Open Letter to Honest Car Dealers Supporting FTC, Combating Auto Retail Scams (CARS)

Dear Honest Car Dealer,

I just got off the phone with Jamie Brooks, an attorney at the Federal Trade Commission. I called her for an update on the implementation of the FTC regulation, CARS (Combating Auto Retail Scams). As you know, this regulation was scheduled to go into effect on July 30. However, the National Auto Dealers Association (NADA) teamed up with the Texas Auto Dealers Association (TADA) to petition the Texas Federal Court to stop it. Consequently, the July 30th implementation date has been postponed.

I’m just one of many honest dealers who is supporting this regulation, according to FTC attorney Jamie Brooks. She plans to ask other honest dealers to contact me, and each other, so that we can network and assist the FTC in their fight to combat auto retail scams.

The argument against CARS made by NADA and TADA is that it will overly burden car dealers with regulations, harming their profits. They claim that all car dealers are adamantly opposed to CARS. In reality, we honest car dealers’ profits are being hurt by dishonest car dealers who routinely steal away our potential customers. They lure them in with bait-and-switch advertising of low-priced cars that they won’t sell at those prices. Our potential customers are tricked into paying hidden junk fees, dealer-installed accessories, and addendum stickers, resulting in thousands of dollars more than the advertised price.

Many honest dealers, like us, feel we have no choice but to “fight fire with fire” and reluctantly match our competition's bait-and-switch advertising and dishonest quotes of impossibly low prices. How can a car dealer sell a new or used car when his nearby competitor advertises the exact same car for $2,000 less than what he’ll actually sell it for?

If the hardcore dishonest car dealers could be stopped by the implementation of the CARS regulations, many honest dealers would breathe a sigh of relief. We could then treat our customers honestly and transparently while still making a fair profit.

Please call or text me at 561-358-1474, email me at earl@estoyota.com, or write to me at Earl Stewart Toyota of North Palm Beach, 1215 N. US-1, North Palm Beach, FL 33408. Please help me and the FTC bring honesty and transparency to the retailing of automobiles.

Sincerely,

Earl Stewart

Open Letter to Marco Rubio and Rick Scott: Do You Support or Oppose FTC Regulation Combat Auto Retail Scams?

Attention: Florida Senators Rubio and Scott:

I’m sure you’re familiar with the Federal Trade Commission’s new regulation, CARS which will hopefully be implemented soon. It was originally intended to go into effect this July 30th, but the National Auto Dealers Association (NADA) teamed up with the Texas Auto Dealers Association (TADA) to fight it in the Federal Court, which forced the FTC to postpone the July 30 implementation.

 
This letter is, in no way, an attempt to change your view of the CARS regulation. I understand that you have an opinion on this regulation which may be negative or positive. I’m not attempting to change your mind because I understand how unlikely that would be. What I do ask is that each of you GO ON THE RECORD as to whether you do or do not support this regulation.

 
Knowing how busy you must be, I’m offering to donate $1,000 to your favorite charity when you do state in writing that you are for or against the FTC CARS regulation. Because my favorite charity is Big Dog Ranch Rescue (www.BDRR.org), I’ll double the donation to $2,000 if you designate this charity.
I’m sure that Florida car buyers, and all American car buyers, are unanimous in their support of the FTC “Combat Auto Retail Scams” regulations. The proof of this is the annual Gallup poll on Honesty and Ethics in Professions which for over 50 years has ranked Car Dealers at the bottom.

 
I understand why politicians like yourselves might be reluctant to take a position on a subject which puts you between “a rock and a hard place”. The rock is the 14 million car buyers (many of whom are also voters) and the hard place is the National Auto Dealers Association, Texas Auto Dealers Association and all other state dealers associations, their Political Action Committees, and the wealthy 48,000 car dealers in the US.

 
Silence on such an important issue should not be an option and it’s certainly not something a U.S. Senator can do that fulfills his duties and responsibilities to the voters of his state.
Please email me at earl@estoyota.com or text or call me at 561 358-1474. The same day that you do so I will mail a $1,000 check to your favorite charity or $2,000 if it’s to Big Dog Ranch Rescue.

Sincerely,

Earl Stewart

 

Earl Stewart

 

 

 

Don't Buy the Worst New Car!

CR Scores Chrysler Pacifica Hybrid Lowest of All New Cars

When you think about buying a new car, you're considering purchasing the best you can afford. There are lots of good, even great, new cars today. The quality, safety, reliability, and cost of maintenance have all improved tremendously over the past few years. You almost can't go wrong when you buy a new car. Of course, getting a fair price is still a huge challenge, but that's fodder for another column.

As far as which make and model of new car you should buy, a lot depends on your individual needs and tastes. There are a lot more good cars to choose from today than ever before, but there are still a few bad ones that you can't learn about from advertisements or the car salesman.

Consumer Reports magazine or online is your best friend when it comes to spotlighting the new cars you should NOT BUY. CR (Consumer Reports) calculates the predicted reliability ratings for almost every new auto on the market. They measure twenty potential problem areas (including the engine, transmission, electric motors, leaks, and infotainment systems) and include responses on 330,000 vehicles. You may know that CR is a non-profit organization that derives all revenues from contributions and subscriptions. Their loyalty and responsibility are 100% to you, the consumer. When they test cars, they buy them directly from a dealership and pay full retail just like you.

The January issue of CR lists reliability reports on all nineteen types of new cars, like subcompact SUVs, electric cars, full-sized pickups, luxury mid-sized large cars, etc. For example, in the category of subcompact SUVs, the best is the Subaru Crosstrek with a score of 99, and the worst is the Volkswagen Taos with a score of 18. My point is, you needn't buy the Subaru because there are several other subcompact SUVs with good scores, like the Honda HR-V, Toyota Corolla Cross, and Mazda CX-30, which scored 85, 71, and 66, respectively. But don't even think about buying the VW Taos with its shockingly low score of 19!

Even if you get a much better price on a very low-rated new car, you're better off paying more for a highly rated make. This is because the total cost of ownership is undoubtedly higher for the less reliable vehicle. The higher costs of repair, maintenance, depreciation, and insurance will more than erase the savings you might find in the purchase price.

DEMAND Your Congressperson Makes Known Their Support for CARS

This year, July 30, 2024, CARS, the historic regulation of car dealers will automatically go into effect…unless the U.S. Congress sells out to Big Auto—the National Automobile Dealers Association, the 70,000+ car dealers in the USA, and the auto manufacturers.

Already, at least two bills exist that would block the FTC from enforcing the new CARS rule. One is the “Expensive and Detrimental Overregulation Act” and the second is the “Congressional Review Act.” If your congresspeople sell out to Big Auto and pass either one of those bills, it will kill the FTC regulations which would have protected you and all car buyers from car dealers’ scams and dishonesty.

Our democracy is the greatest government on Earth, but the Achilles' heel of a democracy is voter apathy. The National Automobile Dealers Association (NADA), 70,000 car dealers, and most auto manufacturers control hundreds of millions of dollars in lobbying efforts and political contributions that can kill these FTC rules if we are apathetic and remain silent.

Go online and learn the names and contact information of your U.S. Senators and Representatives. INSIST THAT YOUR CONGRESSPERSONS GO ON THE RECORD SUPPORTING (OR NOT) THE FTC REGULATIONS C.A.R.S., COMBATING AUTO RETAIL SCAMS to automatically pass into law on July 30, 2024. Do not stand still for their “ignore tactic.” When you put politicians “between a rock and a hard place,” they have 3 choices: support your request, come out against your request, or pretend like they didn’t hear you. Take away option 3 and insist that they go on the record, for or against, the FTC C.A.R.S. regulations.

If they go on the record supporting C.A.R.S., they’ll lose the financial support of Big Auto, which might cost them being reelected. If they go on record against C.A.R.S., they’ll lose your vote (and the votes of all car buyers), which will cost them being reelected. Take away option 3, which is to ignore you, and let them know that you view their silence as the same thing as being against C.A.R.S.