Page 6 - GIADA May-June 2020

THE PULSE OF GIADA

Weathering the Storm Auto Credit

depth information on the GIADA annual convention. But Apps Decline
The May / June magazine is usually covered up with in-

we are navigating through unusual times. The COVID-19
pandemic has turned our lives, our Industry and our By Used Car News Staff
businesses into anything but business as usual. Because the
health and safety or our dealers and vendors are our top A Consumer Financial Protection
priority, we have cancelled, sadly, the convention this year. Bureau report examining the effects of
the COVID-19 pandemic found that
Obviously, there’s a long way to go, and a lot to do to consumer credit applications declined
weather this storm. But when it ends there will still be substantially in March. Applications are
vehicles to buy and sell and business to conduct. GIADA measured by the number of credit pulls
employees have really missed the interaction with our or “hard inquiries” that lenders perform
GIADA EXECUTIVE dealers on a daily basis. We have worked hard to make when a consumer applies for new credit.
DIRECTOR, sure we were giving our members the best service possible The report found that between the
Amy Bennett and still abiding by the CDC regulations. first and last week of March, auto
So, keep your focus on the here and now. Do what needs loan inquiries dropped by 52 percent,
to be done to keep you, your family and your employees safe and healthy. We all hope this new mortgage inquiries dropped
“new normal” will be over soon. I have had my staff calling our members to see if we can by 27 percent, and revolving credit
be of any service to you. Since we have over 2500 members it is taking a while, but we do card inquiries declined by 40 percent
want to reach out to let you know we are here for you. Please do not hesitate to call us if compared to usual patterns seen in the
you have a problem. data in earlier years. Additionally, the
drops are significantly more pronounced
Please don’t let your memberships drop. There has been a lot of valuable for consumers with higher credit scores,
information going out to our members from the DOR and other state consistent with the possibility that
entities. It is more important than ever to keep our association strong! higher credit score consumers have
more flexibility in either their credit
needs or the timing of their credit needs.

Thank you! The report also found significant
geographic variation in the decline in
inquiries, with states in the South and
Mountain regions experiencing smaller
drops and the Northeast and California
In closing, I want to give a SINCERE THANK YOU to GIADA’S Legislation Committee experiencing the largest drops.
and lobbyist firm that jumped in on day one and fought to keep automobile dealers an
essential business. That doesn’t just happen. It took dealers just like yourselves getting The report is based on the bureau’s
together on many conference calls, making several calls to state representatives, making Consumer Credit Panel, a longitudinal,
calls to Governor Kemp and even sending letters to the President. I hate to imagine what nationally representative sample of
could have happened to our industry if they had not been so diligent. approximately five million de-identified
credit records from one of the three
Governor Kemp is doing a great job getting Georgia back open again. Please do your part nationwide consumer reporting
and follow all health and safety guidelines. Together we can accomplish great things! agencies. After the end of each month,
the bureau receives updated credit
At your service, records for all sampled credit records, if
available. n

4 | GIADA Independent Auto Dealer MAY/JUN 2020