November 19, 2015
U.S. House Passes Bill Revoking CFPB Auto Lending Guidance
A bill that would limit the U.S. Consumer Financial Protection Bureau’s 2013 auto lending guidance passed the House of Representatives late Wednesday by a 332-96 vote, reports Automotive News. H.R. 1737 – the Reforming CFPB Indirect Auto Financing Guidance Act – would revoke 2013 auto lending guidance from the CFPB. The guidance suggests lenders should either impose limits on or eliminate dealerships’ ability to adjust, on a case-by-case basis, the amount of compensation they keep for arranging a consumer auto loan, a discretionary practice that the CFPB says can lead to discriminatory loan pricing. “International brand automobile dealers vehemently oppose discrimination in any form and fully support the efforts of the CFPB to eliminate it from the marketplace,” said AIADA President Cody Lusk. “However, the CFPB has failed time and again to fully disclose its methodology for measuring the presence of disparate impact or provide transparency in issuing guidance to auto lenders. H.R. 1737 is a common sense solution to a problem the CFPB has itself created by working to end dealer discounts on financing without considering the negative impact on consumers.” Read the rest of Cody Lusk’s statement here. For further coverage of House approval of CFPB legislation, click here.
VW Faces Deadline as it Woos Diesel Car Owners
According to USA Today, Volkswagen Group officials say about 120,000 diesel-car owners in the U.S. have so far accepted its offer of preliminary compensation as the automaker reportedly faces a key deadline with environmental regulators. With one of four of those eligible applying for the $500 Visa debit card and $500 in dealership credits that are part of the "goodwill package" announced Nov. 9, Volkswagen's officials say they are encouraged by the pace of acceptance so far. As it seeks to maintain good relations with owners, Volkswagen is creeping closer to a plan to bring the diesels spewing up to 40 times more carbon monoxide than allowed into compliance. According to reports, VW executives are meeting Thursday and Friday with federal regulators to discuss proposals for engine repairs to make the cars compliant. While Volkswagen of America CEO Michael Horn wouldn't talk about dealings with regulators, he told hundreds gathered at the Los Angeles Auto Show on Wednesday that the automaker is dedicating itself to showing good faith with its diesel-car owners. Read more about VW’s provide financial assistance to VW diesel owners, click here.
Mitsubishi Gives Outlander Sport, Mirage Its Family Face
According to Automotive News, Mitsubishi Motors Corp., on a quest for a comeback, is trying out that favorite miracle cure of the Hollywood stars: a trip to the plastic surgeon. On Wednesday, at the Los Angeles Auto Show, the Japanese automaker peeled the wraps from face-lifts for its updated Outlander Sport compact crossover and Mirage subcompact car, which now sport the “dynamic shield” styling language created for Mitsubishi by veteran Nissan designer Tsunehiro Kunimoto. Kunimoto’s look, introduced this summer with the re-engineered 2016 Outlander, features a blacked-out grille and ample helpings of chrome. The freshened 2016 Outlander Sport sporting a similar look is due to arrive in U.S. showrooms around March, followed later in the spring by the updated 2017 Mirage. Mitsubishi retuned the Mirage’s shocks and stiffened its front end in an attempt to improve its driving dynamics, which had drawn complaints from car reviewers. Google’s Android Auto and Apple’s CarPlay will be standard on all but the base ES trim level, in an overture to tech-savvy young people buying their first new car. For more on the new Mitsubishi Outlander Sport and Mirage, click here.
House Panel Examines Safety Risks and Benefits of the 'Internet of Cars'
According to USA Today, technology that connects cars to the Internet has the potential to prevent crashes and save thousands of lives, but it also could allow hackers to grab control of vehicles and use them as weapons, experts told a House panel Wednesday. "We're entering a new, exciting era, but we want to be ready for it," said Rep. John Mica (R-Fla.), chairman of the House Oversight and Government Reform Subcommittee on Transportation at a hearing on the "Internet of Cars." The full oversight committee is trying to determine what, if any, federal legislation should be passed to regulate cybersecurity and privacy in Internet-connected cars. The biggest development to come in the near future — vehicle-to-vehicle communication — has the potential to help prevent up to 80 percent of crashes involving two or more cars, said Nathaniel Beuse, associate administrator for vehicle safety research at the National Highway Traffic Safety Administration, which is developing safety rules for the new technology. "New technologies such as vehicle-to-vehicle communications and automated vehicle technologies have the potential to dramatically change the safety picture in the United States by helping drivers avoid crashes in the first place," Beuse testified. Read more about a House hearing regarding connected car safety here.
The Best Black Friday New-Car Deals
It’s that time of year again, and though we doubt many people will be lining up outside their local car dealerships in the wee hours of the morning on the day after Thanksgiving, automakers are nonetheless offering some of the sweetest deals of the year as part of their annual Black Friday events, reports Forbes. Shoppers can expect local dealerships to get in the act with their own Black Friday promotions to help lure consumers already in a spending mood into their showrooms. However, expect the most generous incentives and/or deepest discounts to be limited to the slowest sellers on the lot, and especially on any remaining 2015 model-year inventory, while the hottest-selling rides may still command at or close to sticker price. Forbes is featuring 20 of the best Black Friday deals it could uncover, including cash incentives, cut-rate financing, and discounted lease deals in the accompanying slideshow. Hyundai is offering as much as $5,000 cash on the 2015 midsize Sonata Hybrid along with 0.0 percent financing for up to 72 months. The topper among them is a whopping $10,925 leasing cash rebate on the 2015 Nissan Leaf electric car or $5,000 cash back and 0.0 percent financing for purchasers. Read more about the best Black Friday new car deals here.
Around the Web
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2016 10Best Cars: Honda Accord [Car and Driver]