I read with interest the letters in your March 7 issue in response to Stephen Brobeck's (Feb. 21) call for an end to the dealer finance reserve. I found points of interest in all the responses.
Then, of course, I read the letter from Joan Claybrook. Someone should tell her to get her head out of the sand and take a view of the real world of automobile finance.
As one of your readers mentioned, we dealers are buying the financing at wholesale. Then we mark it up as the market dictates, with rate-markup guidelines set by the lender, as well as payment limitations in some instances.
In many cases, we have been able to offer customers a better rate at their own bank than they can get for themselves. Why? Because we buy the financing at wholesale and direct millions of dollars in finance business to lenders.
I believe that under those circumstances, we should have a little flexibility, don't you agree? In addition, credit-challenged customers, aka C- and D-tier credit, get the benefit of the doubt when the dealer has sent those lenders millions of dollars in A- and B-tier business.
Claybrook needs to understand that when a customer's credit is in the gray area, a dealer who has a strong relationship with a lender gets more of those gray-area customers approved.
Claybrook's comment that income derived from the job we do is ill-gotten makes me ill. I am sure that she would feel differently if she weren't so ill-informed.
On the racial bias issue, I have reviewed thousands of credit applications and credit reports, and on none of them have I seen race mentioned. What you can tell is how people pay their bills. That is what determines creditworthiness.