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…

201710.10
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What if your Car Can’t be Repaired: Service Contract Breach

Often consumers call when their vehicles are no longer covered by the manufacturer’s factory warranty, but are covered under a “service contract.” Under Civil Code Section 1794(a), consumers can pursue a Court case if they are “damaged by a failure to comply with any obligation under [a]… service contract.” This is not a claim for…

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…