotive lenders were represented at the forum.
The lenders top concerns included cyber security, falling vehicles values and management of ancillary products. Dealers' top concerns were pressure on profitability, new regulatory threats by the CFPB and FTC, and existing regulatory and legal compliance challenges.
It was the first time in several years that regulatory threats did not top both lists. While regulatory threats still loom, it is telling that both lenders and dealers feel other perils have surpassed those.
While a business-friendly administration should keep the regulatory threats at bay, both organizations will have to stay vigilant and watch the beltway regulators!