C.A.R.S. Activities 2011

Federal Trade Commission delves into auto scams, and invites president of CARS to present consumer perspective at public forums.

Roundtable in San Antonio, TX focuses on the impact of auto sales scams on military troops

Panelists include representatives of the auto industry. consumer organizations, and the Armed Forces, including Holly Petreaus, head of the Consumer Financial Protection Bureau Office of Servicemember Affairs and wife of Gen. David Petreaus

Roundtable in Washington, DC focuses on types of auto sales scams, and how to address them

More details, including a link to transcripts of the roundtables, are posted on the FTC's website, here:
http://www.ftc.gov/bcp/workshops/motorvehicles

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CARS plays leading role in passage of new law to curb sales of unsafe rebuilt wrecked vehicles

More: Van Nuys News Presss report

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CARS helps expose common auto sales scam --

CARS contributed to a report by ABC News zeroing in on shady auto dealer practice -- bait-and-switch financing, also known as yo-yo financing
More: See ABC News report

Tip for car buyers: The best way to avoid becoming a victim of yo-yo financing is to either pay cash or get a loan from another source, such as a credit union. NEVER get financing at the dealership. Even if the dealer claims you qualify for 0% financing, and you both sign a contract at 0%, they may try to change the terms after you drive off, and if you don't agree to a higher interest rate, they may repossess the car or report it as stolen.

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CARS opposes attempt by Republicans in Congress to stall desperately needed protections against unsafe products, pollution and financial scams

U.S. House Republicans have proposed radical new legislation that, if adopted, would eliminate the ability of government agencies to simply do their jobs, and protect the American people and their families from unsafe products, pollution, and financial scams. The proposed bills, backed by powerful special interests, would give those special interests even more power than they already have. It would also let them and their cronies in Congress bully agencies that are trying to protect the public. Among the unsafe products that would be unleashed on the public:

Unsafe rental cars that are under a safety recall, but the rental car company has not bothered to have them fixed, prior to renting it to the public

Used cars that have been recalled for safety defects, but haven't been repaired yet

Read more...

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CARS contributes to major series exposing shady practices at "Buy Here Pay Here" auto dealerships

Over a period of more than a year, CARS provided expertise, consumer contacts, and other information that contributed to Los Angeles Times reporter Ken Bensinger's highly acclaimed multi-part series about predatory practices at "Buy Here Pay Here" auto dealerships. The dealers prey on vulnerable low-income consumers who have credit problems, or are students and have no credit histories at all, and overcharge them for shoddy vehicles that tend to break down or need major repairs soon after purchase. Some hedge fund investors see this as a growing source of funds they can package, securitize and sell on Wall Street.

Part One: A Viscious Cycle in the Used Car Business
How auto dealers profit from "churning" used cars that break down soon after purchase and need expensive repairs the buyers can't afford
The Los Angeles Times
by Ken Bensinger
October 30, 2011
 
Read more: www.latimes.com: Buy Here Pay Here part 1
 
Part Two: Wall Street investors place big bets on Buy-Here-Pay-Here auto dealers
Exploiting the poor pays big dividends for fat cat lenders
The Los Angeles Times
by Ken Bensinger
November 1, 2011
 
Read more: www.latimes.com: Buy Here Pay Here part 2
 
Part Three: A hard road for the poor in need of cars
Non-profit programs help struggling families get better jobs, improve their education, and transform their lives
The Los Angeles Times
by Ken Bensinger
November 3, 2011
 
Read more: www.latimes.com: Buy Here Pay Here part 3