ANSWERS TO TOP 10 DEVIOUS STATEMENTS MADE BY CAR SALESMEN

(1) “I’ll give you the price only if you’ll commit to buy today.”

Your answer: I’ll ask you once more for your best price. There are 3 car dealerships that sell this same make within a half-hour drive of here. If I don’t get your best price right now, I’ll walk out of your showroom and you’ll never see me again.

(2) “I’m sorry, but we just sold that car we advertised, but we have others just like it”.

Your answer: I know that Florida law now allows you to add your $899 dealer fee to the advertised price, because, technically, I’m not buying the advertised car. I also know that you can now legally add “dealer installed options” to the low ad price. However, if you do not sell me the car I came in to buy for the advertised price, I will walk out that door and you will never see me again.

(3) “This price is good for today only”.

Your answer: I don’t believe you and I won’t make my decision to buy today. I want to shop and compare your price with your competition and, if yours is the best price, I will call you to see if I can buy it for that price. If you tell me that I can’t, I’ll buy it from your competitor.

(4) “This price is so low that I’m willing to guarantee it or pay you $1,000 [or some other amount] if you can find a better one”.

Your answer: First of all, no retailer can always have the lowest prices. If they did, they could not make a profit and remain in business. I’ll bet you can’t give me the name of just one customer that you paid your $1,000 guarantee to. I also know that you ‘reserve the right to buy the exact car from the dealer that I say has the lower price.’ What makes you think that I would believe your competitor would sell you that car so that you could steal his customer?” You must think I’m really stupid and I don’t want to buy a car from somebody who thinks his customers are stupid.

(5) “I can give you this price only if you take a car from my present inventory. If I have to order a car or dealer-trade a car, the price will be higher.”

Your answer: My car is very important to me. I want the exact color and accessories that will satisfy me and not a compromise. I will buy the car from you only if you agree to get me the exact car I want at the price you just quoted me. If not, I’ll bet that your competitor will.

(6) “I can’t give you this price in writing unless you will give me a deposit”.

Your answer: I know that Florida law allows you to keep my deposit if I change my mind about buying. I also know that you do not want to commit to a price in writing because I might show your price to your competitor who may beat it. That’s the risk you have to take if you want my business. If you do, you have a chance at my buying a car from you. If you don’t, you have no chance because you will never see me again.

(7) “What will you pay for this car today? Or, make me an offer on this car and I’ll take it to my manager for approval”.

Your answer: This is not a game that we’re playing. I’m about to make the 2nd largest purchase of my life. If I was shopping for a TV set and the salesman said that to me, I would walk out without another word and buy from his competitor. And that’s exactly what I’m about to do to you unless you give me your best price in writing.

(8) “We cannot quote you a price over the phone”.

Your answer: It makes no sense to me that I should have to drive 10 miles and back to your dealership just so that you can tell me the price of the car I want to buy. I can get prices on the Internet so why can’t I get them on the telephone? I think the reason you want me to drive to your dealership is so that you can pressure me into buying today without competitive shopping. If you won’t give me your best price right this minute, you will never hear from me again because I will buy from your competitor.

(9) “I’m sorry but the owner isn’t available right now and we are not allowed to give out his cell phone number”.

Your answer: If the owner of this dealership is too busy to speak to his customers than I’m too busy to buy my next car from him.

(10) “The reason that this $749 item labeled dealer fee [or doc fee, dealer prep, handling fee, admin fee, pre-delivery fee, etc] was not included in the price that I quoted you is because it is ‘to cover our costs of inspecting, cleaning, and adjusting vehicles and preparing documents for sale’.”

Your answer: The price quoted to a customer for any product should include all of the costs of the seller. Furthermore, I know that the manufacturers of all cars reimburse their dealers for “inspecting, cleaning, and adjusting vehicles”. I also know that now you’re going to tell me that you must charge me your dealer fee because you charge all customers this same fee. But, I also know that you can deduct the amount of your fee from the price you quoted me and leave the dealer fee on the buyers’ order which will have the same net effect of removing it. If you do not agree, I will walk out of your dealership and never return.

A Conversation with Bob Woodward about Integrity in the Media

Seven other Toyota dealers and I spent several hours with the renowned Washington Post reporter, Bob Woodward, on Sunday, April 18th. We met at the Newseum in Washington D.C. and then had lunch together at the Capital Grille next door. This once in a lifetime experience was my reward for being one the top Toyota dealers in the USA, measured by both sales and customer satisfaction. In addition to this experience, we spent 4 ½ days in Washington D.C. seeing the sights, luxuriating at the Four Season’s Hotel, and eating at other great restaurants.

Just in case you’re too young to remember Watergate, Bob Woodward and another young reporter at the Washington Post, Carl Bernstein, were the reporters that broke the most important political story of the 20th century which led to the resignation of President Richard Nixon. Bob Woodward has written several books, won the Pulitzer prize, and is generally regarded as the #1 investigative reporter and political author in the world.

Now what on Earth can my conversations with Bob Woodward have to do with car dealerships? I’m glad you asked! As you know, I have been on a crusade for many years to make the dealer fee illegal in Florida. In addition to the dealer fee issue, I write this column, a blog [www.EarlStewartOnCars.com], and host a weekly radio show [Seaview AM 960] campaigning for truth, ethics, and legality in advertising and selling cars. The main reason my message is so slow to reach the public is the refusal or reluctance of the great majority of the media to report the story.

Why won’t many newspapers and radio and TV stations report rampant unfair and deceptive trade practices by many car dealers in Florida? It’s the economy, stupid! Car dealers are responsible for about 20% of total retail sales. As a group, they are often the largest single buyer of advertising in the media. When the media runs a negative news or editorial piece about car dealers, they risk losing that advertising revenue. Newspapers are going out of business daily. Many of our largest newspapers, the NY Times for example, are teetering on bankruptcy and local newspapers are even more severely affected.

During my lunch with Bob Woodward, he asked each of us what we considered the single most important threat to the United States and the world. My answer was “radicals inciting terrorism and the threat of a new world order”. Another Toyota dealer was afraid of “hyperinflation brought on by this Administration’s out of control spending”. After hearing all of our greatest fears, Bob Woodward told us his greatest fear affecting the USA and the world. He fears that the media is failing to fulfill its vital role to report all of the news fearlessly, completely, honestly, and ethically. We Americans take a lot of things for granted and I’m afraid that a free, open, and honest media keeping our government and corporations honest is one of them. Most of the world doesn’t have a free press and it’s no coincidence that those parts of the world without it also don’t have freedom.

Newspapers like the Hometown News and radio stations like Seaview AM 960 should be admired and respected for having the journalistic ethics and courage to allow me to express my opinions about unfair and deceptive trade practices in the retail car business. My local newspaper, the Palm Beach Post, is not so inclined. For fear of losing the advertising business of local car dealers, they refuse to run any news or op ed article with my name in it. This is not just my “opinion”. PB Post reporters have said “off the record” that they cannot get permission from their editors to do stories about my company or me. I know one former PB Post reporter who quit his job for this very reason. When I finally realized that the PB Post had put a “black out” on any news about me or my company, I met personally with the former publisher, Doug Franklin, and he confirmed that he could not risk losing car dealer advertisers by reporting my views or even running positive news articles about me. I do have to give him credit for being candid about this. He equates the financial survival of the PB Post with maintaining sufficient advertising revenue. Survival is our strongest instinct. It’s a very rare person or company that will put ethics ahead of survival. Would you?
So there you have it. What do you think is the greatest threat to the USA and the rest of the world? I’m inclined to agree with Bob Woodward. Who is going to keep our politicians, Wall Street, corporations [including car dealers] honest and ethical if they know that nobody will ever learn about their shenanigans in the media?

*Ed Morse Sues Earl Stewart for Defamation!

Those of you who read either my blog [www.EarlStewart.com], my column in Hometown News, or listen to my radio show [Stream it Saturdays, 9-10 am at www.SeaviewAM960.com] know that I’m rarely at a loss for words! But when I got the letter from Ed Morse’s lawyers a few days ago, telling me that Ed Morse is suing me personally for defamation, I was temporarily speechless. However, words and phrases soon begin to float through my mind… like” unmitigated gall”, “chutzpah”, “You can’t make this stuff up”, “stranger than fiction” and “Fools Rush in”.

As I write this column I haven’t been served with the lawsuit but the letter from Ed’s lawyer said that the lawsuit will be based on two of my articles that appear in this blog. One is “Ed you went to far this time” and the second is “What my lawsuit against Ed Morse Honda means to you”. If you haven’t already read these, please do. It will give you a better understanding and appreciation of this article.

For those new readers, let me briefly recap the events that brought us to this point. Around mid 2008, Ed Morse Honda ran a radio commercial accusing me of deceiving my customers because I “concealed a dealer fee” in the price of my car. Now, if you don’t already know, I do not charge a dealer fee. In fact, I’m one of the very few dealers in Florida that doesn’t. Ed Morse Honda does charge a dealer fee and the amount is $699. A dealer fee is just profit to the dealer that is not included in the price quoted to their customer. Ed Morse Honda’s radio commercial raised a lot of concern among my customers, prospective customers, not to mention my friends and family. This is not to say that those who know me, feared that I was doing anything wrong, but when you’re publically accused on the radio of deceiving your customers it’s a matter of concern.

There are few things more important in life to me than my reputation. My business and I, personally, are known for our reputation of integrity and we’re both held to a higher standard in our community than other car dealers and dealerships because of this. I had no choice but to defend this attack by Ed Morse’s radio commercial and my defense was a lawsuit against Ed Morse Honda for slander.

Now, let’s get back to this most recent development of Ed Morse suing me for defamation. The reason that I was at a temporary at a loss for words when I received the notice, is because I could not believe it. At first, I thought it might be a joke! After I realized that it wasn’t a joke, I was still speechless because I had no understanding of why Ed Morse would do this. Gradually I began to formulate some theories on motives for this seemingly irrational act.

Theory number one is that Ed Morse doesn’t really believe that I’m serious about my lawsuit against him for slander and that my having to spend some more money to also defend against his lawsuit will “make me go away”.

Ed, read my lips: I’m not going away!

It isn’t about money; it’s about my reputation. I’ve stated publically that 100% of the proceeds that I receive from my lawsuit will be donated to charity. Ed’s flimsy attempt to frighten me off has had the opposite effect. Now, Ed Morse has impugned my reputation again.

Theory number two is that Ed Morse’s law firm is **“running amok”. Most lawyers make their money by billable hours and some lawyers feel that the more animosity they can stir up between their clients, the more money they can make. Ed Morse owns about a dozen car dealerships and, especially in today’s economy, has his hands full. I don’t need to tell you that most car dealerships are in crisis mode these days and owners are very busy doing damage control most of the time. Maybe Ed simply hasn’t looked at our dispute closely enough. Ed, if that’s the case I strongly advise you to learn all of the facts about my lawsuit against you and your new lawsuit against me. You’re obviously a smart businessman. You haven’t grown to be one of the largest dealership groups in the USA by accident. Frankly, I don’t know how you can efficiently manage 12 dealerships all over Florida at the same time. My hat’s off to you! I have my hands full just staying on top of my one dealership in North Palm Beach.

My final theory is that Ed Morse is reacting out of anger, ego, and not logic. Now, Ed, himself, may not be guilty of this, but maybe one of his senior managers is. Too large an ego has gotten lots of powerful men in big trouble. “Pride goeth before the fall”.

Lawyers will tell you that “the truth is an ironclad defense against defamation, libel, or slander.” When these two lawsuits go to trial, a jury of our peers will look at the evidence. It’s likely that most of those jurors will have driven to the courthouse in cars they bought in Florida. It’s also highly likely that all or most of the jurors paid a dealer fee when they bought their car. Some or all of them may not have even realized that the extra amount they had to pay for their car was just additional profit to the dealer. Because of this and the arguments presented by Ed’s and my lawyers, the jury will form an opinion on whether or not the dealer fee is deceptive to car buyers. That belief will dictate whether or not they believe that I am telling the truth or that Ed is telling the truth. “May the “honest” man win.”

*As lawyers would say, “in an abundance of caution” I ran this column by my lawyers and there are some clarifications that they felt were necessary. I refer to Ed Morse, Ed, and “he” in this column, but Ed, personally, isn’t suing me [Although, I am personally being sued]. My lawyer was very nervous about my using the term “running amok”. The word was in use in India during the British Empire, originally to describe an elephant gone mad, separated from its herd, running wild and causing devastation. I want to make it abundantly clear for the record that I in no way intend to compare Ed’s lawyers with “mad elephants”. I believe that journalists are allowed literary leeway for humor, exaggeration and satire. I also do not know that Ed’s lawyers are stirring things up between Ed and me for monetary gain, but not knowing his lawyers, I can’t rule out the possibility.

JOB LOSS, CAR PAYMENT PROTECTION SCAM

Desperate economic times make for desperate sales and advertising tactics and that’s what we are seeing today with the promise that you “don’t have to worry about losing your job” if you buy a new car.

First you heard about this from Hyundai. About three months ago they began advertising that if you buy a new Hyundai and then you lose your job and can’t make the payments…NO PROBLEM! Guess what? It worked! Hyundai sales rose 20% while all other car manufacturers’ sales are plummeting. Seeing this, AutoNation, the largest publicly owned car dealer group in the USA, jumped on the bandwagon [In Florida, AutoNation chose to name most of their dealerships “Maroone”. I guess there’s a certain stigma associated with public companies vs. locally owned]. Not to be outdone, GM and Ford joined the party recently. If Hyundai can fool that many people, maybe we can too!

I contacted the Texas company that was underwriting the payment protection plan for Hyundai. I found out that this was nothing new, the company had been peddling this “get ‘em in the door” scam to car dealers for years. What they have been selling and what they sold Hyundai is like an insurance policy. But, it’s not an insurance policy. It’s kind of like those “credit default swaps” you’ve been reading about so much lately. They should be regulated but they are not. Hyundai, AutoNation, GM, and Chrysler are paying a “premium” for the highly unlikely event that one of their car buyers loses her job. This cost is included in the price of every car they sell, even for those buyers who have no concern about losing their job. Maybe they’re retired! Maybe they paid cash for the car! That’s just one more thing that stinks about this ruse. Every by buyer, whether they need or want payment protection, is subsidizing, by the higher price they pay for the car, those who think they need job loss protection.

There’s a lot more wrong with this deceptive promise of guarding you against job loss. Even though it does not qualify as an insurance product, it is underwritten just like it was. As you hear repeated so often these days…”The devil is in the details”. I went to the General Motors Web site which was advertising their payment protection plan and finally got to the “devil and his details”…SEVEN pages of fine print! It was worse than reading a health or life insurance policy. This column doesn’t have space for me to list and explain all of the exclusions, qualifications, and other loopholes. I can best explain it this way. You have heard the insurance term “pre-existing condition”. That means that if you have a particular illness, your health insurance or life insurance policy does not cover you. Well, if you are in danger of losing your job, your chances of having Hyundai, GM, or Ford take care of your car payments if you do lose it are slim and none.

This advertisement is very similar to the ads you have seen and heard that tell you that you can buy a car even though you have bad or no credit. These ads exploit car buyers’ fears. Often times prospective car buyers have exaggerated negative feelings about their credit status. Even in today’s economy, a few people with low Beacon scores can qualify a large down payment and are willing to pay a very high interest rate. Or, the dealers will sell the person a cheap used car for cash down payment she saved. The problem is that for every person with bad credit that can buy a car, the ads bring in at least 25 more that are disappointed and embarrassed when they can’t qualify. A lot of car dealers won’t even show you a car until they run a credit check on you. They don’t want to “waste their time”. This kind of advertising is like casting a net to catch fish. You catch lots of fish with every cast, but only a small percentage of “keepers”. In my opinion, this kind of advertising is unconscionable.

Slim Chance for Outlawing Dealer Fee or Bestiality in Florida

Just about one year ago I wrote a column entitled, “The Dealer Fee, Bestiality, and Tallahassee Politics.” You can read that column by clicking on my blog, www.EarlStewartOnCars.com. The timing had to do with the 2008 Florida legislature being in session. The 2009 legislative session is in process and it’s time for another progress report on capping the dealer fee or making it completely illegal in Florida.

Last Saturday’s PB Post carried a column by Frank Cerabino, “Put teeth into ending abuse of animals”. In my opinion, Frank Cerabino is one of the funniest writers on the Planet and if you want some belly laughs, you can read his column online by clicking on www.PBPost.com. The theme of his article is how ridiculous our Florida lawmakers are to not be able to pass a “no-brainer” law like making it illegal for humans to have sex with animals. Florida is one of 16 states in the Union without such a law!

Although, Frank Cerabino raises the possibility that there are some Florida lawmakers who may be blocking such a law from passing, this is only Frank’s acerbic sense of humor talking. The real reason this law does not get passed is from lack of lobbyist support. Unlike Insurance Companies, Trial Lawyers, and the Florida Automobile Dealers Association, The SPCA, Society for the Prevention to Cruelty to Animals, is very poorly funded. They cannot afford to support Florida politicians’ elections, making large campaign contributions to gain access and influence. There can be no other possible serious explanation for such a bill not passing our legislature last year and apparently not going to pass again this year.

Legislators will tell you that each Senator and House Representative is allowed only a very few bills [about 5] to sponsor. This number is a small fraction of the total number of issues and causes that are requested by citizens to be considered as new laws or changes in existing ones. The bottom line is that time constraints on the number of actual bills that get drafted, then get sponsors by both the Senate and the House, then pass successfully through committees, and finally get to the governor’s desk are a tiny fraction of the number that are needed and requested.

So, which bills never even get drafted, or never get a sponsor by both the House and Senate, or get knocked down or delayed by committees, and or lastly don’t get signed by the Governor? The answer is those bills that don’t have the financial support of strong lobbying groups. The sad fact is that very good causes can fall by the wayside year after year because of the cold hard reality of Florida politics.

But there is a big difference between those of us who intensely believe that that the dealer fee should be made illegal and those who intensely believe that bestiality should be made illegal. Of course, the obvious reason is that animals cannot make their voices heard in Tallahassee [Although, Frank Cerabino did suggest that we round up the sheep for a march on the capital]. The car buyers can make themselves heard. In the short run, the powerful lobbying organization, the Florida Automobile Dealers Association, can cause delays as they did this year and last. Write your local newspapers, radio stations, and TV stations. Call your legislators. Call my “No Dealer Fee Hotline”, 800 909-9879. I will email your recorded voice mail to Tallahassee. The voice of the people cannot be ignored over the long run and we must never give up. In the long run we will prevail.

TOP TEN CAR AUTO AD SCAMS

I could write a “Top 50 Auto Ad Scams” because the ingenuity for deception in “getting car buyers in the door” is virtually limitless. However, I chose to concentrate on the ten most popular with South Florida dealers. Just beware that there are many more schemes than these I list.

(1) Discount from Dealer List. Anytime you read or see a car advertised with a large discount, determine whether that discount is from the MSRP [manufacturer’s suggested retail price] or the dealer’s retail price. An all too common practice is for a dealer to mark up his cars thousands of dollars over the MSRP and call it “dealer list” so that he can show huge discounts that aren’t real.

(2) Prices exclude “impossible” rebates. Manufacturers often offer cash rebates to customers who qualify for special reasons. Some of these are being on active duty in the U.S. military. This rebate can be as much as $1,500. If you graduated from an accredited university within the past 6 months you can qualify for $500 to $1000 from some manufacturers. There is a customer “loyalty” rebate which affords you $1,000 or more if you are own the same make car that you are buying. There’s a similar for lease customers. There’s even a “Farm Bureau” rebate which qualifies you for $500 if you are a farmer. Dealers are actually combining all of these rebates and deducting them from advertised prices of their cars. Of course, what are the odds that any customer would simultaneously qualify for all of these rebates? The average reader of these ads qualifies for none of the rebates.

(3) Lease payments based on large down payments. Virtually every lease payment advertisement requires a large down payment which is concealed in the fine print. Most people lease because they want to lay out as little cash as possible. If they had $4,000 cash to spend, they would probably opt for a purchase. Those that fall for this trick often end up leasing the car at the full retail. Leasing companies will allow dealers to lease cars for “only” up to 110% of capitalized cost. When you make a down payment, this reduces the net capitalized cost which allows the dealer to sell your contract to the leasing company.

(4) Lowest Price Guarantee. This guarantee is absolutely worthless. If you read the fine print, you will note that it says that “the dealer reserves the right to buy the car from the other car dealer [his competitor] at the same price his competitor quoted you”. No car dealer is going to accommodate his competition so that they can steal away his customer. Of course the other fact that makes this guarantee worthless is that it requires that you prove the lower price by presenting a buyers’ order from the other dealer signed by a manager. I know of no car dealer [besides me] who will give a signed copy of the vehicle buyers’ order to a customer unless they drive the car home or make a substantial, non refundable deposit.

(5) Only one car available at ad price. When you are reading a newspaper ad, you will often see a strange number next to the advertised car. If you are watching the ad on TV or listening on radio, the number will be unreadable or undecipherable as is the fine print. An example is STK #T91832. This is the stock number of the car and means it is the only car of that model and accessories you can buy at the advertised price. They don’t say “only one car available at this price” because you would realize that the chances of that car being there [or sold to you if it is there] are very slim. Don’t be misled if the ad also says “many more identical models available at this price”. Florida law requires that dealers include the dealer fee in their advertised price. But if that specific stock number car is unavailable, they can add their dealer fee to the price of an identical car. This scam is why I continue to lobby Tallahassee to require that all profits to the dealers be included in all prices whether advertised, verbal, or on the Internet.

(6) Advertised price is “plus dealer installed accessories”. All this means is that the price you see is not the price you get. Dealers love to add their accessories to their cars because they can set any price they want and drastically increase their profit margins. A dealer charging you $299 for pin stripes and floor mats would have a real cost of about $100, allowing him a 300% margin.

(7) Lease payment based on unrealistically low mileage allowance. All leasing companies limit the number of miles you can put on their car without paying a penalty. This is because the higher the mileage, the lower the resale value and the leasing company has to sell their car at the end of the lease. The average American drives her car 15,000 miles per year. It’s very common to see mileage limits of 10,000 and even 7,500 miles per year with penalties of 25 cents per mile. For an average driver in a four year lease that would be a penalty of $7500! The dealers don’t get this money, the leasing company does, but the dealers do this so that they can advertise an unrealistically low lease payment.

(8) Lifetime Warranty. A lot of dealers are advertising these “lifetime warranties” on every car they sell. This is a very limited warranty which applies only to the cars powertrain. The term powertrain has different definitions as to which parts of the car it consists of. It typically means only those parts of the engine, transmission, drive shaft, and rear axle that are lubricated. These parts virtually never fail as long as you change your oil as prescribed by the manufacturer or by the issuer of the warranty policy. If you fail to change your oil as prescribed, the warranty is null and void. It’s a win-win for the car dealer. You have to come in to have your car serviced regularly so that he can make more profit and, if you do comply with this, there will never be a claim. Dealers do pay outside warranty companies for these warranties, but the cost to the dealer is minuscule, around $25. The low price the dealer pays the warranty issuer is further proof that the warranty is worthless.

(9) Purchase payments include “balloon payment”. How would you like to buy a new BMW 2009 328i for just $339 per month only to discover that your last payment was $12,983! Oh, and you also had to make an upfront down payment of $2,500. ALWAYS READ THE FINE PRINT!

(10) Internet Quotes Exclude “Dealer Fee”. The average “dealer fee” in South Florida is about $850. About 25% of car buyers are using the Internet to buy cars today. Almost 90% used the Internet for information about buying their car before going to the dealership. Virtually every car dealer in Florida charges a dealer fee and they all exclude that from the price you are quoted on the Internet. I spoke to a woman just the other day who drove all the way from Lakeland to West Palm Beach to pick up the new Infinity that she had purchased on the Internet. When she got to the dealer, he added an additional $695 for his dealer fee.

The Results are In...

TESTS SAY NITROGEN DOESN’T IMPROVE FUEL ECONOMY IN PB COUNTY BUSES

Regular readers of my column in Hometown News and my blog, www.EarlStewartOnCars.com may be tired of reading about nitrogen. This will be my 4th column in 3 years reaffirming that paying somebody to inflate your tires with nitrogen is waste of your hard earned money. Earlier columns are entitled “Don’t Pay for Nitrogen in Your Tires”, “Nitrogen and Shark Cartilage”, and “Nitrogen Scam Foisted on Palm Tran”.

What amazes me is how hard it is to put this nitrogen myth to rest. On my radio show last Saturday [Seaview AM 960 from 9-10 am], a caller told me she had paid a service department $8 per tire to fill her tires with nitrogen. She proceeded to tell me that she came back frequently to this service department so that they would add nitrogen to her tires “at no charge”. She was very happy with this arrangement. Her service department is the one that should really be happy! First they sold her a worthless product for $32 that might have cost them a total of $1.00. Secondly, they have her coming back to their auto service company regularly so that they can “inspect her vehicle” just in case there is further service she should pay them to do.

In my article, “Nitrogen Scam Foisted on Palm Tran” I asked Chuck Cohen, the Executive Director of Palm Beach County’s bus system, why he was spending $65,000 in taxpayers money for a worthless product. In email correspondence, Chuck of course disagreed with me. He told me that he would be testing the nitrogen in his bus’s tires to be sure that they did give them better fuel economy. The buses average about 4 miles per gallon of diesel fuel. I asked Chuck why he had to spend more tax payer’s money for tests when Consumer Reports had already conducted an extensive one year test of all makes of tires and come to the conclusion that nitrogen in your tires is no better than air. This is no surprise to those who know that air is comprised of 78% nitrogen.

Chuck Cohen’s assistant, Lorraine Szyms, sent me a copy of the final tests on Palm Tran’s tires on March 4. The tests were completed on January 30 by the Department of Mathematical Sciences Florida Atlantic University and Harold Herzlich of Herzlich Consulting, Inc. I’m not sure why it took so long for her to email me the test results. The test results are 8 pages long and you can read them in their entirety by clicking on this article on my blog, www.EarlStewartOnCars.com.

After reading through 8 pages of “techni-speak” by the FAU mathematics professors and Harold Herzlich, the fact that nitrogen was proven to be worthless for improving fuel economy was restated several times. The clearest phrase I could fine was, “From the previous data analysis we conclude that there is yet no observable effect in the fuel efficiency due to nitrogen tire inflation for the group of buses in this experiment”.

What concerns me is that there is clearly an effort under way to do more tests. Note the word, “yet” that Harold Herzlich used above. In the summary at the end of the test, it is stated, “Palm Tran is currently conducting further analysis using an electronic pressure sensor monitoring device that captures the tire pressure electronically”. The results of this testing should be completed by June 2009. Further more, Herzlich Consulting, Inc. is suggesting that they do more test too. This is no surprise, that’s how they make their money...doing testing.

It’s pretty obvious that the tests results are an embarrassment to Chuck Cohen and those “remaining members” of the Palm Beach County Commission who authorized the “Nitrogen Scam”. I guess they think if they can keep on testing, they never have to admit they were wrong. Other than the obvious problem with this scenario, is the additional cost of testing. I think that Karen Marcus and the “remaining” county commissioners owe it to the Palm Beach County taxpayers to draw the line and end this now. The taxpayers are already out $65,000 for the nitrogen apparatus. I want to know how much Palm Beach County paid FAU and Herzlich Consulting, Inc. for the first tests that proved nitrogen in their bus tires does not improve fuel mileage. I would also like to know how they chose Herzlich Consulting, Inc. Did they get competitive bids? Did they get bids from PBCC, FAU, and University of Florida? How much are these new tests with their “electronic pressure sensors” that Palm Tran itself is conducting costing us?

In case Chuck Cohen hasn’t been reading the newspapers or watching the news lately, our country is going through the greatest economic crisis since the great depression. It’s bad enough that his buses cost a $half-million each, get 4 miles to the gallon, and average less than 20% occupancy [it would be less expensive for the tax payers to pay “cab fare” for the handful of people riding Palm Tran]. Municipalities and counties are desperately looking for ways to cut spending so that they can continue to provide vital service to their citizen. We can’t afford to spend any more money to exonerate Chuck Cohen and the PB County Commission from another bad decision.

You can view the actual report here.

CAR BUYERS BEWARE OF “THE BOX”

OK, you’ve just bought that new or used car and the pressure is off…right? WRONG! The next step for the car dealer is to get you into the “box”. You won’t hear this word mentioned. It’s inside car dealer slang for the F&I office or the business office. This is the place that you sign all of those papers making the sale legal and final. But in addition to that, it’s also a very important profit center for car dealers. In many car dealerships it’s the most profitable department. It’s not uncommon for car dealers to make an additional $1,000 profit or more in “the box” on each car they sell.

Here’s how that profit is generated. First and usually foremost is making money on the interest they charge you. Essentially, they make money on “the spread” just like banks make money when they loan it. For example, a car dealer will borrow money from Bank of America for 4.9% and loan it to you for 7.9%, or whatever interest rate they can convince you to accept. The second way they earn that big profit in “the box” is by selling you “products” which are added to the price of the car you just bought. There are many products and some of the most common are extended service warranties, maintenance plans, road hazard insurance, GAP insurance, window etch, and LoJack.

The way you should protect yourself on the interest rate is to have already shopped your own bank or credit union and two other banks for the best interest rate you can qualify for. Never go into “the box” without knowing what the best rate other banks or credit unions will allow you. The best way to protect yourself against the products they will try to sell you is to completely understand each product. Do you want or need an extended warranty on your new car? If this product costs $1,900 for example, how long are you going to keep the car and how long are you likely to be driving it when it’s out of the manufacturer’s warranty? Ask the same questions of each product they try to sell you. If you are unclear on the merits of a product, do not commit. You can always go home and think about and seek advice from friends and advisors.

Another important tactic that I recommend is to never go into “the box” alone. If it’s just you and the F&I manager [often called business manager], and there is a dispute over what was said, it’s just your word against his. Also, having a friend or advisor present will usually be a deterrent to any attempted deception.

These are some of the kinds of deception you should be on the lookout for. Tying the sale of a product like an extended service contract to the interest rate or eligibility to have the bank finance your car is illegal. But this practice happens all too often behind the closed doors of the “the box.” The F&I manger may tell you that the bank “requires” you to buy the extended warranty, GAP insurance another product in order to protect the bank’s collateral. This is simply a lie and it’s illegal for banks or car dealers to do this. Another common form of deception is to simply not disclose the products or interest rate and have you sign the contract without reading it. There are a large number of documents to be signed after you buy a car. Buyers are often in a state of euphoria now that they have bought their dream car and are in too much of a hurry to sign everything and drive their new car home. The car dealer is required by law to give you a signed copy of the installment sales contract. Be sure you carefully read it and be sure have a copy. If you don’t get a copy, you may find that you signed a different contract than the one you read.

Extended service warranties, GAP insurance, and other insurance products are regulated in Florida unlike many other states. This affords you some degree of protection like being able to cancel an insurance product as long as you did not use it. You can do this in 60 days for a 100% cancellation. You don’t get the cash back and your monthly payment won’t go down however. But the amount is taken off the principal amount you are financing through the bank. You cancel insurance products after 60 days, but the cancellation is not pro rata and you pay a large penalty.

If you remember nothing else from this article please remember this one thing. Do not hurry the process of financing your car and signing the papers. Do not let the car dealer encourage you to sign anything you don’t understand. Time is on your side because it will allow you to think and to consult with others who can help you make your final decision. I get a lot of calls from victims of “the box” and the one thing they all have in common is that they let themselves be rushed into signing the documents so that they could drive their dream car home that same day.

New Look for Earl Stewart On Cars

Earl Stewart On Cars is two years, eight months, and four days old - it's time for a fresh look! The new logo is based on a photo of me in the SeaView 960 studios in Palm Beach Gardens. Please tell me how you like it (or if you don't). I want to make sure it is easy to read and navigate, so feel free to post your comments.

Earl

Oil Prices are Down.. But Gas is Going Up???

Just when we were getting used to cheap gas, higher prices are right around the corner.

On the front page of today’s PB Post business section you have another headline article explaining that gas stations are going out of business due to low margins and high costs. Fewer gas stations means less competition means higher gas prices.

You can read in this article that gas prices will rise to $2.50 before spring; who knows how high it will reach in the summer?

Here's the AP story that ran in this morning's Palm Beach Post:

http://hosted.ap.org/dynamic/stories/G/GAS_PRICES_UNHINGED?SITE=FLPAP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2009-02-15-21-07-33

Open Letter to President Obama re “Car Czar task force”

Dear President Obama,

I was disappointed to learn that you have decided not to appoint a single “car czar” to oversee the reorganization of our domestic auto manufacturers, but to appoint a “task force”.

You have my application for “car czar” and just in case it was misplaced, I’m enclosing another copy below. Please consider this as my new application for a member of your task force operating under Treasury Secretary Geithner and White House Economic Advisor, Lawrence Summers.

I can understand why you might be shy about making another major appointment after what you’ve been through with Timothy Geithner, Bill Richardson, Tom Daschle, Nancy Killefer, and Judd Gregg. However, rest assured there are no skeletons in my closet and I welcome a thorough vetting.


Application for Auto Czar Task Force Position
Open Letter to Barrack Obama
Cc: Treasury Secretary Timothy Geithner
Cc: Economic Advisor Lawrence Summers

Dear Mr. President [Written while still President-elect],

I just read that U.S. House Rep. Barney Franks was sponsoring a bill to address the auto crisis which would call for an “Auto Czar” to facilitate the recovery of the American auto industry. I’m applying for this position and explaining why I may be qualified for this important task.

Rather than attempt to call or write you on this subject, I’ve chosen my blog, www.EarlStewartOnCars.com as the means of communicating this message. This is because I understand that you must be overwhelmed with requests for positions in your administration. Secondly, I believe that the Internet is a powerful tool that you recognize and accept a major one for communications in the 21st century. As you know, it was instrumental in the fund raising for your successful election…something that had never before occurred in a Presidential election.

Below I list a brief summary of my qualifications. Your staff can “Google me” for more information and, of course, I will furnish them with all additional information that they require.

(1) I’m 68 years old and have been an automobile dealer since 1968. I’ve been a dealer for Pontiac, Mazda, Peugeot, Lancia, Fiat, Checker, and Toyota. I’ve also owned and operated rental companies and independent used car lots. I’ve all my dealerships except for my Toyota which I’ve owned and operated since 1975.
(2) I’m in good health [had a bout with colon cancer in 2005 but am 100% cancer free now] and currently very active in my business which has grown to become one of the largest Toyota dealerships in the USA.
(3) I graduated from the University of Florida in 1963 with a BS, majoring in physics with a minor in mathematics. I earned my Masters of Science degree in Industrial Administration from the Krannert School at Purdue in 1964.
(4) In recent years I’ve assumed the role of a consumer advocate for car-buyers in Florida and nationwide. As you know, the image of the car dealer has not been exemplary [tarnished much as that of politicians and lawyers] and I’ve taken on the mission to “clean up our act”. I host a local weekly radio talk show and write a weekly column for a local newspaper advocating these positions. I also regularly speak at public libraries, civic groups, condominium associations, schools, retirement clubs, etc. on this subject.
(5) I have no “skeletons in my closet” and welcome a thorough vetting of my past.
(6) My only motive is to help our country with our economic crisis. I agree to serve at zero monetary compensation and aspire to no further political office.
(7) I understand and support our nation’s need for energy independence and for our global need to reduce carbon emissions in the atmosphere. My Toyota dealership is the largest retailer of hybrid vehicles in the USA except for California. Last year we ranked #12. I accomplished this by selling my hybrid vehicles at lower prices even when demand exceeded supply and afforded many dealers the opportunity to charge premium prices.

(7) My business is a family one including my three sons who are ready, willing, and able to run my business if you select me as your Auto Czar. As a matter of fact, my three sons voted for you. However I must confess that my wife, Nancy and I voted for John McCain. I only mention this because our family believes in freedom of expression and choice even within the confines of our own family. One of my favorite quotations is that of F. Scott Fitzgerald who said, “The test of a great mind is the ability to hold two opposed ideas at the same time and still retain the ability to function”. I think you agree with this because of the way you are welcoming suggestions from both sides of the aisle, the only qualification being “will it work?”

In summary, I have a unique perspective over those who may be considered for the position of Auto Czar. My primary concern is for our country’s car buyers followed by the car dealers and manufacturers. All three concerns are very important, but it’s the American citizen who relies on his automotive that will drive the future success of the manufacturers and dealers.

Respectfully yours,

Earl Stewart

Maybe Your Car Dealer is a Good Guy

I wrote this article in October of 2007 and it ran again in 2008 after I received a phone call from Ted Smith, the President of the Florida Automobile Dealers Association, FADA. In Ted’s call, he told me that he knew most Florida car dealers and they were mostly honest, good people.

Accepting Ted Smith’s assertion and I know Ted to be a man of very high integrity, I still have this “axe to grind” with Florida car dealers. You do not make yourselves accessible to your customers. You rely on your managers, computers, and reports.

There is a Japanese phrase, “genchi genbutsu”, which translated literally means “go to the place and see”. Toyota Motor Corp. employs this principal. Even the Chairman of the Board of Toyota will often go into a manufacturing plant, walk out onto the floor, roll up his sleeve, and plunge it into an oil sump of a machine tool to find out why parts are not being milled to perfection. The Chairman of Toyota knows what’s going on and all his managers know that he knows this too. It keeps everybody on their toes!

This principal is why I have my red phones, give my home number to my customers, and don’t allow any call screening or automatic answer services in my dealership.


What to do if you are Treated Badly by a Car Dealer

Hopefully the sales or service experience with your car dealer went well. But, sometimes they don’t. Now what? The advice I give you applies to all business transactions, not just car dealerships.

Your first step should be to communicate your complaint ASAP to the General Manager or, preferably, the owner. Be sure that you are talking to the real owner or the real general manger. A General Manager is over all employees in the entire company. A general “sales” manager is not a General Manager. If you can’t reach the owner (Many car dealerships are either publicly owned or owned by absentee owners), ask to see the General Manager. Often times the owner or General Manager is not aware of everything that goes on with all of their customers and employees. They might have new employee that should not have been hired or received inadequate training. Or, they may simply have a “rotten apple” that should not be working there. The ease and speed with which you can meet and speak to a General Manager or an owner is a pretty good measure of the integrity of the company as whole. If the owner or General Manager cares enough about her customers to allow total access, it is probably a very good place to do business. In fact, it is a good idea to find this out before you do business.

If you cannot reach the owner or General Manager, contact the manufacturer who franchises the dealership. Car dealers have a contract with the manufacturer called a franchise agreement and this contractual agreement requires that they treat their customers with courtesy, efficiency and integrity. Most manufacturers have a customer hotline that allows you to call and register a complaint directly. The owner or General Manager of the dealership will be made aware of your complaint. As you might guess, the manufacturer has quite of bit of clout with their dealer. If a dealer does not live up to his side of the contract, his franchise could be canceled or not renewed.

The third step I recommend, if numbers one and two don’t work, is to contact a consumer agency like The Better Business Bureau or the County Office of Consumer Affairs. These agencies will send your complaint to the dealership and request a written reply. No car dealership or business wants an unanswered complaint in the file of a governmental or private consumer agency.

Your last resort is to contact an attorney. I list this last because hiring an attorney just about eliminates the possibility that you can quickly, amicably and inexpensively resolve your differences with the car dealer. Be very careful which attorney you choose. Try to choose one that is primarily interested in helping you and not in generating large fees for himself. Under the Florida Unfair and Deceptive Trade Practices Act, an attorney is entitled to his fees and costs from the defendant in a lawsuit if he wins. These fees can be much larger than the amount of your claim, motivating an unethical attorney to spend more time than is needed and dragging out a case to generate more fees than are necessary. This can be very dangerous for you because the car dealer’s attorney’s fees run roughly parallel to your lawyer’s and you can be held liable for those if you lose the case.

Hopefully you never have to resort to the final step of hiring a lawyer. In trying steps one, two, and three try to present your complaint as concisely and politely as possible. You have every right to be angry when you are taken advantage of, but try to let your anger subside before you speak to or write to someone about your problem. We all react negatively to someone who is profane, raises his voice, or is sarcastic. Your goal of communicating and resolving your complaint is best reached by communicating clearly, politely and concisely.

Car Dealers’ Only Thing to Fear is Fear Itself

Believe it or not, I hate to brag, but it was baseball player Dizzy Dean who said, It ain't braggin’ if you can back it up”. I’ll add to Dizzy’s sage observation the fact that bragging isn’t bad if there is a good reason to do so. My good reason is that car dealers are afraid. They are afraid to abandon their dealer fee because it would hurt them financially. Car dealers are afraid to not run bait and switch advertisements because they fear that prospective car buyers won’t respond to honest advertising. Car dealers are afraid to make themselves readily accessible to their customers because they fear being overwhelmed by complaints. Car salesmen are afraid to give the real price to their prospective customers for fear the prospect will shop and compare his price with the competition.

Well “listen up” car dealers! Earl Stewart Toyota has grown from one of the smallest car dealerships in Palm Beach County in one of the smallest towns, Lake Park [population of 9,080 as of 2004] to the #1 retailer of autos of all makes in Palm Beach County. Earl Stewart Toyota is the largest seller of new Toyotas from Orlando to Coconut Creek [south of Ft. Lauderdale], the 11th largest in the Southeast USA (out of 172), and 59th largest in the USA (out of over 1,300). The way my dealership was able to accomplish this was by putting our fears aside and doing business the way we knew, in our hearts, was right. As most everyone knows, up until about 5 years ago, my dealership charged a dealer fee too. Dropping that “extra profit” was one of the scariest business decisions I ever made.

How does a little car dealer in a little town earn so many customers? By doing those things that most other car dealers are afraid to do…don’t charge a dealer fee, don’t advertise cars that you won’t sell for that price, quote your best out-the-door price to any prospective customer who asks and encourage that prospective customer to shop and compare. We treat each customer with integrity, courtesy, and respect. We encourage total unfettered communication with our customers by not screening any phone calls and having a live person taking calls 24/7…no answer machines. Even I, the owner, take all calls directly and I don’t have a secretary. Talking about scary, how about my giving my home telephone number to all of my customers, printed on my business card!

This all sounds simple, doesn’t it? I agree, but why do so few car dealers get it? Why do they see the incredible growth and success of doing the business the way we do and still stick to their old ways? The answer for most dealers has to be “fear”. I hear some car dealers who say, “Sure, easy for him to do business that way because he sells Toyotas. He wouldn’t be so successful selling Chevys”. Well, of course I couldn’t sell as many Chevrolets as I sell Toyotas. But I measure my success against those who sell Toyotas or equally good product like Honda. I’ve grown from the smallest volume Toyota store in Palm Beach County to the largest. All the Honda dealers used to outsell me and now I outsell them all. I wasn’t even top 300 of Toyota dealers nationally and now I’m #59. If a Chevrolet dealer did business like I do, I can absolutely guarantee him he would sell at least twice as many Chevrolet as he is now.

During this severe economic crisis, Americans have been more prone than ever before to deal with those they trust. That’s why they are buying American treasury notes and bonds at unprecedented levels. They aren’t buying bank stocks or most other stocks because they don’t trust those who run these companies. This phenomenon is known in Wall Street as “a flight to quality”. It could perhaps be more accurately described as a “flight to trust”. Buyers are driving from all over Florida and beyond because word of mouth has spread that they will be treated with integrity, courtesy, and respect at my dealership. In the worst economic recession since the ‘30’s my dealership is growing its market share by leaps and bounds. I have to admit that this has even exceeded my expectations. I never dreamed that I would one day be the largest retailer of automobiles in Palm Beach County.

Any car dealer with enough courage can follow my proven formula and increase his volume and profitability. With business so bad for so many car dealers you would think they would have nothing to lose by giving it a try, except their fear.

Application for Auto Czar Position

Open Letter to Barack Obama

Cc: Barney Franks

Dear Mr. President [Written while still President-elect],

I just read that U.S. House Rep. Barney Franks was sponsoring a bill to address the auto crisis which would call for an “Auto Czar” to facilitate the recovery of the American auto industry. I’m applying for this position and explaining why I may be qualified for this important task.

Rather than attempt to call or write you on this subject, I’ve chosen my blog, http://www.earlstewartoncars.com/ as the means of communicating this message. This is because I understand that you must be overwhelmed with requests for positions in your administration. Secondly, I believe that the Internet is a powerful tool that you recognize and accept a major one for communications in the 21st century. As you know, it was instrumental in the fund raising for your successful election…something that had never before occurred in a Presidential election.

Below I list a brief summary of my qualifications. Your staff can “Google me” for more information and, of course, I will furnish them with all additional information that they require.

(1) I’m 68 years old and have been an automobile dealer since 1968. I’ve been a dealer for Pontiac, Mazda, Peugeot, Lancia, Fiat, Checker, and Toyota. I’ve also owned and operated rental companies and independent used car lots. I’ve all my dealerships except for my Toyota which I’ve owned and operated since 1975.

(2) About ten years ago I “saw the light” about how customers [and employees] should be treated. I refer to myself as a “recovering car dealer”. This is a plus for my resume because I was actually a part of what is wrong with the present auto manufacturing and selling systems today.

(3) I’m in good health [had a bout with colon cancer in 2005 but am 100% cancer free now] and currently very active in my business which has grown to become one of the largest Toyota dealerships in the USA.

(4) I graduated from the University of Florida in 1963 with a BS, majoring in physics with a minor in mathematics. I earned my Masters of Science degree in Industrial Administration from the Krannert School at Purdue in 1964.

(5) In recent years I’ve assumed the role of a consumer advocate for car-buyers in Florida and nationwide. As you know, the image of the car dealer has not been exemplary [tarnished much as that of politicians and lawyers] and I’ve taken on the mission to “clean up our act”. I host a local weekly radio talk show and write a weekly column for a local newspaper advocating these positions. I also regularly speak at public libraries, civic groups, condominium associations, schools, retirement clubs, etc. on this subject.

(6) I have no “skeletons in my closet” and welcome a thorough vetting of my past.

(7) My only motive is to help our country with our economic crisis. I agree to serve at zero monetary compensation and aspire to no further political office.

(8) I understand and support our nation’s need for energy independence and for our global need to reduce carbon emissions in the atmosphere. My Toyota dealership is the largest retailer of hybrid vehicles in the USA except for California. Last year we ranked #12. I accomplished this by selling my hybrid vehicles at lower prices even when demand exceeded supply and afforded many dealers the opportunity to charge premium prices.

(7) My business is a family one including my three sons who are ready, willing, and able to run my business if you select me as your Auto Czar. As a matter of fact, my three sons voted for you. However I must confess that my wife, Nancy and I voted for John McCain. I only mention this because our family believes in freedom of expression and choice even within the confines of our own family. One of my favorite quotations is that of F. Scott Fitzgerald who said, “The test of a great mind is the ability to hold two opposed ideas at the same time and still retain the ability to function”. I think you agree with this because of the way you are welcoming suggestions from both sides of the aisle, the only qualification being “will it work?”

In summary, I have a unique perspective over those who may be considered for the position of Auto Czar. My primary concern is for our country’s car buyers followed by the car dealers and manufacturers. All three concerns are very important, but it’s the American citizen who relies on his automotive that will drive the future success of the manufacturers and dealers.

Respectfully yours,

Earl Stewart

10 New Years Resolutions for Car Dealers in 2009

2008 was the worst economic year for auto dealers in my memory and I’ve been a dealer for over 40 years. I say that because I don’t want those dealers who read this to think I’m “kicking them while they’re down” by preaching redemption. I’m suggesting these resolutions because they can help these dealers survive these bad times and prosper even more when business returns to normal.

(1) Quoting prices to your customers. Always quote your customers the full, out-the-door price. The only additional costs passed to your customer should be federal, state, or local taxes and/or fees like Florida sales tax. This is the generally accepted practice in retailing all other products and services. A price is quoted to your customer when you communicate a price in any fashion including advertising a price in the newspaper, radio or TV, painting a price on a windshield or sign, saying a price over the phone or in person, or giving a price over the Internet. Your “dealer fee” is profit for you. It is not a “fee” and it should be included in your price.

(2) The buck stops with you. You are responsible for the actions of your employees. Your salesmen, service technicians and service advisors are virtually all paid on commission. If you do not police your people and hire ethical people your customers will be taken advantage of. If you are an absentee owner, as most owners of car dealerships are in South Florida are, you have to have someone running your store that knows and cares about what is happening to your customers. Your ignorance of the mistreatment of your customers is no more an excuse than being ignorant of a law when you break it.

(3) Don’t advertise a car at a price that you don’t want to sell it for. If you advertise a car for a specific price, you should be willing and able to sell that car to as many customers as respond to the ad. Also, pay your salesmen a commission on the ad cars. Now most of you don’t pay a salesman a commission if he sells the ad car. What do you think that salesman is going to tell the customer who comes in on the ad? If you run out of that model, you should give your customers a rain check. When you don’t do that, it’s called “bait and switch”.

(4) Don’t insist or encourage your customers to buy and take delivery of their car on the same day. This is called a “spot delivery” in the trade. There are lots of thing bad about this. A car is the 2nd largest purchase a person makes. The customer should be allowed time to reflect and think about this decision. Cars are often spot delivered when the credit has not been approved, especially nights and weekends when the banks are closed. Customer often have to be called back to sign another contract at higher payments, higher interest, and/or higher down payments. This is sometimes done deliberately because customers are often too embarrassed to tell their friends that they really haven’t bought that shiny new car they were showing off.

(5) Give customers who are” just looking” a price when they ask for it. It’s insulting to today’s sophisticated buyers to be told when they ask for the price that they can buy the car for, that they have to make an offer in writing with a deposit first. It’s also insulting when you tell the customer that you won’t give her a price until she’s “ready to buy”. Can you imagine being told this by a salesman at Best Buy when you asked the price of 50” Plasma TV? Your salesmen won’t give prices to your customers because they are afraid the customer will compare his price with the competition. This is what the free market place is all about! Customer should shop and compare. If you treat your customers with respect, integrity, and courtesy, they will return to you an offer you the right to meet or beat a lower price.

(6) Don’t advertise discounts from “dealer list” price. When you mark up the manufacturer’s list price by thousands of dollars and then advertise a discount, you are misleading you customers. The federal government has a law that every new car displays a “Monroney label” [named after the U.S. senator who sponsored this bill] on the window when it is sold. The reason for this law is to give car buyers a fair, even basis for comparing prices between different dealers. By confusing your customers between “dealer’s list” and “manufacturer’s list” you are circumventing the law.

(7) Don’t advertise lease payments that require large down payments hidden in the fine print. Most people lease cars to minimize their monthly payment. When your customer comes in on the ad finds out she has to pay $4,000 cash down to get the lease payment you advertised, it’s just plain wrong. There are some dealers who actually advertise prices with a qualification that the customer pays an additional sum first to get the advertised price.

(8) Do not advertise that you can get anybody financed no matter how bad their credit. This is not true and just plain cruel, especially during these terrible economic times with very tight credit.

(9) Don’t guarantee the lowest price with qualifications that cannot be met. Your qualifications are usually that you “reserve the right to buy the other car from the other dealer who beat your price” and that the customer must have a signed buyer’s order from the other dealership. You know that the other dealer will never agree to sell you that car and you also know that the chances of the customer getting out of the dealership with a signed buyer’s order without taking delivery are slim and none. Dealers reading this, I dare you to show me evidence that you have honored your guarantee with jus one customer. I’ll make you a bet that you have never honored that guarantee.

(10) Don’t offer a minimum $10,000 [or some other high number] for every trade-in. Sometimes these ads, say “if you can push, pull, or drag your old car in we will give you at least $10,000 toward the purchase of a new car. You then mark up the new car so high, you are not really offering the customer anything more than the wholesale value, if that.

The Recession of Trust

There are dozens of theories about why the world finds itself in such a severe economic decline. I don’t say that lack of trust is what started the ball rolling but I firmly believe it’s what's keeping the ball rolling.

This morning I was on my treadmill trying to work off some our Christmas feast and watching CNBC. A General Motors commercial came on about their “Red Tag” sale. The announcer said that the price on the red tag is the price you pay”. He says that these are not just the lowest prices of the year but the lowest prices ever! Now, bear in mind that this is a General Motors TV advertisement, not a GM dealer advertisement. What the ad did not say was that the dealers charge an additional profit called a dealer fee, doc fee, dealer prep fee, or any other name they care to give this extra, after-the-fact profit.

In this morning’s PB Post there was a print GM factory ad for the same red tag sale. In the fine print there was a statement that the red tag price was plus tax, tag, and “dealer fees”. Now this same disclosure was probably on the TV ad too, but I don’t have time to read this with my magnifying glass which is what I have to use on the newspaper ads. The bottom line is that General Motors Corporation is lying to its customers when they say that the red tag price is the price you pay. The red tag price is not the price a Florida car buyer pays. In addition, she also pays any amount the dealer chooses to add to the red tag price which he can also name anything he wants. In Florida there is no limit on how much a dealer can charge for a dealer fee. I know of Florida dealers charging at least $1,000 and I know of one Georgia dealer charging $2,350! These two dealers happen to be Toyota dealers but I’ll bet there are GM dealers who have fees in that ballpark.

Have you noticed how many Wall Street people are going to jail lately? How about that Bernie Madoff? Not only did he carry off the biggest swindle in the history of the world, but he mainly swindled his friends and charities. The Investment Banks lost so much trust that they have had to convert to conventional banks. The public has lost so much trust in the government that anytime a government official goes on TV, the stock market drops. I actually heard a commentator on CNBC says that traders are making profit by shorting the market whenever Hank Paulson appears live on TV and then covering as soon as he’s off the air.

The banks don’t trust the borrowers and are afraid to lend money. They don’t believe the appraisals and they don’t believe the accuracy of the credit statement. The borrowers don’t trust government so, even those who are credit worthy, are afraid to borrow money for fear things will get much, much worse. We have lots of companies and individuals with large sums of cash just sitting by because they have no trust in our country’s future.

I can’t solve the problems of the world, but I can offer some very good advice to car manufacturers and dealers. When your customers trust you, they will part with their money and do business with you. Unfortunately, it’s not easy to restore trust. You can’t run an ad that says “Trust Me” when you’ve been lying to your customers for years. You can only earn back that trust a little bit at a time. The good news is that once you earn the trust of one customer he will tell a dozen or more of his friends. Trust grows exponentially. However trust requires sacrifice. You have to forego the “fast buck”. You can’t advertise a sale unless it’s real. That means you really are selling your cars for less than you did last week and it usually helps to have an honest reason for why you will do that. You need to quit charging that dealer fee and include all of your profit in the price you quote your customers. You need to give your customers your best price when they ask for it by email, over the phone, or in person. If they ask for copy of their paper work, the buyer’s order, give them a copy. Yes, they might use that to compare your price with the competition, but that is their right in our free marketplace. Never give a prospective customer a price below what you know is possible to bring him back and then try to raise it when she does [this is called the low-ball].

By just being honest, respectful, and courteous to each of your customers you will eventually win back their trust and when that happens there will be no more recession.

Get Ready for Round II

Round 2 has just started in my fight to make the dealer fee illegal in Florida. Last Thursday, I received a call from Carl Domino, House Representative from district 83 asking me to draft a dealer fee bill for him to consider sponsoring. He needs to have this by this January. My next step will be to get someone to sponsor the bill in the senate and I plan to ask Jeff Atwater who was just named president of the senate. Jeff Atwater was outwardly supportive of my position last year. Below are my comments when I testified before the Senate Commerce Committee last year. I will likely be making another appearance before this committee and the House committee soon

Comments to Florida Senate Commerce CommitteeTuesday, March 4, 2008, 2:30 PM, Tallahassee

My name is Earl Stewart. I was born in Ft. Lauderdale, FL in 1940. I graduated from PBHS in 1958, University of Florida in 1963, BS Physics, and Purdue University, 1964, MSIA. I worked for Westinghouse for four years as an Electronics Engineer. I jointed my father in business in 1968. He founded Stewart Pontiac in West Palm Beach in 1937. I’ve been primarily in the retail automobile business for the last 40 years. I’m currently the sole owner and general manager of Earl Stewart Toyota in North Palm Beach and have been in the same location for the last 33 years. My three sons are employed in my business and my wife, Nancy, is also involved part time.

I’ve been a member of the SFADA and the FADA for my entire career and have serviced as a director for both organizations and on the Executive committee of FADA. I am currently chairman of the board of FLADCO, a Florida dealer-owned cooperative buying company.
(1) What’s bad about the dealer fee?

(a) In most cases the customer either does not know he paid the dealer fee or believes it is some kind of federal, state, or local “official fee”.
(b) In practice dealers do not include the dealer fee in the price of the car that is quoted to the customer. It isn’t included in Internet quotes and also not in verbal quotes over the telephone or in person.
(c) Although Florida law says that the dealer fee must be included in the advertised price, this is not happening in most cases. In the first place, there is virtually no enforcement of this part of the law. I’ve shown Senators Jeff Atwater and Alex Diaz de la Portilla copies of auto classified ads flagrantly violating this part of the law addressing dealer fees. Those dealers who do technically comply, get around it in practice by what I call “the old stock number trick” [Explain].
(d) There is no cap on the dealer fee and each dealer chooses whatever fee he likes. There is no one name for the fee. The Senate Investigative Report discovered 22 names and they only scratched the surface.

(2) Why the Dealer Fee Law is a Bad Law?

(a) It is written in such a way that dealers’ legal counsel have advised them “If you charge one customer a dealer fee, you must charge all customers the same fee”. Now, when the rare very astute consumer questions the legitimacy of the dealer fee, the sales person is instructed to reply, “All dealers charge this fee” and “We are required by law to charge everybody this same fee”.
(b) There is a provision that a “group ad” does not have to include the dealer fee in the advertised price. The argument for the exception to this part of the law on advertised prices is that it would be “too confusing” to list all of the different prices resulting from different dealer fees by different dealers.
(c) The law does not address ads which show discounts from MSRP instead of an actual price. Because the MSRP is standardized, a discount from MSRP is no different than a quoted price.
(d) The law allows dealers to advertise just one car at the advertised price. Dealers don’t disclose this by using an obscure alpha numeric code, usually included along with all of the listed options and accessories. This, unknown to the reader of the ad, is a “stock number” which means that the dealer is advertising only this one car at the price which includes the dealer fee. A typical stock number looks like this…#A23554B. The ads often also say, “12 more models available at this price”. But the other models are not the advertised car and now the dealer can add the dealer fee on top of the advertised price. Car salesmen are not paid a commission on this advertised car. Car salesmen work on 100% commission and have no incentive to sell an advertised car. In fact, their incentive is to be sure that you buy a different car. The odds of a customer actually being able to buy an advertised car are “slim and none”.
(3) What is my true motivation for opposing the Dealer Fee?

(a) I strongly believe that I’m doing the right thing. The dealer fee is a profit to the dealer…pure and simple. The law alludes to it covering certain costs of the dealer and requires that the dealer so state next to his dealer fee, but this is fallacious. When a customer pays me a sum to cover one of my expenses, she is increasing my profits. Saying that a customer should pay for a dealers cost of paperwork or preparation of the car is no different than saying the customer should pay the salesman’s commission, the dealer’s advertising, or part of his power bill. Any business’s overhead costs should be priced into the price of its product…not passed along to their customer separately from the pricing of their product.
(b) Because all car dealers have different dealer fees and some range up to at least $1,000, we cannot compete fairly on a level playing field. I am unable to advertise prices because those dealers who have dealer fees can understate their real price, knowing that they can add their dealer fee on at the last minute. For example, a Toyota Yaris with an MSRP of $15,145 has a profit to the dealer of only $584. Al Hendrickson Toyota in Coconut Creek, FL has a $999 dealer fee. This dealer can advertise a new Yaris for below his cost and make better profit than I can if I advertised and sold the car at MSRP.
(c) Our customers should have the right to shop and compare prices of cars just like they do TV’s, refrigerators, computers, or any other product. The Monroney label made a standardized MSRP the law for new car manufacturers over 50 years ago. The purpose for this law was to give the consumer the ability to accurately compare prices between different car dealers. If a car buyer is considering a Chevrolet Impala with a specific MSRP, he can shop for the dealer who gives him the biggest discount. Now, with virtually every dealer adding a dealer fee of a different amount, the intent of this federal law is circumvented.
(d) I would be less than honest if I didn’t confess that I’m benefiting from the positive publicity I get by opposing the dealer fee. If I’m not successful, I’m still a winner because the car buyers of Florida do agree with me. Any dealer could achieve the same status as I by unilaterally giving up the dealer fee.
(e) Car dealers rank among the most vilified businesses and professions. Along with lawyers and politicians, we are commonly ridiculed by comedians like Jay Leno and David Letterman. My sons will take over my business one day and I have four grandchildren who may continue it even further. My oldest son, Earl III, told me something a few years ago that I will never forget. He said that he enjoyed working for me and he enjoyed his job very much but what was most important to him was that he was proud to tell his son, Jake, my grandson, what he did for a living.

This Week in Automotive News

Do-gooder or pariah?

Some dealers add $250 to $1,000 in fees to a vehicle's price. Earl Stewart did, too. He had an epiphany and now he rails against those fees. Dealers are angry. They say he campaigns for his own profits, not for consumers
Toyota dealer Earl Stewart uses his radio talk show to blast what he calls dealers’ “dirty little secret” -- fees that are added to a vehicle’s agreed-on price.Photo credit: MIKE HAMEL

LIndsay Chappell Automotive News October 13, 2008 - 12:01 am ET

Sunshine and sea breezes characterize the cozy auto retailing world of southern Florida. That and contempt for auto dealer Earl Stewart.


Stewart, 67, whose father was selling Pontiacs in West Palm Beach when Franklin Roosevelt was in the White House, is a pariah in his palm-treed world.

Hoping to make auto retailing more desirable for his children, he launched a public crusade against the document fees that many dealers tack onto sales contracts. Many of his retailing brethren, who say he is using the do-gooder campaign to sell more autos, wish he would just shut up.

Dealers across Florida are aghast that Stewart wants them to stop a practice he calls "their dirty little secret": charging $250, $500 or $1,000 on top of an agreed-upon sales price for vaguely labeled "dealer service fees" or "document processing fees."

But the white-haired owner of Earl Stewart Toyota in North Palm Beach does more than just want them to stop. He buys TV time to needle them about it. He runs print ads to call attention to it. He has created an Internet blog, http://www.earlstewartoncars.com/ , to vent about it.

Stewart is using his AM-radio talk show, www.seaviewam960.com/EarlStewart.asp to drum up consumer awareness of it. He is pressing the Florida Automobile Dealers Association to end to the practice.

And last year, he led a one-man campaign to get Florida's legislature to make the practice illegal. As a result, half a dozen dealers were put on the hot seat in state Senate hearings.
All of that effort was to no avail — except that most of Florida's auto industry elite are now irritated at him.

"I guess I'm not very popular with the other dealers around here," Stewart says. "I haven't lost any friends over this. My attitude is that the people who have dropped me weren't my friends to begin with."

Reflections

But if document fees were the whole story, Stewart would merely be part of a long-simmering consumer issue that flares up occasionally. For example, consumers in Missouri are suing dozens of dealers in that state and demanding dealer document fee refunds that could cost individual retailers millions of dollars.

No, Stewart's crusade is more personal.

Four years ago, at 63, Stewart found himself at the same frustrating crossroads as many other dealers. He presided over a prosperous dealership, just like the one he had taken over from his father. But Stewart's own children had no interest in taking over.

He turned to the oldest of his three sons, Stu. After majoring in anthropology at the University of Florida, Stu Stewart wanted to teach for a living. He also was interested in a career in Florida's luxury home business.

What is it, Stewart asked his son, that you don't like about the car business? His son was blunt, Stewart says: "He told me he thought car dealers sometimes have a dishonest image. And I had to admit he was right."


From left, Earl Stewart said sons Jason, Stu and Josh initially weren't interested in going into the car business. Stewart says Stu "told me he thought car dealers sometimes have a dishonest image." So he decided to alter his business practices to make the family business more appealing to them.Photo credit: MIKE HAMEL

Then Stewart had a scare. "I almost died," he says.

Pledge

Stewart was diagnosed with colon cancer. The cancer prompted him to take a hard look at his priorities. He decided to remake the auto industry — or at least his corner of it — into something more appealing to his sons.

He stopped tacking $495 dealer fees onto his customer contracts. He acknowledges that store profits initially dropped $200 a unit as a result, although they have improved since then. But a gratifying thing happened: More customers came into the dealership in response to his no-fee practice. Since dropping the fees, store volumes have more than doubled, he says.

In 2003, the last full year of charging fees, his dealership sold 2,039 new vehicles. In 2006, he sold 4,172 new cars and trucks. Through August 2008, he has sold 2,492 new vehicles.

He began to speak out publicly about what he believes is wrong with auto retailing. He recently railed in his blog about the sale of nitrogen tire refills as a deluxe service, decrying claims that nitrogen refills, at $25 a tire in some cases, are any better than ordinary air refills.

Many of his competitors have been baffled by his zeal. Even those who agree with him wish he wasn't making such a stink. Stewart is convinced that many of his critics who post anonymously on his blog are fellow Florida retailers. One of them recently chided him for criticizing his fellow dealers and of trying to be a "modern-day Robin Hood."

"The world doesn't need Robin Hood anymore," the critic told Stewart. "What we also don't need is a one-man show trying to run down every dealer on the planet for the good of his own profits."

Slander suit

In August, Stewart's campaign escalated into a courthouse fight over not only the document fee issue but his integrity. On Aug. 12, Stewart filed a lawsuit in Palm Beach County Circuit Court alleging that Ed Morse Honda in Riviera Beach slandered him in a radio ad over the issue.
The ad did not mention Stewart or his dealership by name. But according to the lawsuit, an announcer said that "a car dealer" claims in his ads that he doesn't add a "dealer fee," but "he packs the equivalent of a dealer fee — or more — in your price. Where you can't see it."
Ted Morse, CEO of Ed Morse Automotive Group and another pillar of the southern Florida industry, declined to discuss the ad, the lawsuit and Stewart's campaign in general.
Ted Smith, president of the Florida dealers association in Tallahassee, is willing to get into it. Smith's organization has been taking criticism from Stewart for years.

"Earl Stewart is a great auto dealer," Smith begins. "And I've had discussions with him about this. I've tried to make the point with him that, look, we've got enough problems with our image in this business without giving air to them in public.

"I'm glad that Earl adheres to positive pricing practices at his dealership. I applaud that. But I don't applaud him striking out at others."

What's the problem?

Smith and the Florida dealers association heartily defend the practice of adding dealer fees to sales contracts as customers wait in the dealership finance department. "It is legal and it is not a deceptive practice," Smith says.

Smith vows to fight any effort to end the practice or have legislation clamp down on it. He believes it will continue to roil the Florida industry as long as Earl Stewart continues to campaign about it.

Meanwhile, Stewart is measuring success by a different yardstick. His no-fee policy and his public stance on dealer habits helped draw his son into a management role at the dealership. Stu Stewart is now running the company's Scion operations. Stu's two younger brothers also have joined the business.

And three years after having colon cancer surgery, the elder Stewart reports that he is cancer-free.

"The general rule is that if you make it for five years, you've beaten it," he says. "But it sure puts your life in perspective. It makes you think about what you're doing and why you're doing it.
"I know a lot of guys out there depend on these dealer fees — especially right now when the economy is so bad. But I did away with them, and my business got better. I can be proud to talk to my kids about what I do for a living. That's important to me, and it's important to my sons."

How to Maximize Your Prius Fuel Economy - By Rick Kearney

If you own a Toyota Prius, one of the most important issues on your mind is most likely, “Why am I getting less miles per gallon than the car is rated for?”

The answer is actually quite complex. The solution is not.

The first point to remember is that the EPA mileage estimates are derived using pure gasoline. Consumer gasoline (that which is available on the open market for general use) contains up to 10% Ethanol. You can do nothing about this. EPA estimates are also done on a test track, not in “real world” driving situations. They do not take into account traffic, trains, weather, other drivers or the countless other factors we encounter in daily life.

Here are some tips to help maximize fuel economy. They are geared primarily for the Prius, but most work just as well on other cars.

Tip #1. Inflate your tires. Low tire pressure causes increased resistance and wastes fuel. Low tire pressure also causes excessive edge wear on your tires, shortening their life.

This sticker is located on the driver’s door opening. Note the recommended pressure is 35 front and 33 rear. This is the MINIMUM pressure that should be in your tires. On the sidewall of the tire is another number, 44 psi. This is the MAXIMUM pressure that should be in your tire. A tire with less pressure rides softer and uses more fuel. A tire with more pressure rides slightly harder and uses less fuel. Set your tires at 40 psi and watch your mileage increase!

Tip #2 Air Conditioning. Prius air conditioning uses electricity to turn the compressor, while conventional cars use a belt on the engine. When the compressor is running, it uses power. Power that comes from gasoline. Automatic air conditioning means the ECU (the computer) can turn the compressor off when less cooling is needed. Set your A/C to a level you find comfortable. 76 degrees is comfortable for most people. “Lo” temp setting runs the compressor much more and uses more power. Remember, everything that uses electricity uses more gasoline. The power has to come from somewhere! The gasoline engine supplies the electricity for everything on both Hybrids and Conventional cars. Headlights, radios, blower fans, all want their share of power.

Tip #3 Slow Down and Smell the Roses. Excessive speed uses more gasoline than anything else. “Jackrabbit” starts and hard acceleration combined with hard braking wastes fuel. Prius is designed to get the best economy in the city. Slow, easy acceleration means the car needs less electricity to get up to speed and therefore less gasoline. Coasting allows the gasoline engine to turn off and not use any fuel at all! Sitting at traffic lights, the gasoline engine will also shut off and save fuel. Driving at steady speeds between 30 and 40 mph allow Prius to opportunity to make use of the electric motors and not use the gasoline engine for additional power.

Tip #4 Avoid little trips. Some people tend to drive only 1-2 miles to the store then the car sits for an hour or more. Then they drive 1-2 miles home again and again the car sits. These trips do not allow the gasoline engine to be run to operating temperature. Therefore, the engine is never shut off during the travel times! Plan your trips to make them in one big circle. Make the best use of Prius’ capabilities.

Tip #5 Lighten the Load. The more weight you carry in the car, the more gasoline needed to move it down the road. Do you really need those golf clubs every day? What about that bag of clothes you will take to the Goodwill someday soon? Every little bit helps.

Tip #6 Oil Changes. Dirt doesn’t weigh very much. Dirty oil, however, weighs more than you think. Old oil has collected dirt from your engine and holds most of the small particles in suspension. Changing your oil can improve your fuel economy. Regular maintenance is important.

Try these tips and track your fuel mileage the proper way. Fill your tank and record the mileage on the odometer. Drive until empty then refill and record the mileage again. Calculate how many miles driven divided by the number of gallons of gasoline pumped. That is your proper mileage. Get 6-8 readings and find the average. Remember to always stop pumping fuel when the pump clicks off. Do not top it up. Be consistent.
And always remember to drive safely!

-Rick Kearney is one of three Toyota Certified Master Diagnostic Technicians at Earl Stewart Toyota and the dealerships Resident Hybrid Genius. Rick travels with Earl regularly on the Lecture Circuit dispensing advice and answering questions for Florida consumers about their vehicles. Rick is now in the process of training Palm Becah County first responders about hybrid vehicles so they may safely conduct their rescue operations.

Nitrogen and Shark Cartilage

It’s been one year since Chuck Cohen, director of Palm Tran, Palm Beach County’s bus transit system, announced that he was testing the effectiveness of filling his bus tires with nitrogen instead of air.

At that time, he said the tests would take up to a year, and he promised to share the test results with me and everybody else.

Readers of this blog and my Hometown News column are familiar with two previous articles I wrote on nitrogen in tires: “Don’t pay for nitrogen in tour tires” and “Nitrogen scam foisted on Palm Tran.”

You can read or re-read both of those articles by clicking on my blog, www.EarlStewartOnCars.com (or go to the archives section on HTN’s Web site).
I also posted the “Consumer Reports” article, “Tires-Nitrogen air loss study,” from Oct. 4, 2007 on www.EarlStewart.com (click on nitrogen-filled tires information).

This one-year study is the strongest, most authoritative proof that there is no measurable advantage to using nitrogen instead of regular air in your tires.

I sent Chuck Cohen three e-mails, beginning last March, asking him for any information he might have about the results of his testing. I received no replies until he finally answered my last e-mail this morning, Sept. 12. He wrote, “I will get back to you in the next day or so with a longer response.”

I received the below e-mail from Mr. Cohen, just before the deadline for this column. It’s now clear to me why he did not answer my e-mails but it’s not clear why he did not publicly announce the six-month delay in testing as he did the earlier erroneous date.

“Sorry for any delay in getting back to you, but as you are probably aware, we had several major things going on over the last week or so, including a fare hearing on our proposed fare increase for our paratransit service, that had to take precedence.

“While we did publicly announce that we were going to be testing the use of nitrogen in 2007, the actual testing did not begin until 2008. That was due to a delay in getting the nitrogen units installed in our North County (WPB) facility until January 2008.

“Our fleet conversion then took approximately 30 days and our testing began in February 2008. Our current plans are to complete our testing by the end of January 2009.
“I will insure that you get a copy of the test data when the test is done and our results are written up. Thanks for your continuing interest in this project.”

I responded by asking Mr. Cohen the following four questions:

• When you “publicly announced” that testing would begin in September 2007 and would be completed within a year, why didn't you also publicly announce that testing was being delayed for six months?
• I e-mailed you in March asking you about the testing results while still under the impression, as was the public that the tests were in process. I e-mailed you two weeks ago, asking the same question and a third e-mail one week ago. Why did you not respond to my e-mails until last Friday?
• When will your tests that commenced last February be completed?
• Will you advise the public and me if you delay the testing again?

Remember that this test is being conducted at an approximately $65,000 taxpayer expense and it is being conducted months after the “Consumer Reports” study was already published.
There was another article in “The New York Times” within the last year that came to the same conclusion about nitrogen in tires being worthless. The author, Tim Moran, has asked me to keep him posted on the developments with Palm Tran.

In an e-mail from Tim this morning, he suggested that, in addition to profit, one of the reasons so many car dealers are selling nitrogen is that they believe it does customers’ tires no harm.
I e-mailed him back and said, “What these folks don’t understand is that there is a detrimental effect when you make people believe in a product that doesn’t work. Item No. 1 in your list is that ‘it does no harm.’”

Drivers should really check their air pressure at least monthly, but with the “magic nitrogen” in their tires, they probably won’t feel it’s necessary.

Shark cartilage is “harmless too,” unless you don’t see your doctor regularly for checkups because you believe you can’t catch cancer.

I checked with four different car dealers to see what they are charging for putting nitrogen in tires.

John Pierson Toyota of Stuart charges $50. They used to have an addendum label on all of their cars with a charge of $199 for nitrogen. I guess that was a little more than people were willing to pay.

Schumacher Infiniti and Royal Palm Toyota both charge $39.95 and Maroone Toyota in Fort Lauderdale charges $37.95.

Tire Kingdom is also pushing nitrogen and it appears as if most car dealers in South Florida are selling it, too.

One of the reasons I’m pressing Chuck Cohen, Palm Tran and Palm Beach County government officials for justification of using nitrogen in bus tires is the fact that their using nitrogen adds legitimacy to all of these service departments that are peddling a worthless product to you, the consumer and tax payer.

If Palm Beach County government officials give their tacit endorsement of nitrogen by continuing to use it in their bus tires, you can bet that every seller of nitrogen in Florida will tout this as absolute proof that nitrogen in tires gives better gas mileage and longer tire wear.