News: Feds targeting deceptive auto dealers

Image courtesy of knowyourmeme.com

Have you ever seen one of those loud and obnoxious commercials where a skeezy looking car salesman spends the entire 30-second spot yelling at the camera about ridiculous deals that sound too good to be true? While I usually change the channel when those commercials come on, apparently enough people did not and got duped into visiting these deals and then actually purchasing a vehicle that the Federal Trade Commission has decided to look into the issue. Dubbed "Operation Ruse Control," the FTC will be cracking down on deceptive advertising and financing practices as well as other forms of fraud committed by auto dealers around the US.

There is certainly no shortage of anecdotes of people going into dealers, spurred by promises of super cheap cars or ridiculously lenient financing terms, only to be given the bait and switch routine when they sit down to sign the paperwork. On top of that, there have been numerous recent stories of dealers self-financing deals and then recalling buyers to essentially tell them that their loans were not approved in order to gouge them for more money on the monthly payment. The most recent round of unscrupulous behavior to make the news has been Dodge dealers taking orders on Challenger and Charger Hellcats that they not only know they do not have in stock, but will likely not ever be able to order. This kind of behavior is precisely why Americans absolutely despise the process of buying cars and why people seem to be willing to support the idea of direct sales on certain cars, a process that Tesla has used to great effect since it started deliveries on the Model S.

The Feds have already filed suit against several dealerships as well as financial services companies that have been accused of the alleged behavior and the campaign will continue until this kind of behavior stops. Best of all, because the cases are often being brought as lawsuits, the FTC is actually forcing the defendants in the cases to pay back ill-gotten gains.

Click past the jump to read the press release and learn more about "Operation Ruse Control."

Consumer Advice: Finding the Right Tire for Your Car

Finding the right tire for your car should not be a daunting task. Unfortunately, with the plethora of choices available, the average car owner does find tire shopping to be a difficult task, and usually resorts to going to the dealer to get the same tire installed that came with the vehicle, or go to a tire shop and use whatever recommendation they offer. Sure, this is the easy way out, but you also miss out on finding a tire that may suit your needs better and might also cost less money and save you some gas. Still interested? Keep reading for some factors to consider when selecting your own tires, as well as some tips.

Editorial: The fight for direct-to-consumer automobile sales

By now, you have probably heard about Tesla's latest defeat at the hands of New Jersey Governor Chris Christie. The new legislation put in place will halt all sales of Tesla cars by April 1, meaning that those interested in getting a Tesla Model S will need to move quickly or be forced to travel to one of the neighboring states to be able to get their car. This ongoing battle between Tesla and the dealership associations of various states seems to have become more than just an isolated battle about the desires of a single manufacturer to shake up the way in which the car selling business is done. In fact, it seems to have sparked a debate about the value of dealerships to the average consumer, including the value of a dealerships service department.

The New Jersey Coalition of Automotive Retailers (NJCAR), a dealership lobby group, is trying to promote the argument that dealerships are good for consumers and are there to protect the consumer from the evil car manufacturers who are just out to rip them off. Of course, this argument completely overlooks all of the stories that seem to pop up regularly about unscrupulous salesmen taking advantage of an unsuspecting victim. While a few bad apples should affect our impressions of all dealerships, it is hard for them to take the high road when the negotiating process for a new car results in a hugely varied range of prices based on the negotiating skill of the individual consumer. This does not even begin to get into the service side of things, where dealerships have earned the rather unflattering moniker of "stealerships" for their less than forthcoming practices.

Consumer Advice: Silvercar

Silvercar's garage near LAX

At some point in time, we have all had to rent a car from a car rental company. For the most part, people generally rent from one of the major national car rental chains like Hertz, Enterprise or Avis. Unless you sign up for one of their memberships, getting a car from one of these chains can be a gigantic pain. Long lines, lots of questions, sometimes unruly customer service, and let us also not forget that sometimes the car you reserve is not even available when you show up. And what are you supposed to do when you arrive at the rental counter after hours? At least at LAX, unless you are a Hertz customer, you are basically out of luck. Even if you are a Hertz customer, assuming you do not have their gold membership, you are stuck using one of their automated kiosks that can take up to 30 to 40 minutes just to get a car. Is there a car rental company out there that does away with the long lines, paperwork, and overall ridiculousness of renting a car from one of the major chains? Enter Silvercar.

Consumer Advice: Which car sharing service is right for you?

Can you believe this MB is available through car sharing?

As we discussed in our latest editorial about shifting American attitudes towards driving, car sharing service are becoming increasingly popular among those who live in urban areas, especially those in the younger generations who either do not want the hassle of owning a car in the city or have made the conscious decision to utilize alternative methods of transportation for most of their day-to-day needs. The result has been a renaissance of late with car sharing services popping up all over the country, and even the world, taking on a variety of different implementations of the same concept. Some rely on a fleet of company owned vehicles while others rely on the members to be willing to share their personal vehicles. Some provide a great deal of variety and allow members to find a vehicle to fit their needs while others have no variety whatsoever and give you only a single option to pick from. All have mobile apps to allow you to locate cars in your area and make or change reservations on the go.

With all of these potential choices, let's take a moment to dive in and take a look at the various car sharing options and what the perfect match member would look like to each of these services.

Consumer Advice: Leasing vs. financing

Getting a new car is always exciting. That new car smell, the shiny new paint, and all of those wonderful new toys to play with. Along the way, hands were shaken, deals were struck, and papers were signed, but one of the key decisions that many new car buyers struggle with is whether to finance their new purchase or lease it. Leasing has become increasingly popular as new cars have continually gotten increasingly more expensive and credit became increasingly easier to access. There are detractors of both methods, but paying for a large purchase, like a car, in cash is out of reach for most people and most buyers must find a way to finance their purchase. Both traditional loan financing and leasing have their own pros and cons and the conditions that suit each buyer's needs may lend themselves favorably to one versus the other. While this may not cover every possible variation, the goal is lay out some general guidelines to help you decide which path if the best for your needs.