WASHINGTON -- Auto dealers won a key concession to keep their lending business from the powers of a proposed consumer protection bureau, overcoming a last-ditch attempt by House Democrats to expand the bureau's powers.

But dealers were still fighting a proposal by Senate Democrats that would give the bureau a say in some rules while expanding the powers of the Federal Trade Commission under the bill.

If successful, the effort would be a victory by the nation's 20,000 new-vehicle dealers over President Barack Obama, the Defense Department and the powerful Democratic committee chairman in the House and Senate, all of whom opposed the exemption. Democrats hope to pass the final bill before the July 4 recess.

The White House said Tuesday that while it still opposed the exemption, the clause was not enough to scuttle the entire bill.

Obama and consumer advocates had maintained for months that putting dealers under a new consumer financial protection agency was essential to stopping abuses in the $850-billion auto-lending market.

Military legal advisers had said soldiers are frequently targeted by unscrupulous dealers.

Auto dealers have fought back fiercely, arguing they already face state and federal rules and shouldn't bear any additional regulation because of the failures of Wall Street.

The dealers have also used their strong political connections with lawmakers of both parties in scores of face-to-face meetings.

Rep. Barney Frank, the Massachusetts Democrat overseeing the conference committee building a compromise House-Senate bill, noted the House proposal included the carve-out for dealers despite his personal opposition.

U.S. Rep. Luis Gutierrez, D-Ill., offered an amendment that would have let the consumer protection agency act as a backstop to the Federal Trade Commission's little-used powers over dealer financing.

He said dealers should face the same rules for writing loans that banks and auto financecompanies would under the bill.

U.S. Rep. Jeb Hensarling, R-Texas, said the problems appeared to be because of lax enforcement of existing laws, and that a new bureau would only confuse consumers.

The Gutierrez amendment failed 9-10, with three Democrats, including U.S. Rep. Gary Peters, a Bloomfield Township Democrat, joining seven Republicans in opposition.

The Senate version contains similar language, following a 60-30 vote last month instructing the committee senators to back the exemption.