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FTC's CARS Rule will require dealers to provide additional transparency in vehicle pricing, F&I add-ons CLICK HERE https://bit.ly/44aESeI #glenviewfinance #subprimefinance #usedcardealer #autofinance #creditbuilder #independentdealer

The Federal Trade Commission (FTC) has announced the CARS (Combating Auto Retail Scams) Rule to combat deceptive practices in vehicle shopping, targeting issues like bait-and-switch tactics and hidden fees. This rule, effective from July 30, 2024, requires dealers to clearly disclose the full price of a vehicle, inform consumers about total payments, and ensure that any add-on products or services are optional and provide actual benefits to the consumer. Dealers must also obtain express, informed consent for any charges. PoWĂ Cars, with its focus on transparency and customer service through its AI-driven platform, could help auto dealerships comply with these new regulations. By offering clear and honest communication, detailed information on pricing and services, and streamlining the purchasing process, PoWĂ Cars aligns with the FTC’s emphasis on truth and fairness in the car buying process. This compliance not only benefits consumers but also positions dealerships as trustworthy and customer-centric, adhering to the new legal standards set by the CARS Rule. Interested? Let's talk! Read more at: https://lnkd.in/gs_zKFys

It's an eventful day courtesy of the FTC - the FTC finalized its Combating Auto Retail Scams (CARS) Rule today that makes it illegal for a dealer to make misrepresentations about certain topics that would affect a consumer’s buying or leasing choices - see https://lnkd.in/g9AKsTsq   The FTC has created new guidance for consumers to help them understand their rights when they buy a vehicle once the rule goes into effect. See https://lnkd.in/gqVXMZm6   The FTC has also created guidance on the CARS Rule for auto dealers, including a website with frequently asked questions and other advice as dealerships prepare for the rule to take effect. See https://lnkd.in/g6DciGdP   Infographic about the CARS Rule: https://lnkd.in/gwx3HYxu   Blog post about the CARS Rule: https://lnkd.in/gGRgj8nC   The CARS Rule will take effect on July 30, 2024.

#MobilityMonday: Consumer protection CARS Rule put on hold, the latest in a string of pushbacks against Big Auto Originally slated to go into effect tomorrow — July 30 — the Combating Auto Retail Scams (CARS) Rule is a framework put in place on Dec. 12, 2023, by the Federal Trade Commission (FTC) to ensure more transparency in the car buying and leasing process. On Jan. 4, the rule was iced following judicial challenges by the National Automobile Dealers Association (NADA) and the Texas Automobile Dealers Association. In April, more than 100 national and state consumer protection organizations, led by the Consumer Federation of America, sent a letter to Congress in support of upholding the CARS Rule (see https://bit.ly/3StQ573). Buying a car is stressful enough as is. Add in shady salesmanship practices trying to extract as much cash as possible from uninformed buyers, and you get a classic example of the Lemons Problem: information asymmetry between the buyer and seller of a product (see https://lnkd.in/dQKnyxJC). The CARS Rule is meant to outlaw some of the most dubious tactics, such as selling redundant warranties, misrepresenting financing options, and banning the monetization of add-ins that provide no value. Under the rule, dealers would be required to tell you the true “drive-off-the-lot price” for the vehicle. But the CARS Rule is only one example among a string of regulatory and judicial pushbacks to the automotive retail industry’s immense power, or as some might argue, stranglehold. Last week, a judge certified an antitrust class action lawsuit against CDK Global, the leading auto dealer software (see https://reut.rs/4fr0kTh). Vendors that create apps for inventory management, repair orders, warranty services and other functions for dealer management systems like CDK are seeking nearly $400M in damages. This comes a month after CDK was downed by a cyberattack impacting 15k dealerships across North America, costing almost $1B in economic losses (see https://lnkd.in/dGKM4K_2). On Friday, two US senators called on the FTC to investigate automotive OEMs for deceptively selling vehicle data (see https://bit.ly/4fmOp90). The complaint alleges that OEMs used deceptive tactics to manipulate customers into allowing their vehicle data to be sold to data brokers. All this for fairly meager sums, with Hyundai Motor Company (현대자동차) allegedly selling data from 1.7M vehicles for $1M and Honda from 97k vehicles for a grand sum of $26k. What’s clear is that trust between consumers and the automotive industry is close to rock bottom, a trendline that doesn’t bode well as the information asymmetry introduced by EVs continues to upend the car purchasing experience and associated considerations, as well as the entire aftermarket value chain. #automotive #cars #retail #dealerships #NADA #FTC #consumers #CDK #Hyundai #Honda

A new rule could protect consumers from at least some hefty fees while car buying — and they’re some of the most frustrating add ons. The Federal Trade Commission recently finalized the Combating Auto Retail Scams. This combats illegal and unexpected tactics that dealers often spring on customers at the last minute. There’s the “bait and switch” tactic, for example, when a customer decides on a car and the dealer suddenly notes that the vehicle isn’t available and tries to sell a more expensive one. The rule is expected to save consumers $3.4 billion annually. This rule is coming at especially auspicious time. Consumers continue to face unpredictable fluctuations in the car market — high prices, high interest rates, and high borrowing costs. And yet, owning a car for many Americans remains an inarguable necessity. This is one measure that could make the purchase a bit more palatable. That’s a start. #cars #carsales #carprices #interestrates https://lnkd.in/e6WWvHX7

Dear Gettel Automotive Group, I'm reaching out to highlight my car purchase experience in the hope of finding a fair resolution. Rebuilding life after almost two decades in federal prison was an immense challenge, and securing a car was a crucial step toward my path to independence. Regrettably, my interaction with your dealership turned into a frustrating encounter due to what's known as a "yo-yo" car sale. Despite making a substantial down payment (roughly $5000) and driving away with a vehicle, I found myself ensnared in unforeseen financing issues. These complications led to an alteration in the initially agreed-upon interest rate (around 16-17%), significantly burdening my financial situation (ending at 23.8% interest). The recent initiative by the Federal Trade Commission (FTC) introducing the Combating Auto Retail Scams (CARS) Rule comes as a glimmer of hope for consumers like me. This rule aims to shield individuals from the perils of deceptive practices in the car purchasing process. Gettel Automotive Group, I'm seeking a fair resolution that echoes the principles outlined in the CARS Rule. Transparent pricing, equitable negotiations, and ethical conduct in business dealings are fundamental values I stand by. I'm eager to engage in a productive conversation to address the challenges I encountered during my purchase at your dealership. A fair resolution mutually beneficial to both parties will not only support my journey but also affirm a commitment to ethical business practices. Your attention and willingness to address these concerns are greatly appreciated. #FTCRule #ConsumerRights #CarBuying #InterestRates #FairDeal #GettelAutomotiveGroup Nissan Motor Corporation Sincerely, Joshua Boyer

Lots of practical lessons here to ensure your process doesn’t fall into the purview of the FTC especially as dealerships are attempting to sell more vehicles outside their PMA.

🚘 Significant Industry Update: FTC's CARS Rule Redefines Auto Retail 🚨 The auto industry is at a pivotal juncture with the Federal Trade Commission's (FTC) introduction of the CARS (Combating Auto Retail Scams) Rule. This stringent regulation goes beyond mere consumer protection to fundamentally alter dealership operations and marketing practices. Critical Changes Brought by the CARS Rule: 1. Transparent Pricing: The rule mandates upfront disclosure of vehicle pricing, eliminating "unlock price" or "call dealer" tactics. Every initial consumer communication about a specific vehicle must now include its price. 2. End of Misleading Advertising: Gone are the days of speed-reading disclosures, "view details," or fine print in advertisements. Dealerships must present clear, straightforward pricing without any hidden conditions. 3. Prohibition of Advertising Unavailable Vehicles: Dealers can no longer list vehicles for sale that are not actually available, ensuring consumers see only genuine offers. 4. Strict Record Retention Policies: Dealerships are required to maintain comprehensive records going back 24 months, adding a layer of accountability to their operations. 📑 The FTC has received more than 100,000 complaints in each of the past 4 years. These regulations represent a sweeping change, ensuring that consumers face a more transparent and straightforward car buying experience. The CARS Rule is not just about preventing scams; it's about instilling a culture of clear communication and trust in the auto industry. Industry Implications: This significant shift may pose challenges for dealerships in terms of compliance and operational adjustments. However, it ultimately levels the playing field, benefiting both consumers and ethical dealers by fostering a more transparent market. 🔍 For more details on the CARS Rule and its comprehensive impact, visit https://lnkd.in/gVJc3nyG #AutoIndustry #FTCCARSRule #Transparency #ConsumerProtection #AutomotiveRegulations #AutomotiveChange #RegulatoryCompliance Tom Kline ☎🐙 Brian Pasch, MA Andrea Amico John Acosta Dan Moore Troy "Turbo" Spring

 A recent CDK Global system outage has left nearly 15,000 car dealerships across North America scrambling to provide services to customers, impacting sales, registrations, and overall operations. Dealerships, like Mazda in Seekonk, Massachusetts, are facing significant financial impacts, with recovery expected to take months or even years. This incident highlights the critical importance of robust and reliable software systems in the automotive industry. Read more on how dealerships are navigating these challenges and what this means for the future of automotive retail. https://lnkd.in/gXQj635K

Reminder to dealership owners and managers: The new CARS Rule takes effect in July 2024. Have you read it yet? It's essential to take a moment and do so. For reputable dealers, it shouldn't change much, but it's a good thing if it does change the process of others. The rule is clear: no lying to customers, withholding rebates, or hiding the true total price to purchase. Make sure to disclose all the terms of the TILA section, and don't hide fees or add worthless items to an addendum tag. The law will also address the old-school practices of having a “back-up” contract (RISC), using dealer license plates to “lend” a vehicle to a customer to avoid title and DMV laws, packing payments, hiding ancillary products, etc. In other words, do business the right way, and remove the offenders from your stores or face the consequences of their actions. Lastly, claiming ignorance and deflecting blame to the scapegoat will no longer get you off the hook. Stores large and small, urban and rural, will be fined and shut down. You have been warned. Let's work together to make the car-buying experience transparent and honest for everyone involved. #Transparency #Honesty #AutomotiveIndustry