The National Independent Automobile Dealers Association is organizing its own resources along with colleagues from Oregon’s independent dealer association in an effort to prevent a bill from becoming law in the Beaver State that could radically alter how buy-here, pay-here dealers can operate.

Officials from the Oregon IADA and the newly created NIADA Buy-Here, Pay-Here Commission explained the measure — Senate Bill 276 — contains eight elements that “would completely rewrite the rules” for dealers who provide financing for credit-challenged customers

 Among them are requirements for BHPH dealers to:

• Obtain the same type of license from Oregon’s Department of Consumer and Business Services (DCBS) as payday or auto title lenders.

• Cap interest rates at no more than 20 percent or the federal funds rate plus 17 percent, whichever is lower.

• Reduce interest rates to account for the amount of the consumer’s down payment.

• Form a good faith belief that the consumer has the ability to perform on the contract by using underwriting standards passed by DCBS.

• Stop accruing interest once a vehicle has been repossessed.

• Wait to repossess a vehicle until after 30 days from when nonpayment has occurred.

• Cap repossession fees at 7.5 percent of the purchase price.

• Stop using GPS or starter-interrupt devices.

“Obviously, the bill is as comprehensive a regulatory framework as would exist in the country,” NIADA regulatory counsel Shaun Petersen said. “And it’s wholly unworkable for the industry.”

Petersen indicated the task of NIADA, OIADA and the BHPH Commission was to educate the Oregon legislature and DCBS about what the buy-here, pay-here industry does, how it works and how dealers provide customers who are unable to get conventional financing with much-needed transportation.

Working with the Oregon IADA, the NIADA BHPH Commission contacted and mobilized BHPH dealers in the state to explain to their legislators the adverse impact the bill would have on the industry. The commission reached out to BHPH dealers across the country as well to inform them about the Oregon bill and the need to mobilize against it to avoid similar legislation coming up in other states.

Furthermore, NIADA hired Shawn Miller, a longtime advocate for various industries in Oregon, to contact key lawmaker and encourage them not to let the bill become law. Miller and Petersen also met with the legislative and policy staff of DCBS to inform the agency about the independent dealers associations, the industry and the impact the bill would have on consumers, dealers and the Oregon economy.

“Our association's identification of and quick response to Oregon SB 276 is exactly the kind of action we envisioned the NIADA BHPH Commission taking when it was formed," NIADA executive vice president Steve Jordan said.

“Having a place at the table when legislators are considering bills that will negatively impact our BHPH members is critical, and just plain good for the industry,” Jordan continued.

Currently, the bill is pending before the Senate Business and Transportation Committee. Jordan emphasized NIADA, OIADA and the BHPH Commission are continuing our efforts to oppose the bill on behalf of our members and the used vehicle industry as a whole.

For more information about what’s developing in Oregon, contact Petersen at (614) 939-9955 or

The measure in Oregon isn’t the only one aimed at the BHPH industry. Legislation is also being debated in both New Jersey and New York.