Are car dealers exposing people to coronavirus?

Many car dealers engage in reckless practices that put lives at risk. Like selling new or used vehicles without bothering to get the FREE safety recall defects fixed first. Tragically, some people have been seriously injured or killed by car dealers who sold them cars, trucks, or SUVs with deadly defects.

So it’s only reasonable to ask: Are auto dealers also exposing car buyers and their families to the coronavirus? Some car dealers are attempting to reassure prospective car buyers, who are understandably concerned about the coronavirus pandemic, not to worry. For example, AutoNation claims on Twitter that it ” can service and then sanitize your vehicle with Clorox® Total 360®.” The use of the term “sanitize” implies that there’s nothing to worry about.

But how can anyone trust AutoNation, when their then-CEO told the whole world — right after Pres. Trump was elected — they were going to rev up their sales of seriously defective recalled used cars? Especially vehicles where there are no replacement parts available, so if you buy one of their “cream puffs,” there’s no way you can get it fixed, for weeks or months. Meanwhile, you are left to ride around in a potential deathtrap.

Last fall, Researchers found that more than 1 in 9 vehicles AutoNation was offering for sale at various stores across the nation had at least one unrepaired safety recall defect. Like faulty brakes, catching on fire, loss of steering, accelerator pedals that stick, stalling in traffic, hoods that fly up and obscure the driver’s vision, and many vehicles with ticking time bomb Takata airbags that explode like having a hand grenade go off in your car, causing devastating injuries such as blindness or bleeding to death.

If a huge car dealership chain that rakes in billions of dollars a year, is a Fortune 500 company, and touts Bill Gates as its biggest investor, will stoop to deliberately selling vehicles that grossly defective and unsafe, can you trust them to protect you from an unseen threat like coronavirus? Do you want to bet your life on it?

Trump throws military under car dealer bus

What is “GAP” insurance, and why would the Trump Administration seek to allow car dealers to gouge our nation’s military heroes and their families when they buy cars, by selling them high-priced “GAP” insurance that is often worthless?

According to car dealers, the purpose of GAP, or “Guaranteed Asset Protection” insurance, is to cover you if your car is stolen or totaled before you pay off the loan. The “GAP” is the difference between the amount of the loan and the worth of the car.

Anyway, that’s the shtick. But in reality, the main purpose of “GAP” — when it is sold at car dealerships, and added into the price of a car loan — is to line the pockets of greedy car dealers.  You can actually get a much better deal if you simply buy GAP protection from your own insurance company. Regular insurers usually charge as little as $20 or $30 to add GAP coverage to your existing policy.

However, car dealers often charge $1,000 or more. Plus when it is added into your loan, it can cost you far more than that, in added interest that goes to the lender, for the entire life of the loan.  Making matters worse, some dealers pocket the money for GAP and never even activate the policies. So if your car is stolen or totaled, you could be in for a rude awakening. Some dealers have scammed many customers this way, then left the state and declared bankruptcy, evading any legal liability.

It’s bad enough when car dealers cheat civilians this way. But according to National Public Radio (NPR), as reported by VOX,

“the Trump administration has also proposed changes that could open up service members to predatory practices when they buy cars. The administration has proposed easing restrictions on “gap insurance,” an add-on to car insurance that covers the difference between the amount a car owner owes on the car and the car’s actual cash value.

Gap insurance is typically available from regular insurance companies for a very low price, as little as $20 to $30 a year, but car dealers often mark it up by hundreds of dollars. Current rules effectively block auto dealers from tacking on overpriced gap insurance to military service members, but the administration has sent a proposal to the Defense Department looking to revise the rules. (If the proposal does eventually make it out of the Defense Department, it will ultimately require the approval of the Office of Management and Budget, which [Trump appointee Mick] Mulvaney also heads.”

As Americans, we all have a stake in protecting our military Servicemembers from scams like this.  Among other reasons — when they are cheated in this way, it increases the risk they may lose their security clearance, and their ability to perform their vitally important mission, of protecting our nation from enemies foreign and domestic.

Especially at a time when our nation faces unprecedented threats from enemies abroad and cyber-attacks from enemies who have penetrated our power grid and are messing with our elections, we cannot afford to lose the services of highly-trained military personnel, who are desperately needed to protect our nation.

Our nation’s military should not have to fight on this front, simply to preserve the protections they already have. They deserve a Commander in Chief who has their back, not one who is stabbing them in the back.

This is an update of a prior post, “Avoid GAP insurance rip-offs”

 

 

 

So what auto safety regulations will we lose?

President Trump has reportedly declared that he plans to get rid of 75% of federal regulations.  This is verrry scary stuff. Especially since states are prohibited from being able to act, to require auto manufacturers to build safety into their cars.  The states’ hands are tied. That means if we lose safety regulations in DC, nothing can be enacted in their place. No matter how bad the carnage gets.

So — which lifesaving auto safety regulations will Trump roll back? The one that requires seat belts to work in a crash? The one for fuel tank integrity, that requires cars to withstand a rear-end collision without exploding into flames?  The one that requires your car to offer a minimum level of side-impact protection for your head and torso if you are T-boned by a huge SUV that blows through an intersection, against the red light? The one that keeps SUVs from tipping over, killing drivers and passengers?

You have to wonder whether he, or anyone around him, has thought this through. What will happen to public confidence in the auto market when people realize that the cars they own now are actually safer than the newer ones, built under the anti-regulatory Trump regime?

What’s next? Autonomous cars a teenager can hack, or that could be controlled by Isis, Putin, or Kim Jong Un?

This is reminiscent of when GM, Chrysler, and Ford were so cocky about having the entire U.S. market to themselves. They sold huge numbers of atrocious lemon cars. They were lemons despite the fact the workers were doing their best. They were lemons by design. Worst of all, the auto manufacturers refused to stand behind them. They dismissed consumer complaints and stonewalled frustrated car owners.

The end result: car buyers revolted, all 50 states enacted lemon laws, and the auto import market was born, eventually overtaking the domestics by a mile, especially in markets like California.

GM, a former powerhouse, now has only a puny 9% of the California market. Its market share nationally has shrunken to just 17%.  People don’t forget easily, or quickly, when they have been sold a car that fails to meet reasonable expectations. Let alone one that kills.

Message to President Trump and the auto lobbyists:  Don’t delude yourselves. It can happen again. Markets can shift, and they can shrink. It’s entirely possible that Obama will be known for saving the American auto industry, and Trump for destroying it. Ultimately, it all depends on what millions of individual consumers, who value their lives and their families’ safety, decide.