The Deal We Don’t Talk About

Nobody likes to admit they got taken advantage of.

Not in poker, not in marriage, not in business — and especially not when buying a car.

Every week, I hear from customers who tell me, “I really negotiated hard. They tried to trick me, but I outsmarted them.” What I rarely hear is, “I think I got fooled.”

And yet, (the data from the FTC, from Consumer Reports, from mystery-shopping reports) tell a different story. The majority of car buyers don’t get the deal they think they got. They overpay, buy unnecessary add-ons, or are misled by confusing paperwork. It’s not always intentional deception; sometimes it’s just the culture of the car business — and the silence of embarrassed customers — that allows it to continue.

The Uncomfortable Truth

Seth Godin recently wrote about the power of addressing the “uncomfortable and unspoken.” He used the example of colonoscopies — awkward to talk about, but life-saving. Cultural silence keeps people from doing what’s good for them.

It’s the same with buying a car. Admitting you were misled feels humiliating, so most people avoid it. They tell themselves (and their friends), “I got a great deal!” Everyone nods, egos stay intact, and the industry keeps running on the same old tricks.

The Cultural Cover-Up

Car dealers thrive on this social silence. They count on customers being too embarrassed to admit they were taken. That’s why the worst practices — hidden fees, inflated markups, worthless add-ons — persist. Not because people don’t care, but because they don’t talk.

We could fix a huge portion of the abuse in the car business overnight if more buyers simply told the truth about their experience.

Changing the Culture

Public health campaigns work by breaking silence. When people start talking about things that once made them uncomfortable — whether colonoscopies, mental health, or drunk driving — the culture shifts.

Why can’t we do that with car buying?

Imagine if customers began saying:

“I found hidden fees in my contract.”

“Next time, I’ll demand an out-the-door price.”

“I compared my deal online and realized I overpaid.”

That honesty wouldn’t just help one buyer — it would transform the marketplace.

The Courage to Admit

Admitting you were fooled once doesn’t make you weak. It makes you wise.

The real shame isn’t in being taken advantage of.

The shame is in staying silent — so others can be taken advantage of, too.

If we can talk openly about colonoscopies, we can talk honestly about car buying.

I APOLOGIZE TO TED SMITH

President of the Florida Automobile Dealers Association

Last Friday, Ted Smith and I had a heated phone conversation about a previous column/blog I’d written in which I blamed Ted and the FADA for the fact that Ashley Moody, Florida’s Attorney General had not enforced Florida laws, on the books for over 20 years regulating car dealers.

I learned from my conversation that I was dead wrong, and I’m publicly apologizing to Ted Smith for my blog and my wrongful comments.

Ted Smith and I go way back to the days when I was an active member of the FADA, a director, and on the executive committee. I was on the FADA committee that selected and hired Ted Smith, many years ago. Ted is one of the smartest people I know. He is, by far, the best head of the FADA we’ve ever had.

When Ted and I were working closely together, we unsuccessfully tried to form a Florida Car Dealers’ Ethics Committee that regulates car dealers, like how the Florida Bar Association regulates attorneys. Our stumbling block was that we couldn’t find any car dealers who would agree to join such a committee. The committee would be charged with overseeing the honesty and ethics of Florida car dealers’ advertisements and sales practices. This group of dealers, located strategically around Florida, would warn dealers of violations so they could cease and desist before being punished by regulators.

Had Ted and I been successful, Florida’s car dealers wouldn’t find themselves in the predicament we do today with the Federal Trade Commission’s CARS act, “Combatting Auto Retail Scams” breathing down our necks and the recent letter from AG, Ashley Moody that she will begin enforcing Florida’s 20+ year old statutes regulating car dealers’ bad behavior.

Ted Smith has had active dealings with Ashley Moody and has agreed to assist her with the Florida car dealers’ adherence to honest, transparent, advertising and sales practices. He recently sent out a certified, registered letter to all Florida car dealers (including me) advising us that the old laws would be begun to be enforced by September 1, 2024. He and FADA staff have traveled around the state conducting a series of “road shows” by FADA lawyers so that every dealership can learn all the details and comply with the law. My dealership attended such a meeting last Friday…the last road show.

Ted and I agree that we will see a significant improvement in the honesty and transparency of Florida car dealers after September 1, but not 100%. The biggest improvement will be seen in South Florida dealerships which I refer to as both “the wild-wild West” and “Sodom and Gomorrah”. The dealers in northern Florida are more civilized but will also have to improve their advertising and sales practices.

I liken what we will see as like what Florida drivers see on I-95 or Florida’s Turnpike. Virtually all drivers are exceeding the speed limit. The Florida Highway Patrol troopers hiding along the road with their radar guns will ignore you if you’re going only 9 mph above the legal limit. The higher you get above 9 mph, the more likely you’ll be pulled over and fined. The AG will be targeting lots of South Florida dealers who are exceeding the legal limits by WAY above 9 mph.

Finally, Autonomous Driving is Here

My wife Nancy and I bought our first Tesla over 3 years ago. It’s a top-of-the-line Model S "Plaid" model, and the TSD (Tesla Self-Driving) package option was included. Even though the software for autonomous driving was included, Tesla would not enable it unless the driver demonstrated the ability to drive very safely.

This feature was the primary motivation for our purchase of the Tesla. Ironically, I'm a Toyota dealer in North Palm Beach, and we have always driven vehicles manufactured by Toyota. However, we’re both in our eighties now, and the sad reality that we may not be able to drive safely for much longer weighs heavily on our minds. How wonderful it would be, we thought, to be able to hop into our own car anytime and say, “Take us to Publix, Walgreens, or Taco Bell,” and be driven safely there and back home by an autonomous vehicle!

For over a year, we struggled to score high enough in safe driving to motivate Tesla to activate our (already paid for) autonomous software. Tesla has eight exterior cameras and one interior camera on our Plaid, and they “watch” how the driver operates the vehicle. After every drive, a score is registered. A 100% score was required over 30 days to activate the autonomous feature. Our scores got better, and Tesla lowered the minimum acceptable score. Once TSD was turned on, it could be turned off again for 30 days if you didn’t keep your hands on the wheel and eyes on the road.

We were very disappointed in the TSD when it was first activated. It was “flat scary”! There's an intersection we drive in and out of every day when we leave our home that's tricky. The 2-lane road is quite narrow, and there's an S-curve with two stop signs when we leave or enter. The main road we must drive on has another S-curve from the east and a tall bridge to the west. Cars coming over the bridge aren't visible until they come down from the rise of the bridge, and cars from the east aren't visible until they come around the curve. Our Tesla Plaid simply could not "figure out" how to drive out of our neighborhood. The steering wheel would turn wildly left and right, and the brake and accelerator would be applied “wildly.” After this frightening display, the TSD would suddenly disengage.

We gave up on even trying TSD to leave or re-enter our neighborhood and used it only on simple trips. We also experienced difficulty in different areas based on weather, traffic conditions, and the quality of road lines and traffic signals. For a smooth, safe autonomous ride, everything had to be just right for the TSD.

Happily, Tesla was working very hard to improve their TSD, and there were frequent software updates, sometimes weekly or more. At some point, Tesla began using the millions of videos recorded daily by millions of Tesla drivers to program their software. They select videos from only safe drivers, which contrasted with writing the computer code to teach the Tesla how to drive.

After almost every software update, we would try out the TSD, and even though we saw improvements, they were still not "ready for prime time" and still couldn’t safely let us leave or reenter our neighborhood. About a month ago, it happened! It was a quantum leap in improvement! We can now safely leave and enter our neighborhood or drive anywhere we want.

The TSD is still not perfect. Nancy and I do a weekly live radio talk show every Saturday morning, and we must leave for the radio station shortly after 7 AM, just after sunrise. Two Saturdays ago, on the way to the radio station, our Tesla “ran a red light” and almost made a dangerous lane change on I-95. I think what caused this rare but dangerous glitch was the “sun.” It was shortly after 7 AM EST when our Tesla ran the light. The Tesla was headed south, and the sun was at such an angle that it “blinded” the Tesla’s cameras. The second dangerous mistake the TSD made 5 minutes later was also because the sun did not allow the Tesla’s cameras to see.

I paused writing this column to go with Nancy to see her doctor relating to a test. On the way, our Tesla made another dangerous error in making a U-turn on a heavily trafficked road named Military Trail. In all three dangerous TSD incidents I’ve described, the driver (me this morning) was alert and able to avoid an accident. This rule should remain strictly enforced for a long time, even after the TSD is claimed to be “perfected.”

But the good news is, even with these potentially dangerous anomalies in TSD, being driven by an autonomous car is a pleasure. The TSD software has “eight outside eyes” outside the cabin of the Tesla. It sees everything faster than a human driver and it sees 360 degrees simultaneously and instantaneously. It has a ninth camera inside to be sure the passenger in the driver’s seat is alert with hands on the wheel and eyes on the road. Think about how many places you have to turn your head to change lanes in heavy traffic on the expressway. Our Tesla gets us there faster and smarter than we do when we’re driving. The Tesla also doesn’t get angry at bad drivers on the road, doesn’t text, or talk on the telephone. It’s a better driver than Nancy or me and it’s getting better faster and faster.

Complain Effectively to Your Car Dealer

As many of my readers know, I’m perhaps the only car dealer that speaks regularly with his customers. My personal cell phone number is available to all my customers as well as my employees. In my other role as a consumer advocate, which is why I write this column, I hear often from my customers…compliments and complaints. I’ve found from this regular communication that it’s much easier for me to answer and resolve complaints when they’re brief and concise. The rest of this column was written by Artificial Intelligence, ChapGPT-4:

Both written and voicemail complaints have their own advantages and likelihood of response, depending on the context and the organization receiving them. However, whether these complaints are acted upon can vary widely based on several factors, including the length and clarity of the complaint:

1. **Brevity and Clarity**: Generally, shorter, clearer complaints are more likely to be responded to and acted upon. This is because they are easier for service representatives to quickly understand and address. A concise complaint that directly states the issue, how it has affected the customer, and what resolution is desired, is more effective. This principle applies to both written and voicemail formats.

2. **Written Complaints**: Written complaints, especially those that are well-organized and concise, often provide a permanent record that can be referred to, which can be advantageous for both the customer and the service provider. They allow the recipient to process the information at their own pace and to forward the complaint to the correct department or personnel.

3. **Voicemail Complaints**: While voicemail allows for the conveyance of tone and urgency, it may be less effective if the message is long and rambling. Important details can be missed or misunderstood. Voicemail complaints might be more likely to be overlooked, especially in high-volume settings, unless they are very concise and articulate clear action points.

In both cases, the likelihood of a response and action often depends on the organization's customer service policies and the specific issues being addressed. Shorter, clearer complaints are typically more successful because they allow the service provider to quickly understand the issue and begin formulating a response or solution.

Auto Manufacturers Don’t Want to Know How Much Their Dealers Charge You for a New Car

As you know, car dealers have sold virtually all their new cars at thousands of dollars above MSRP over the last three years. The prices were so high that car dealers made record profits over that time despite selling relatively few new cars because of manufacturing constraints. Most auto manufacturers also made record profits because, they too, raised their prices to the dealer by stopping dealer incentives and raising their prices to the dealers.

In a recent auto dealer and manufacturer trade journal, Automotive News, an article said that only 18% of new cars being sold in 2024 were above MSRP. While it’s true that new car prices have dropped precipitously since 2022, I assure you that nowhere near 18% of the actual transaction prices this year are below MSRP, (Manufacturer’s Suggested Retail Price).

Auto News and the manufacturers are making this false assumption because their dealers are discounting prices below MSRP, but their dealers are also hiding thousands of dollars in junk fees and dealer preinstalled accessories that do not show on their financial statements in the price of the car. Their dealers hide this additional car markup and dealer profit under false headings like “miscellaneous income”. By doing this, the dealers also avoid having to pay their salespeople and managers a percentage of this additional new vehicle profit. The salespeople know this and are even more reluctant to remove junk fee from those added to the advertised price of the vehicle because it reduces their sales commission. To reduce price, the dealer does not allow the removal of junk fees. He allows only the reduction of the commissionable price of the car.

 
The true selling prices of new cars are readily available to the manufacturer and almost anybody if they truly want to know. “Transaction Prices” are a matter of public record when every car is sold. The profit/markup on a car is simply the difference between the true cost of the car paid by the dealer to the manufacturer and the delivery price, less government fees. The oft touted “dealer invoice” is a misnomer and contains thousands of dollars in hidden kickbacks to the dealer.

 
If the Federal Trade Commission wanted to make a simple rule that would solve almost all dealer deception, it would be that the out-the-door selling price, aka transaction price, must match the advertised or quoted price plus government fees only.

Help a Friend Buy a Car

www.EarlsVigilantes.com

You're reading this column now, and that tells me that you're probably an educated consumer. You hope to pick up a tip or two on how to buy or lease a car without getting ripped off by a car dealer. This is what educated consumers do. They read, listen to podcasts, watch videos, and communicate with others who share information.

As the old expression goes, "I'm preaching to the choir." Those who need this information the most are consumers who don't read columns like this or avail themselves of other sources of consumer information. I'll bet that the percentage of those who subscribe to Consumer Reports who are victimized by car dealers is very, very low.

This is why I'm asking you to share your expertise with others less fortunate than you. Those who are taken advantage of by unscrupulous car dealers are those who are very young, very old, or lacking in education, and those whose first language is not English. It also includes people who are simply too trusting, and not sophisticated in legalities or the art of negotiation. We all know people like this because they comprise most consumers and are all "fish in a barrel" for car dealers.

To thank you for joining Earl's Vigilantes, I'll send you a vigilante cap with the logo when you fill out the application at www.EarlsVigilantes.com.

Autonomous Cars Shouldn't Require a Driver's License

Seventeen years ago, I wrote a blog entitled "Grandma and Grandpa's Freedom Machine." I was 66 years old then and first began thinking of myself as a "senior citizen" aka "old guy." The gist of this article was inspired by my late "Uncle Charlie," who refused to give up his old Cadillac. He'd retired from operating his gas station in West Palm Beach, and his 20-year-old Cadillac sat in his driveway for 10 years after he could no longer drive it. He and Aunt Marion could see it from their living room rocking chairs, sitting on its flat tires. It made Uncle Charlie happy to think about driving it in past years on Sundays to "visit" friends and family, including my mother, father, sister, and me. They'd go to church first, all dressed up (Uncle Charlie always wore a Fedora hat).

As a car dealer, I sometimes must talk to my elder customers' children who intervene when their parents want to buy another car or drive it in for service. This is one of the most difficult times for a family to face. One could say, "One of the happiest moments in my life was when I got my driver's license and first car; one of the saddest was when they took them away from me."

This year U.S. Representatives Brian Mast from Florida and Greg Stanton from Arizona introduced a bipartisan Autonomous Vehicle Accessibility Act to help people with disabilities better access the mobility and independence benefits of autonomous vehicles. The elderly, of course, represent a high percentage of those with disabilities because this is part of aging.

We seniors think a lot about losing our driver's licenses when our sight, hearing, and other senses begin to fail us. Contemplating taking written tests and driving tests is scary. What if we don't pass? Doctors tell us that many of their elderly patients don't have current drivers' licenses. They continue to drive with expired licenses because they're afraid to take the driving tests. This is not just dangerous for them, but for everybody else on the road.

Call me a "cockeyed optimist," but I believe if we seniors can hang on a little while longer, we'll never have to give up our "freedom machines." We can buy an autonomous vehicle or buy a timeshare in one. We'll be able to summon our vehicle to pick us up in front of our residence and tell it to take us to Walgreens or Taco Bell. The big bonus to "time share" is we pay only for the time we use the vehicle. Today, our vehicle sits in the garage or out front of our homes 80% of the time... but we still must pay for all that idle time.