Enjoying a car is a fantastic experience, but the process of buying one can feel like an eternity, filled with frustration and the constant push for overpriced add-ons by dealers. Despite the Federal Trade Commission's (FTC) attempt to simplify this, American car dealers are fighting back using the legal system, seemingly ignoring the importance of public perception.
Moreover, there's news about Ford making significant job cuts in the assembly of the F-150 Lightning, and the Hyundai Ioniq 5 N proving surprisingly speedy on a peculiar toll road in Germany. Welcome to The Morning Dump, your go-to source for morning automotive news with a touch of Lil Wayne's lyrical flair.
Dealer Associations Are Stalling Anti-Junk Fee Rules
You might recall the Federal Trade Commission's CARS (Combating Auto Retail Scams) rule, promising to put an end to questionable markups at dealerships. Originally set to kick in on July 30, its implementation is now up in the air. The National Automobile Dealers Association and the Texas Automobile Dealers Association have thrown a wrench into the gears by filing a Petition For Review in the Fifth Court of Appeals. Their argument is that the CARS rule is "arbitrary, capricious, an abuse of discretion, without observance of procedure required by law, or otherwise not in accordance with law." A bit amusing, to say the least.
When was the last time you walked into the financing and insurance office without wanting to channel your inner Dan Campbell on the F&I guy's kneecaps? Dealerships have earned a reputation for adding questionable fees, and for good reason. The incentive structure in most dealerships encourages upcharging, especially since many salespeople work on commission. Unless dealing with high-end cars, new car commissions are usually modest. However, add-ons like rubberized undercoating and dubious third-party service contracts bring in substantial profits, and salespeople often earn commissions on these. Junk fees are essentially the norm, and any change in this system would be met with resistance. The outcome of this battle remains uncertain. Ideally, the CARS act will prevail, and its implementation will only face a slight delay. However, with the influence of lobbyists, anything could happen.