Monday, December 11, 2017

Never Go Car Shopping Alone

I continuously get phone calls, emails, and texts from car buyers who mostly have “already bought a car”. The “horse is already out of the barn” and they want me to give them advice on how to get it back. Most of these car buyers went car shopping and bought their car alone. Most of the complaints are associated with verbal promises by the sales person, not committed to writing. Bringing at least one other person when you are car shopping doesn’t negate the importance of getting all promises in writing, but substantially lowers the chances of a car salesman trying to pull a fast one. The salesman and his manager know that, in court, two people’s word trumps one.

A woman wrote me a letter this week in response to one of my columns. Her husband had recently passed away and this was the first car she had bought on her own. The dealer did not have the model car with the accessories she wanted and was unable to locate one at another dealership. She did not want to decide without seeing the actual car she wanted to buy but the salesman and manger talked her into signing a buyer’s order, assuring her that she was under no obligation to buy. They also included two accessories that she did not want because “the manufacturer required it”. I’ve heard of distributors ordering cars with certain accessories from the manufacturer which essentially makes them “standard”, but never “$250 floor mats” which was one of the accessories she mentioned. I get a lot of emails, phone calls, and letters from people who made a bad deal in their car purchase and want to know how they can get out of it. This is one of the less egregious, but I chose it because it was a simpler and shorter example.

There is strength in numbers when shopping and negotiating to buy a car. In fact, this applies to any serious decision in life. You might be the sharpest, shrewdest negotiator on the block, but your odds of striking a better deal and not get taken advantage of are enhanced when you have others on your side. Personally, I make a habit of always having at least one partner when I am engaged in a serious, adversarial decision-making process. When meeting with those on the other side, I make it a point to arrive with at least as many people as they have present. One reason is the psychological factor. When you are in an office by yourself with 2 or 3 others, it can be intimidating. Another reason is that you always have people on your side to corroborate what was said. If a salesman or a sales manager makes a verbal promise that can be corroborated by a friend or two, it is far less likely to be broken. It will also hold up in court, if it must come to that. Of course, the better solution is to see that all promises are committed to writing.

Buying a car, especially a new car is often an emotional decision. Having a friend or two with you can help you make more of an analytical, logical decision. Another point of view is always useful when making an important decision. Also, having one or two friends with you slows down the process to a level more easily absorbed and understood by you. A friend will often think of a question you should have asked but forgot.

Ideally you should bring someone with you who is skilled in negotiation and experienced in buying cars. However, if you don’t know someone like that, somebody is better than nobody.

By the way, most car dealers are unhappy when prospective customers bring in advisors and friends. Naturally they feel that way because they recognize their chances of making a fast, very profitable sale are diminished.

Monday, November 27, 2017

Buying Tires: Caveat Emptor!

In case you’re a little rusty on your Latin, “Caveat Emptor” means “Let the Buyer Beware”. This is something to keep in mind when you buy anything, but the danger of being ripped off when you buy new tires ranks right up there with buying and servicing your car.

Retailing tires is very important to, not only tire companies like Goodyear, Firestone, and Michelin, but independent retailers like Pep Boys and Tire Kingdom. In recent years car dealers have become very interested in selling tires too. The reason is that car customers too often don’t return for service and service is generally more profitable to car dealers than selling cars. Independent service departments and tire manufacturers’ retail service and tire outlets are taking away car dealers’ service business. Tires are something that you have to buy regularly for your car. Wherever you go to buy one or more new tires, the tire seller will take that opportunity to sell you additional services and products…you can bet your life on it.

Tires have become “loss leaders” for car dealers, tire factory service stores, and independents. When I say loss leaders, I don’t mean that you don’t end up paying the tire seller a profit on the tire transaction. What I mean is that the advertised price would result in a loss to the seller if he really sold it at that price. This is very similar to car advertising. Car dealers go through a great deal of thought and effort to advertise a price which is perceived to be lower than they will really sell you the car and tires sellers do the same thing. You can be sure that you can never buy a tire advertised on the Internet, newspaper, or TV for the price that you see.

To demonstrate this I chose one of the largest tire sellers in the USA, Tire Kingdom. I chose them because, as the leader, they set the pace in how tires are sold and advertised. Buying tires from other sellers, including most car dealers, will be at least as risky and often more so.

I sent in a mystery shopper to two Tire Kingdom retail tire and service outlets in Palm Beach County. My shopper responded to an ad for a special sale which is blanketing TV, newspaper and the Internet. The ad says that from August 1 to August 12 you can buy one tire and get the second one free. I watched the TV ad several times and it is literally impossible to read the fine print disclosure. By going to Tire Kingdom’s website, I was able to read the fine print, but the vast majority of respondents to this sale would come from TV and be clueless to the “gotchas” in the fine print.

The first revelation to my mystery shopper was that only certain makes and types of tires were eligible. No name brands like Michelin or Goodyear were available for this sale. Interestingly there was an inconsistency on this between the two Tire Kingdom stores we shopped. In fact, there were several inconsistencies between the stores on types of tires, prices and other procedures.

To me the biggest deception was that the tire buyer was required to purchase “road hazard insurance” and a wheel alignment. The prices on the insurance ranged between 14% and 18% of the total price of the tires and the prices of the wheel alignment ranged from $114.99 to $79.99. The advertisement didn’t say they are advertising a package deal for tires and road hazard insurance and wheel alignments. But the fine print (indecipherable on TV) disclosed this condition. Being required to buy a four-wheel alignment is wrong for two reasons. Firstly, buying a wheel alignment should be your decision and not tied to the purchase of tires. Secondly, what if your wheels don’t need an alignment? You may have had your four wheels aligned two hours ago, just now run over a nail in the road, and now have to buy a tire.

BUT WAIT THERE’S MORE! The fine print also tells you that you must pay $1 per tire for the state tire tax. This is a real tax but it should be included in the quoted prices. There’s another fee you are charged which is a “tire disposal fee” which Tire Kingdom can charge you any amount they like. It’s not specified. The truth is that Tire Kingdom actually sells many of their take-off tires to used tire dealers for a nice profit. I do the same thing in my dealership and that profit off-sets my cost of having take-off tires hauled away and disposed of. And the final “gotcha” is the infamous “shop fee” which usually is 10% of the full retail price of the service invoice with a cap of $35. Now remember that there is no legal prohibition or cap on “tire disposal or shop fees”. Tire Kingdom imposes their own caps and prices on these rip offs. Other tires sellers are left to their own chutzpah and imagination to gouge you to limit of your tolerance.

BUT WAIT THERE’S STILL MORE! In the fine print is “No carry-outs”. I’ve seen this in some restaurants, but it’s an unusual term for Tire Kingdom and other tire sellers to tell you that before you can buy their tires at their advertised price, you must pay them whatever they want to charge you for mounting and balancing those tires.

I’ll end this article with constructive suggestions of how you can avoid these sorts of unfair and deceptive advertising and sales practices. Refuse to play the tire sellers games. Demand an “out the door” price for the specific brand and style of tires you want. Make it clear that it must include all federal, state, and local taxes, all fees like shop and tire disposal, all extra services like alignment, all extra products like road hazard insurance, and all services associated with putting the tires on your car like mounting and balancing. Ideally you should do this on the telephone and make it clear that you have only one check left in your checkbook and you will be filling it out at home for the total amount due, an out-the-door price. Of course, you should do this at least three times with three different tire sellers and buy them from the one who gives you the lowest price.

Monday, October 02, 2017

The Lemon Law: Unhappy New Car Buyers’ NUCLEAR OPTION


Lemon laws are state laws which give rights to purchasers of new vehicles if they find that they have bought a car with a defect that cannot be fixed in a timely fashion by the dealer or the manufacturer. The first lemon law was the results of the efforts of a great California consumer advocate, Rosemary Shahan. Every states lemon law is somewhat different but they all have a lot in common and are aimed at the same result. Most car buyers have misconceptions of the lemon law. These are some the most common ones: The car owners think they are going against their car dealer when they are really going against their car’s manufacturer. If you prevail it costs the car dealer nothing. The manufacturer pays. The law applies only to cars purchased as new, not used. If you win a lemon law dispute, the manufacturer or dealer does not simply replace your car with a brand new on. The amount of credit you win toward a replacement vehicle is arrived at by deducting a charge for the usage of your lemon car based on time and mileage.

The complete lemon law process is a difficult and time consuming task for all concerned…you, the car dealer, and the manufacturer. It’s difficult for you because the law requires specific and extensive documentation. You must have allowed your dealer to try to fix the problem at least three times and you must have detailed written documentation of this. You must be sure that your complaint is clearly spelled out by the dealer on your repair order and that his failure to fix it is also a matter of written record. After three times, you must notify the manufacturer by certified letter that you are invoking the lemon law. Now the manufacturer has one last chance to fix your car. At this time, the manufacturer may take your car to another dealer who he feels is more competent in repairing your car. If the fourth attempt to fix your car fails, your case is assigned to a board of arbitrators. Their ruling is final. This entire process usually takes a very long time. A time of several months is not uncommon. Meanwhile, you’re saddled with a car that has a problem nobody can fix.

When you formally invoke the lemon law with your certified letter, you sever all communications with the manufacturer other than formal, legal communications as dictated by the law. The manufacturer considers you a legal adversary and their attorneys consider anything they say to you as something that can be used against them in the arbitration. At this point they are legally barred from fixing your car or talking to you about fixing your car.

All of the above is why I advise that you use the lemon law only as a last resort…the nuclear option. Put emotion aside and focus on what your purpose should be which is to have a car that you can drive without the problem that has been driving your crazy since you bought it. Your priority should not be to punish the dealer because as I already said, he suffers nothing from your winning a lemon law decision. You are punishing the manufacturer to some extent, but this is “business as usual” to all manufacturers who fight (and usually win) thousands of lemon laws annually. What I’m suggesting is that you might want to consider giving the dealer and manufacturer a little more time to fix your car after the first three attempts. If they look like they are sincere and trying hard, it could save you a lot of time driving your broken car (not to mention the mental anguish) compared to waiting months for the lemon law process to work itself out.

I’m not saying that you shouldn’t tell the dealer and manufacturer that you will invoke the lemon law if you have no other choice. You definitely should do that. You should let both the dealer and the manufacturer know in no uncertain terms that you have meticulous documentation of their failed efforts to fix your car, you have familiarized yourself completely with the specifics of your state’s lemon law, and you will not hesitate to invoke it if you are left no other choice. This will instill a sense of urgency to fix your car ASAP if it’s within their abilities. The reason is the dealer and the manufacturer want to keep you as a customer. In fact, the dealer may stretch to give you a better deal on a new car to replace yours than you would ever otherwise have gotten. He can’t do that once the lemon law has been invoked because he would be trading in a “lemon”. A “legal lemon” has the same stigma as a flood car or totaled car that has been rebuilt. The manufacturer not only wants to keep you as a customer but wants to avoid the cost of arbitration (the manufacturer is responsible for all of the costs), the cost of disposing of a lemon, and the cost of the damage to their reputation by chalking up another lemon laws loss in the record books. For more information about the lemon law, Florida residents can call the lemon law hotline,800 321-5366 or you can click this link: http://www.myfloridalegal.com/lemonlaw.

Monday, September 25, 2017

Caveat Emptor and Car Dealers: You Can Fool Some People All of the Time

Almost everyone has read Abraham Lincoln’s popular saying, “You can fool some of the people all of the time, and all of the people some of the time, but you can’t fool all of the people all of the time.” I think Abe meant this to be a positive assertion that government may get away with deceiving us for a while, but in the long run, truth justice and the American way will prevail…and I think he was right.

However, it doesn’t work that way with unethical car dealers and car buyers. It always has been “caveat emptor”, or “buyer beware when it comes to buying or servicing a car. Unfortunately for a buyer to “beware” he must be “aware” …that is to say educated, mature, sophisticated and experienced. This excludes a very large segment of our population including the very young, the very old, the uneducated, those with low I.Q.’s and those not proficient in the English language. This is one reason why our regulators and elected politicians don’t seem to care or act with respect to the rampant unfair and deceptive sales practices of a large number of Florida car dealers? Most elected officials and regulators are lawyers and are highly educated and sophisticated. They don’t have a problem buying or servicing a car. In fact, the car dealer that tries to take advantage of a lawyer, regulator, or politician is asking for trouble.

I’ve been writing this column/blog and broadcasting my radio show, Earl Stewart on Cars, for about eight years. I sometimes feel that I’m “preaching to the choir” when it comes to advising people how to avoid getting ripped off by a car dealer. You, my readers and listeners, largely fall into the category of the educated and sophisticated, “aware” buyer. Most of you aren’t taken advantage of when you buy or service your car because you won’t allow it. Unfortunately, there are enough uneducated, naive, and otherwise vulnerable consumers to feed those unethical car dealers who prey on the defenseless among us. All you must do is read some of the car ads online or watch some on TV. To the educated, sophisticated buyer, these ads are funny, if you can forget the fact that so many fall prey to them and are taken advantage of by the dealers. For example, it’s hard for you or me to believe that anybody would respond to an advertisement without reading the fine print. Many dealers today are advertising prices that, when you read the fine print, are understated by many thousands of dollars. When you or I see a dealer stating that the car price is plus “freight”, we are educated enough to understand that the law requires that the freight cost be already included in the price. A shrewd buyer knows that “dealer list” is not the same thing as MSRP and that a large discount from “dealer list” means absolutely nothing. We know that the “lowest price guarantee” is worthless if the dealer reserves the right to buy the car from the other dealer that offers a lower price.

There are those who argue that all buyers have the responsibility to guard against unethical sellers, to take care of themselves. In fact, that’s the literal translation of the Latin legal term “caveat emptor”…let the buyer beware. That’s sounds good, but what about the elderly widow whose husband recently died and who never had to make the decision on a major purchase in her entire life? What about the young person just out of school with no experience in the real world? How about the immigrant who struggles with English? Should we be concerned about our underprivileged classes who often drop out of school because they must go to work to support themselves or their family? You and I know lots of good people who, for one reason or another, simply can’t cope with a slick car or service salesman.

My bottom line is this, since we can’t rely on our regulators and politicians to protect those who “can be fooled all the time”, maybe we owe it to society to protect these folks. If you know someone who is thinking about buying a car or has a service problem with her car and you feel she may not have the ability to fend for herself with the car dealer, offer your support. If you’re one of the people who needs support, ask someone who can go “toe to toe” with a car dealer to come with you when you are car shopping. By the way, nobody, sophisticated or not, should car shop alone. Two heads are always better than one and it’s always a good idea to have a witness to what was said during a negotiation. And, of course, if you don’t have the time to help a person or you’re that person, you can always call me…I’m always here for you.

Monday, September 18, 2017

BEWARE BUYING A “FLOOD CAR”

FLOOD CARS ARE FLOODING SOUTH FLORIDA

As I’m sure you know, the flooding from hurricane Harvey in Houston and surrounding areas was unprecedented and catastrophic; over 50 inches of rain fell which was the second highest on record in the USA (51 inches once fell Hawaii). About a MILLION cars were “destroyed”. Our most recent hurricane, Irma, caused very little flood damage compared to Harvey. When I say “destroyed”, you may envision a vehicle badly and visibly damaged, but most of these cars caught in the flood look good. Most of the damage and signs of damage are hidden. Many of these cars are brand new. The cars that you see in the aerial picture above are all “destroyed” or totaled by the insurance companies, but lots of them will end up on car dealers’ lots for sale…many in South Florida. 
South Florida is a magnet for “problem” cars. Problem cars are those that aren’t supposed to be sold or that can be hard to sell. For example, cars missing airbags, cars with un-repaired dangerous recalls (Takata airbags), totaled cars that were rebuilt, cars with very high mileage that have had their odometers replaced with lower miles, and, of course flood cars.
The four main reasons that South Florida is so popular with crooked used car wholesalers are: 
(1) It’s the second largest volume retail car market in the world, next to southern California. 
(2) South Florida exports more new and used cars (mainly to Central and South America) than anyplace else. Other countries have very lacks safety regulations compared to the USA. 
(3) More car dealers in South Florida rank below the already low average of honesty and ethics for car dealers (Google “Gallup Annual Poll for Honesty and Ethics in Professions”). 
(4) Florida regulators and legislators are more lax than most other states in the enforcement of rules and laws controlling the bad behavior of car dealers.
Consumer Reports has an excellent article on spotting flood cars. These are the main signs of a car that has been in a flood:

 How to Spot a Flood-Damaged Car
Water damage can be hard to detect, but Consumer Reports recommends that you look for some telltale signs:
·        Inspect the carpets to see if they show signs of having been waterlogged, such as smelling musty or having caked-on mud. Likewise, brand-new carpets in an older vehicle may be another red flag.
·        Check the seat-mounting screws to see if there is any evidence that they have been removed. To dry the carpets effectively, the seats must be removed and possibly even replaced.
·        Inspect the lights. Headlights and taillights are expensive to replace, and a visible water line may still show on the lens or reflector.
·        Inspect the difficult-to-clean places, such as gaps between panels in the trunk and under the hood. Waterborne mud and debris may still appear in these places.
·        Look for mud or debris on the bottom edges of brackets or panels, where it wouldn’t settle normally.
·        Search around the engine compartment. Water lines and debris can appear in hard-to-clean places, such as behind the engine.
·        Look at the heads of any unpainted, exposed screws under the dashboard. Unpainted metal in flood cars will show signs of rust.
·        Check to see if the rubber drain plugs under the car and on the bottom of doors look as if they have been removed recently. That may have been done to drain floodwater.
You should know, that the some of the crooks that sell these cars also read Consumer Reports and can successfully disguise many of the signs you read above. As with computer hackers and the anti-virus companies, there’s a seesaw battle staying ahead of each other. For this reason, I suggest that you insist on a CarFax or AutoCheck report and take the car you’re proposing to buy to a mechanic you can trust. For about $100 he can do a thorough check on your car…money well spent. 
Another precaution you should take is simply don’t buy a car that was titled in the Texas flood area during the time of hurricane Harvey. However, remember that titles can be “washed” and this means some states will allow a new title to be issued on a car that erases all evidence of its previous history. The three worst states are Mississippi, New Jersey, and Pennsylvania. There is no national, federal title law; each state makes up its own. Fortunately for us, Florida has a rigid law, but that protects you only if the car was never titled out of state. If you buy a used car that was sold new in Florida and retitled for new owners only in Florida, you can be sure it wasn’t flood damaged anywhere else.
As if that’s not enough to worry about, remember that lots of Texans didn’t have flood insurance and never had their cars repaired even though they were partially submerged. It takes only about 18 inches of water to destroy the electronics in a car. Modern cars are “computers on wheels”. The car can function fine after its initial submersion for weeks and even months. Many of these uninsured cars were quickly traded in or sold outright by their owners. There is no official record on these cars. Your only hope is a thorough inspection by a trusted mechanic.

Monday, August 28, 2017

Consumer Reports is your Best Friend When Choosing and Buying a Car

If you don’t already subscribe to Consumer Reports, you should. I have been a subscriber for as long as I can remember. I get the magazine in the mail and also subscribe online. I rarely buy any product without consulting this great magazine. I subscribe to the online edition because it’s even more current than the regular magazine, and I get many consumer tips via email. I recently received their annual auto issue, which no car buying family should be without. All libraries would have this on hand.

Don’t be fooled by other magazines with similar names purporting to objectively analyze and recommend products. There is only oneConsumer Reports. They do not accept any advertising and therefore are not beholding to any companies. They even go beyond this and will not allow a retailer or manufacturer to use the name Consumer Reports in their advertising. Even if Consumer Reports gives a product a great rating, that company cannot mention this in their advertising. If they do, they get sued by Consumer Reports. No other company goes this far and is this “squeaky clean”. J.D. Powers is a company that ranks and compares lots of products including cars, but they allow companies to use the JD Power name to advertise their products when they rated them good. You can understand why a consumer might be just a little more skeptical of J. D. Powers’ objectivity than Consumer Reports’. You should ignore car enthusiast magazine like Motor Trend and Car and Driver that write articles on the “Car of the Year” and other articles praising various makes and models. You can be sure that these car manufacturers with the great articles are spending lots of money advertising in these magazines.

I am not saying that Consumer Reports is infallible. They do make mistakes and they have been successfully sued by some companies that were affected by their mistakes in testing. But this is very rare. As a car dealer for almost fifty years, I have not always liked what I read about all of the makes and models of cars I have sold, but I grudgingly had to admit that the reports were almost always accurate. Issues of CR recently gave negative reviews to models of the cars I now sell, Toyota. I must confess that with some makes and model cars I have sold over the years, I was very thankful that the circulation of Consumer Reports is not very large. Their circulation is growing as consumers become more educated and sophisticated.

This annual auto issue should be a mandatory read before you buy your next used or new car. Here are some of the articles in this issue…Top Picks (the best new vehicles they have tested), Best and Worst (tells you the ones you definitely shouldn’t buy), Coming for 2018, Who Make The Best Cars (best manufacturers), Buy Better on the Web (The Internet is the best place to buy your next car), Reliability trends (repair histories on all makes and models), What’s Next in Auto Safety, and Used Cars, Best and Worst.

Consumer Reports also offers other car buying services like their “New Car Price Service” which discloses the best price you should expect from a dealer, rebates and incentive information, negotiating strategies, and their expert recommendations. They also offer a “Used Car Price Service” which provides an evaluation tool kit that helps you establish the right price for most used cars.

Monday, August 14, 2017

Open Letter to Governor Rick Scott



A letter addressing the critical issues associated with the sale of used vehicles equipped with recalled Takata airbags was written just over one year ago, and I’ve received no reply; It was also published as a full page ad in Governor Scott’s hometown newspaper, the Tallahassee Democrat. In the last several weeks, TWO MORE FLORIDIANS were killed by exploding, defective Takata airbags, and it is inevitable that the toll of deaths and serious injuries will continue to rise as long as the sale of used cars equipped with defective Takata airbags continue. While I argued last year for laws specifically requiring dealers to disclose outstanding safety recalls, it is now clear that the only effective way to address this problem is to extend the ban that already applies to the sale of new cars subject to safety recalls to include used cars as well. Indeed, the nature of the Takata defect is such that the older the car is, the more likely it is that the airbag inflator will explode. So I am writing once again with a renewed sense of urgency, and I not only call for action by the Governor, but I also ask every car dealer in this State to consider the dire consequences of continuing to sell used cars with defects that can kill and maim their customers and every other passenger in the car they are putting on the road. Governor, please read my letter and call me at 561 358-1474. 



Dear Rick, 


Please excuse this public form of communication, but I chose it because my message is urgent and I believe it will get your attention faster than going through the normal, bureaucratic channels. 


Florida law not only fails to expressly ban the sale of used cars with unremediated safety recalls, there is no Florida law that even specifically requires a car dealer to disclose national safety recalls on used cars sold to their customers. This has always been bad, but considering the unprecedented Takata air-bag inflator recall (currently affecting 75 million vehicles in the U.S. and rising), this legal loophole presents a problem of critical magnitude. And efforts to address the problem with disclosure requirements, while certainly better than nothing, do not go nearly far enough in safeguarding consumers from the lethal timebombs  hidden in their steering wheels. 


I communicated my position directly to the Florida Automobile Dealers Association over a year ago, and they are aware of this serious omission in Florida’s laws. Unfortunately, legislative action, as you well know, is always a slow process if it ever happens at all. What is required in this case is an emergency executive action by you, the governor of the state of Florida. 


I can assure you that very few Florida automobile dealers are voluntarily disclosing safety recalls affecting the used cars they sell, and even when some form of disclosure is made, it is never adequate to properly alert purchasers to the danger posed by exploding airbags. As I write this letter, there are Floridians unknowingly buying cars with defective Takata airbag inflators that could possibly explode on impact, firing metal shrapnel into their bodies. There have already been several deaths across the country attributed to these faulty inflators. 


It is a certainty that nearly all car dealers in our state have vehicles in their current inventories with these defective airbags and other safety recalls. I have identified sixteen in my used vehicle inventory that are affected. It’s a simple matter to identify these vehicles by entering the VIN online at the NHTSA website, http://www.nhtsa.gov/Vehicle+Safety/Recalls+&+Defects


The sad fact is that most dealers don’t check these vehicles for recalls because it takes time to have the recalls performed and “time is money”. Recalls can only be performed by franchised new car dealers of the make that is recalled. Franchised car dealers prioritize recalls for their inventory cars and for their customers’ cars. They are also dealing with long waiting lists of these cars awaiting the requisite parts. With the Takata airbag inflator recall, the wait time is about about a year because of the lack of availability of parts. Letting  a used car sit on a dealer's lot for a year is a cost that few dealers will be willing to incur unless the law expressly requires it!


Sadly, another reason safety recalls are not being disclosed to customers is fear of loss of profit. As it should, telling a customer that they are buying a used car with a potentially deadly defective airbag reduces the value of that vehicle - especially when the customer learns he or she must drive that car for a year before a safe airbag can be installed. 


Because disclosure negatively impacts the affected vehicles' values, car dealers are caught between a rock and a hard place. If they attempt to retail the cars to fully informed customers, they have to slash the selling price and if they sell them at the wholesale auction they have the same problem. Florida consumers will also be adversely affected, as car dealers will not be able to offer as much money for trade-ins under this recall since the dealer knows he or she can’t resell it for as much as they could with a safe airbag. 


This presents an entirely new and different problem…an economic liability question. Everyone agrees that Takata is largely responsible for the reduction in value of the 75,000,000 vehicles with dangerous airbags. However, Takata is on the verge escaping responsibility through bankruptcy and/or selling out. This leaves the auto manufacturers with, potentially, all of the liability. The only parties that clearly have no responsibility in this are the owners of these affected cars and the dealers who  either do not sell Takata airbag equipped vehicles at all or who properly disclose the defective airbags, the full extent of the danger they present, and the difficulty involved in correcting the defect when replacement parts are unavailable. Unfortunately, honest dealers and uninformed purchasers are the only two parties that currently bear all of the economic loss.


Adding to the urgency of this crisis is the fact that the failure rate of Takata airbags is higher in Florida than most other states because of our high humidity which increases the risk of the airbag accelerant, ammonium nitrate, exploding. Furthermore, many of the cars recalled are older models, dating back to 2004 that have been on the highways for many years, and age is also a contributing factor to risk. 


Rick, if you have any questions or comments about this letter, please call me on my personal cell phone, 561-358-1474. If you would like to meet with me, I will fly to Tallahassee on a moment's notice. 


Best, 




Earl