201711.15
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Landmark Study and Call to Legislative Action: Car Dealership Add-Ons Hurt Consumers

The National Consumer Law Center has issued an important study on the high costs and discriminatory practices of car dealerships. The NCLC is calling for legislative actions to protect the consumer public.  (NCLC Publication, October 2017: “Auto Add-Ons Add Up:  How Dealer Discretion Drives Excessive, Arbitrary and Discriminatory Pricing.”) The Car Dealership Industry claims the…

201711.14
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Top Ten Lemons of 2017: Consumer Report’s List of the Least Reliable

If you have one of these lemon vehicles, you may need the help of a lemon lawyer. Here is the list of the most troubled as compiled by Consumer Reports: 10) Chevy Camaro — transmission, drive system, 9) Mercedes GLC– brakes, steering, 8) Jaguar F-Pace — drive system and electronics problems, leaks, 7) GMC Acadia…

201710.04
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The Shocking Truth About How Car Dealers Make Their Profit (Part Two): Dealer Holdbacks, Dealer Cash, Trade-Ins

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…

201710.04
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The Shocking Truth About How Car Dealers Make Money: Off of Servicing Your Vehicle, Arranging Your Financing, and Selling You “Extended Warranties” and other F&I Products

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…

201710.03
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Carmax Fraud: Refusals to Allow Independent Inspection

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…

201709.29
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Hot Topic: Buying Used Cars with Safety Recalls: Carmax and other Franchise Certified Pre-Owned Problems

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…

201709.29
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Car Dealer Fraud? Did You Know the Lender / Finance Company Is on the Hook for the Consumer’s Damages and Attorney’s Fees?

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…