Car dealer greed fuels inflation

If you’re shopping for a new car, or a used car, you already know what the experts are saying. Car prices are soaring. For new vehicles, greedy car dealers are demanding $10,000, $20,000 or more over the manufacturers’ retail sticker price, which is usually already inflated by the manufacturers.

Car dealers are also price-gouging consumers over the price of used vehicles, and routinely selling them dangerous unrepaired recalled used vehicles without bothering to get the safety recall repairs done first — even though federal law requires auto manufacturers to provide safety recall repairs for free, for at least 15 years from when the recall is issued.

Car dealers often downplay the risks posed by safety recall defects. Don’t fall for it. Your life is precious, and if you’re paying top dollar to a professionally licensed car dealer, you deserve to get a car that is at least free from deadly defects, like brakes that fail, catching on fire, steering wheels that come off in the driver’s hands, sticking accelerator pedals, and faulty airbags that propel shrapnel into the passenger cabin, causing severe or fatal injuries such as blindness, or bleeding to death.

Car dealers are bragging in the automotive press about how their profits are also going through the roof. Billionaire investors like Bill Gates and Melinda French Gates — who are heavily invested in the AutoNation dealership chain, and Warren Buffett, whose Berkshire Hathaway conglomerate owns multiple car dealerships outright — are making vast profits by ripping off new and used car buyers, selling unsafe vehicles, and exploiting the computer chip shortage.

Some states have laws against price-gouging, but don’t hold your breath waiting for your state’s attorney general to protect you. Car dealers are so politically active and well-connected, they hardly ever get sued by public law enforcement agencies, no matter how blatantly they violate the law.

So what can you do to avoid falling prey to greedy car dealers?  Many car buyers are purchasing vehicles from other consumers, who don’t have to pay for advertising, overhead, and glittering, impressive structures. or attract investment capital.  Other consumers also don’t impose forced arbitration clauses on car buyers — unlike car dealers, who typically refuse to sell you a car unless you first surrender your Constitutional right to fight back in court, if they violate the law by committing fraud, rolling back odometers, falsifying loan applications, selling unsafe junkers or flood cars, selling cars that they don’t even own, or engaging in other crooked practices.

You can save a LOT of money by buying a car from another consumer, instead of being ripped off by a greedy car dealer. But you still have to be careful. Some con artists pose as private sellers, when in fact they are unlicensed dealers. They may tell you that they’re selling their own car, or their cousin’s car, when in reality that got that potential deathtrap on wheels from an auto auction, after it was rejected by another consumer and other dealers decided they didn’t want it on their car lot.

Here are tips from experts about how to get a good deal on a safe, reliable used vehicle, by taking control of the transaction yourself and buying from another car owner. This step-by-step process takes some time, but it can save you tons of $$  — and potentially save your life, and the lives of those you love.

Wishing you and your family safe, happy motoring, and freedom from price-gouging, inflation-fueling greedy car dealers!

Did you pay too much for your car?

You work hard for your money. You have better things to do with it than give it away to a greedy, conniving car dealer. But if you shopped at an auto dealership last year, chances are you paid too much. By a lot.

Car dealers across the nation are crowing about the record-breaking profits they’re making during the pandemic.  Their fat profits are being fueled by people who are flocking to buy cars — understandably fearful about taking public transportation, flying in airplanes, or using ride-shares or other modes of transportation where they risk being in an enclosed space with others who may be spreading the Coronavirus.

According to Automotive News, “AutoNation, of Ft. Lauderdale, Fla., hit a record-high quarterly F&I [Finance and Insurance] profit per vehicle retailed on a same-store basis with an average of $2,172, an increase of 12 percent, or $240, from year-ago figures.”

AutoNation is publicly traded on Wall Street. They operate over 315 new car dealerships nationwide. Over the years, their biggest investor has included an entity affiliated with Microsoft founder Bill Gates, one of the wealthiest men in the world.

Keep in mind that $2,172 is just AutoNation’s profit on the financing and insurance products they foist off on consumers. They also profit handsomely on the price of the car itself.

Imagine what you could do with $2,172.  Maybe feed your family for months. Pay college tuition and get a better job. Get a much better vehicle you really like, that’s friendlier to the environment and safer for you and your family.

Plus — something AutoNation apparently doesn’t like anyone to mention publicly — they deliberately sell their customers cars with dangerous unrepaired safety recall defects. Especially cars with killer safety defects that you cannot get fixed because there are huge shortages of repair parts.

So if you buy that recalled car, there’s no way you can get it made safe. Sometimes the parts delays can last for months, or over a year. Meanwhile, you are your family are at serious risk of being injured or killed.

Please don’t assume you will have time to get the recall fixed before tragedy strikes. Auto safety defects are like ticking time bombs.  In San Diego, four members of one family –a highway patrol officer, his wife, their 13-year-old daughter, and the officer’s brother-in-law — were killed by an unsafe car the same day, just hours after a dealership handed the CHP officer the keys. They were on their way to a soccer match when the fatal defect happened.

If you don’t feel like overpaying for a dangerous deathtrap, please consider buying from another consumer and avoiding car dealers altogether. You still have to be careful, and do your homework. But at least you won’t be stuck dealing with a dealership chain that is out to maximize their profits at your expense.

How can you take control of your car buying experience, and get a good deal on a nice, safe, reliable used car? Check out these step-by-step tips from pro-consumer experts.

Your life is precious. You deserve to get the full value of what you pay for. Stay safe — and save!

Car Dealers Rake in Billions

Auto dealers like to pose as “Main Street” “mom and pop” businesses, in order to get concessions from legislators and regulators. But according to Automotive News, “The $1 billion club for 2012 includes 34 [dealership] groups, including 13 with more than $2 billion.”

Increasingly, auto dealerships are consolidating and thousands are publicly traded on Wall Street. Microsoft’s Bill Gates is one of the largest investors in the nation’s largest auto dealership chain, AutoNation, which reportedly grossed  $15,668,8000,000 last year.*

*Automotive News, “Top 125 dealership groups in the U.S.” – March, 2013.