Desert Schools FCU Ends Auto BrokerPact

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PHOENIX - (04/10/06) – A day after the state Senatedebated a controversial bill to restrict car brokers, DesertSchools FCU, one of the bill’s biggest supporters, terminatedits long-time new-car buying service. The Desert Schools hasallowed members to buy new cars for the past 14 years through AutoSource, a broker service owned and operated by Centennial AutoSales. Centennial, one of the major opponents of the bill, has 20brokers working at Desert Schools branches and also providesservices for several other area credit unions and AAA Arizona. The‘Brokers Bill,’ drafted by dealers, would precludebuyers from hiring independent auto brokers to handle the entiretransaction. The bill would require that someone from thedealership actually deliver the vehicle to the customer. Officialswith the $3.5 billion credit union said they decided to end theircontract with Auto Source to focus more on the credit union’sLoan Direct indirect lending program, a partnership with more than200 new-car dealers across the state. The Brokers Bill was narrowlypassed by the state Senate’s Transportation last week and nowgoes for vote by the full Senate.

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