This NEW Law Could End Shady Dealer Practices... But there’s a problem!
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- Опубліковано 31 тра 2024
- In this installment I will tell you about the Federal Trade Commission's new rule that will hopefully be put into a bill and passed called the C.A.R.S. rule. This new law would protect consumers from several of the worst shady dealer practices that have been increasingly plaguing the auto industry and driving many consumers to never set foot in another dealership. The issue is that the bill is stuck in legislation, which seems to happen to any bill that is not in favor of dealerships.
Learn more about the C.A.R.S. rule here:
consumer.ftc.gov/consumer-ale...
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Not good enough - they need to make a rule that says that MSRP is the advertised price that must be honored; and a rule that the dealer cannot add on anything without prior written consent from the buyer - no more markups or so called "add ons..."
It's a "suggested" price. That would never pass.
I can’t believe they don’t have to advertise the out the door price. It’s pretty simple solution. They can add on whatever they want but then you could comparison shop online.
The MSRP is not always the advertised price. Here in Florida, Dealers often advertise cars way under MSRP with no intention of selling at that price. That is deceptive advertising. Whether the dealer advertises the car below, at, or above MSRP, just be honest about it and have the car on the lot ready to go at that price.
That kind of takes away from freedom. You should be able to price anything as you want and if greedy, people should not do business with them. Now what shouldn't be allowed is the practice of the whole market getting together to raise prices collectively because that is essentially a monopolized market.There should definitely not be added junk fees that are complete bs.Its bad enough you are being forced to now get services and repairs done with the dealerships because they are now making parts unavailable to 3rd party.They should definitely not be allowed to add on % on top of the banks offer for loan interest to profit more over time.But initial price should be the sellers choice.
@@MrThejboe3oh5They shouldn't be allowed to do false advertising to get you into the dealership where you find it was all a lie. Agreed?
I remember when "lobbying" was called bribery.
Back in the day...when there was an ethical difference between politicians and child molesters.
America is the most corrupt, they just do a better job of hiding it unlike other countries.
Why the FTC doesn't crack down on the bad business practices??? Because they're all brought and sold.
Glad you took the lead on this. There has been a lot of talk but no action.
It's about time they do this. It's like the truth in lending act for mortgages they passed years ago. Now let's protect the consumer when it comes to buying a car.
It's up to us as consumers to continue to let the cars sit on the lot till dealers are forced to get rid of them at a price that's reasonable & fair. I want a Scat Pack Challenger but I'm gonna wait it out a few years of I have to. There's still low mileage cars out there. I don't have to have a brand new one.
As a previous ford dealership employee the addendums are fraud. They rarely put any of the said items on the vehicle outside of tint and nitrogen. Folks would pay $5k plus for basically tint and nitrogen thinking they had also got paint protection, interior protection, etc. This dealer celebrated this dishonesty.
While I agree with this, if it doesn't pass just negotiate price online. Its easy to email asking for out the door price. The dealer than wont send you OTD price on email you dont want to negotiate face to face either
Great video bud! It's all about greed when it comes to most dealerships. They value money more than their customers. That's a huge problem. What ever happened to having a great buying experience?
Now, It's all about stupid games like "How much can I milk from this sucker?". Hopefully the FTC will be able to pass that proposed bill at some point. It's getting out of hand! It has to stop!
National Automotive Dealers Association (NADA) is a strong lobbying group that stops these bills from becoming laws to protect consumers.
This Rule still doesn't address the outrageous mark ups. A $50, 75, or 100k mark up is NOT ethical any way you slice it.
Very true
Then vote with your $$$. Don’t pay it.
We have all these laws in canada… it works well! I am shocked you guys dont have this already!
We do? Yet dealers still rmove window stickers and post made up ones online with the base price raised by a couple grand. Sucks for the consumer if they don't know the website to access themanufacturer window sticker
I’m not.
Meanwhile Canada got a handful of last call Hellcats or Scat Packs... Ever wonder why your last in line for vehicles you guys make?
We do, they can charge markups but adding features and not being transparent about the price of the car is all required…
It’s funny if you buy a PART for the car there is no bullshit but if you buy the ENTIRE CAR there’s games.
Eventually, all sales will be through private owners if these dealerships keep up their tactics. I would like to see these shady dealerships dealt with though!
I go into a dealership and I’m not afraid to walk out. I have a small ford dealership I do business with and that’s it.
Corruption all throughout the system
Just make it legal for manufacturers to sell directly to consumers. Why not!! Oh people and money…
Don't think they're not greedy.
Hopefully, crooked, greedy dealerships are held accountable
Good luck with that when you have greedy/crooked law makers and government and a president that are not held accountable. I am older and can say a lot of people now days are not held accountable.
So...they finally addressed this for what it is. But they know this is going to fail. There needs to be added accountability for those dealerships that extort the buyers through shady accounting practices, and bait and switching. And they also need to address used dealerships for the same reasons. Vehicles with 100k+ on the odometer shouldn't be selling for their original MSRP.
Its your money do your work before buying a car. No one is pointing a gun at you while buying. Dealers have a lot of weakness you can exploit like greed... If you know your things they can be at your knees.
Great vidio , thanks for the information. Good work racerx
X, help the consumer by putting together a comprehensive list of consumer protection proposals dealing directly with vehicle purchasing, whether suggestion or adopted. If that information is readily available, the consumer has the power to rid dealers of such practices. If the people lead the leaders will follow.
I got called by a scammer spoofing a directory number. When I called it back I used it to call the FTC Chairman’s office
Very good information. I know 1st hand Racer X. Please keep it coming. Your words matter!
Great video. Thanks again.
Great Video there once again.. So whats the problem with the Demon 170? they know yet..? Are you just going to wait till you get it back from dealer to do a video on it??
I would also like to see motorcycle dealerships included in legislation like this. It is normal practice for bike dealer to include lots of add ons when the deal is being finalized, dealer fees, mark ups etc. When shopping for a bike a couple of years ago the salesman would only say the price will be about $xx,xxx. I figured the finance guy would rake me over the coals. It was during Covid when bikes were scarce. Needless to say I went elsewhere.
truth - public awareness is key to stopping these shaddy dealership practices- If everyone that recognized and understood what the dealership was doing to them inside the dealership and walked away - then left a review about it these dealerships would be forced to change -- IMO people just want to move on to the next dealership hoping for a better experience not caring what happens to the next person that walks into that dealership
You are a really good man 👏🏼
4:00 this is what all the dealerships I've been to in VA do. They don't negotiate price, and only focus on monthly payments. After refusing to budge, some will resort to trying to put you in a car you don't want.
Great video dude! 👍👍
Awesome content buddy 🙏👍💪
When you said “i want to see these cars go to people that need it”? Made me think of the Demon 170 and it gave me a good laugh 😂… but i know what you really meant 😅
Great content, very informative, hopefully will one day become the way they are required to conduct their business
Thank you for the videos to watch. I'm always excited for a new Racer X video.
My 180k+ Z06 70th Was offered 130k by a dealer. What a joke. They had one on lot with higher miles 175k!
“We don’t need this extra regulation that will increase costs” -Republican mantra. When in reality not having this regulation keeps profits up for greedy dealerships.
Yeah, till someone finds a loophole. They wanna get as much money as they can, ethical or not.
Nice Wagoneer X. I have one and they are awesome.
Great news X! Keep this up. Hopefully these crooked dealers get their shit together and quit screwing people. Everybody dreads going to the dealership. With the salesman, a.k.a. monkeys, hanging out of trees, waiting for you to get out of the car to screw you! Hope all is good brother🤘
Most states allow Auto dealers to charge a DOC FEE (documentary service) when in fact it should be called ADP (added dealer profit). Nothing will change while there are franchise laws protecting these stealerships. The few good dealerships which are normally single point family owned dealers but unfortunately they are being bought up by the mega dealers that only care about profit.
Profit is not a bad thing but most of the mega dealers have lost their moral compass and the manufacturers have done nothing to rein in these corrupt dealers
Lodi Toyota tried to pull this shady stuff on me last week, added $1K for paint sealant on a used car and refused to sell me the car because I didn’t want the sealant.
Courtesy dodge in tampa love to do this bs to customer's thanks .
I thought there are rules going in to effect in July. They were delayed by the National Dealers Ass. instead of going in to effect already this year.
🏆Racer X🏆🍀great job 👀✌️
Also they have the trick of always showing lower credit scores than actually score. They do not want you to take the application online with the main corporation office because they do some manipulation with the credit scores. I seen it over and over. This is a big class action sue on the making.
I feel that the consumer has the final say so. Dealerships are not forcing you to buy their product, you choose to it yourself. Just simply walk out if you cannot come to an agreement. There are still a few out there that wont screw you like some will. I certainly do not agree with shady practices and it helps if you have a little math skills and a little knowledge and understand and have reasonable expectations. So many people are less informed and ignorant and then blame the dealerships for not getting the deal they planned on when they dont put the blame on thierselves. Again there is no shame in saying NO and walking away.
Honda civic Si, Type R, Dodge Scat Packs in January, February, Toyota Rav 4 hybrids , 24 Toyota Tacoma's
All Should be a shame of themselves.
“The nine most terrifying words in the English language are ‘I’m from the government and I’m here to help.’”
-Ronald Reagan
Yeah, Reagan started the wreckage of pretty much everything. The middle class has been going downhill since. I don't want to hear any bullshit Reagan quotes, and by the way, I voted for him twice. I was a freaking idiot.
My son said he wants to get into a life of crime, so my question was organized or government?
Dont know how true this is but Ive been hearing and reading that dealserships may be on their way out
My car ramps have the same cut in the top. Oops. Lol
I am forced to shop for a new vehicle now. I've contacted 3 dealers so far. One tried to bait and switch me and two others have tried to charge me junk fees like nitrogen in the tires. It's been impossible to find an honest dealer so far. Sadly the FTC CARS act will never be implemented. Dealers groups will stall it until after the elected and then it will be crushed.
It’s funny how a manufactured crisis has made everyone so eager to pay MSRP. People screaming about markups when the MSRP is already too damn high.
These should all be just basic Consumer Protections, especially since these cars are SOOOOOOOOO expensive already. There are a lot of uneducated customers out there that get ripped off beyond imagination.
It’s a start for sure.. they need to look deeper, no diddy
Term limits is the easy fix.
they should be required to advertise the total price of the car that includes the total interest on a typical loan based on the current interest rates.
Could you imagine how people would do a double take if a 50k car was advertised as 69k with the interest over the 6 or 7 years of financing...
Well how about you Take Notice of the Box on the retail Contract that Says Total Cost including payments, it's on all Retail Installment Contracts which is Regulated by the Government. Check it out on Home Mortgage Contracts too if you Really want a WAKE up Call! Also Intrest Rates ARE Regulated by you Guessed it, The Government , not Saying there aren't Crooked Dealers but the Dealership I work for Spells it out on Total Price out the Door and Monthly payments which are Determined by Your Credit, another thing you can Thank your Government for. When I started in the Car business there was one Intrest rate, then the Government got involved and now the Rates are dictated by the Bank, By Your Credit Score.
Only "good" thing here is that the dealer will be required to post the full price of the vehicle, besides that the rest is garbage, and even "requiring" them to post the full price of the vehicle will probably not make much of a difference as a lot of states do have laws like these on the books and they still flaunt them. You have ALWAYS had the right to refuse any dealer addons, you do not want to pay for the $2k paint protection or some BS service contract you just say no and/or walk away from the deal. If you look at the financing papers you can always tell when they are adding stuff there, biggest issue there is that most people never learned proper math and cannot figure out all the numbers. THE ONLY THING THAT WOULD STOP THIS IS FOR THIS "RULE" TO COME WITH STIFF PENALTIES. You put that for every instance that a dealer does this they will need to pay a $10,000 fine and this will stop immediately. Until there is a really stiff monetary fine to this rule, the rule is completely toothless and thus worthless.
100% agreed
They wouldn't need these stupid laws if current laws didn't already create a monopoly through the dealer system
Stealerships...
The Southeast Toyota Distributor mafia is a huge contributor to this problem. Ditto for the Gulf States Toyota Distributor cartel.
Let's go!
You make a good point, but to be fair, to afford the lifestyle that you’re living yourself, would you say that you provide a service or a product at a base price? We talk about the car industry but tend to forget that every business, not just cars, has a fat rich guy behind it. This isn’t just a car industry issue, it’s a business in America issue. Its hard to be financially well off and fair at the same time..it sounds good though..all in all im all for the lower prices on cars, or at least the transparency of such.
If you wver go to a dealer and a salesman has a trophy on his desk, go somewhere else. He got the trophy for the highest gross on a single sale last month.
There ya have it, kids: the two best professions out there to pursue are lobbyist and government representative. Thank me after your 50 year career.
Do not worry, they won't pass a law that might harm auto industry.
Tesla sells as advertised, but screws you lator, repeatedly changing price and lowering the msrp, greatly devaluing the car you just bought...
I think a little honesty and sacrificing short term profits goes a long way to make a biz successful in the long run. Imagine customers giving free referals. Word would get out and people would be lining up to do business.
They'll still raise the prices for a high upfront price. Nothing would change
what I love is when dealers put a bunch of cheap ebay plastic accent parts on and charge thousands over msrp hahhahaagag
I love this. FUCK STEALERSHIPS.
In a free country, you can ask anything you want for your property.
No one has to buy your stuff.
When your government starts telling people what they can charge, you're not in a free country anymore.
Face facts, new automobiles are made for banks to buy.
Auto makers and sellers can charge anything they want, and the banks will find a way to own the people.
Also, don't shop at bell tire.
They have obnoxious commercials that bother people.
You were one of the poor fools who bought a Jeep Wagoner huh? Sorry to hear it..
On the dealer front - just common sense laws. They only have ever wanted these laws stopped because they know it's lucrative and another vector for them to mislead customers.
It is a loaner because his 170 is broke.
We cant get laws rhat help us to pass, but they got a bag tax and i never met anyone who voted for it
Complete b.s. Not nearly enough. There needs to be a law protecting customers equity. ADM's or dealer markups need to be illegal. The main reason is that the dealer markup has been sold as a market correction, but uts really the dealer stealing equity. A law that guarantees if you charge a ADM, then you should guarantee the resale value for the customer or a buyback.
Stop buying dodge when they go under they will change
absolutely no to gap n ext warranty.....they try to nail you on the jump.....pissed look on their faces was priceless....lol...proceeded to sell to me anyway....didn't punk me
I would rather go to a dealer than ever buy a Tesla made by the world's biggest manchild.
First as always
This will piss off the Slime Ball Dealerships !and vote for Trump lol 🇺🇸
Don't put the blame on the lobbying groups they are paid by the dealers find out who the lobbying group is and their membership dealers who are paying them you can find out there is rules they got to tell you who is doing all this lobbying and who the lobby group works for put the name of the lobbying groups on your next video along with the car dealerships that pay them
seems like u could afford a basic clip-on microphone at this point in your career. sounds like you're doing the vid in a toilet bowl
Just don't reelect them The last but not least Trump 2024
Please stop coloring your beard.
Another clickbait video.
I would love to know how this video is clickbait. I literally talked about exactly what the title talked about! That makes no sense
Exactly what we need. More government regulators and interventions. Don't do your consumer research and just depend on bureaucrats to fix it. That's totally worked for food, medicine, housing....
I’m from the government and I’m here to help.
It is exactly what we need. Our government for which we support with our taxes should be providing us consumer protection against these deceitful dealership practices.
@@johnmcmullen456 Yeah because they're not going to cause price increases and bigger barriers to business, squeezing out smaller dealers, and creating market monoliths. They surely didn't do that in the past... It's not like we have only a handful of health insurers or broadcast companies or banks these days... And now apparently Racer X has banned me from making comments because I disagree with his myopic political take. Pathetic and disappointing...
Apparently I've been banned from commenting on any new videos.
Make buying a car dummy proof? If you get screwed it's your own fault.
Seriously dude? Taking advantage of people is wrong! Not everyone has a ton of experience driving a car! I guess that makes it ok to take advantage of someone?