Do you expect the dealer reserve to fade away in favor of flat rates?
Bill Underriner, Underriner Motors (Honda-Hyundai-Volvo) in Billings, Mont., and 2012 NADA chairman: "No. I really believe that the dealers will prevail here and flat fees won't be part of dealer finance going forward, because it really hurts the consumer. It's all about the consumer, and if the flat fee were to happen, the consumer would be put in a position where they'd be paying higher rates for their auto financing. That is bad for the industry, because the dealer is going to go where the highest flat fee is, and that has to be paid for by somebody. It's going to be paid for by the consumer. I really think that somehow, NADA's going to get to the CFPB and get that across to them."
Brian Leary, vice president of finance and insurance, Larry H. Miller Dealerships in Sandy, Utah: "I don't believe so. Compensation is fair. It may change, but I don't think it's going to go away."
David Williams, president, Anchor Buick-GMC in Elkton, Md.: "I hope not. I think there's some measures yet to be examined that work practically for the dealer that may satisfy the regulators."
Bill Fox, partner, Fox Dealerships Inc. in Auburn, N.Y., and 2014 NADA vice chairman: "Will it change, subject to regulation? Sure. But it would be a real disservice if change means you can't come in, get the payment you want and get out again in a timely fashion. Even the CFPB acknowledges dealers deserve compensation. But how much and how it's formulated, these are all elements of the debate."