The Truth About Cars » Dealer News http://www.thetruthaboutcars.com The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. Sun, 21 Dec 2014 15:26:27 +0000 en-US hourly 1 http://wordpress.org/?v=4.0.1 The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars no The Truth About Cars editors@ttac.com editors@ttac.com (The Truth About Cars) 2006-2009 The Truth About Cars The Truth About Cars is dedicated to providing candid, unbiased automobile reviews and the latest in auto industry news. The Truth About Cars » Dealer News http://www.thetruthaboutcars.com/wp-content/themes/ttac-theme/images/logo.gif http://www.thetruthaboutcars.com/category/news-blog/dealer-news/ Volvo Entering Digital Sales, Limiting Show Appearances http://www.thetruthaboutcars.com/2014/12/volvo-entering-digital-sales-limiting-show-appearances/ http://www.thetruthaboutcars.com/2014/12/volvo-entering-digital-sales-limiting-show-appearances/#comments Tue, 16 Dec 2014 11:00:20 +0000 http://www.thetruthaboutcars.com/?p=961729 Volvo may not be ready to directly sell its models to the public in the same way Tesla does, but the automaker is ready for online orders. Reuters reports Volvo will gently wade into Internet sales around the globe, and increase spending on digital advertising, though consumers will still need to visit their nearest dealer […]

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Volvo may not be ready to directly sell its models to the public in the same way Tesla does, but the automaker is ready for online orders.

Reuters reports Volvo will gently wade into Internet sales around the globe, and increase spending on digital advertising, though consumers will still need to visit their nearest dealer to complete the transaction for now, per sales boss Alain Visser. He adds that around 80 percent of the automaker’s base are already well-versed in online shopping, and believes the habit will transfer into cars soon enough.

Just as Volvo adjusts its backwards cap and velcro sneakers before rolling out onto the information superhighway upon its magic keyboard, however, the automaker will not be attending as many auto shows as it once did. Instead, it will hit a single show per year in Asia, Europe and North America — specifically, Shanghai/Beijing, Geneva and Detroit — preferring to produce its own annual global event for the latest and greatest.

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Trucks, SUVs Best Premium Sedans In Over $50K US Segment http://www.thetruthaboutcars.com/2014/12/trucks-suvs-best-premium-sedans-50k-us-segment/ http://www.thetruthaboutcars.com/2014/12/trucks-suvs-best-premium-sedans-50k-us-segment/#comments Mon, 15 Dec 2014 14:00:03 +0000 http://www.thetruthaboutcars.com/?p=961313 Keep those Benzes, BMWs and Audis in the garage, son: $50,000-plus trucks and SUVs are where it’s at for the ballers and players these days. TrueCar says trucks and SUVs account for six of the top 10 best-selling vehicles in the United States market, specifically the segment where transaction prices of $50,000-plus are the norm. […]

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Keep those Benzes, BMWs and Audis in the garage, son: $50,000-plus trucks and SUVs are where it’s at for the ballers and players these days.

TrueCar says trucks and SUVs account for six of the top 10 best-selling vehicles in the United States market, specifically the segment where transaction prices of $50,000-plus are the norm.

The biggest of them all? The Ford F-150, whose projected 2014 volume of 189,776 “will likely surpass total U.S. volume of luxury car benchmarks including BMW’s combined 3, 5 and 7 Series sales or total deliveries for the Audi brand this year.” The Blue Oval will see revenue of $10.8 billion from those high transactions, making up a third of an estimated $33.2 billion for the overall F-Series portfolio.

The demand for looking California and feeling Minnesota is helped in part by a recovering U.S. economy, improved vehicle quality, and a growing supply of cheap gasoline, which is helping the $50,000-plus transaction segment, as well: approximately 8.1 percent of total 2014 sales will transact at that level, up from 6.6 percent in 2013.

Finishing out the podium per TrueCar is Fiat Chrysler Automobiles’ Ram truck lineup, with sales of 76,266 at the $50,000 transaction level, Mercedes taking third with its E-Class at 67,006.

TrueCar 2014 50K USD Transaction Table

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GM Replacing Keys In 2014-15 Trucks, SUVs Due To Ignition Issues http://www.thetruthaboutcars.com/2014/12/gm-replacing-keys-2014-15-trucks-suvs-due-ignition-issues/ http://www.thetruthaboutcars.com/2014/12/gm-replacing-keys-2014-15-trucks-suvs-due-ignition-issues/#comments Mon, 08 Dec 2014 14:00:14 +0000 http://www.thetruthaboutcars.com/?p=956898 Own a new Chevrolet or GMC truck? You might be getting a new set of keys. Automotive News reports owners of 2014-2015 Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, as well as 2015 Chevrolet Suburban and Tahoe and GMC Yukon and Yukon XL SUVs without keyless start will need to come in to have […]

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2014 Chevrolet Silverado Crew Cab Z71

Own a new Chevrolet or GMC truck? You might be getting a new set of keys.

Automotive News reports owners of 2014-2015 Chevrolet Silverado 1500 and GMC Sierra 1500 pickups, as well as 2015 Chevrolet Suburban and Tahoe and GMC Yukon and Yukon XL SUVs without keyless start will need to come in to have the keys replaced. Per the bulletin issued by General Motors:

Some customers may comment that if the tilt steering column is in the full-up position and the shift lever is moved between gears, the shift lever contacts the head of the ignition key. Some contact force may rotate the ignition key and shut the engine off. When this condition occurs, the brake pedal was applied.

The keys are already available, as the automaker made the fix in February of this year. The bulletin requires dealers to issue the new key to customers who bought their vehicles prior to the change, and complain of the issue as noted.

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Aluminum Mainstreaming May Mean More Dent & Ding Policies http://www.thetruthaboutcars.com/2014/12/aluminum-mainstreaming-may-mean-dent-ding-policies/ http://www.thetruthaboutcars.com/2014/12/aluminum-mainstreaming-may-mean-dent-ding-policies/#comments Thu, 04 Dec 2014 14:00:30 +0000 http://www.thetruthaboutcars.com/?p=955409 Planning to buy a new 2015 Ford F-150 soon? You might be purchasing a dent-and-ding policy for your ride, too. Automotive News reports the aluminum pickup has created an opportunity for F&I departments to sell dent-and-ding polices, playing on the notion that the metal isn’t as tough as steel when it comes to such things. […]

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aluminum

Planning to buy a new 2015 Ford F-150 soon? You might be purchasing a dent-and-ding policy for your ride, too.

Automotive News reports the aluminum pickup has created an opportunity for F&I departments to sell dent-and-ding polices, playing on the notion that the metal isn’t as tough as steel when it comes to such things. Ford begs to differ, as the F-150’s “high-strength, military-grade, aluminum-alloy body is more dent and ding resistant” than the outgoing steel-paneled model, per representative Mike Levine.

However, the increased use of aluminum would mean those polices would cost a pretty penny. EFG Cos. executive vice president Cliff Eller says repairing the panels with paintless dent removal would be more labor-intensive and time-consuming than doing the same for steel panels, with the aforementioned increase likely to push the cost of an average claim upward.

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NHTSA: GM Has Enough Parts To Repair All Affected By February 2014 Ignition Recall http://www.thetruthaboutcars.com/2014/12/nhtsa-gm-enough-parts-repair-affected-february-2014-ignition-recall/ http://www.thetruthaboutcars.com/2014/12/nhtsa-gm-enough-parts-repair-affected-february-2014-ignition-recall/#comments Wed, 03 Dec 2014 12:00:54 +0000 http://www.thetruthaboutcars.com/?p=955009 Do you or yours happen to own one of the models affected by the February 2014 General Motors ignition switch recall? The automaker finally has a replacement ready at your convenience. AutoGuide reports the National Highway Traffic Safety Administration posted a notice stating GM has all of the parts needed to repair every one of […]

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Do you or yours happen to own one of the models affected by the February 2014 General Motors ignition switch recall? The automaker finally has a replacement ready at your convenience.

AutoGuide reports the National Highway Traffic Safety Administration posted a notice stating GM has all of the parts needed to repair every one of the 2.66 million vehicles covered by the recall, and is urging owners to bring their vehicles in as soon as possible. GM added that it will help owners schedule repairs after work and on weekends, with the procedure to take 90 minutes.

Presently, approximately 1 million units still need to come in, with the automaker proclaiming 60 percent of all vehicles under the original recall have been fixed. The vehicles in question are the 2003-2007 Saturn Ion, 2005-2010 Chevrolet Cobalt, 2006-2011 Chevrolet HHR, 2006-2010 Pontiac Solstice, 2007-2010 Pontiac G5, and 2007-2011 Saturn Sky.

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GM Recalls 988 Dealerships http://www.thetruthaboutcars.com/2014/11/gm-recall-988-dealerships/ http://www.thetruthaboutcars.com/2014/11/gm-recall-988-dealerships/#comments Wed, 26 Nov 2014 16:44:37 +0000 http://www.thetruthaboutcars.com/?p=947185 In an unprecedented move that has sent chills down the white-belted spines of American car dealers, General Motors has declared nearly 1,000 of its 4,355 US retailers as “unfit and downright dangerous” to its customers and will be recalled immediately. GM Vice-President of Franchise Dealer Relations Bentley Reuss said in a news conference in Detroit […]

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Closed Chevy Store Courtesy rekarchitects.con

In an unprecedented move that has sent chills down the white-belted spines of American car dealers, General Motors has declared nearly 1,000 of its 4,355 US retailers as “unfit and downright dangerous” to its customers and will be recalled immediately.

GM Vice-President of Franchise Dealer Relations Bentley Reuss said in a news conference in Detroit today that the manufacturer was, “equally concerned about our customers’ emotional and mental well-being as we were with their physical health when we did the ignition recall. When GM dealers berate car buyers, throw the keys to the their trades on the roof and fail to disclose products like Lifetime Tire Nitrogen on their contracts, it hurts our mutual clients.”

Reuss noted that an independent survey of recent buyers of GM products identified 988 dealers who handled the sales process poorly. Reuss was quick to point out this was not a termination of the affected retailers’ dealer agreements as that would be prohibited by state auto dealers franchise laws. “We had a ton of our recall lawyers about to bolt to Takata,” said Reuss. “We put them to work reviewing the state laws and they found there was nothing prohibiting a manufacturer from recalling a dealer when customer’s mental health was put in danger by a dealer.”

When asked about why this groundbreaking action was taken, in spite of the company’s excellent showing in the recent J. D. Power Sales Satisfaction survey, Reuss laughed and said, “You mean J.D. Monopoly? We and our dealers control that survey 100%. Let’s just say that it is amazing what free oil changes can do. We did our own independent survey which yielded accurate results.”

Reuss admitted that the dealer abuse of car buyers had been going on “for some time” but that GM senior management was never told about it until earlier this year and that the person in charge of customer satisfaction initiatives has been fired.

Empty-Car-Lot-Courtesy aldersonarts.com

Reaction from the recalled dealers was predictable. Said David White, owner of Brandywine Chevrolet in suburban Philadelphia, “Its ironic that when business is bad, GM wants you to move the iron at any cost, customer satisfaction be damned.  We’ve sold a ton of cars for Chevy and this is the thanks we get. The funny thing is that our local GM factory guy was in my office when the announcement came out and he was not told about it. It didn’t stop him from trying to sell us some of those crappy Volts, though.”

Recalled dealers’ inventory will be shipped to the nearest same-franchise dealership, with the exception of the Corvette which will be redistributed at “the local Zone Manager’s discretion,” said Reuss.

Reuss noted that their review also uncovered 28 Pontiac, Oldsmobile and Saab stores still in operation despite the elimination of those franchises in the late 2000’s. Those retailers will be terminated rather than recalled. “Those dealerships were actually showing great customer satisfaction numbers so we are sad to see them go. Again,” said Reuss.

Tesla stock rose on the GM recall news, though founder Elon Musk said, “There goes our plans to partner with Cadillac next year to sell our cars.”

If you couldn’t already tell, this is a satirical article. -Ed.

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Tesla Fights Georgia Dealers Over Direct Sales Model http://www.thetruthaboutcars.com/2014/11/tesla-fights-georgia-dealers-direct-sales-model/ http://www.thetruthaboutcars.com/2014/11/tesla-fights-georgia-dealers-direct-sales-model/#comments Mon, 17 Nov 2014 12:00:08 +0000 http://www.thetruthaboutcars.com/?p=946194 Tesla’s ongoing battle to directly sell its wares to the public has come to Georgia, where the automaker is asking for a dismissal of a petition by the state’s dealer association seeking to ban Tesla from conducting such sales. Atlanta Business Chronicle reports the petition, filed with the Georgia Department of Revenue by the Georgia […]

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Tesla’s ongoing battle to directly sell its wares to the public has come to Georgia, where the automaker is asking for a dismissal of a petition by the state’s dealer association seeking to ban Tesla from conducting such sales.

Atlanta Business Chronicle reports the petition, filed with the Georgia Department of Revenue by the Georgia Automobile Dealers Association in late August of 2014, demands Tesla sell its Model S and other models through a franchise network, the automaker’s alleged violation of the Georgia Motor Vehicles Franchise Practices Act serving as the foundation for said petition. Tesla, of course, said that wasn’t the case:

GADA’s arguments rely on a wholesale misapplication of the FPA. The FPA only regulates conduct between franchisors and their affiliated franchisees, and does not apply to Tesla, which has no franchisees.

GADA also asserts that Tesla cannot directly sell to the public because of another cited statute — one that allows direct sales only if a given vehicle is “manufactured or assembled in accordance with custom-design specifications of the customer” — proclaiming Tesla offers no such thing to its customers. Representative Derrick Dickey stated that his employer is eager for Tesla to follow the letter of the law, “just like every other automobile manufacturer that sells new vehicles in Georgia.

The case is expected to be heard in court early next month. Until then, Tesla will continue to sell directly to the public under an exemption for ZEV models, which currently limits a given automaker to just 150 per year.

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Mercedes-Benz Tops In J.D. Power Satisfaction Survey http://www.thetruthaboutcars.com/2014/11/mercedes-benz-tops-j-d-power-satisfaction-survey/ http://www.thetruthaboutcars.com/2014/11/mercedes-benz-tops-j-d-power-satisfaction-survey/#comments Fri, 14 Nov 2014 15:00:51 +0000 http://www.thetruthaboutcars.com/?p=945105 Another day, another customer survey. This time, it’s J.D. Power with its annual Sales Satisfaction Index Study, with those surveyed placing Mercedes-Benz at the top of the podium. AutoGuide reports the German premium brand scored 726 out of 1,000 points as far as how pleasurable the car-buying experience turned out. Taking the gold among the […]

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2015 Mercedes-Benz C400 front

Another day, another customer survey. This time, it’s J.D. Power with its annual Sales Satisfaction Index Study, with those surveyed placing Mercedes-Benz at the top of the podium.

AutoGuide reports the German premium brand scored 726 out of 1,000 points as far as how pleasurable the car-buying experience turned out. Taking the gold among the mainstream brands, MINI scored 727 out of 1,000, marking the fifth straight year the BMW brand took the top spot on the podium.

Infiniti, Jaguar — last year’s top finisher — Lexus and Porsche round out the premium top five, while Buick, Chevrolet, GMC and Fiat did the same among mass-market brands.

As far as the overall car-buying experience is concerned, J.D. Power found an improvement of 12 points among mass-market brands, and a 16-point improvement among premium brands. The main factor for both sides was a knowledgeable sales representative who could understand a customer’s needs, especially with more “tech-heavy” offerings on the lot and in the showroom, per vice president of the automotive retail practice, Chris Sutton.

This year’s survey collected 29,805 responses from those who bought or leased a new vehicle between April and May of this year.

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Jackson: Michigan’s Anti-Tesla Legislation “Unnecessary Protectionism” http://www.thetruthaboutcars.com/2014/11/jackson-michigans-anti-tesla-legislation-unnecessary-protectionism/ http://www.thetruthaboutcars.com/2014/11/jackson-michigans-anti-tesla-legislation-unnecessary-protectionism/#comments Fri, 07 Nov 2014 15:00:53 +0000 http://www.thetruthaboutcars.com/?p=942489 Though the anti-Tesla legislation recently signed into Michigan law is only a clarification of a previous anti-direct sales law, AutoNation CEO Mike Jackson finds the whole thing as “unnecessary protectionism.” The Detroit News reports Jackson said the bill couldn’t protect Tesla, as the EV automaker had no franchises that needed protection, further proclaiming CEO Elon […]

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AutoNation CEO Mike Jackson

Though the anti-Tesla legislation recently signed into Michigan law is only a clarification of a previous anti-direct sales law, AutoNation CEO Mike Jackson finds the whole thing as “unnecessary protectionism.”

The Detroit News reports Jackson said the bill couldn’t protect Tesla, as the EV automaker had no franchises that needed protection, further proclaiming CEO Elon Musk could sell his cars as he saw fit:

If Elon Musk wants to make a mistake and go with an inefficient distribution system, that’s his right as an American. Let him do it. I’m not afraid… my phone will ring someday when he really wants to sell some cars.

On the other hand, Jackson — whose franchise network consists of over 220 stores nationwide and 500,000 units sold annually — took Tesla to task for lobbying against “government intervention… and protectionism,” as the automaker’s foundation was built upon state and federal incentives all around.

Other targets in his meeting with the Detroit Economic Club Thursday included fracking, the Obama administration, and the two-pronged recall parade led by General Motors and supplier Takata. Regarding the recalls, Jackson said more government intervention is needed to better handle current and future actions.

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Dodge: Over 5,000 Challenger Hellcats Ordered Since October http://www.thetruthaboutcars.com/2014/11/dodge-5000-challenger-hellcats-ordered-since-october/ http://www.thetruthaboutcars.com/2014/11/dodge-5000-challenger-hellcats-ordered-since-october/#comments Tue, 04 Nov 2014 14:00:46 +0000 http://www.thetruthaboutcars.com/?p=940297 Since the 2015 Dodge Challenger Hellcat roared at the 2014 New York Auto Show, enthusiasts have been waiting for the day the big cats would enter the showroom. When ordering opened in October, so did the floodgates. According to Allpar, Dodge CEO Tim Kuniskis reported over 4,000 orders for the $60,000 707-horsepower musclecar were taken […]

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2015 Dodge Challenger Hellcat

Since the 2015 Dodge Challenger Hellcat roared at the 2014 New York Auto Show, enthusiasts have been waiting for the day the big cats would enter the showroom.

When ordering opened in October, so did the floodgates.

According to Allpar, Dodge CEO Tim Kuniskis reported over 4,000 orders for the $60,000 707-horsepower musclecar were taken as soon as ordering came online, with an additional 1,000-plus entered since then.

The brand knew demand would be strong, but it had no idea it would come in hot, too; Dodge initially planned to build just 1,200 units annually. There’s also a dealer incentive to get the Challenger Hellcat into customers’ hands as soon as possible so that more can be delivered to the showroom as production moves forward.

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AutoNation Ceases Sales Of Used Models Affected By Takata Recall http://www.thetruthaboutcars.com/2014/10/autonation-ceases-sales-used-models-affected-takata-recall/ http://www.thetruthaboutcars.com/2014/10/autonation-ceases-sales-used-models-affected-takata-recall/#comments Wed, 29 Oct 2014 13:00:02 +0000 http://www.thetruthaboutcars.com/?p=937826 Automotive retailer AutoNation is pulling used vehicles off the lot that may be affected by the ongoing Takata airbag recall. Automotive News reports 400 vehicles will be pulled until their airbag units — which could violently scatter metal shrapnel through the entire cabin upon detonation in a climate with high humidity — are replaced. CEO […]

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Automotive retailer AutoNation is pulling used vehicles off the lot that may be affected by the ongoing Takata airbag recall.

Automotive News reports 400 vehicles will be pulled until their airbag units — which could violently scatter metal shrapnel through the entire cabin upon detonation in a climate with high humidity — are replaced.

CEO Mike Jackson, meanwhile, called upon all automakers to act as one in deciding how best to handle the issue, citing conflicting guidance from the latter, ranging from telling drivers not to allow passengers to ride shotgun, to not worrying about the possibility due to its alleged rarity:

There should be some entity that says to the industry: “Look, every individual manufacturer doesn’t get to make a decision here. This is what we are going to do.” And you would say maybe that’s NHTSA but NHTSA has been a Tower of Babel.

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Minnesotan Tesla Owners Offer Test Drives To Potential Customers In Iowa http://www.thetruthaboutcars.com/2014/10/minnesotan-tesla-owners-offer-test-drives-potential-customers-iowa/ http://www.thetruthaboutcars.com/2014/10/minnesotan-tesla-owners-offer-test-drives-potential-customers-iowa/#comments Tue, 28 Oct 2014 13:00:11 +0000 http://www.thetruthaboutcars.com/?p=936938 Iowa may be one of the few states where Tesla itself can’t directly sell its vehicles to the public, but it doesn’t mean owners can’t at least promote the California automaker to potential customers. KCCI-TV in Des Moines reports a group of Minnesotan Tesla owners drove to a local supermarket in Urbandale last weekend to […]

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Iowa Tesla Model S

Iowa may be one of the few states where Tesla itself can’t directly sell its vehicles to the public, but it doesn’t mean owners can’t at least promote the California automaker to potential customers.

KCCI-TV in Des Moines reports a group of Minnesotan Tesla owners drove to a local supermarket in Urbandale last weekend to give Iowans the opportunity to see the Model S first-hand.

One owner stated that the group aren’t fighting against the ban, but are about “sharing new technology” up-close with those who might otherwise view the vehicles from afar.

The group also gave test drives to would-be owners, something that the state’s government has also prohibited Tesla from conducting on its own.

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Edmunds Retracts Haggling Parody Amid Dealer Outcry http://www.thetruthaboutcars.com/2014/10/edmunds-retracts-haggling-parody-amid-dealer-outcry/ http://www.thetruthaboutcars.com/2014/10/edmunds-retracts-haggling-parody-amid-dealer-outcry/#comments Tue, 28 Oct 2014 11:00:20 +0000 http://www.thetruthaboutcars.com/?p=936874 As you all know, the TTAC Zaibatsu prides itself on not having to worry about things like upsetting brands for telling it like it is for a given product. Of course, this does sometimes mean we get blackballed by said brands for not drinking the Kool-Aid, but we have our ways around those roadblocks. Alas, […]

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Two Bros Talking To A Sales Bro About A Car

As you all know, the TTAC Zaibatsu prides itself on not having to worry about things like upsetting brands for telling it like it is for a given product. Of course, this does sometimes mean we get blackballed by said brands for not drinking the Kool-Aid, but we have our ways around those roadblocks.

Alas, Edmunds doesn’t have those ways, resulting in a series of ads retracted after a number of dealers took issue with the content.

According to AdAge, the automotive research site created a series of ads parodying outdated sales techniques that made car-buying a headache for quite a few; the headache hasn’t gone away, with 83 percent of consumers surveyed in 2014 by Edmunds would like to do away with negotiations altogether.

The parodies focused on a supermarket cashier using said techniques to persuade shoppers to haggle for their purchases. The results were filmed via hidden camera, then posted on YouTube.

Alas, it was not to last: A number of its partners found little humor in the adverts, feeling they undermined their relationship with Edmunds. A few showrooms went as far as to unsubscribe from the site’s portfolio of services.

Though it had no intention to take the series down at first, Edmunds relented. President Seth Berkowitz said the series “missed the mark,” and that the company would go back to improving the car-buying process with its dealer partners “for car shoppers around the country.”

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Gilbert Calls Out Dealers In Wake Of Reinforced Michigan Direct Sales Ban http://www.thetruthaboutcars.com/2014/10/gilbert-calls-dealers-wake-reinforced-michigan-direct-sales-ban/ http://www.thetruthaboutcars.com/2014/10/gilbert-calls-dealers-wake-reinforced-michigan-direct-sales-ban/#comments Thu, 23 Oct 2014 13:00:28 +0000 http://www.thetruthaboutcars.com/?p=935370 Tuesday, Michigan governor Rick Snyder signed into law a bill that included language reinforcing a direct sales ban established over 30 years ago. Wednesday? Detroit billionaire Dan Gilbert — best known as the majority owner of the Cleveland Cavaliers who penned a letter in Comic Sans typeface in response to LeBron James making the decision […]

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Cavaliers Brown Basketball

Tuesday, Michigan governor Rick Snyder signed into law a bill that included language reinforcing a direct sales ban established over 30 years ago.

Wednesday? Detroit billionaire Dan Gilbert — best known as the majority owner of the Cleveland Cavaliers who penned a letter in Comic Sans typeface in response to LeBron James making the decision to play for the Miami Heat — had a few words to say about this decision.

According to Detroit Free Press, Gilbert was interviewing fellow NBA team owner Mark Cuban while guest-hosting an episode of CNBC’s “Squawk Box” when he brought up the signing of HB 5606, now known as Michigan Public Act 354 of 2014, proclaiming the move “sends a bad message” as far as how much influence lobbyists — especially the auto dealer lobby — have over legislators. He added that Michigan dealers should “man up” and compete with Tesla instead of forcing the EV automaker to sell through a franchise network.

Morgan Stanley automotive analyst Adam Jonas agreed with Gilbert in a note to the financial giant’s clients, stating it was only “a matter of time” that the issue of direct sales — and Tesla’s link to them — would “likely mushroom into a national issue.” He also said legislation protecting the status quo “exist to support the weakest link in the network.”

On the other side, Detroit Regional Chamber of Commerce president Sandy Baruah believes Detroit “should have a business environment where all participants play by a common set of rules.” The chamber also supported the signing, and says it looks forward to the further examination Snyder called for in light of the reinforcement.

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Fuel Prices Leave Efficient, Greener Offerings On The Lot http://www.thetruthaboutcars.com/2014/10/fuel-prices-leave-efficient-greener-offerings-lot/ http://www.thetruthaboutcars.com/2014/10/fuel-prices-leave-efficient-greener-offerings-lot/#comments Wed, 22 Oct 2014 14:00:10 +0000 http://www.thetruthaboutcars.com/?p=934794 Falling fuel prices are helping to drive sales of SUVs and trucks as of late, but at the expense of more efficient, greener offerings. Automotive News reports dealers flush with fuel efficient and alternative fuel models are dropping truck-month style incentives on the hood to help move them off the lot. KBB.com notes that the […]

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Falling fuel prices are helping to drive sales of SUVs and trucks as of late, but at the expense of more efficient, greener offerings.

Automotive News reports dealers flush with fuel efficient and alternative fuel models are dropping truck-month style incentives on the hood to help move them off the lot. KBB.com notes that the Toyota Prius and Ford C-Max alone have seen increased incentives, with the latter jumping from $2,650 last September, to $4,900 this past September.

Meanwhile, strengthening fuel efficiency targets may lead to automakers producing vehicles that, according to Kelley Blue Book senior analyst Eric Ibarra, “consumers don’t want to buy” should gasoline and diesel prices remain low. Per forecasts by the U.S. Energy Information Administration, the decrease in fuel costs will remain in play for at least another year, thanks to the oil boom in places like Alberta and North Dakota.

That said, dealerships aren’t too worried yet, believing consumers are ever-vigilant toward price spikes. Until then, SUVs and pickups will dominate the highways for another day.

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Dodge Viper Assembly To Resume Mid-November http://www.thetruthaboutcars.com/2014/10/dodge-viper-assembly-resume-mid-november/ http://www.thetruthaboutcars.com/2014/10/dodge-viper-assembly-resume-mid-november/#comments Wed, 22 Oct 2014 12:00:27 +0000 http://www.thetruthaboutcars.com/?p=934754 After months of idling, the Dodge Viper will once again roll out of the assembly line to a roped-off display near you. Automotive News reports the Conner Avenue plant will start production of the supercar in mid-November after shutting down July 3. The move follows a sales increase in September, thanks to a $15,000 discount […]

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After months of idling, the Dodge Viper will once again roll out of the assembly line to a roped-off display near you.

Automotive News reports the Conner Avenue plant will start production of the supercar in mid-November after shutting down July 3. The move follows a sales increase in September, thanks to a $15,000 discount to help move unsold 2013 and 2014 stock, as well as an additional $15,000 off via a coupon given to over 1,000 customers that will remain good until January 2, 2018.

In the aforementioned month, 108 Vipers were dusted off and sent to a good home after buyers paid $86,880 for them, besting August 2014’s 38 and September 2013’s 45. Dodge chief Tim Kuniskis said October sales are also turning out to be strong, helping to bring inventory down to appropriate levels.

Speaking of inventory, dealers have ordered 200 2015 Vipers, which will only be assembled once more older stock heads out onto the highway. Once assembly starts, only the GT and base SRT trims will come down the line at first, with the more upscale TA and GTS trims following after inventory becomes reasonable.

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Tesla Direct Sales Ban Reinforced In Michigan, GM Supported Signing http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/ http://www.thetruthaboutcars.com/2014/10/tesla-direct-sales-ban-reinforced-michigan-gm-supported-signing/#comments Wed, 22 Oct 2014 10:00:19 +0000 http://www.thetruthaboutcars.com/?p=934698 It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced. Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a […]

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2013 Tesla Model S Summerside Lighthouse

It’s official: the ban preventing Tesla from directly selling its wares to customers in Michigan has been reinforced.

Michigan governor Rick Snyder signed into law HB 5606, now known as Public Act 354 of 2014. The act not only prohibits automakers from telling their dealerships what fees the latter can charge customers, but reinforces a law already on the books:

This bill does not, as some have claimed, prevent auto manufacturers from selling automobiles directly to consumers at retail in Michigan — because this is already prohibited under Michigan law.

Though Tesla can do little more than open a showroom and a repair shop for now, Snyder said lawmakers should “always be willing to re-examine” legislation with the aim of improving the consumer’s experience “in a more efficient and less costly manner.”

Meanwhile, at least one automaker is happy PA 354 is on the books. In a one-sentence press release, General Motors had this to say prior to the bill’s signing:

We believe that House Bill 5606 will help ensure that all automotive manufacturers follow the same rules to operate in the State of Michigan; therefore, we encourage Governor Snyder to sign it.

Per Jalopnik, GM sent a similar message to Ohio governor John Kasich back in March of this year regarding SB137, which would have allowed Tesla to directly sell to customers in the state; the bill later died in the Ohio Senate.

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Cadillac Dealers Prepare To Step Up, Or Leave, Sales Game Under De Nysschen http://www.thetruthaboutcars.com/2014/10/cadillac-dealers-prepare-step-leave-sales-game-de-nysschen/ http://www.thetruthaboutcars.com/2014/10/cadillac-dealers-prepare-step-leave-sales-game-de-nysschen/#comments Tue, 21 Oct 2014 14:00:13 +0000 http://www.thetruthaboutcars.com/?p=934202 Facebook commenters and the automotive press aren’t the only ones feeling the lash from Cadillac boss Johan de Nysschen, as dealers themselves are feeling the pressure to step up their game. Automotive News reports that while some Cadillac dealerships have nothing to worry about, and are, in fact, completely on-board with de Nysschen’s alphanumeric global […]

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Facebook commenters and the automotive press aren’t the only ones feeling the lash from Cadillac boss Johan de Nysschen, as dealers themselves are feeling the pressure to step up their game.

Automotive News reports that while some Cadillac dealerships have nothing to worry about, and are, in fact, completely on-board with de Nysschen’s alphanumeric global vision, those on the low end of the totem pole fear they may be selling something else if they can’t compete on the level their new boss expects of them.

Specifically, de Nysschen may want to consolidate the brand’s network of 924 dealerships into a more BMW/Mercedes-esque number — hovering in the 330 – 370 range — with a similar focus on urban markets. Though neither he nor anyone representing Cadillac have stated such plans were on the table, dealers like Claude Burns and an unnamed dealer in the Midwest are going on the offensive to maintain their spots: a new expanded floorplan for the former, lawyering-up with an attorney who represented dealers during General Motors’ bankruptcy for the latter.

As for the boss himself, de Nysschen had this to say about the future of his dealerships after his meeting with them last month in Las Vegas, where he outlined his vision for the brand and their role in it:

It’s very clear to me that many, many dealers already have risen to the challenge. On the other hand, when those customers engage us in our dealerships, we cannot afford that the experience is anything other than confirming that this is a first-class brand. And not all of our dealers are there.

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Michigan May Ban Tesla Direct Sales Pending Governor’s Signature http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/ http://www.thetruthaboutcars.com/2014/10/michigan-may-ban-tesla-direct-sales-pending-governors-signature/#comments Thu, 16 Oct 2014 12:00:00 +0000 http://www.thetruthaboutcars.com/?p=931978 Sitting on Michigan governor Rick Snyder’s desk is a bill that would add the state to the list of places where Tesla cannot sell its vehicles directly to the public, waiting for his pen to seal the deal. Automotive News reports Michigan H.B. 5606 was originally meant to determine whether or not automakers could stop […]

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Sitting on Michigan governor Rick Snyder’s desk is a bill that would add the state to the list of places where Tesla cannot sell its vehicles directly to the public, waiting for his pen to seal the deal.

Automotive News reports Michigan H.B. 5606 was originally meant to determine whether or not automakers could stop their dealership networks from charging consumers certain fees when it was introduced in May, only for the anti-Tesla language to be appended to the bill by the state senate prior to passage — and without notice or debate — during the first two days of October. The bill then returned to the state house, passing 106 to 1 before landing on Snyder’s desk.

On the third day, Tesla contacted the governor’s office to have “a very open and productive dialogue” with those in the Snyder administration, according to vice president of business development Diarmuid O’Connell. He added that the automaker had been watching the bill since its introduction, citing its experience with other bills where anti-Tesla language had been stealthily implemented.

Meanwhile, Michigan Automobile Dealers Association executive vice president Terry Burns applauded the bill, proclaiming that while Tesla are “more than welcome” to do business in Michigan, he would hope they do so based on state law:

One good thing about being governor, you get to do whatever you think is appropriate at the time. We hope and look forward to him signing the bill and clarifying the language, and we hope he does it soon.

As for when the governor would decide the fate of H.B. 5606, a representative said the bill was being evaluated, but nothing has been decided thus far. Snyder has until October 21 to sign.

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NADA, CFPB Fight For Future Of Automotive Financing http://www.thetruthaboutcars.com/2014/10/nada-cfpb-fight-future-automotive-financing/ http://www.thetruthaboutcars.com/2014/10/nada-cfpb-fight-future-automotive-financing/#comments Thu, 09 Oct 2014 10:00:13 +0000 http://www.thetruthaboutcars.com/?p=927882 According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.” Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a […]

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According to National Automobile Dealers Association chair Forrest McConnell, the United States government’s plan to tighten automotive finance regulations amounts to an attempt by said government “to take away the consumer’s right to get a discount.”

Autoblog reports the Consumer Financial Protection Bureau wants to further extend its reach in the industry, arguing that a flat-fee system would provide more transparency and prove beneficial to consumers over the current discretionary interest rate system, which the agency claims can be used to discriminate against certain groups of customers.

McConnell returned fire, proclaiming the CFPB’s reasoning as “flawed,” and that dealers are against discrimination:

Dealers have to discount those rates to be competitive. The current system saves customers money. Period.

At stake are 87.4 million outstanding loans worth over $900 billion as of Q1 2014, 90 percent of which originate from 38 auto finance companies that would fall under the proposed CFPB regulations.

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Tesla Preparing To Enter CPO Market By 2016 http://www.thetruthaboutcars.com/2014/10/tesla-preparing-enter-cpo-market-2016/ http://www.thetruthaboutcars.com/2014/10/tesla-preparing-enter-cpo-market-2016/#comments Tue, 07 Oct 2014 13:00:49 +0000 http://www.thetruthaboutcars.com/?p=927409 Always wanted to own a Tesla Model S, but couldn’t get past the $71,070 base price? CEO Elon Musk has a plan to make it easier to bring one home: CPO sales. Automotive News reports the automaker is working on a certified pre-owned program that would be offered through its stores, competing against similar programs […]

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Always wanted to own a Tesla Model S, but couldn’t get past the $71,070 base price? CEO Elon Musk has a plan to make it easier to bring one home: CPO sales.

Automotive News reports the automaker is working on a certified pre-owned program that would be offered through its stores, competing against similar programs by the likes of BMW and Mercedes-Benz, as explained by Tesla’s vice president of communications, Simon Sproule:

With the Model S fleet now heading toward the first cars hitting three years old, we are looking at CPO and how best to structure.

In addition, Musk himself proclaimed in 2013 that he would personally honor the buyback guarantee his company issued to owners at the time of purchase, allowing them to recover 43 percent to 50 percent of the sticker price after three years. Should this group take him up, the first trade-ins would arrive for refurbishing in the spring of 2016 — if not earlier for those offloading their Model S for a Model X — with more to come the following year.

Just like with Tesla’s new cars, the CPO models would be sold at its stores, with the potential to capture as much as $10,000 per used model sold, much more than when the models first left the showroom according to TrueCar president John Krafcik.

Challenges for the company’s entry into the CPO market include: budgeting for model refurbishing and sales; more legal battles to be allowed to directly sell used models; the potential for depreciation to be lower than benchmarked — the Mercedes S-Class’ trade-in value formed the basis for Tesla’s buyback program; owners taking their vehicles to other used-car dealers or the private market; and the upcoming Model III.

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Buffett Enters Dealership Business With Van Tuyl Group Purchase http://www.thetruthaboutcars.com/2014/10/buffett-enters-dealership-business-van-tuyl-group-purchase/ http://www.thetruthaboutcars.com/2014/10/buffett-enters-dealership-business-van-tuyl-group-purchase/#comments Mon, 06 Oct 2014 12:00:46 +0000 http://www.thetruthaboutcars.com/?p=926441 Warren Buffett — no relation to Jimmy — is a lot of things: investor extraordinaire, railroad magnate, newspaper mogul, hip-hop enthusiast et al. As of last Thursday, however, he picked up a new title: master auto dealer. Bloomberg reports Buffett’s Berkshire Hathaway purchased Arizona-based Van Tuyl Group, the largest privately owned auto dealership group in […]

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Grand Re-Opening Of Jay-Z's 40/40 Club - Inside

Warren Buffett — no relation to Jimmy — is a lot of things: investor extraordinaire, railroad magnate, newspaper mogul, hip-hop enthusiast et al. As of last Thursday, however, he picked up a new title: master auto dealer.

Bloomberg reports Buffett’s Berkshire Hathaway purchased Arizona-based Van Tuyl Group, the largest privately owned auto dealership group in the United States, for an undisclosed sum. Namesake Larry Van Tuyl will continue to run the show, especially with Buffett’s plans to scale operations significantly.

The purchase is a bet on the consolidation of the dealership industry overall, as a handful of groups — like AutoNation, Group 1 and Penske — come into more dealerships; Van Tuyl operates 78 in 10 states, including Arizona, Texas and Nebraska.

Once the paperwork is sorted in Q1 2015, the group will be renamed Berkshire Hathaway Automotive. The group has over $8 billion in revenue.

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GM Puts Stop-Delivery Order On Colorado, Canyon Twins http://www.thetruthaboutcars.com/2014/10/gm-puts-stop-delivery-order-colorado-canyon-twins/ http://www.thetruthaboutcars.com/2014/10/gm-puts-stop-delivery-order-colorado-canyon-twins/#comments Mon, 06 Oct 2014 11:00:14 +0000 http://www.thetruthaboutcars.com/?p=926401 If you ordered one of General Motors’ new mid-size pickups, your delivery may be a bit late, thanks to an airbag recall. Automotive News reports dealers received a note last week from GM informing them that the automaker had notified the National Highway Traffic Safety Administration of an “upcoming safety and noncompliance recall” involving the […]

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If you ordered one of General Motors’ new mid-size pickups, your delivery may be a bit late, thanks to an airbag recall.

Automotive News reports dealers received a note last week from GM informing them that the automaker had notified the National Highway Traffic Safety Administration of an “upcoming safety and noncompliance recall” involving the driver’s side airbag connection being incorrectly wired while the Chevrolet Colorado/GMC Canyon twins were on the assembly line:

This condition will cause the driver-side airbags to not function as designed and may adversely affect the crash performance of the driver-side airbags.

GM says it will deliver a software update to its dealerships “in the next few days,” allowing service techs to reprogram the affected airbag’s sensing and diagnostic module prior to delivery. That said, most of the affected are either at the Wentzville, Mo. assembly plant, in transit, or unsold on the lot.

Speaking of sales of the twins, the automaker reported 36 Colorados and 11 Canyons heading for the old dirt road to the beer-fueled barnyard disco in September.

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State, Federal Authorities Target Subprime Liar Auto Loans http://www.thetruthaboutcars.com/2014/10/state-federal-authorities-target-subprime-liar-auto-loans/ http://www.thetruthaboutcars.com/2014/10/state-federal-authorities-target-subprime-liar-auto-loans/#comments Mon, 06 Oct 2014 10:00:39 +0000 http://www.thetruthaboutcars.com/?p=926369 The same subprime lending practices in the mortgage industry that fueled the run-up toward the Great Recession have found a new market to infect: used-car auto lending. According to The New York Times, state and federal authorities are investigating used-car dealerships who finance subprime consumers by creating liar loans, loans where an applicant’s information is […]

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Ameriquest Mortgage NASCAR Nextel Cup Series Ford Fusion

The same subprime lending practices in the mortgage industry that fueled the run-up toward the Great Recession have found a new market to infect: used-car auto lending.

According to The New York Times, state and federal authorities are investigating used-car dealerships who finance subprime consumers by creating liar loans, loans where an applicant’s information is misrepresented, such as inflating one’s income or falsifying their employment information.

Thus far, the investigations have found hundreds of such loans, including a case in Odessa, Texas where two employees at a dealership created over 300 liar loans; the employees are now serving time in federal prison. Meanwhile, 15 states — including Florida, New York, Alabama, Ohio, Texas and Tennessee — have lawsuits pending against dealerships whose subprime lending tactics have financially damaged borrowers who would have otherwise been passed over.

Liar lending also damages lenders and investors — the latter including public pension funds and insurance companies — who buy the loans from the dealerships who commit to such tactics, eroding confidence in the securities generated by the loans. That said, more lenders are falling head over heels to have more loans in their portfolio — sometimes paying dealers in full immediately for them — fostering the sin that led some mortgage companies to the guillotine years ago.

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CFPB Brings The Hammer Down On Captives, Dealer Reserve http://www.thetruthaboutcars.com/2014/09/cfpb-brings-hammer-captives-dealer-reserve/ http://www.thetruthaboutcars.com/2014/09/cfpb-brings-hammer-captives-dealer-reserve/#comments Tue, 30 Sep 2014 14:00:47 +0000 http://www.thetruthaboutcars.com/?p=921689 The hammer has fallen on captive automotive lenders, such as GM Financial, Ford Motor Credit and Toyota Financial Services: The Consumer Financial Protection Bureau began officially asserting its authority over them as the feds and the lenders battle over allegations of discrimination in the latter’s loan products. Forbes reports the captives — regulated at the […]

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CFPB - Consumer Financial Protection Bureau Sign

The hammer has fallen on captive automotive lenders, such as GM Financial, Ford Motor Credit and Toyota Financial Services: The Consumer Financial Protection Bureau began officially asserting its authority over them as the feds and the lenders battle over allegations of discrimination in the latter’s loan products.

Forbes reports the captives — regulated at the state level until this month — will be used indirectly by the agency to regulate dealerships as far as financing is concerned; the new-car dealer lobby won exemption from oversight in 2010.

The focus? Dealer reserve. Lenders allow dealers to add a few percentage points to the former’s loan packages as compensation for generating the leads, generally capped between 2 to 3 percentage points by most lenders. However, the allegations claim dealerships use their dealer reserve to charge more on loans made to protected classes, such as women and minorities.

The CFPB plans to address the issue by “pushing lenders to switch to some form of dealership compensation that takes away dealer discretion, such as a fixed, flat rate for every customer.” The agency also suggested lower caps could also do away with the alleged variations in dealer pricing.

For its part, the National Automobile Dealers Association claims competition “keeps rates low,” that dealership compensation is lower than the rate caps suggested, and by moving to a fixed, flat rate with even lower caps, dealers would no longer be able to offer discounts on financing.

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