The Recreation Vehicle Industry Association commissioned an Economic Impact Study on the RV industry, released on June 7, 2016. The study found that the RV industry contributes about $49.7 billion in economic output or 0.28 percent of the Gross Domestic Product. Through its production and distribution linkages, the industry impacts firms in 426 of the 440 sectors of the United States economy.
Nationwide, the industry is responsible for 216,170 jobs, both directly and inderectly, creating an economic impact of $37.5 billion. The full study results, along with each individual state and congressional district's economic impact is available on the website by clicking here .
Wed Jul 20, 2016
The Recreation Vehicle Dealer’s Association has urged its member dealers to contact their state senators to pass the Senate Bill 2663, called “Reforming CFPB Indirect Auto Financing Guidance Act.”
RVDA President Phil Ingrassia and RVIA President Frank Hugelmeyer joined with other automobile dealer associations to sign the letter, urging its members to push for the passage of the bill which would make the Consumer Financial Protection Bureau’s lending guidance to RV dealers more transparent.
Ingrassia says the new guidance for the CFPB is aimed at retail planning and would change the current way that dealers arrange financing for customers buying an RV or other automobile. Traditionally, there are three ways a customer can buy a vehicle. They can either pay full in cash, set up their own financing or go through the dealer who can set it up through the CFPB. Normally, the dealer-arranged financing takes away many headaches and the stress of doing it themselves.
“Basically, they’re (the CFPB) moving toward a kind of flat fee system,” Ingrassia says. “It was guidance, and in most cases, the lenders have not adopted the guidance. But it still exists and it has created some uncertainty in the market. We want it repealed and re-issued in a more normal process.”
The way the CFPB is suggesting its dealers finance is eliminating the competitive pricing and interest rates for consumers and suggesting a flat rate regardless of the person or vehicle. The Bureau’s reasoning is that the policy is based on claims that discounted interest rates create a fair credit risk.
However, Ingrassia says there’s no reason that a change needs to happen, with all vehicle industries on an upswing right now and there doesn’t appear to be any problems.
“In a nutshell, we think the dealer arranged financing works just fine right now. All you have to do is look at the results,” he says. “We’ve had record years. Financing has receded as a barrier and we want to keep the options for consumers and working with a dealer to get financing. There’s many unintended consequences that could happen if they (the CFPB) get this pushed through.”
The consequences could include a reduction on the number of lenders that have access to financing and could hurt the customers trying to buy a vehicle because the competitive pricing and reduced interest rates would no longer be in effect, Ingrassia says.
The bill to repeal the guidance passed through the House of Representatives in 2015 by an overwhelming majority of 332-96. However, the bill has had a tougher time passing through the Senate. Ingrassia says that could simply be a result of being in an election year.
“The senate is deadlocked on a number of issues right now,” Ingrassia says. “It’s an election year and there’s obviously not much going through the senate right now because of the partisan divide. What we’re asking dealers to do is talk to their senators – particularly Democratic senators and urge them to support and move this bill.”
Ingrassia says the bill is important not only for RV and automobile dealers, but the customers and the progress of the industries.
“We expect this to move sometime in the fall,” he says. “It’s an important one. No one wants discriminatory lending – that’s not good business. We want access for all customers for credit.”
To read the full letter, follow the link below.