WASHINGTON - Despite strong opposition from the White House, the Senate voted Monday to help auto dealers escape oversight from a new consumer watchdog agency, reported The Detroit News. By a 60-30 vote, the Senate approved a nonbinding motion that urges Senate negotiators to exempt auto dealers from the supervision of the proposed Consumer Financial Protection Agency. The agency is a key part of the Obama administration's overall plans to overhaul financial regulations. Both Michigan senators, Carl Levin, D-Detroit, and Debbie Stabenow, D-Lansing, voted against the motion. But many prominent Democrats voted for it, including Senate Majority Leader Harry Reid, D-Nev., and Sen. John Kerry, D-Mass. On Friday, the Senate approved a massive overhaul of the nation's financial system. The overhaul creates a Consumer Financial Protection Agency, whose oversight powers would include auto lending. Auto dealers failed to get a vote on an amendment, proposed by Sen. Sam Brownback, R-Kan., exempting them. But in exchange, the Senate agreed to a vote Monday on his request urging Senate negotiators, who will work with the House in reaching a compromise version of the financial overhaul legislation, to exempt dealers. Auto dealers lobbied Congress for months, and more than 250 dealers were on Capitol Hill last week, attempting to convince undecided senators to exempt them from additional federal oversight. The nation's 18,000 dealers are one of the most politically powerful forces on Capitol Hill. Since 1990, dealers have donated $25 million to members of Congress. A version of the House financial overhaul approved in December exempted the auto dealers. The motion approved Monday urges the Senate to go along with the House version. Negotiators could still opt to keep the Senate language, although Monday's vote will make it more difficult. They want to send a bill to President Barack Obama for his signature by July 4. Sen. Chris Dodd, D-Conn., chairman of the Banking Committee, said after the vote he would oppose adding "carve-outs" and "loopholes" -- a clear reference to the auto dealers provision. Auto dealers contend they weren't responsible for Wall Street excesses and are already heavily regulated by state and federal laws. They argue new onerous regulations could make lending more expensive and prevent some people from getting auto loans. In a letter to the Treasury Department, Clifford Stanley, an undersecretary of Defense, raised concerns about the impact that "unscrupulous practices" of some auto dealers have on military families. The White House says the bill is aimed at bad-apple dealers.
Auto Dealers Win Support in Senate
More Industry

Auto Loan Outlook Shows Cracks
Recent survey data shows that the overall demand for auto loans is down, but the demand for subprime loans is up as consumers face economic uncertainty and affordability pressures.
Read More →
Lone Star State Store Sells
The Mitsubishi location moves from one Texas automotive group to another, continuing this year’s spate of brisk buy-sell activity.
Read More →
Mitsubishi Gallery Makes Progress
As part of its 2030 business plan, Mitsubishi's North America arm will soon open its first 'gallery' store in Tennessee, where customers can learn about the brand, vehicles and technology.
Read More →
Senators Propose Chinese Connected Car Ban
Just weeks before President Trump is set to meet with the Chinese president, two U.S. senators proposed a bill with the aim of protecting Americans’ data.
Read More →
Consumers Gravitate to Hybrids
A study of Q1 used-vehicle sales shows many consumers are looking to minimize fuel costs but aren’t willing to go all electric and no longer have a tax break incentive to do so.
Read More →
Bad Credit Tanks Attainability
A recent study suggests expectant parents are feeling the burden of bad credit more than other demographics when it comes to buying a new car.
Read More →
A New Consumer Culture in the Auto Dealership
Dealers should aim to build a positive work environment, helping employees execute an efficient experience, from their online research to the final delivery of the vehicle.
Read More →
New-Vehicle Sales Down
A cloudy April forecast was expected due to last April’s sales surge in anticipation of U.S. trade tariff-inflated prices. Meanwhile, automakers pumped up incentives to address today’s consumer wallet woes.
Read More →
Will Extended-Range Autos Make Inroads?
EREVs, also known as ‘series hybrids,’ may catch on in the U.S., where they currently have barely a toehold, as automakers tilt away from some purely electric models and consumers crave more range.
Read More →
Used Autos Selling for More
A recent price spike due to several larger market forces, though it hasn’t dulled demand, is pushing more consumers to efficient models to squeeze in buys.
Read More →