OEM Vendors: Considerations
F&I and point of sale exemption: Is the Point of Sale Finance Exemption available to an Agency dealer vehicle sale? Under the NCCP regulations, “It only applies where the introducer deals directly with the credit provider/lessor and facilitates finance of the vendor’s products or services.” But the vehicle is sold by the Agency is NOT the vendor’s product. Therefore, the dealer will need to align with a broker and work under their ACL or get an ACL themselves. Another alternative is for the OEM’s captive finance company to employ the F&I staff at the dealer and work under their ACL. Importantly, if the customer is financing the purchase online with the OEM captive finance or the F&I staff are employed by the captive, why would the dealer get a commission at all? Showrooms: Unintended consequences will occur for the dealership footprint given showroom traffic will fall by 50 percent as intra-brand shopping vanishes and the time in showrooms should drop by 50 ...