Sign the Petition!

Monday, January 16, 2017

Comments to the Federal Trade Commission

Regarding CarMax Selling Killer Cars



Below are my comments to pending litigation against CarMax, the largest seller of used cars in the USA. The litigation is being spearheaded by Rosemary Shahan, the president of CARS, Consumers for Auto Reliability and Safety. They are the largest car consumer advocate organization in the USA. CARS is the reason we have a “lemon law” in Florida and all 50 states. Shockingly, the Federal Trade Commission has ruled that CarMax and all used car retailers can advertise their cars as “Certified” and claim that they have passed a rigorous safety check, even though that car has a dangerous, potentially lethal recall. CARS and other consumer advocate organizations are suing the FTC to force them to change this terribly wrong ruling.


Attention: Federal Trade Commission

Subject: In the Matter of CarMax, Inc., File No. 142 3202 – Consent Agreement


I've been a car dealer since 1968 and am currently the CEO of Earl Stewart Toyota of North Palm Beach.

Virtually all of the other car dealers in my market (SE Florida between Orlando and Ft. Lauderdale) are actively selling used cars with dangerous recalls. Most of these are Takata airbag recalls. These cars are being aggressively advertised and sold, many of which have NO FIX AVAILABLE (the Takata airbag inflator is unavailable). I have taken the position of not retailing these cars because of my concern for the safety of my customers. When I trade-in one of these affected cars, I don't retail it unless I can replace the airbag inflator. If no airbag inflator is available, I store the car and wait for the time when it can be repaired and made safe.

This puts me at a severe competitive disadvantage to the other car dealers in my market. I must accept these used cars in trade on new or used cars because, if I don't, it will cost me a sale. I am unable to retail the used cars with defective airbags which makes it impossible for me to retail many high demand used cars (Honda is one of the most affected brands). Furthermore, I'm incurring the large depreciation expense of the stored, affected used cars that I cannot retail. I am wholesaling cars with only the passenger side airbag defective.

I have filed a lawsuit against one car dealer in my market under the Florida Deceptive and Unfair Trade Practices Act and will be filing similar lawsuits against more dealers.

I have mystery shopped over 100 car dealers in my market and learned that virtually all of them are selling these cars. Many of them do not even disclose the existence of the recall. Some even overtly deny the existence of the recall. Some tell the customers that there is a recall, but they can take it the dealer to have it fixed, when there is no fix available. The very few dealers that will not sell these cars (less than 5% of the dealers) advertise the cars for sale and use them as a bait and switch to sell the customer another car without the recall. I have shopped CarMax 3 times and they do not disclose the airbag recall unless asked. They advertise their cars as being safe because they have gone through their "rigorous" inspection process.

Very few used car buyers are aware of the severity of the Takata airbag problem. The media has downplayed this issue because of the importance of dealer advertising. The manufacturers are not speaking out because they fear the economic impact from litigation if it is made illegal to retail these cars. The NADA has taken the same position of negative economic impact on their dealers. I find it outrageous that "economic impact" can take precedent over human life.

I see this lack of awareness with my used car customers. They rarely ask about recalls when them buy used cars from me and I sell about 180 used cars monthly. Because of this lack of awareness, the other car dealers in my market are finding very easy to retail these cars. They are not only allowed to freely retail these cars but are under no obligation to disclose the recalls.

The car manufacturers, the dealers, the dealer associations, the legislators, and the regulators are all grossly negligent in not taking responsibility and action against this terribly dangerous threat to used car buyers. The danger is even greater than the current situation suggests. We know statistically that most recalled cars are NEVER REPAIRED...the older the car, the less likelihood of its being repaired. With the Takata airbag inflator, the older the car gets the greater the danger of a failure. Also, who knows how many deaths from the shrapnel of Takata airbags have actually


Until we can get a law passed making it illegal to sell killer cars with dangerous recalls, it’s BUYER BEWARE. Before you buy any used car, check the VIN with NHTSA and the car’s manufacturer, www.IsMyCarRecalled.com. You can also help make this illegal by signing my petition, www.AirbagRecallPetition.com.

Monday, December 12, 2016

How Much Is That Auto in the Window?

The title to this article and the illustration above was taken from an article in the Wall Street Journal. Please don’t accuse me of plagiarizing because I’m giving credit to the Wall Street Journal and the reporter, Charles Passy who wrote the article. You can read the article by clicking on www.HowMuchIsThatAutoInTheWindow.com 
The Wall Street Journal reporter interviewed the article. I sent him copies of invoices, buyer’s orders, dealer addendum labels, and names of people I knew around the US who were experts on unfair and deceptive advertising by car dealers. It was important to me because having what I’ve fought against for so many years written about by a national publication adds credibility. Not only does the Wall Street Journal have the largest circulation of any newspaper in America, but it’s also arguably the most respected daily publication. 
One might ask, why don’t local newspapers write stories about car dealers’ unfair and deceptive sales and advertising? The answer, like so many, is “follow the money”. Every local newspaper has an auto advertising section with most of, if not all of the dealers in that market. Newspapers seem to be the advertising choice of many dealers, although TV and online have definitely cut into their revenue in large metro markets. TV ads are so expensive that most dealers have no choice but to use the newspaper and online. Car dealers are the single largest source of ad revenue in many newspaper markets. 
Now I know that journalistic ethics require a separation between the news, editorial, and advertising departments. But that’s the way it used to be. Today local newspapers and even some national ones are struggling for survival. Ethics go out the window when it comes to survival. Would you steal food for your child if you believed you had no other recourse?
Another reason that I’m encouraged by this Wall Street Journal article is that every auto manufacturing executive reads this newspaper every day, especially articles about automobiles. Also, most car dealers also read the Wall Street Journal. Reading a negative report about deceptive car dealer sales practices in a highly respected national newspaper has got to get their attention. Many manufacturers and most car dealers seem to be in denial about how they endeavor to trick their customers with misleading, false ads and sales practices.
I have to believe the auto industry will awaken one day and realize that almost all other retailers in the 21st century have left car dealers in the dust. Most car dealers are still employing the “get ‘em in the door any way you can and make as big a profit as you can get away with” shabby tactics that were common practice fifty years ago. Most manufacturers and some dealers are beginning to realize that car dealers are held in the lowest esteem of any other retailer. Car sales and service complaints top the list and car dealers rank dead last or close to it in the annual Gallup poll, HONESTY AND ETHICS IN PROFESSIONS, along with Congressmen, lobbyists, and lawyers. 
I tell manufacturers and my fellow dealers that if we don’t regulate ourselves, you can bet the government will step in and do it for us. Federal Trade Commission is conducting hearings all around America asking for input about unfair and deceptive trade practices by car dealers. If the government steps in like they did with our nation’s banks, car dealers and manufacturers can expect to be up to their eyeballs in expensive regulations, red tape, and bureaucracy.

Monday, December 05, 2016

Car Dealer Victim Profiles

I receive a lot of emails, calls, and letters every week from victims of car dealers who were taken advantage of in buying, leasing, and servicing their cars. They mostly call to ask what they can do to get all or some of their money back. These “victims” fall into different categories:
  1. The elderly, often widows.
  2. The very young, usually buying their first car. 
  3. Those who don’t speak or understand English well, not born in this country. 
  4. The uneducated.
  5. People with bad credit. 
  6. Everybody else
1. The elderly, especially widows, are the most victimized. The reasons for this are that Florida, especially South Florida, is a “retirement” state. Baby boomers and pre-baby boomers make up a disproportionately large percentage of Florida’s population. Not only that, but life expectancies have soared in recent years…81 for a woman and 76 for a man. Men usually predecease their wives. Women’s role in the American culture is a great deal different than in the 1930’s and 1940’s. More often than not, the husband was not only the breadwinner, but the decision maker in the household. Widows of that era are often buying or leasing their first car today. Men and women in their seventies, eighties, and nineties (Yes, I have a lot of customers in their nineties) aren’t as sharp as they once were. I’m 76 and I’ll be the first to admit this. In my opinion, men and women of my age, and older, are more trusting. We can’t forget the terrible disease, Alzheimer’s. Unless a court declares a person incompetent, a person with dementia can legally buy a car in Florida, and it happens all too often. This is one of the most despicable acts that some car dealers commit.

2.  What chance does a teenager or kid in his twenties have when negotiating with a car salesman and his manager to buy a car? Usually it’s the parents who call me to tell me how their son or daughter was taken advantage of. I don’t tell them this, but what I’m thinking is “Why didn’t they accompany them to the car dealership to advise them?”

3.  South Florida is not only a retirement area, but it’s a haven for immigrants from Cuba, Haiti, and South and Central America. Many of these are first generation Americans who have a difficult time with English or can’t speak, read, or write English at all. These people are easy prey for unscrupulous car dealers. Can you imagine how difficult it would be for you to get a fair price on a car you were buying in a foreign country where you did not speak or understand the language?

4.  Let’s face it; there are too many Americans who never had the benefit of a proper education. We have too many high school dropouts and too many high school graduates who still can’t read or write as well as they must to function in our society. Lack of a good education is one of America’s most serious problems and we’re seeing other countries like China, Japan, Germany and India pass us by in educating their children. It’s almost criminal how the educated are exploited by car dealers’ advertising and sales tactics. How many car dealers’ TV advertisements have you seen that you laugh at, knowing that they are totally untrue, “bait and switch” to lure you into the dealership. You wonder who would believe that kind of nonsense. The reason that car dealers keep running those ads is because they work.

5.  There are always people with bad, marginal or no credit who have to buy a car. In Florida, without an effective mass transit system, a car is virtually a necessity to get to your job or find a job, not to mention the doctor, school, or the pharmacy. People with bad credit are at the mercy of the car dealer. The main thing on these peoples’ minds is NOT how good a price or a car can I buy or how low an interest rate, but can they be financed? Knowing this, car dealers will charge whatever price and interest rate the lender will let them get away with. People with bad credit almost always pay dealers a higher profit than those with good credit.

6.  Who should be held responsible for car dealers ripping off customers? For categories one through five, the answer is our regulators and our lawmakers. But for the last category, “Everybody else”, it’s themselves. Of course, it goes without saying that the car dealers who do this are responsible too. But who doesn’t know that most car dealers do business this way? Who doesn’t know that car dealers perennially rank LAST on the annual Gallup “Honesty and Ethics in Professions” poll? I recently received an email from a woman who fell in none of the first 5 categories above. She was terribly victimized by a very unethical car dealer from whom she bought two used cars on the same night. Her email asked me for advice on what she should do. Of course the “horse was out of the barn” and this makes things more difficult. This woman did not ask for or receive a CarFax report on either used car. Nor did she take either car to her mechanic for approval. She clearly didn’t investigate the dealer for reputation. She didn’t check any sources like Consumer Reports for recommended used cars. She did not shop and compare prices for similar cars and the list of “did not’s” goes on. If you don’t do your due diligence when you buy a car you are equally culpable with the car dealer who took advantage of you.

At this point, I will shamelessly plug my book, Confessions of a Recovering Car Dealer. I say “shamelessly” because 100% of the proceeds from my book go to charity, www.BigDogRanchRescue.com. You can buy this book at www.Amazon.com. It will tell you everything you need to know about how not to be ripped off by a car dealer. Or, you can read my blog articles at www.EarlOnCars.com.

Monday, November 28, 2016

Don't Fall for Nitrogen

I’ve been writing articles on why nitrogen in your tires is a waste of money for several years, but It has had very little effect on the number of car dealers that are selling it to their customers. The “Nitrogen Lobby” must be very powerful because we still have no federal or state legislation to curtail this. Selling nitrogen generation equipment and tanks of nitrogen to car dealers is very lucrative and, even more lucrative is the money car dealers make selling nitrogen to their customers. One large volume car dealer charges $398 for nitrogen in the tires of every vehicle he sells. The cost of nitrogen is about “25 cents” per application. If you feel you absolutely must have nitrogen in your tires, Costco will give it to you “free” which is exactly what nitrogen in your tires is worth. 

I don’t recommend that you even accept free nitrogen for this reason. It’s widely accepted and recommended that you should have your tire pressure checked in your tires at least monthly. We do this free for our customers and automatically do it at every service visit. When you are sold or even given nitrogen, it comes with a sales pitch that nitrogen will remain in your tires for a much longer time than air which is not true. Click on this link to Consumer Reports article,www.NitrogenInTiresWastesYourMoney.comIf you believe the sales pitch, you’re less likely to check your tires inflation every 30 days. You may have a slow leak in one tire from a nail or screw, uneven wear from misalignment, or even a defective tire. Being “over confident” because you paid money for nitrogen may cause these problems to go undetected. Consumer Reports estimates that 1 lb of nitrogen will escape from your tires every 3 months vs. 1 month for air. Remember that air is 78% nitrogen. I’ll bet the salesman that sells you nitrogen “forgot” to tell you that.
Be prepared for a great sales pitch on nitrogen. You’ll be told that NASCAR uses nitrogen in the tires of their race cars, NASA used nitrogen in the tires of their space shuttle, and that airlines uses nitrogen in airplane tires. All of this is true, but so what? A race car going 200 mph for hours and hours around an oval track subjects its tires to extremely high temperatures. 100% nitrogen gas does expand less under extreme heat condition than 78% nitrogen gas (air). The space shuttle tires go from zero atmospheric pressure in outer space to regular pressure at sea level. Airliners also have extreme pressure variations from 30,000 feet to the ground.
To be perfectly fair, I must say that some car dealers that are selling nitrogen have “drunk the Kool Ade” from the nitrogen generation equipment industry. Some car dealers actually believe that nitrogen is good for your tires. But those who do know must know how much they’re marking up that 25 centsworth of nitrogen they’re selling you! The argument for nitrogen can be persuasive. In fact, when the concept was first introduced, before the Consumer Reports study, I actually considered adding nitrogen to my customers’ tires. But, in an abundance of caution, I decided to test the claims about nitrogen myself. Over a six month period I used pure nitrogen in 50% of my rental car fleet and regular air (78% nitrogen) in the other half. Guess what! There was no measurable difference between the pure nitrogen and air filled tires in the fuel economy, tire wear, or inflation pressure after 6 months. We did check the tires every 30 days for slow leaks from road hazards, uneven wear from misalignment or other reasons, and we rotated and balanced the tires every 5,000 miles.
Finally, I’ll tell you why I was so careful to be sure there was no advantage to nitrogen. My dealership has a “fee tire program”. Everybody who buys a Toyota from me, new or used, receives free tires (maximum of $700 per set) for as long as they own their car. The one requirement is that they bring their car back to me for the factory recommended service and we replace only tires from normal wear, not road hazards, underinflating or misalignment. I give away over $100,000 worth of tires every month, well over a million dollars per year. BELIEVE ME, if I thought I could get longer wear from a tire for “25 cents” worth of nitrogen, I would! I look at the tires on my customers’ cars as “belonging to me” because I incur the cost of replacing them when they wear out.

Monday, November 21, 2016

Red Flags to Watch for When Buying a Car

The “Big Sale Event”

If you look online or in today’s newspaper, you will find that most car dealers in your area are having a sale of some kind. It may be because of a current holiday, “too large an inventory” of cars, to “reduce their taxes”, “the manager is out of town”, or some other nefarious lure. Advertising 101 says that you should give the prospective buyer a “motive to act”. Unfortunately, it doesn’t matter whether the motive is real or not. The fact is that most car dealers do not sell their cars for less during “sales events” than they do at any other time. I point this out so that you don’t rush your buying decision. If you don’t buy a car during the tight time constraints of a phony sales event, you can negotiate just as good a price the next day. The exceptions to this are legitimate rebates offered by the manufacturer. These often expire at the end of the month which is one reason why the “last day of the month” really can be the best time to buy a car”.

“The price I’m giving you is only good for today”

If a salesman or sales manager tells you that, it is probably only a tactic to push you into buying the car. The only exception would be the expiration of a factory rebate. Once again, this is simply a tactic to push you into buying before you have a chance to do your comparative price shopping.

“Take the car home tonight and see how you like it”


Driving the car you are considering buying home can be a good thing. It will give you a lot better idea about how the car performs, etc. However, there are two reasons the car salesman offers this. One is that you must leave the vehicle you might be trading in with the car dealer. This means that you cannot shop the trade-in price with other dealers. The second reason is the psychological impact of parking that new car in your driveway where your family and neighbors can see it. The slang expression for this is “the puppy dog”. If you were to take home a little puppy from the pet store, you and your children would fall in love with her and could not return her the next day.

“You must give me a deposit before I can give you a price”


This has to be one of the most insulting ways that some car salesmen have of intimidating a prospective buyer. It’s amazing how many people actually succumb to this which allows the salesman an element of control…. you can’t leave until they give you your money back. If confronted with this ultimatum, simply walk away.

“Are you ready to buy a car today”?

Often times, if you say no to this question, the salesman will tell you to come back when you are ready to buy. He will tell you to shop around and come back with your best price so that he can beat it. The salesman is afraid that, if he does give you his best price, you will go somewhere else and that salesman will beat it. Of course, that is the whole idea of competition and that is exactly what you want to do. If the salesman is afraid to give you a price because his competitor will beat it, it must not be the best price!

“Make me an offer and I will take it to my manager for approval”

This is a very common tactic which you have probably already encountered. It is not unethical. It is simply part of negotiating. I point this out so that you are fully aware that this is part of the negotiating game. Be aware, that no matter what price you offer, the manager will ask you for more money. Even if you offered a high price that would be a very large profit for the dealer, the manager would ask you for more money. The psychology behind this is that if you suddenly accepted the offer, you may frighten the customer by thinking he had offered too much (which he would have). When you negotiate, you must be well versed on what is a good price for that car. Start out below the best price you think you can buy it for. If you cannot negotiate a price close to your best price, get up and leave. Continue this process with another car dealer.

The “really big” discount”
The other day a friend showed me direct mail advertising piece from a new car dealer with a coupon good for $2,000 discount on any car in his inventory. This is very common for newspaper and TV ads too. Federal law requires new cars to have a price sticker on the window named the Monroney label. A discount from this suggested retail price gives you a fair basis for comparison. Unfortunately, most car dealers today, increase the suggested retail price substantially with the use of an addendum to the Monroney sticker often referred to as a “Market Adjustment Addendum”. This “adjustment” can be several thousands of dollars. Be sure you know what the asking price is for the car when you have been offered a “big discount”.

The best protection from all of the above is to find a car dealer that you can trust. Ask your friends about their experiences with dealers and call the Better Business Bureau and the County Office of Consumer Affairs. All things being equal choose the dealership that has been in business a long time and an owner or general manager who will make himself accessible to you and all of his customers.

Monday, November 14, 2016

Open Letter to Florida Car Dealers

SUBJECT: ELIMINATE THE DEALER FEE

Dear fellow Florida car dealer,

I started in the retail auto business in 1968, about almost 49 years ago, and I have seen a lot of changes in the way we dealers sell cars and the expectations of our customers. My remarks in this column are made sincerely and with a positive intent toward you and your customers. I am not trying to tell you how to run your business; I am suggesting a change that will reward both you and your customers.

Virtually every car dealer in Florida adds a charge to the price of the cars he sells, variously referred to as a “dealer fee”, “documentary fee”, “dealer prep fee”, electronic filing fee, tag agency fee, etc. This extra charge is printed on your buyer’s orders and programmed into your computers. It has been regulated in most states including California. You charge this fee to every customer and it ranges from a few hundred dollars to several thousand. You often charge several dealer fees by different names. Florida law requires that you disclose in writing on the buyer’s order that 
THIS CHARGE REPRESENTS PROFIT TO THE DEALER. Florida law also requires that you include this fee in all advertised prices. You don’t always do this and you get around the law by limiting the number of advertised vehicles (as few as one).

The argument that I hear from most car dealers when I raise this issue is that the dealer fee is fully disclosed to the buyer on his buyer’s order. But, most car buyers are totally unaware that they are paying this. Who reads all of the voluminous paperwork associated with buying a car? The few who notice it assume it is an “official” fee like state sales tax or license and registration fee. Those few astute buyers who do question the fee are told that your dealership must charge this fee on very car. This simply not true. These astute buyers are also told that all other car dealers charge similar fees. This is almost true, but, as you know, my dealership does not.

The reason you charge this fee is simply to increase the price of the car and your profit in such a manner that it is not noticed by your customer. This is just plain wrong. Dealers will admit this to me in private conversations and some will admit that they have considered eliminating the fee as I have, but are afraid of the drastic effect to their bottom line. By being able to count on an extra $899 in profit that the customer is not aware of or believes is an “official fee”, you can actually quote a price below cost and end up making a profit. Or, if the price you quote the customer does pay you a nice profit, you can increase that by several hundred dollars.

This “extra, unseen” profit is even better for you because you don’t pay your salesmen a commission on it. That’s being unfair to your employees as well as your customers. When the rare, astute buyer objects to the dealer fee, the law permits you to decrease the quoted price of the car by the amount of the dealer fee. This would have the same net effect of removing it. The salesman won’t permit this because he will lose his commission (typically 25%) on the decrease in his commissionable gross profit.

If you don’t know me, I should tell you that I don’t profess to be some “holier than thou” car dealer who was always perfect. Although, I never did anything illegal, when I look at some of my advertising and sales tactics 20+ years ago and more, I am not always proud. But, I have evolved as my customers have evolved. My customers’ expectations, level of education, and sophistication are much higher today. Your customers are no different. As I began treating my customers, and employees, better I discovered that they began treating me better. Yes, I used to charge a dealer fee ($495), and when I stopped charging it many years ago, it was scary. But I did it because I could no longer, in good conscious, mislead my customers. Just because everybody else was doing the same thing did not make it right.

Now here is the good news. My profit per car did drop by about the amount of the dealer fee when I stopped charging it. But, when my customers realized that I was now giving them a fair shake and quoting the complete out-the-door price with no “surprises” the word spread. My volume began to rise rapidly. Sure, I was making a few hundred dollars less per car, but I was selling a lot more cars! I was, and am, selling a lot of your former customers. My bottom line is far better than it was when I was charging a dealer fee. You can do the same!

Why am I writing this letter? I’m not going to tell you that I think of myself as the new Marshall that has come to “clean up Dodge”. In fact, I am well aware that this letter is to some extent self-serving. Lots of people will read this letter to you and learn why they should buy a car from me, not you. And, I am also aware that most dealers who read this will either get angry and ignore it or not have the courage to follow my lead. But maybe you will be the exception. If you have any interest in following my lead, call me anytime. My personal cell phone number is 561 358-1474. I don’t have a secretary and I don’t screen any of my phone calls. I would love to chat with you about this.

Sincerely, 

Earl Stewart

Monday, November 07, 2016

Quick Reference Guide to Fine Print in Car Ads



If you look down at the bottom of virtually every car advertisement online, TV, or newspaper, you will see some fine print. Most often,  you literally cannot read the print because it is so small and, on TV, displayed for 1 or 2 seconds. The disclaimers you read below were taken from a South Florida newspaper. I didn’t make any of these up. Basically what these disclaimers do is to totally negate the validity of all of the prices and payments the car dealers are advertising. The prices and payments are always much higher when you factor in the almost invisible fine print.

Combining a very short lease term with a high down payment. Nothing sells cars like low monthly payments. A car dealer can make a monthly lease payment as low as he wants by decreasing the number of months of the lease and increasing the down payment. I’m looking at an ad in the newspaper right now advertising an SUV for $19,999 or just $199 per month. In the fine print it says 27-month lease and $3,000 down plus a $799 dealer fee.


"Plus dealer installed options" The price you see advertised is not the full price. This loophole allows the dealer to tack on thousands of dollars in overpriced accessories to the price that was advertised. Dealers often charge well over one thousand dollars for floor mats, paint sealant, pin stripes, nitrogen in tires, emergency road service, and flimsy plastic door edge guards.


"Advertised offer good on select in-stock vehicles only" Dealers often advertise just one car at a price below their cost. They don’t pay the salesman a commission if he sells that vehicle. The chances of that car being available for you to buy are “slim and none”. Even if the car was still there, the salesman would do everything in his power to sell you a different car that he could earn a commission on.


"Impossible Rebates to Qualify for".  “Owner Loyalty”. Manufacturers offer special cash rebates to current owners of their make of car. These rebates are not available to you if you don’t currently own that particular make of car. Other exclusionary rebates are “College Graduate rebates” and “Military rebates”. These are great for recent college graduates and service men and women, but do not apply to the majority of consumers. It is also very common to see dealers combine all three:  loyalty, college graduate and military rebates, making it virtually impossible for any consumer to take advantage of.


"Price …plus, tax, tag, and fees". The red flag word here is “fees”. The fees these dealers refer to are “dealer fees” which are synonymous for DEALER PROFIT. Most people believe they are federal or state taxes of some kind. They are  nothing more than more money for the dealer that is not disclosed in the advertised and quoted  price of the car. These “fees” go by many different names…electronic filing fee, tag agency fee, doc fee, notary fee, dealer service fee, administrative fee, etc. The only legitimate fees that can be added to the advertised price are GOVERNMENT FEES…fees paid to the state for sales tax and license registration.


"Offers expire date of publication or may be cancelled at any time without notice". This simply means that the prices, payments, etc. you have read have no validity whatsoever. The prices are not good tomorrow, but they aren’t even any good today because the dealer can cancel the offer without notice.


"Not responsible for typographical errors". This is just one more way for a dealer to explain why they can’t sell you the car for the advertised price…We don’t have to honor that price because it was a “typographical error”.


"Vehicle Art for illustrations only". This means that that car you are looking at with the really great looking wheels might not have those wheels on the one you buy. Or, maybe it doesn’t even have those alloy wheels you see in the picture.


"Minimum Trade Based on Dealer List Price". The DEALER list price is not the same thing as the MANUFACTURER’S suggested price. Dealers add markups to the Monroney label also known as MSRP or manufacturer’s suggested retail price. They label this markup (often on a sticker designed to imitate the official federal Monroney label). Dealer markups of $3,000 and much more are common on such “counterfeit Monroney” labels. The dealer can mark up the price on the Monroney label by $10,000 enabling him to allow you an extra $10,000 for your trade in and still sell you the car for no discount from sticker price.


“$4,000 Trade Equity Required” This is another deceptive way to advertise a super low car payment. How many of us have $4,000 in equity in our trades? Certainly not the majority of consumers!

My advice to you is to ignore all car dealers’ newspaper advertising. Most car ads are designed to “get you in the door” so that they can sell you some other car than the one advertised so that they can make more money. If you must respond to a dealer’s advertisement, be sure you break out your magnifying glass and carefully read the fine print.

My advice
to you is to ignore all car dealers’ newspaper advertising. Most car ads are designed to “get you in the door” so that they can sell you some other car than the one advertised so that they can make more money. If you must respond to a dealer’s advertisement, be sure you break out your magnifying glass and carefully read the fine print. My advice to you is to ignore all car dealers’ newspaper advertising. Most car ads are designed to “get you in the door” so that they can sell you some other car than the one advertised so that they can make more money. If you must respond to a dealer’s advertisement, be sure you break out your magnifying glass and carefully read the fine print.