Auto dealers fight to avoid new laws

WASHINGTON (AP) — The nation’s 18,000 auto dealers are trying to cut themselves a deal in the Senate, seeking exemption from proposed consumer regulations that would police how they write car loans.

The dealers argue that when it comes to lending to car buyers, they are mere intermediaries for financial institutions that ultimately process and service the loans.

Dealers maintain they already are well-regulated at the state level and that extra regulations will simply create additional costs that would be passed on to consumers.

The exception they seek would not affect businesses such as Carmax, which sell cars and provide their own financing. Those dealerships still would fall under the new consumer regulations, as would giant lenders such as GMAC.

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