AIADA: Border Adjustment Tax Will Hurt Dealers, Customers
America’s 9,600 international nameplate dealers reinforced their opposition to a border adjustment tax that say will cost U.S. consumers $34.6 billion or about $2,000 per vehicle.
ALEXANDRIA , Va. — America's 9,600 international nameplate automobile dealers today reinforced their opposition to a border adjustment tax as the House Ways and Means Committee held a hearing on the proposal.
The American International Automobile Dealers Association (AIADA) — whose members employ 577,000 Americans and accounted for 59 percent of all U.S. retail vehicle sales last year — today issued the statement from President Cody Lusk.
"This hearing raised concerns about the impact that the border adjustment tax will have on middle class American consumers, who will be forced to foot the bill for a corporate tax cut,” read the statement. “While America's international nameplate dealers fully support federal tax reform efforts, they are deeply opposed to the border adjustment tax provision, which will drive up the cost of every vehicle on their lots and ultimately impact the price customers pay for reliable, safe transportation by an average of $2,000 per vehicle.
“We continue to urge Congress to abandon the border adjustment tax in favor of pro-growth policies that will help, rather than hinder American businesses and the customers they serve," Lusk added.
Today's hearing is part of plans by the House of Representatives to take up tax reform in the coming weeks. The AIADA has advocated against a border adjustment tax due to its impact on dealers and consumers.
A recent study by the Center for Automotive Research (CAR) estimates that U.S. light vehicles would be immediately impacted by 5.6% following implementation of a border adjustment tax, resulting in a $34.6 billion overall cost to U.S. consumers.
More Auto Finance
Automotive Consumers Sink Further in Debt
Most financing metrics hit records in the second quarter as more buyers locked themselves into long terms and high monthly payments.
Read More →
Porsche Financial Services Shifts Structure
After 36 years with Porsche, the Financial Services Chief Financial Officer Konrad Riedl is retiring, and the department is realigning its management structure.
Read More →
Tariffs Could Raise Insurance Premiums
As U.S. import tariffs affect repair costs, consumers might find it more affordable to replace a damaged vehicle, according to recent Insurify tariff analysis.
Read More →
Smaller Loans, Longer Terms
The youngest generation of car buyers is more likely to finance less expensive vehicles, more than half of generation Z consumers borrowing less than $25,000.
Read More →
New Cars a Tad More Affordable
May averages show that combined circumstances gave auto consumers slightly better buying power for the month, though average prices were up year-over-year.
Read More →
First-Quarter Sees Long Auto Loan Growth
Experian data show more consumers are tapping the method, along with refinancings, to afford buying. Meanwhile, subprime borrowers are getting more access.
Read More →
Mastering Credit Friction
In this video, Josh Krach explains how to turn credit friction into an advantage.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Auto Lenders, Consumers on a Tightrope
April borrowing data shows that more consumers are bending over backward to buy vehicles, though subprime lending cooled off for the month.
Read More →
Toyota Financial Services President Replaced
Scott Cooke has served in various roles with Toyota Financial Services for over 20 years, including president and CEO, which he retires from on June 30.
Read More →