Hillel Zand’s Post

A story recently went viral regarding a dealership selling a car out from under one buyer to satisfy another buyer - whom they had *also* sold the buyer's target purchase out from under. It's the story of a military veteran, the CEO of Dodge himself, and even Jay Leno - I trust that gives you enough to search for, but if not, I'll link the story in the Comments. Have you ever gone in to purchase a car and been told that if you'd agree to buy an extended warranty, the dealer is willing to buy down the interest rate on your loan? That, friends, is outright illegal. But so very common. The Federal Trade Commission made a change to its Safeguards Rule recently that caught automotive dealers off-guard; the changes were prudent, rational, and consistent with operational practices every organization should have long been employing - but the automotive retail industry was struck by the FTC's Eye of Sauron being aimed directly at them. And so it's happened again as the FTC has announced its Combating Auto Retail Scams Rule. As before, it seeks to prohibit, through regulation, unethical behaviors that, frankly, shouldn't need governmental intervention to curb. Highlights of the CARS Rule: 1️⃣ Explicit consent must be obtained by the consumer for any charges associated with the purchase. 2️⃣ No retailer may pitch a consumer on add-ons for which there is no immediately apparent value. 3️⃣ Details of the purchase must not be in any way misrepresented. 4️⃣ Pricing must be transparent; for example, when discussing monthly payments, the retailer must not obfuscate the purchase price of the vehicle. For more about the CARS Rule, see https://lnkd.in/gggBENNf I've bought a lot of cars and can wax philosophic about the ways one can be a more informed, defensive consumer when on the hunt for what is, most commonly, the largest purchase one makes outside of real estate. The CARS Rule shouldn't be necessary, but it's here and it promises to shake up the way automotive retailers advertise, sell, and operate. ...The ones that want to survive, at least. 🚗 🚙 🚕 As a Car Nut, I try to keep my eye out on trends related to the hashtag #automotive and hashtag #automotivetech space. From the electric vehicle revolution (or for some, never-lution) to what's going on with the latest performance cars coming to the market, I'll share my hashtag #hottake and welcome you to weigh in as well.

A KPA survey revealed widespread consumer distrust towards car dealerships, with many reporting deceptive sales tactics, hidden fees, and pressure to buy unnecessary add-ons. Shockingly, 76% of respondents don't trust dealerships to be honest about pricing. This skepticism is fueled by experiences of dishonesty and a lack of transparency, with significant concerns about hidden fees and the clarity of vehicle pricing. The survey suggests a pressing need for dealerships to adhere to regulations and foster a culture of transparency and honesty to regain consumer trust. In light of these findings, one must ponder: In what ways can dealerships rebuild trust with consumers in an era of skepticism? #ConsumerTrust #DealershipTransparency #AutomotiveIntegrity

Auto Retailers Force FTC to Postpone "CARS" Rule Implementation https://bit.ly/49dEgrK #glenviewfinance #subprimefinance #usedcardealer #autofinance #creditbuilder #independentdealer

Dealers Successfully Force The Feds To Temporarily Back Down On Banning Shady Junk Fees Image: David Zalubowski (AP) Junk fees plague industries like hotels and airlines and end up costing consumers billions every year in add ons, “administrative fees” and other overpriced nonsense. The fees really come out of the woodwork at car dealerships, it seems. While it was enough of a problem for the federal government to take notice, things have changed in favor of dealers. Ford Wants to Sell EVs Online First spotted by Motor1, the Federal Trade Commission paused a ban on dealer junk fees that were originally set to take effect this summer. The ban comes after the National Automobile Dealers Association protested the move by filing a petition. The ban was a long time coming. After watching and receiving complaints about dealer fees over the last decade, the FTC decided to take action. In a 126 page proposal, the agency set out to target and ban four main tactics/behaviors that dealers use to get over people. One of those were junk fees. The rule would have cracked down on things like doc fees, markups disguised as protection packages and non negotiable add ons. The official set of rules was dubbed Combating Auto Retail Scams (CARS) and was announced in December 2023. Dealers naturally protested losing their fat slice of money cake. How are they going to continue to screw people over if the feds block these fees? So both the National Automobile Dealers Association and the Texas Automobile Dealers Association pushed back by filing a petition in the Fifth Circuit Court of Appeals. The whole point was to tie up the rule in court so it won’t be implemented come its July 30 deadline, which is exactly what happened. The court has agreed to hear the petition. The issue, as Motor1’s (and friend of Jalopnik) Victoria Scott points out, is if the FTC even has the legal authority to enact the rule. The main issue in the legal battle is whether the law is actually within the FTC’s jurisdiction to impose. The dealership groups, in the petition to the Fifth Circuit, called it “an abuse of discretion” and seek the court to block its implementation. The FTC maintains that the rule “does not impose substantial costs, if any” on law-abiding dealerships, and instead simply guarantees a more even playing field for both dealerships and consumers by eliminating junk fees and hidden costs. Even though the dealers are getting what they want by interrupting implementation of the rule, the order for the postponement says that it could still take effect. So while dealers may be celebrating this result, they’re likely only delaying the inevitable. The post Dealers Successfully Force The Feds To Temporarily Back Down On Banning Shady Junk Fees appeared first on varia Pulse. https://ift.tt/PUld4tr varia Pulse

The shopping expierence has shifted over the last 5 years, consumers are wanting more. More transparency, honesty, connection and feeling like they belong there. One industry that appears to be struggling with connection and perception is automotive, specifically car dealerships. We will pose Matt's question here because we would love to hear your thoughts. How can dealerships rebuild trust with consumers in an era of skepticism? #consumerinsights #customerexperience #automotive #automotiveindustry

Car dealers got hacked In recent news, a significant cyberattack has affected over 15,000 car dealerships across North America, causing widespread disruptions to their operations. The attack targeted CDK Global, a software provider to auto dealerships, which has left many dealerships unable to conduct sales, manage inventory, or access critical systems. What Happened The cyberattack, which occurred on June 18, 2024, was carried out by a group of hackers demanding tens of millions of dollars in ransom to cease their activities. CDK Global, which provides critical software to car dealerships, including sales platforms and dealer management systems, has been working to restore its systems, but the process is expected to take “several days.” Impact on Dealerships The attack has caused significant disruptions to car dealerships, with many forced to resort to paper-based processes for record-keeping and administration. Some dealerships have even halted operations altogether, leaving customers waiting for their vehicles to be serviced. Affected Dealerships The affected dealerships include those under General Motors, Group 1 Automotive, and Holman, among others. Sonic Automotive and Penske Automotive have also reported significant operational disruptions due to CDK’s ongoing outage. CDK’s Response CDK Global has been working with third-party experts to assess the impact of the cyberattack and provide regular updates to affected customers. The company has emphasized its commitment to reinstating services and supporting dealers through this challenging period. Timeline June 18, 2024: The cyberattack occurred, affecting CDK Global’s systems. June 20, 2024: CDK Global informed its customers and the media about the cyberattack. June 21, 2024: CDK Global began restoring its systems, but the process is expected to take “several days.” June 22, 2024: The cyberattack was reported to have affected 15,000 auto dealerships across the U.S. and Canada. June 24, 2024: CDK Global continued to work on restoring its systems, with the process expected to take several more days.

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I had a great conversation with Kaitlyn Luckoff at Automotive News about KPA's Dealership Trust Survey. KPA's survey found a gap between the perception and reality of car buying: few Americans experience dishonest selling at car dealerships, but most Americans still distrust them. KPA helps over 15,000 auto dealers across the country build a culture of trust and compliance to earn car buyers' dollars, and prepare for the upcoming CARS Rule. Read Kaitlyn's story to learn more about our survey and what it means for auto dealers & their customers. #autodealers https://lnkd.in/ez-CRuWD

What are some of the most pressing legal issues facing the automotive industry this year? Read a summary of the Top Legal Challenges for the Automotive Industry in 2024 by ArentFox Schiff. 1. 𝐅𝐓𝐂 𝐂𝐀𝐑𝐒 𝐑𝐮𝐥𝐞 The FTC's Combating Auto Retail Scams (CARS) Rule targets bait-and-switch tactics and hidden junk fees, with implementation delayed pending a court decision on the NADA/TADA Petition for Review. 2. 𝐎𝐧𝐥𝐢𝐧𝐞 𝐒𝐚𝐥𝐞𝐬 Consumer demand for online vehicle purchases is rising, exemplified by Amazon's 2024 partnership with Hyundai, necessitating a balance between online convenience and traditional in-person buying preferences. 3. 𝐃𝐢𝐫𝐞𝐜𝐭 𝐭𝐨 𝐂𝐨𝐧𝐬𝐮𝐦𝐞𝐫 𝐒𝐚𝐥𝐞𝐬 EV manufacturers like Tesla and Rivian challenge state dealer franchise laws, with some states easing restrictions and others tightening them, creating a fragmented regulatory landscape. 4. 𝐀𝐮𝐭𝐨𝐧𝐨𝐦𝐨𝐮𝐬 𝐕𝐞𝐡𝐢𝐜𝐥𝐞𝐬 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧 Significant regulatory changes for autonomous vehicles (AVs) are expected in 2024, with new state laws like California's SB 915 increasing oversight and compliance requirements. 5. 𝐄𝐥𝐞𝐜𝐭𝐫𝐢𝐟𝐢𝐜𝐚𝐭𝐢𝐨𝐧 𝐚𝐧𝐝 𝐄𝐕 𝐈𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞 The White House's aggressive EV mandates face challenges with low sales, range anxiety, and high prices, with recent EPA rule adjustments giving manufacturers more time to meet emissions targets. 6. 𝐏𝐫𝐨𝐟𝐢𝐭𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐚𝐧𝐝 𝐑𝐞𝐝𝐮𝐜𝐞𝐝 𝐆𝐫𝐨𝐬𝐬𝐞𝐬 While 2024 profits are expected to be lower than the COVID-19 peak, they remain above pre-pandemic levels, with dealers managing inventory and profitability effectively despite EV challenges. 7. 𝐃𝐞𝐚𝐥𝐞𝐫𝐬𝐡𝐢𝐩 𝐕𝐚𝐥𝐮𝐚𝐭𝐢𝐨𝐧 Dealership valuations remain high due to steady profits, retiring dealers, and investor interest, though EV market dynamics pose future risks, with varying trends among different brands. Link to the whole: https://lnkd.in/exsnXuga

Car Dealerships In North America Revert To Pens and Paper After Cyberattacks: An anonymous reader quotes a report from the Associated Press: Car dealerships in North America continue to wrestle with major disruptions that started last week with cyberattacks on a software company used widely in the auto retail sales sector. CDK Global, a company that provides software for thousands of auto dealers in the U.S. and Canada, was hit by back-to-back cyberattacks Wednesday. That led to an outage that has continued to impact operations. For prospective car buyers, that's meant delays at dealerships or vehicle orders written up by hand. There's no immediate end in sight, with CDK saying it expects the restoration process to take "several days" to complete. On Monday, Group 1 Automotive Inc., a $4 billion automotive retailer, said that it continued to use "alternative processes" to sell cars to its customers. Lithia Motors and AutoNation, two other dealership chains, also disclosed that they implemented workarounds to keep their operations going. [...] Several major auto companies -- including Stellantis, Ford and BMW -- confirmed to The Associated Press last week that the CDK outage had impacted some of their dealers, but that sales operations continue. In light of the ongoing situation, a spokesperson for Stellantis said Friday that many dealerships had switched to manual processes to serve customers. That includes writing up orders by hand. A Ford spokesperson added that the outage may cause "some delays and inconveniences at some dealers and for some customers." However, many Ford and Lincoln customers are still getting sales and service support through alternative routes being used at dealerships. Group 1 Automotive Inc., which owns 202 automotive dealerships, 264 franchises, and 42 collision centers in the U.S. and the United Kingdom, said Monday that the incident has disrupted its business applications and processes in its U.S. operations that rely on CDK's dealers' systems. The company said that it took measures to protect and isolate its systems from CDK's platform. All Group 1 U.S. dealerships will continue to conduct business using alternative processes until CDK's dealers' systems are available, the company said Monday. Group 1's dealerships in the U.K. don't use CDK's dealers' systems and are not impacted by the incident. In regulatory filings, Lithia Motors and AutoNation disclosed that last week's incident at CDK had disrupted their operations as well. Lithia said it activated cyber incident response procedures, which included "severing business service connections between the company's systems and CDK's." AutoNation said it also took steps to protect its systems and data -- adding that all of its locations remain open "albeit with lower productivity," as many are served manually or through alternative processes. Read more of this story at Slashdot.