Senate Finance Committee Chairman Mike Enzi (R-Wyo.) announced today that he has introduced legislation that would require automakers to offer financing options that are not tied to a specific model.
Enzi’s bill would also require automakers that sell cars through a dealership to have a separate option for financing to help consumers get a better deal on their car purchases.
The bill, dubbed the “Make Your Own Finance Option,” would also make it easier for consumers to get auto financing on their own by requiring automakers to give consumers access to an option they would like to use instead of a car financing company.
The auto industry is one of the largest sources of consumer credit, with consumers paying about a third of all auto loans and the average loan balance of a consumer is $26,000.
Enzis bill is one part of an effort by his committee to provide the consumer with more flexibility in the auto financing they use.
Enzi’s legislation comes as Congress is considering legislation to provide financial aid to people who work for the federal government, but also to help lower-income Americans pay for their cars.
In the latest example of this, Enzi announced a bill that would allow individuals who are on food stamps to apply for auto loans.
He told reporters that his legislation would make it more affordable for low-income individuals to get loans to purchase a vehicle, and he said that people on the federal poverty level could get loans of up to $25,000 per person.