BHPH Commission

ByAdvantage GPS

Don’t Miss the BHPH Commission Town Hall during the Upcoming NIADA Convention & Expo

Our subprime finance and BHPH industry is governed, regulated, and monitored constantly by legislators and regulators. Regulators enforce the laws on the books, but it’s elected officials who create those laws. Fortunately, elected officials can be educated and provided information to better understand the needs and concerns of automotive financiers and BHPH dealers.

NIADA is the national trade association representing the interests of BHPH dealers and as a core part of its mission, serves as the voice of the BHPH dealer and subprime automotive finance market. To assist in the fulfillment of this mission, NIADA has created a BHPH Commission which meets regularly to discuss those issues and concerns, and when needed, meets with legislators and regulators to resolve them.

Advantage GPS has been a member of the BHPH Commission and actively works toward improving the BHPH industry as well as taking an active role, when applicable, in educating and providing information to assist elected officials in better understanding this business and it’s specific needs. Our team will be on hand for the BHPH Commission Town Hall during the NIADA 73rd Annual Convention & Expo, June 17-20, at The Venetian Hotel in Las Vegas. We encourage you to attend as well.

NIADA has also established NIADA Political Action Committee (NIADA PAC) financially support candidates for federal office who take the time to learn about, understand and support the independent dealer especially on issues related to subprime automotive finance. NIADA PAC, a registered non-profit entity, raises funds to donate to candidates, on both sides of the political spectrum.

Shaun Petersen, Senior Vice President of Legal & Government Affairs, will lead a discussion during the BHPH Commission Town Hall about the important work the NIADA PAC and the BHPH Commission have done and are doing on behalf of the industry.

Petersen said the PAC has been very successful in getting the attention of legislators and making a difference, on behalf of dealers and finance companies, in getting important issues included or excluded from recent legislation.

“Our PAC has really been revitalized over the past eight years,” Petersen said. “We’ve made a difference, and each year the NIADA hosts its National Policy Conference in Washington D.C., where our association leaders and dealer members meet with legislators.”

The PAC has supported former Speaker of the House Paul Ryan, current Speaker of the House Nancy Pelosi, Senate Majority Leader Mitch McConnell, U.S. Sen. John Cornyn and many others.

“We are very deliberate when it comes to whom the NIADA PAC makes contributions,” he said.

The PAC’s committee is made up of senior leadership at the association and dealer members of the national board. With information provided by NIADA CEO and Petersen and others, the PAC Committee decides who gets contributions, and for how much.

NIADA was successful during a business roundtable meeting with Paul Ryan to eliminate wording in the 2017 Tax Cuts and Job Act that would have prevented the tax deduction of net interest expenses, which would have eliminated the deduction on interest paid for floorplanning. NIADA pushed for an exemption and got it.

Looking head there are numerous other issues facing our industry in the future. Legislation has popped up across the country at the state level, and some in Congress are eyeing a move to block the sale of vehicles that have open recalls. Obviously, this would have a tremendous impact on the used vehicle industry, and hurt consumers because dealers would avoid purchasing vehicles wholesale that even remotely had an open recall. It would drive up prices.

Petersen noted that legislation affecting privacy could hit dealers who use GPS to monitor and locate their collateral in the event of a repossession or skips. Next year, banks and financial companies may have to change the way they account for losses on their books. This could dramatically negatively affect BHPH dealers and automotive finance companies. The NIADA has already begun developing a strategy to educate lawmakers.

Other issues Petersen said that are on the horizon

  • Tariffs on imported automobiles and automobile parts
  • Selling GAP Waiver and other credit products to Military service members
  • GPS Rules at the state and federal levels.

With so much at stake, we look forward to attending the NIADA Convention and Expo, particularly the BHPH Commission Town Hall meeting to learn more. Please be sure to visit Advantage GPS at Booth No. 505!

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