MenuMENU
SearchSEARCH

Turning 100

The editor reflects on his decade-long connection to the industry and the 100-year-old association that drives it.

December 27, 2016
4 min to read


It began in 1917, when Congress planned to impose a 5% luxury tax on new vehicles. In response, a group of 30 dealers traveled to Washington, where they successfully argued the automobile is a necessity, not a luxury. The tax was reduced and the National Automobile Dealers Association (NADA), which turns 100 this year, has been fighting for dealers ever since.

Welcome to F&I and Showroom’s special NADA issue, which contains, among other things, a one-on-one interview with 2017 NADA Chairman Mark Scarpelli. He provides his take on what I believe will be a hot topic at this year’s NADA Convention & Expo. Before I tell you what it is, I’d like to do a little reflecting.

See, my history with the association only goes back a decade, but a lot has happened in that time. And from my interactions with the NADA — mainly its legal and regulatory affairs team — I can honestly say dealers really do have the best representing their interests.

For instance, I always appreciated how the association navigated the 2012 dustup between dealers and TrueCar — even though I know its directors were concerned about potential privacy issues emerging from the firm’s required DMS connection. But rather than adding fuel to the fire, the association studied all the issues, met with key stakeholders and delivered its dealer data guidance in August 2013, more than a year after the fight had ended.

The association also put forth an unprecedented effort to educate dealers on the Federal Trade Commission’s Red Flags Rule, staging three webinars that reached more than 1,000 dealerships and 36 seminars around the country. It also published a guide designed to help dealers comply with a rule meant to protect consumers from identity theft. But here’s the kicker: It did all that a year before the FTC began enforcing the rule in June 2010.

And let’s not forget the credit score exception notice the NADA successfully negotiated ahead of the Risk-Based Pricing Rule’s Jan. 1, 2011, effective date. But it didn’t stop there. Days after the rule took effect, the association asked for formal guidance from the FTC on whether the rule applied to dealers who do not obtain a copy of a credit report but instead leave it to the finance source to obtain one. The FTC said it did, and the NADA sued.

After a U.S. District Court rejected the NADA’s position that the FTC’s interpretation of the rule was arbitrary, capricious, and exceeded the commission’s legal authority, the association appealed. It eventually dropped its suit two years later after it became apparent that, as the association explained in a statement at that time, “the court was not inclined to grant the relief NADA was seeking.”

The NADA also played a key role in making the government’s Car Allowance Rebate System, or Cash for Clunkers, dealer-friendly, continues to be the voice of the dealer in legislative battles related to fuel economy and vehicle recall proposals, and continues to tackle any and all challenges to the franchised dealer model.

Out of all that, the association’s shining moment — at least in my time with the magazine — is its work with regard to the Dodd-Frank Act and the Consumer Financial Protection Bureau. Because let me tell you, it would have been a different ballgame had it not been successful in getting most dealers excluded from Dodd-Frank.

As for that hot topic I mentioned earlier, I was referring to today’s digital push. Yes, I know we hit that subject pretty hard in 2016, but I believe we’re just in the beginning stages of this digital evolution, and the NADA agrees. How do I know, and how is this related to the association’s centennial? Well, it has to do with an announcement it issued in June 2016.

If you recall, the NADA announced the hiring of Peter L. Fong as senior vice president of dealership operations. In its press release, the association noted that one of the Fong’s key areas of interest was to help “accelerate the process of moving dealerships toward the online to in-store car-buying experience for consumers.”

I, of course, wanted to know what that line meant, and the association said an answer would be coming in the months ahead. Well, as you’ll read on Page 6, Scarpelli provided the answer. Yes, I waited seven months for it, but the NADA has always been thoughtful and calculated when it comes to controversial topics. And I guess that’s how 100-year-old organizations stand the test of time. Happy birthday, NADA!

Subscribe to Our Newsletter
No form configuration provided. Please set either Form ID or Form Script.

More Blogposts

Done Dealby Tariq KamalFebruary 27, 2020

Is Sales Punching a Crime?

BMW is the latest manufacturer to be accused of falsifying new vehicle sales reports, a practice that has led to lawsuits and investigations. Are dealers conspirators or victims?

Read More →
Done Dealby Tariq KamalDecember 12, 2019

You Can Eliminate F&I Managers. You Can’t Eliminate F&I.

The trend toward hybrid sales and finance managers shows no signs of slowing. Dealers who want to close the business office must be sure they don’t shut the door on their customers as well.

Read More →
Done Dealby Tariq KamalNovember 14, 2019

EVs Cost Even More Than You Think

Mergers and alliances among factories are proliferating as the demand for mass-market electric vehicles increases and the cost to build them makes profitability impossible.

Read More →
Ad Loading...
Done Dealby Tariq KamalOctober 10, 2019

When Dealers Catch Criminals

Noncompliant and outright illegal behavior by dealers, managers, and staff have generated headlines throughout the year. Less heralded are the instances in which dealership personnel took action that led to arrests.

Read More →
Done Dealby Tariq KamalSeptember 2, 2019

A Life of Crime at the Heights of Success

The long list of offenses committed by dealers and other highly successful people proves desperation is not the only cause of criminal behavior.

Read More →
Done Dealby Tariq KamalAugust 1, 2019

Are We Not Capitalists?

Opponents of franchise laws claim they hang on flawed logic, discourage competition, and benefit dealers to the detriment of consumers.

Read More →
Ad Loading...
Done Dealby Tariq KamalJuly 2, 2019

Will Data Put an End to Powerbooking?

A new-to-market, data-driven solution has reignited the discussion over intentional vehicle overvaluation, a form of bank fraud that remains prevalent despite a string of dealer lawsuits and regulatory actions.

Read More →
Done Dealby Tariq KamalJune 4, 2019

How to Sell GAP in a Crisis

Mounting losses have compelled many underwriters to jump ship on guaranteed asset protection, but it remains a cornerstone product that continues to perform for customers, dealers, and F&I managers.

Read More →
Done Dealby Tariq KamalMay 8, 2019

F&I Is Stronger Than Ever

Fears that F&I would fall victim to advancing technology and bad press appear unfounded as the segment continues to perform for dealers and car buyers.

Read More →
Ad Loading...
Done Dealby Tariq KamalApril 4, 2019

Tesla and the 1% Problem

For all its missteps, Tesla Inc. finally found its footing in 2018, eking out a 1.2% market share and renewing concerns shared by established manufacturers and brick-and-mortar dealers.

Read More →