Stephen Brobeck's Feb. 21 column lacked substantial evidence that the dealer finance reserve, or dealer markup, should be dumped.
The finance managers of today's dealerships differ greatly from the rogue finance managers of the past.
With more than 18 years of automotive experience, mostly in retail finance, I have found that the finance management of dealerships provides a tremendous service to both the consumer and the dealership.
One must remember that people have a choice of what vehicle to buy and of how to handle their financing.
A finance manager today fights for a consumer and actually aids in a form of credit counseling. Good finance managers listen to the consumer, then sell the loan institution on the merits of why this customer should be approved on a loan. Shouldn't that effort be rewarded with a finance reserve or commission?
The actual dollar markup on home mortgages is ridiculously higher than the dollar markup on automobile loans. Why is no one going after that segment for repeal?
Most financial institutions use tier scoring for consumers. In short, Tier A is for excellent credit consumers, and Tier D is for very substandard consumers. Quality finance managers work the financial institutions for better tiers for each consumer.
For example, a consumer may initially receive a Tier C approval at 7.9 percent while the dealership finance manager argues on the consumer's behalf to obtain a Tier B, or a 5.9 percent rate. Marking that rate up to 6.9 percent is earned, in my opinion.
All the discrimination discussions mention race but never the true question at hand: credit rating. I doubt that a solid credit consumer has ever filed a suit over alleged excessive dealer markup.