If there are fewer places around where you can buy a Cadillac, will that make the brand seem more luxurious and precious? That’s not really why General Motors has offered to buy out the franchises of 400 of its dealers that sell Cadillacs, but maybe it will help make the brand seem more exclusive, like its weird brand experience café/art gallery in Manhattan. [More]
Lawsuit Claims Honda Refuses To Fix Vehicles With Soy-Coated Wiring That’s Irresistible To Hungry Critters
If a car’s insides are an appealing snack for mice, squirrels, and rabbits, should the company that made the vehicle pay to fix the soy-coated wiring when those critters throw themselves a feast? The plaintiffs in a lawsuit filed against Honda think so, and say the carmaker is refusing to pick up the tab for repairs. [More]
Is taking a car for a brief spin around the neighborhood enough time to convince you to buy it? If not, Buick thinks it’s got just the solution for you, announcing a new program that allows drivers to leave their car at the dealership and take a Buick out for an entire day.
Back in March, federal regulators teamed up with their Canadian counterparts to crack down on auto dealers’ deceptive, fraudulent practices. While that operation culminated in six enforcement actions resulting in more than $2.6 million in judgments and consumer refunds, that wasn’t enough for the Federal Trade Commission, as the agency has now charged two Las Vegas auto dealers with similarly misleading practices. [More]
Even though only a few dozen Teslas have been sold to people in Michigan, and even though the electric vehicle maker has no storefront display operations in the state, the home of America’s auto industry has decided it needed to pass a law actually banning carmakers from selling automobiles to Michigan consumers without first going through a franchised dealership. [More]
Take a look at the ad to the left promising $12,000 off MSRP for a 2013 Ford F-150. That’s a heck of an offer for a truck that starts at around $24,000. But what you don’t see — and what you don’t find out until you try to buy the vehicle — is that the discount only applies to the $47,000 F-150 Lariat version, so instead of getting a 50% discount on a reasonably priced new truck, you learn that it’s around a 25% savings on a high-end vehicle. [More]
Customer service surveys at car dealerships must be serious, serious business. That’s the only conclusion I can draw from Bob’s story about being bullied by the Ford dealership where he bought his Fiesta. They called him up to say that if he planned to rate his (unsatisfactory) service experience as anything but satisfactory, he would be hurting the dealership and practically stealing money out of employees’ pockets and yanking food out of their kids’ mouths. If he didn’t say nice things, the service manager insinuated, the dealership might decide not to service his car at all.
In the second of a three-part series on “Buy Here Pay Here” dealerships, used car lots that target subprime borrowers with easy credit and triple the national average interest rates, the Los Angeles Times looks at how private equity firms have flocked towards the growing industry, lured by 38% margins.
The Los Angeles Times has an excellent investigation into the national “Buy Here Pay Here” auto dealership phenomenon. These used car sellers purposefully target bad credit borrowers and offer them what no one else will: the chance to buy a car on credit. All they have to do is agree to 20-30% interest rates, a price well above the car’s Blue Book Value, and aggressive repo practices if they fail to pay up. But it’s not a big deal if they don’t. Borrower failure is baked into the business plan.
With the economy in the dumps, used car dealers are having to get creative with the trade-ins. There’s long been used car dealers advertising they’ll take any trade that’s “push, pulled, or dragged.” One dealership is adding trots to that phrase, as they’re now accepting horses.
No wonder car salesmen get a bad rap: it’s very much deserved! At least that’s according to a new report by the Consumer Federation of America of the top 10 consumer complaints. “Misrepresentations in advertising or sales of new and used cars, lemons, faulty repairs, leasing and towing disputes,” top the list. It’s almost enough to make you want to switch to a velocipede!
You get into the seats, place your hands on the wheel and sniff. That’s not new car smell you’re getting, but the faint notes of incinerated tobacco leaves. Perhaps they’re peaking out from a cloying cloud of freshener, like a bra strap from a tank top. Dangit. You thought you found a good contender and wasted all this time to come out and check the car out, and now it turns out someone used to smoke in it. Reader Ethan wonders if this isn’t something that dealers should have to disclose, or at least something that should show up on CarFax.
A man who upset over getting sold a lemon by a dealership decided to vent his rage in an unusual fashion. After the salesman wouldn’t accept a return, the man waited until midnight and then drove back to the dealership. Then he revved the engine and began smashing it into the cars on the lot.
An actor who pitches Honda cars in their ads says he got screwed over by a Honda dealership when he tried to get the very same deal he helps sell on TV.
Police are seeking criminal charges against two car salesmen who sold a 67-year-old wheelchair-bound man with dementia a new truck. He died later that day after suffering a heart attack, following a high-speed chase with police in his new vehicle.