Kansas Senator Samuel Brownback

Claiming on his website that “auto dealers are a part of Main Street, not Wall Street,” Republican of Kansas, Mr. Brownback played a major role in effectively preventing auto financing from seeing any new regulations. If it was as clear cut as the senator explains it, then this should be celebrated as a victory for the average working man and woman. Unfortunately, this is not entirely accurate.

Which is to say, one can hardly ignore the fact that Wall Street firms bundle a considerable portion of the autos loans that dealers help originate into bonds. Additionally, those staked against regulating this lending forget to mention that many of the dealerships themselves are owned by publicly traded companies. This hardly indicates that auto dealers and the loans which are signed in their offices are removed from Wall Street.

Furthermore, although Mr. Brownback commented that “more than 90 percent of auto loans are financed not through the dealer, but through an outside financial institution,” it turns out this is counterfactual. For, according to J. D. Power & Associates, car buyers apply for their loans at an auto dealership about 80 percent of the time.

Auto transport companies have not had the wool pulled over their eyes. They know a wolf in sheep’s clothing when they see it. But for now, “change” does not seem to be on the horizon for automotive lending.