Consumers are conditioned to look at the posted invoice price (or MSRP) of a car and assume that’s what the dealer paid for it, or that is fair and true price. Wrong. Manufacturer money, hidden money, is a game changer: No. 1, the Dealer holdback: This is money the manufacturer pays to the dealer only after a…
In 2015, financial results for the six publicly traded, new-car dealer groups in the United States showed that dealerships are in the business of selling cars so they can service them and finance them. Compared to the new-car department, gross profit margins for dealerships are much higher for service and parts, where they may have…
The California Vehicle Code states all California car dealers must post notice of the consumer’s right to have any vehicle for sale inspected by third party. (Vehicle Code §§11709.1 and 11609.5.) Nevertheless, Carmax, one of the largest used car sellers in the state, has been refusing to allow consumers to have cars inspected. Know your…
AAA has come out with a warning for buyers of Certified Pre-Owned vehicles: Buyers Beware! Go to NHTSA.gov/recalls to find out if your CPO is recalled for a safety defect. The manufacturer’s and dealers MAY NOT TELL YOU, and they may even be knowingly advertising recalled vehicles as CPOs! Check out Peter Bohr’s expose in…
In the recent case, Medina v. South Coast Car Company, Fourth App. Dist., Div.5, 2017 DJDAR 939 (Sept. 25, 2017), a California Court of Appeal affirmed a trial court’s judgment that Veros Credit, the lender on a fraudulent car sale, was held responsible for consumer damages and attorney’s fees through the “holder clause” that is…
We are continually told by consumers that dealerships are required to run their credit, even sometimes claiming anti-terrorism laws require this! Not true. Some anti-terrorism and anti-money laundering rules require dealers to CHECK THE IDENTIFICATION of customers paying more than $10,000 in cash and to report to the IRS on Form 8300. BUT DEALERS DO…
The closely watch case, Yelchin v. FCA US LLC, about the tragic death of Star Trek actor Anton Yelchin, has a new development. FCA will have to turn over documents regarding the allegedly defective gear shifter in the Jeep Grand Cherokee. These documents may show what, if anything FCA did after receiving over 700 complaints…
Unless sold “As-Is,” all cars come with a warranty of fitness that is implied by law. Was the car frame-damaged or had some other latent defect at the time of sale? The implied warranty protects you. But for how long? Recent case law developments have clarified that, under the Song-Beverly Consumer Warranty Act, the lemon…
Effective January 1, 2018, sleazy car dealers and other bad actor businesses can no longer attack consumers based on their immigration status as a defense to consumer rip-offs or consumer abuse by their business. AB 1690 was just signed in to law by Govenor Brown. The impetus for the bill was a case where a…
More than 800,000 people with car loans from Wells Fargo were charged for insurance they did not need! These extra charges reportedly drove 25,000 cars into repossession and 274,000 into delinquency. Many members are military service members. If this happened to you, contact a consumer-protection lawyer immediately! Here is what appears to have happened: when…
