The peak body representing Australia’s franchised new car Dealers has welcomed the Government’s lending reforms which will free up credit and boost the economic recovery.
“These reforms are sensible and strike a good balance between freeing up credit and protecting consumers,” said AADA CEO James Voortman.
“Under these changes access to credit for consumers looking to buy a car will be less onerous and application timeframes will be more responsive,” he said.
“As the Australian economy recovers from the effects of this pandemic, it is absolutely crucial that we allow credit to flow appropriately. We simply cannot afford to discourage consumers and businesses from lending,” Mr Voortman said.
“There is no doubt that the overly strict application of the responsible lending obligations has contributed to new car sales falling for 29 consecutive months. We hope today’s announcement will breathe some life into our industry,” he said.
“The Government should be congratulated. Over the past few years it has done the hard work and implemented various consumer protections and is now in a position to make this important change to our lending framework,” he said.