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The biggest scam in the car industry??

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2.3K views 15 replies 12 participants last post by  DerrickT  
#1 ·
What do you think about this OP-ED?



What’s the biggest scam in the car industry?
There’s a lot of shady practices, which may not be illegal, but are definitely unethical. One of my pet peeves is “Dealer Prep.”
Dealer prep is a fee, which is somewhere between $200–$500. It’s added onto the sales contract and is financed (with interest) along with your purchase price.
What is “Dealer Prep?” Essentially this is what the dealer charges you to receive the car from the shipper, look it over to make sure the protective tarp, bumpers and tape are removed. They also check the fluid levels, air pressure in the tires and make sure the vehicle is clean and ready to sell.
Why is this a scam? Because by law, they have to do this anyway. A new vehicle must be presented to the buyer in the condition that the manufacturer represents it. When Chevrolet shows you a picture in their catalog or website of a new Cruze and displays a price of $21,998.00 - That’s an advertising promise, agreement or contract. They’re stating that the car, as pictured is what you will receive for the advertised price.
What the dealer is saying is, they will charge you extra to make it presentable and safe, like the one that Chevrolet advertised. You also have no choice except to accept a car that is properly prepped. A dealer cannot simply roll a vehicle off the truck and hand you the keys, while letting you remove the protective packaging and shipping materials and verify that it’s safe to drive off the lot.
In every auto deal I’ve ever made, I always insist that the dealer waive the dealer prep fee. It’s a scam…
 
#2 ·
I wish this isn't a scam, ... Certified Previously Owned (CPO) vehicles. An inspection of 172 points or however many doesn't change the condition of the vehicle. Looking at those inspection points doesn't mean it is in good condition. So, the extra money the dealer charges for this inspection is just more money in their pockets whether they do the inspection or not. Would you trust the dealer's inspection of a vehicle they are trying to sell you? Or would you prefer having your own mechanic inspect the vehicle?

Then, we can go looking into dealer's fee for doing paperwork to sell you the car? It is the dealer's paperwork. So, why does the buyer have to pay for it? And why do some dealerships charge more than allowed by law? license and registration fee?? In NY, the max cost is $175 but many places will charge up to $400???

Then, there are the many little things they say they did to the vehicle and can not be removed. Like glass etching. or ceramic coating. The whole process of buying a new vehicle makes the dealership seem like predators. Makes buying a new vehicle like going up against an adversary who has all the power.
 
#9 ·
Happened several year ago at the brand new Honda dealership located in the far west side of San Antonio.

Went to purchase replacement battery tray for battery upgrade. Parts department did not have the tray in stock, so I ordered one & left.

Wandered the lot after placing my order, "visited" by a sales associate asking what would it take for me to purchase the vehicle I was looking at. I pointed to the "added" sticker in the upper passenger side of the front windshield. Before walking away, I told the sales associate that if I was going to purchase said vehicle, the $200 charge would have to be removed.

Needless to say, when it came time to purchase another vehicle, did not go back to that particular dealership.

Have made several parts purchases from that dealership with no problems. Sales, on the other hand, ...
 
#14 ·
This happened at the time when an internet "influencer" posted that airplane tires are filled with 100% nitrogen. Extrapolation ad infinitum across the web created the illusion that all vehicle tires needed 100% nitrogen.

This illusory demand gave marketeers the impetus to advertise "100% nitrogen-filled tires" on any vehicle, quite rightly sensing that those with little knowledge would gladly pay for that. Once again, the P.T. Barnum School of Economics proved correct.

FYI, airplane tires use nitrogen because when landing, the tires go from 0 mph to 160 mph in a split second, many times each day. [A typical passenger airliner may make over 5 take off - landings each day.] Nitrogen, being an inert gas, handles that stress better than atmospheric air.

Pretty sure that even if you drove a CRV off of Mt. Everest, it would not reach 160 mph. :p
 
#16 ·
Pretty sure that even if you drove a CRV off of Mt. Everest, it would not reach 160 mph. :p
From what I read I gather that terminal velocity for the average falling vehicle would be 200 - 300 mph, so maybe those nitrogen filled tires would come in handy on landing? :unsure: