Earl Stewart on Cars - 10.19.2019 - Your Calls, Texts, and Mystery Shop of AutoNation Chevrolet in Greenacres

Episode Date: October 19, 2019

Earl answers various caller questions and responds to incoming text messages. Agent Thunder visits AutoNation Chevrolet in Greenacres to see if their salesperson will disclose one of their cars with a...n identified Takata Airbag Recall. Earl Stewart is the owner of Earl Stewart Toyota in North Palm Beach, Florida, one of the largest Toyota dealerships in the southeastern U.S. He is also a consumer advocate who shares his knowledge spanning 50+ years about the car industry through a weekly newspaper column and radio show. Each week Earl provides his audience with valuable tips that prevent them from "getting ripped off by a car dealer". Earl has been featured in The Wall Street Journal, The New York Times, U.S. News and World Report, Business Week, and other major publications. He has also made numerous appearances on CNN, Fox News, CBS, and other news networks. He is frequently called upon by local and national media to comment on major trends and newsworthy events occurring in today’s rapidly changing auto industry. You can learn more by going to Earl's videos on www.youtube.com/earloncars, subscribing to his Facebook page at www.facebook.com/earloncars, his tweets at www.twitter.com/earloncars, and reading his blog posts at www.earloncars.com. “Disclosure: Earl Stewart is a Toyota dealer and directly and indirectly competes with the subjects of the Mystery Shopping Reports. He honestly and accurately reports the experiences of the shoppers and does not influence their findings. As a matter of fact, based on the results of the many Mystery Shopping Reports he has conducted, there are more dealers on the Recommended Dealer List than on the Not Recommended List he maintains on www.GoodDealerBadDealerList.com”

Transcript
Discussion (0)
Starting point is 00:00:00 Good morning. I'm Earl Stewart. I welcome you to Earl Stewart on Cars, a live talk show all about how to buy, lease, maintain, or repair your car without being ripped off by a car dealer. With me in the studio is Nancy Stewart, my wife, co-host, and a strong consumer advocate, especially for our female business. We also have Rick Kearney, an expert on how to keep your car running right. I dare you to ask a question that Rick can't answer about the mechanics or electronics of your car. Also with us is my son, Stu Stewart, our LinkedIn cyber. space through Facebook, YouTube, Twitter, and Periscope. Stu is also the Spymaster Director of our Mystery Shopping Report. He dispatches our secret shopper weekly to an unsuspecting South Florida dealership. And now, on with the show.
Starting point is 00:00:45 Hello, everybody. No more recording. That's me. This is Earl, the recovering car dealer, in the studio with three other live people. This is live talk show, radio kind of stuff. and as I said in my recorded introduction this is a show about how not to be taken advantage of by your car dealer whether you're buying, maintaining, leasing, or repairing your car.
Starting point is 00:01:09 I have to say it's been an exciting week for us. We finally had, after a lot of, I was going to say, months, it's been years that we've been talking about the Takata debacle. Finally, CBS News broke it with an investigation of the Auto Nation stores, the largest auto retailer in the world, Auto Nation. I believe they have over 200 stores in the United States, and I believe they're actually in other countries as well. But anyway, Auto Nation was proven by a independent source investigating to be selling one out of nine of their vehicles with defective dangerous recalls. And of course, Takata was the focal point. CBS News,
Starting point is 00:01:55 Anna Werner on the CBS News did the breaking news kind of an expose on Monday of this last week and interviewed me, yours truly, in my dealership remotely, talking about our stance on not selling cars with to cut airbags. I've been accused on this show, and it's probably true of doing too much talk about the dangerous to cut airbag recalls. But I have to say that it was out of passion. was out of concern for you, the drivers of these cars. And I know that there's a lack of awareness, and people say, what is a Takata Airbag? I've actually had people not know about the Takata Airbag recall customers of mine, and there are people today that are listening to the show that may not know about the Takata Airbag recall. So we're going to talk about a little bit more than normal this morning.
Starting point is 00:02:51 I'd love to hear about your experiences. If you saw the CBS News, if you saw it online, if you saw it on the air, I'd like to have you call the show and give us your impression. If you've had an experience buying a car, have you had any conversations with your salespeople or with a dealership that this car may have a dangerous to cut airbag in it? And maybe we can't fix it because the parts aren't available. We have a mystery shopping report, as you know, your regular listeners on this show. every week we shop a different car dealer somewhere in South Florida area we go in sometimes on advertising deceptive advertising we did the streak of them on defective to cut airbags
Starting point is 00:03:32 we just access the online sources for defective to cut airbags and find out those that are in inventories and car dealers in South Florida then we send an undercover agent into the dealership to try to buy the car and I'm going to have to say Stu can correct me if I'm exaggerating, nine out of ten or maybe nine and a half out of ten are not disclosed. That is correct. And when they are disclosed, they're typically disclosed in a negligent kind of a careless manner. Oh, yes, you can get that fixed.
Starting point is 00:04:05 And they don't tell you that the defective airbag can kill you and has killed a lot of people. And they don't tell you in some cases that there is not a fix available. Now, we have a mystery shopping report coming up, and you probably guessed it already, right? It was an AutoNation store. Auto Nation store. It was Automation Chevrolet and Green Acres. That's like Greater Lake Worth, or as I now say, Lake Worth Beach. But it's a large store.
Starting point is 00:04:32 I've been there for a long time. Used to be owned pretty oldies out there like me by a guy named Steve Moore. He used to be Steve Moore Chevrolet. That's right. And Steve Moore sold out to Auto Nation. That's the reason he's a multi-millionaire today. And he's a great guy and an honest guy. And Auto Nation bought it.
Starting point is 00:04:49 and they've been selling a lot of cars out there. So our Mr. Shopper went out and attempted to buy a car that we had pre-identified. And we'll talk about that later in the show. No spoilers. No, don't want to do this spoiler. Did AutoNation come out on top? Do they come out on the bottom?
Starting point is 00:05:05 In the middle, what happened? You've got to tune in to find out. You've got to tune in, and you're already tuned in, or if you have friends aren't tuned in, please tell them to. Meanwhile, the core of this show is you. we know that you probably are interested in some of the things we have to say
Starting point is 00:05:24 but you're more interested in questions that you specifically have or comments. Everybody virtually has a car if you live in Florida, you almost have to have to have a car. You have to bring it in to get it fixed, you have to have it repaired, maintain, you have to buy a new one every now and then or another
Starting point is 00:05:40 used one, a later model car, and it's just not a good experience. One thing I haven't mentioned in the past few weeks, the Gallup annual poll on honesty and ethics and professions. Since 1977, every year, every year they do a poll on the most honest and the most dishonest in terms of ethics, businesses in the country. Nurses are number one. Car dealers are usually at the bottom, and if they're not dead last or next to last, last year they were dead last, I believe. They're lower than congressman. Yeah, lower than congressman, lobbyists.
Starting point is 00:06:16 actually moved up. Lawyers used to be on the bottom, but of all the professions, of all the places where you buy things, retail mainly, the worst experience you can have in terms of honesty and ethics is where the car dealership. That's the reason this show exists. The sad fact is that because it's been going on since law, I mean, 19... Are we talking 42 years? 42 years, thank you. Forty-year. Forty-two years. Bottom of the list. And that's just when the polls been conducted. They've been selling cars since the early in 1900s.
Starting point is 00:06:49 And I imagine they were probably pretty shady back in those days. So that's the reason we're here. You call us at 877-960-90-960. That's our old-fashioned telephone. You remember those things that you used to dial and ring? Spin your fingers around a little circle. The telephone. Some of young people out there don't know what a telephone is.
Starting point is 00:07:11 You'll call it a smartphone. We used to call them telephones. 877, 960, 9960. One more time, 877, 960, 9969. We move up in time a little bit, texting. People love to text now. When you text, you can say what you have to say, and you're out of there. You don't have to listen to the reply,
Starting point is 00:07:32 and the person that receives your text doesn't have to read it then. They can read it later, and they don't have to reply. They can pretend like they didn't get the text. So it's a lot more user-friendly. You never have to talk to anybody. Yeah, right. It's great for introverts. I know people that don't talk it on the phone anymore.
Starting point is 00:07:46 All they do is text. I personally think it's far more efficient. And you can say something and you can think about it for a long time and word it carefully. It can really give somebody a zinger and a text. So, text us, please. It's 772-497. Zing me. 6-5-30.
Starting point is 00:08:05 Write it down, okay? 7-72 area code, 497-6-5-30. And let us know what you'd like to talk about. us know what we're doing right on the show or wrong on the show. Love to hear about Tricotta Airbags in the CBS News article last Monday. Anna Werner, an amazing investigative reporter, and she has won prizes for some of her investigative reporting. Amazing lady, and we'd love to hear your thoughts on that show. You know, I usually go left to right, and I talk about Mrs. Sunrise, excuse me, Mrs. Stewart. She's also Mrs. Sunrise.
Starting point is 00:08:41 But I'm going to go from left to right, and I'm going to talk about Rick Kearney, certified master diagnostic technician. We get caught up in sales and buying and selling cars, and we sometimes forget that probably your greatest aggravation is having to deal with service advisors, going into an independent repair shop, having people try to sell you things that you don't need in a service department, or is telling you there's something really dangerously wrong with the car when there really isn't. because they can sell it to you and make a lot of money. Rick Kearney has been with me as an employee for 25 plus years, and he's been fixing cars since he was nine years old, and he's helping his father.
Starting point is 00:09:24 Rick, tell us a little bit about why you're on this show. I'm here to answer questions. Yeah, in a nutshell, and he can answer any question. I tell you, I'm going to make a deal here. If you have a real question, and Rick can't answer it, I'm going to pay you $50. I'm going to put, now, remember he's got a computer in front of a laptop, and he can possibly Google it before you call. But if he can't answer a question, 50 bucks for any question Rick Kearney cannot answer.
Starting point is 00:09:53 Now you have to, I say you have to, yeah, you can text if you want to, or call 877960 or text us at 772-497-30. I've got a question for Rick. talking about Takata airbags and dangerous recalls. When you fix a car that has a recall, you get paid for it, don't you? Yes, I do. And the dealership gets paid for it, too. Yes, they do. And the manufacturer pays for it.
Starting point is 00:10:23 It's actually, can you understand why any dealer would be reluctant to have one of their own cars fixed when they make money on the process? Absolutely not. It would be like what? just stupidity. I mean, I hate to use the word. All the models are a little bit different, so some pay more than others, but even for Toyota, I really can speak only for Toyota on this part, but the lowest paying model of Toyota for replacing an airbag inflator is still a good job. Technicians work on commission, so I get paid X amount of time to do that job, and the
Starting point is 00:11:07 lowest paying job that Toyota has for one, I can beat that time usually by 20% or better. So I make out on them. How much does Toyota pay our Toyota dealership in all Toyota dealerships for their lowest price? Well, for say, a corolla, the older corollas, it pays nine-tenths of an hour. Yeah, and that would be, give it to us a dollars and cents. Let's see. At our current rate for warranty pay... $130, $140.40. Actually, yeah, it's about $140 to $150.
Starting point is 00:11:44 The dealership gets paid for me replacing that airbag. And then depending on other dangerous recalls, they can range up where the dealership could be making hundreds of dollars in some cases. If I were replacing the inflator on a forerunner, that dealership makes around almost $500. So there you have it. it isn't unique, all the car dealerships out there have similar pay plans. The dealers make hundreds of dollars when they fix it, dangerous recall. The technician is incentivized on commission, and even the service advisor gets paid. So everybody pays, why would you sell a car with a dangerous recall when you could actually profit by having it repaired?
Starting point is 00:12:26 There would be no reason because it's one of the simplest things because there's no go to the customer recommend it, what the customer determined, do they need to be done? It's the simplest amount of paperwork. You simply do the job, get it done. Two minutes of paperwork. And the customer loves you because you just
Starting point is 00:12:47 may have saved his life. He did him a favor. He probably didn't know about the recall. When a customer car comes into a car dealership, Auto Nation, or any other, Mercedes, Honda, they have a computer. You've got a computer in your hand. You got a smartphone.
Starting point is 00:13:02 anybody can go to safercar.gov, and that's where you should go before you buy a used car. Safercar.gov, look it up on NHTSA, National Highway Traffic Safety Association, find out if there's a recall. And if there is, tell your dealer. Your dealer could do the same thing for you, but they don't. That's a problem. Well, we've been doing Takata recalls for several years now, three to four years, and I can honestly say right now, there's a gentleman, or gentleman's family in Arizona that I am sure really wishes that his Honda had been repaired
Starting point is 00:13:37 because June of 2018, a man died because of a Takata inflator in Arizona. Yeah, a lot of Hondas out there with it defective. Folks, this is just, it's such a deadly thing because when these inflators explode, it is literally a hand grenade, a pipe bomb, exploding within inches of your face. Trapnel, yeah.
Starting point is 00:14:03 And it kills other people. If it's a passenger shrine, it could kill the driver. It can kill people in the back seat. I mean, think of an exploding hand grenade. The shrapnel just doesn't go in one direction. It goes all over the place. So they're very, very dangerous. Let's move around to Stu.
Starting point is 00:14:21 Nancy, please get those numbers out again. I'm hoarse. Okay. Good morning, folks. Welcome. Welcome to Earl Stewart-on-Cars, if you just tuned in. We love your phone calls. We love your texts.
Starting point is 00:14:34 We love hearing from you. We're here for you, but also we would like information from you, and you always put that out there for us because we don't know everything. Our number is 877-960-99-60, and you can text us at 772-497-9-7-6-6-5-3-0.4-0.000. Zero. And remember, Your Anonymous Feedback.com. Oh, yeah. Your Anonymous Feedback.com. Let us know what you're thinking.
Starting point is 00:15:06 Let us know anything. You do remain anonymous. Okay, Sue. Tell us a little bit about yourself and your place on the show. And maybe you've been accumulating some text or feedbacks or something. Well, good morning. Yeah, we've got a bunch of texts on deck. We'll get to them in a few minutes.
Starting point is 00:15:24 but I just wanted to say this last week, what a momentous week. I mean, with the CBS News story, it was something that we were actually, we had backed off doing the mystery shops and backed off talking about Takata, and we were doing that because we didn't want to become tiresome. And also, you don't want to get it where it's just background noise. So maybe there was taking a pause was a good thing. But having a national news story, putting the focus back on this again was huge. And the fact that we got to participate, you got to be interviewed,
Starting point is 00:15:54 about it. It made it that much more impactful for the people in our area and also nationwide. So, you know, we're back on this with a passion. You mentioned already. We went back and did a Takada mystery shop at an Auto Nation dealership. The CBS News story focused on Auto Nation and their reversal of their old policy that they put into place right when it got started heating up back in 2016. And Mike Jackson made an announcement and it was something we applauded it on the show. Yeah, the CEO at that time of AutoNation, Michael Jackson, and who I admire and respected greatly. And, you know, I'm sure he has plenty of defensible reasons for auditation to go back on the policy, but it lasted a year. After a year, I guess the reality of the
Starting point is 00:16:41 cost involved, caught up with him, and they said, we've got to go back. And so with the story from CBS News putting a focus on it again, I think a lot more people are going to be aware, and I think it's going to save lives. Jackson, as you know, resigned recently. And I wonder how much his resignation had to do with him committing for the corporation not to sell cars with dangerous recalls and then suddenly reversing, going back to selling them again. And then there's a resignation.
Starting point is 00:17:13 I talked to Rosemary Sheehan, California, one of the great consumer advocates in the United States, Rosemary said in an email back before her, she doesn't know if it was a coincidence that Michael Jackson has resigned as a result of them going back to the selling the dangerous recalls automation. We can speculate, but if I was him, I probably wouldn't want to stick around after that. It's kind of a big flip-flop. The other thing I can tell you is, you know, when we prepare for these mystery shopping reports, and we had been reporting in recent months, it's getting harder and harder to find cars, use cars with Dakota airbag recalls, and it feels like it might be getting a little bit easier again. And what we see is these,
Starting point is 00:17:53 these recalls come in waves. And new recalls are announced, and I can report Toyota is announcing a new recall on cars that were already fixed that had to cut airbags, and they're replacing the replacements. No one's forcing their hand that they're doing this voluntarily, but it's over a million vehicles, and they're all, you know, they're older Toyota's, but this is happening, and consumers are going to get notices in the mail next month, and they're going to let them know that they've got to bring their car in. So this is ongoing and it's been going on for three years. Yeah, the Takata situation is actually getting
Starting point is 00:18:27 worse. It's not getting better. The cars are coming of age and they are reaching the unstable accelerant situation with the humidity and the temperature at a greater rate than they're being fixed because only one out of four is being fixed. So
Starting point is 00:18:42 the Takata situation is far worse today than it was three years ago. Exactly. As a matter of fact, the fix, this new recall that's going to be announced shortly, The problem was the airbag and the inflators that they replaced them with didn't have a desicant, which is just something, a little chemical thing. It absorbs moisture and prevents this accelerant from degrading anymore.
Starting point is 00:19:05 So the new ones will have this desiccant and keep it dry and safe. But like you said, there's no end in sight to this. Yeah. I myself can't find, you know, a legitimate reason for any of this to have taken place and for us to be added since 2016. Folks, I can tell you things are getting better, but the lives that have been taken and continue to be taken, I'll tell you what, this is definitely a hot topic,
Starting point is 00:19:36 and we are going to get back to it. Remember, 877960, and I'd like to hear from you by text at 772-49-60. Remember ladies, $50 for the first two, the lady callers and we have Tina and Doug holding and we're going to go straight to Tina right now good morning Tina welcome to the show hi good morning how y'all doing you're doing great hey Tina hi how are you great um I was re I was hi I was reading an article this morning from a few months back on the online version of Wall Street Journal and I think we need to turn our attention to millennials. I know millennials get
Starting point is 00:20:22 bashed and ticked on. This is definitely not a bashing. This is just a statement of fact. I'm an older member of Generation X baby boomer. If I would have been born a year earlier, I would have been a baby boomer for whatever it's worth, I think. But
Starting point is 00:20:39 our generation, when we turned 16, we were chomping at the bit to get our driver's license. We wanted our freedom as soon as possible. And for some of us, that was necessity because we were going to school, we were working after school. Some kids had football practice or sports practice and they needed to have a car to get around because there wasn't a lot of public transportation around at that time, especially where I live. But now the tide is
Starting point is 00:21:06 turned. I hear from clients at a hair salon, I hear them say, well, you know, my granddaughter just doesn't care about getting her driver's license or my grandson's 21 and he's still not driving and they're concerned about it. But there's legitimate reasons for this. And some of the reasons are that, number one, cars have gotten more expensive, and these kids, for the most part, just don't have the money. And insurance is also high. But another reason why millennials are for going, getting a driver's license,
Starting point is 00:21:36 is because of Uber and Lyft. Public transportation has gotten better in a lot of areas. Some of these young people are going to school in metropolitan areas where there's a lot of public transport. And quite frankly, a lot of them just admit, I'm not interested in getting a driver's license. So among the younger age category, the amount of driver's licenses has decreased sharply over the years. Yeah, I believe that, Tina. Been a lot of conversation about it.
Starting point is 00:22:05 Everything changes. You and I can't understand it, but our kids can and our grandkids can. So it's a definite change. And you hit on it. technology is driving a lot of that change. Yeah, and I don't necessarily think it's a bad idea for kids to wait if they can. At the time that I learned how to drive, my mother, she wanted me to wait. She made me wait until the last semester of my senior year before I took driver's ed,
Starting point is 00:22:36 and I got my driver's license the day I turned 18. And I think in my case, that was a good thing. But when my mother discovered how convenient it was to have somebody else not surprised besides her, she didn't have to be mom's taxi. So guess what? When my brother and sister turned 16, they got their licenses and it made her life much simpler. Exactly. You know, I think that our kids are a lot smarter than we give them credit for,
Starting point is 00:23:01 and our grandkids are even smarter than that. I think every generation is just getting more efficient and smarter. And Stu's raising his answer, I think he agrees. Well, yeah, I mean, I have a 17-year-old son, and a 16-year-old daughter, and when I see their kids, now my son, he was chomping at the bit, he wanted to get his license. They have a lot of friends that are not even interested in driving. I mean, his best friend just got his license, and he's almost 18 years old.
Starting point is 00:23:26 And there seems to be so many other, I think, I guess, things for kids to do instead of driving around. Like, we used to just drive around and cruise, you know, just getting their car because we were bored. Well, now they got their faces and their smartphones, but I do agree with Grandpa Earl. I think this is the smartest generation. Way smarter in mine. I'm a Gen X or two. You can't fight change, Dana. We will always love our cars.
Starting point is 00:23:52 We'll always remember them. But 20 years from now, it's going to be just motor transportation to get from point A to point B. The love affair will not, Rick's looking at me, because he's going to tell me we still have horses on the street. and we will always have we'll always have 57 Chevrolet power packs with dual quads Roman chariots
Starting point is 00:24:16 and they'll be around there'll be antique cars and you can go to the museum and see them and you might even be able to drive one if you're lucky just like you can ride a horse if you're lucky but yeah we keep our antiques and we keep our memories but time marches on and Rick you know what
Starting point is 00:24:30 I'll tell you what I certainly do wish there were horses back then because I have three daughters that were wanting cars immediately and their ulterior motive wasn't to help mom out you know and get to the store and take care of things and the same thing applies to grandchildren they wanted cars and they wanted them now and I wished it would have been horse and buggy time because it would have been less expensive for me that's my point I got to feed that horse okay thank you Dana
Starting point is 00:25:07 Appreciate the call. Always interesting. And you're our star caller. I appreciate it very much. Thank you. And ladies, I can't do this by myself. Please call the gang. Thank you. Thanks for the plug. 50-50. Thanks, Tina. We really appreciate your call. Yeah. And your plug. We're going to go to Doug, who is also another, well, he's here every Saturday. Good morning. And Ollie. Good morning. How are you guys? Hey, Doug. Well, first of all, Ollie wanted a car, but I told him, even though he's going to be 21, that he can't drive. 21, wow. Well, he's a senior sister.
Starting point is 00:25:52 That's an old kitty kid. Oh, yeah. You'd be kind, Ollie, now. I like that, Doug. So I had a question. I did get my Honda back, and it's working. pretty good but for some strange reason the battery isn't working and instead of replacing the battery they replaced a thing called a battery sensor you know what that is where it does uh now refresh me your honda is that a hybrid or regular gas engine no regular gas and it was struck by lightning
Starting point is 00:26:33 yeah they replaced all the electronics and the battery went dead and then instead of replacing the battery they put a battery sensor and I never heard of that well maybe the battery maybe that battery really wasn't dead and the sensor was defective and they had to replace the sensor that alerts you when you have a low battery that's certainly possible or a lot of batteries also have temperature sensors now in them or the car has a sensor for reading the temperature of the battery and also to try to help determine the health wise of the battery. Lightning's pretty hot.
Starting point is 00:27:12 Well, as long as it's working, Doug, and they probably charge your list to repair the sensor than they would if they had to replace the battery. So, you know... Well, they didn't charge me anything, which is good. Yeah, it's insurance.
Starting point is 00:27:25 Oh, insurance, cool. Very good. Well, I... The other thing... Yeah. The other thing that was weird is, unfortunately, my car was parked. Tim and I went to a restaurant in Ali State in the car, and someone
Starting point is 00:27:39 hit my car unattended hit and run and created $1,200 worth of damage. So it's like, really? Did Ollie get the tag number? You won't tell him. No, he did not. Meow.
Starting point is 00:27:54 That's all I said. Boy, you're running through some bad luck, I don't know what to tell you. That's you do for good luck. Yeah. You know, Well, you know your insurance company real well now, and they know you probably too well, and with your next premiums come up at the end of the year, they're going to be apt to you, I'm sorry to say, but at least you've got a working relationship with them,
Starting point is 00:28:24 and I hope things go smoothly for you. Thank you, and you guys have a great day. You too. Take care. Nice hearing from you, Doug. Give us a call toll-free. Thank you, bye-bye-bye-bye-7-9-60, or you can tell you. access at 772-497-6-530. And I mentioned quickly earlier that if you're the one of the first two lady callers, you can win yourself $50 this morning. So please give us a call. Say hi. I think we've got to go back to Stu. Who'd we leave off? Oh, I got text piling up. We have on Facebook, youranonymous
Starting point is 00:29:01 feedback.com, and also are on our text number. So I'll start with our anonymous feedback. It came in very early this morning. This is kind of funny. You need to put Nancy's affidavit on ain't going to happen.com because it ain't going to get signed. Well, maybe so, but it's definitely going to start a conversation with you.
Starting point is 00:29:21 And that proves a point in itself. You know, if you have a company that has a product advertised for sale at a price and you walk in and you ask them to guarantee you that that really is the price and they say no, what are you going to do? Leave. You're going to leave, right? But car dealers, I know, and I'm sure, most of them will refuse to sign that. But that's a confession that they've been lying to you about their advertising when they say, this is the price, or they quote it to you over the phone, or it's online, or on television.
Starting point is 00:29:52 And they say they won't sell to you for that price, which is what they're saying when they will not sign the out-the-door price affidavit. So we learn something. And to the Your Anonymous Feedback.com, my thoughts and my opinion on this, that that's going to be that's going to bring shall i say control that's also going to and this is for the consumer it brings control it brings attention it is a positive even if it doesn't get used it's out there it's on earl on cars.com and there are a lot of times that the consumer doesn't realize they are in control that car salesman is not your friend. If he doesn't give you what you want, you leave.
Starting point is 00:30:43 Okay, we get some more text. Yeah, next one. It says, hello, Earl. I enjoy your show very much, and I listen to it every week. I'd like to add to last week's comment from anonymous feedback in regards to confronting dealers. I share that listener's idea and agree with Stu's response that it is not a good idea to become angry and loud.
Starting point is 00:31:00 But I believe that there was another part to this, confronting the dealer and letting other shoppers know that you have a deceitful tactic, liar, a trick that you've uncovered. I myself have wanted to do this. I see the ads, listen to them talk, and push the extras. I just want to come in there with a rolling thunder and stop the madness. Question. Should a friendly neighborhood consumer advocate call out dealers in a non-shouting manner and interject sales that you witness to be morally wrong?
Starting point is 00:31:28 Thank you. I think it's not worth raising your blood pressure or getting people excited. Excuse me for a moment. Joey, we'll be right with you. Joey's calling us from Jupiter, and Jonathan, the call that was dropped, it dropped quickly. I didn't see the name on it. I'll find out. Okay. Okay, we'll definitely get to our holding caller. And going on as to whether you should confront a car salesman or manager when there is deception going on. You catch them at it in the dealership. What I was about, about to say is that you're far more effective to voice that concern and outrage, if it is outrage, on Google, on dealer-rader is another rating system, Yelp is another rating system, or you can actually email the manufacturer or call the manufacturer on the 800 number. If you call the manufacturer for that dealer and you go into some detail about what
Starting point is 00:32:28 happened, the dealer principle will be contacted on all complaints of this nature. But I think, again, it's just not worth the taxation on your own body and the people around you to lose your temperate in a dealership showroom. They're probably used to it, and they take it as like rolls right off their shoulders. With you, you'll be upset for a long time. Not worth it. Hit them with their Google ranking, their Yelp ranking, and their dealer-rater ranking. You try some nonviolent protests, maybe sit in the showroom floor quietly with a sign.
Starting point is 00:33:01 Yeah. And Better Business Bureau is also another way to go about it. Let's get to our children. No egg throwing. Not right. Okay. We're going to go to Joey, who's calling us from Jupiter. Good morning, Joey.
Starting point is 00:33:15 Hello. Hey, Joey. Hi, good morning. How you doing? Yeah, I got a couple. I might have a bad connection there. Yeah, it sounds like got a bad connection. Joey, I don't know if you can hear us, but you got halfway through that sentence, and we lost you.
Starting point is 00:33:29 If you have a bad connection, call us back. Call us back, yeah, please. Yeah, give us a call back, Joey, and also to Rich who was holding. Please give us a call back. 877960-9960, or you can text us at 772-4976530. And we'll go back to our text. I got a good one here. This is on Your Anonymous Feedback.com.
Starting point is 00:33:52 Important point of discussion. When is that man-child, Elon Musk, going to be removed from Tesla and placed into psychiatric care? Earl, do you know of any of any of? the followers of the Church of Electric Jesus. If so, send them to psychiatric care right alongside their savior. The affection with Tesla, the insane battery production pollution, and the car is catching fire needs to end. We did newer, better, more mature electric vehicle manufacturer. Tesla on fire? Yes, here is a passerby's camera footage, and there's a link to a, I guess, a video of a Tesla on fire. That's the comment. And my feeling about Elon Musk is he's typical
Starting point is 00:34:29 of founders. He's a genius. I think nobody will argue that. I'm not sure what his IQ is, but it's got to be north of 150. And he just is not a good manager, and he doesn't understand people. He doesn't understand personalities, but he is. It's more like an Edison. Yeah, and you see this in so many cases, the founder of a company, after the first few years, and it reaches a point where you need to have a manager at the C.E. is a CEO. And that's what's happening to Elon Musk. You know, I like the guy as a, is a academic genius, but he ruffles my feathers as a manager. Yeah, I wouldn't hire him. Yeah. Right. You wouldn't hire him in a business, but you'd love to have him do research and
Starting point is 00:35:16 development. Oh, yeah. That's where you're other than me. Yeah, for sure. He could be like an Oracle I could go to, you know, every now and then for inspiration. Actually, Stu, I think he's more of a Tesla, Nikolai Tesla. We had somebody commented that last week. Very good. Good point. Elon Musk, you know, you've got to hand it to him, the academics, the science. The man is very intelligent, and as Earl alluded to, a high IQ. Can he get across the street by himself? Eh, who knows?
Starting point is 00:35:44 He doesn't need to. So next one, here's a good one. Good morning, Earl and team. You all have a great platform, great camaraderie, fantastic advice, and I enjoy listening to the show each week. Here's my question. Why is True Car not reporting the out-the-door price? Take a look at True Car's definition copied from the website. Here's a quote.
Starting point is 00:36:06 How to use the True Car Price Curve. The True Car Price Curve presents new car sales transactions data in a way that helps you easily recognize a fair price for a similarly configured vehicle. Dealer, documentation, administrative, or similar processing fees are not included in these recent sale transactions. End quote. Those fees that are left out do not really reflect a true price. price. Is this the dealers purposely providing numbers without the dealer profit fees? Asking that question may have answered itself. Thank you a loyal listener.
Starting point is 00:36:38 Yeah, it's a very good question. And Trucar has an agreement with every dealer that becomes a certified true car dealer that they allow True Car to access their computer. The dealer's computer where all the transactions are related. And they take all the transactions, which is one of the good things about true car, they have about 15, maybe 20,000 dealers by now. And so all these dealers around the USA pretty accurately reflect the transaction prices in the sale of their new and used cars. But you're absolutely right. Dealers accounting leaves a lot to be desired, and when they sell a car, some dealers will not include certain items such as hidden fees. They'll put them in miscellaneous income. They won't show them as being a profit on the sale
Starting point is 00:37:27 the car. However, the bell curve that you see is a relative comparison of the higher and lower prices. And because dealer fees tend to kind of average out in a community, if you go to Palm Beach County and look at the average dealer fees, they're very close. If you go to Orange County in northern Florida, central Florida, they're very close. So it leaves a lot to be desired, but if you look at the bell curve, you will see at the top of the bell curve the average price. That's fairly accurate. Yeah. It's definitely a useful thing to put you in the ballpark.
Starting point is 00:38:02 True car has changed over the years. I mean, it used to be you could get the actual, the price. There wasn't a, it wasn't a range, it wasn't a suggestion or an average price. It was from the dealer. Some manufacturers still provide that, but some of them don't, and it has gotten harder to get a true out-the-door price from a particular dealer. The True car does have a rule that you must include the dealer-installed accessories and any extra non-government fees, those are the hidden fees.
Starting point is 00:38:29 They have to include this in the final true car price. They are itemized. You can see them, so they itemize it, so you see what you're paying for. All right, we have some texts. The first one, this comes from a listener in Utah, and he texted this last week. His name's Don, and he just received his copy of Confessions of a Recovery Car Dealer. He sent us a picture.
Starting point is 00:38:49 He sent us a picture of the unboxing, how exciting. He says, it just received the book. It will be well read. Thanks for all the cost-saving tips from Don. And then he chimed in this morning, says keep talking, taking care of the dogs. And he has an adorable chihuahua. Ah, fantastic. And just to tell everybody listening, when you buy a copy of Confessions of a Recovering Car Dealer on Amazon, available on Amazon, and you just go to Earlsbook.com.
Starting point is 00:39:12 That takes you right to the link on Amazon, Earlsbook.com. 100% of the sales proceeds go to Big Dog Ranch Rescue. They're the largest no-kill. They don't euthanize their dogs in Florida. They're an amazing organization. The only part of your purchase price, the only part of the price that doesn't go to the dogs is Jeff Bezos is cut. Yes, exactly. Amazon takes a little off the top, but the rest goes to the dog.
Starting point is 00:39:37 That's the reason. He's the richest man on earth. That's right. He's taking money from the dogs. All right, this is from Gary in Lake Park. He said, I saw a Honda at my neighbor's house. He had a sign on the door that said Honda recall team. The neighbor said they informed him he has a recall for a passenger airbag in his 2003.
Starting point is 00:39:53 Civic. Looks like they got the news. Yeah. Honda has been one of the most proactive manufacturers on getting their cars fixed. They actually check junkyards. They actually check newspaper advertisements. They go into inventories of dealers
Starting point is 00:40:09 all over. They have really been proactive in trying to bring down their number of outstanding dangerous cars. And that's a good reason. It's a good thing because they had the most. They were out there. They sold a lot of cars. And the very first cars began problems with Takata. the Honda. Yeah. Well, that's like the easiest, well, for a while it was the easiest car for us to
Starting point is 00:40:29 find. We just looked for like a 2002 to 2007 Civic and we would almost find one every time. All right, this one's for Rick. It's from Stephen, New Jersey. He says, how dangerous is it for you to change the airbag device? What safety measures do you take to guard against it exploding when replacing? Well, have you ever seen the Hurt Locker? I was kidding. Well, my best answer is I still have all my fingers and toes, and I haven't suffered any major loss of blood lately, so... Well, you know, what he's saying, you're making light of it. But the fact of the matter is, you brought me a Takata Airbag for a 2016 for a runner the other day. It's still on the desk.
Starting point is 00:41:15 And so 2016, this is 2019. that's a three. I think it actually could have been in 2014. So it could have been a five to six year old Tocada Airbag. The accelerant has been in South Florida sitting in a parts department somewhere at who knows what temperature for the past, say, four or five years.
Starting point is 00:41:38 That is a time when the accelerant degrades becomes unstable. So your job and the job of all the technicians that are having to work with these Togata Airbags, because they will explode without an accident. You don't have to be in a car crash. They can spontaneously explode. So you want to get hazardous duty pay. Well, it comes down to the fact that... Excuse me, Rick. John, hold on. We'll be right with you from West Palm Beach.
Starting point is 00:42:06 There are safety measures that we follow. Antistatic mats, trying to avoid creating static that might put a charge in the wiring that we're working with. And there are special steel cages that are used that we'll put it in to try to if it were to detonate try to keep any metal shrapnel from flying directly at you i'm gonna get you a flag check i've i've actually got one okay i'm sure you do but once you put your armor on it's just not think about it and simply we simply do the job because this is what we've got to do it's our as a technician that's our contribution to try to help out to make it safer for folks i mean there is the potential that as these bags get as old as eight to ten years, they could potentially detonate on their own.
Starting point is 00:42:57 And it's a rare occasion, but there have been a couple of documented cases. Great information, Rick. Well said. We're going to go to John, who's calling us from West Palm Beach. Good morning, John. Good morning. Can you hear me? Hi, John. What's on your mind, John? Thanks for the call. Oh, you're welcome. I had an opportunity the other day to stop in your new show. showroom and was liked it very much I wanted to see the Pontiac that you have on display there yeah and then came across the old supra oh yeah what I want to do is can I get your permission what I I you sold me as a customer when we go to turn our two leases in on our honda's
Starting point is 00:43:40 and I'm glad they're going to pay the three hundred dollars or whatever it is and come get a toy just because of your window sticker. And I think you guys are making a process just on saving ink alone because there's nothing on the window sticker except the price and taxes. Well, thank you. That's the wave of the future, I think, John.
Starting point is 00:44:02 I hope all car dealers will do something like that. I actually had a call from the legal counsel of Offleys Only last week, and they're doing some lobbying in Tallahassee, Florida and talking to a lot of politicians about making the dealer fee law something with teeth and binding. Offleash only does not charge a dealer fee, and we don't charge hidden fees. People call them dealer fees, I call them hidden fees, but yeah, it's something that I think is going to get legs pretty soon, and the sophisticated consumer, 21st century consumer, is going to make it happen.
Starting point is 00:44:40 But thanks for the compliment. well what one of the reason uh i actually want to ask you uh next time i come in can i take a picture of one of the sales things on the windows and post it online and with the captain saying this is way car spying should be love to have it i you know uh we love positive publicity thank you very much john all right now i'll do that then all right thanks for the call thank you that's it that's it thank you john give us a call tool free at 8779 or you can text us 772-497-9-7-6-530 I have a really important text that I'd like to share with the audience and with our team how much should I spend on my son's first car my problem is with all the press that I have been reading about with Takata airbags and it
Starting point is 00:45:41 being a death trap, I don't feel comfortable purchasing a used car. What are my alternatives? I can only afford a used car. Well, it's very simple to find out if it has a Dakota airbag, I recall. You go to NHTSA website, which is safercar.gov, put the VIN number in, and then you could check with the manufacturer. You should check with the manufacturer of that car you've chosen, and finally could go to Carfax. If you do that truck, you do that truck, you'd go to Carfax. If you do that triple check, you can buy a used car, save money, and be sure that there is not a dangerous recall. And if you're really nervous, you can go, NHTSA has a list called Recall Spotlight, and it tells all the cars that were ever manufactured with the caught airbag, and believe
Starting point is 00:46:25 it or not, there are some that weren't. Hyundai's and Kia's never had to cut airbags. Why didn't know that? Yeah, we've never found one, and it's, as a matter of fact, not listed on their website, so there's no danger of a recall happening in the future on that. If I were a Hyundai dealer or I were a Kia dealer, or for that matter, if I were the menu, manufacturer, I'd be advertising the heck out of that. They don't. There's only one car manufacturer. We'll verify this.
Starting point is 00:46:48 Nobody cares. Yeah. I mean, I'm saying that they don't care. They don't care. It's crazy. Okay, Jennifer, there you have. It's safercar.gov. You can reassure yourself and the safety of your son and get that used car.
Starting point is 00:47:02 And as Stude stated, Hyundai and Kia. Yeah. No. Correct. And not only that, every manufacturer, it'll list the models of the manufacturer. So you can look at Ford. Not every Ford had a Takata airbag. A lot did.
Starting point is 00:47:15 You could go to Mercedes, Nissan, Toyota, whatever. And the ones that are not listed are the models that never got a Takata airbag in the first place. Knowledge is power, Jennifer. And you've got to do a whole lot of homework today because, as we used to say, when we did the old show, I'll tell you what, it's a minefield out there. And you want to protect your loved ones. 877960, 960, or you can text us at 7. 7-2-497-67-6530.
Starting point is 00:47:44 We're going to go to Jim, who's calling from Jupiter. Good morning, Jim. Good morning. I have two questions, and then I'll jump off and listen to the answers. Could you go over the commercials about leasing? They seem to give a very low number. You can lease this car for $150 a month, but the fine print is really where the real answer is found.
Starting point is 00:48:08 It takes a huge deposit or down payment. So I think a lot of people don't notice that they're going to get surprised when they come into the leasing department. They have to put $4,000 or $5,000 down. And then the second question, could you go over the manufacturers, let me see, not invoice. Well, you got MSRP, which comes from the actual manufacturer, and then they boast that they're going to sell at invoice. So invoice is something that's created by the dealer himself, right? not actually it's kind of a collaboration conspiracy between
Starting point is 00:48:44 the collusion between the dealer and the manufacturer but you're absolutely right the invoice is meaningless okay yeah so that was that was the two points I wanted to bring out I know I hear a lot of a lot of commercials touting the invoice or at invoice or below invoice but it's really smoking here you got to figure it out right Jim yeah let's I'll go back to your first
Starting point is 00:49:08 question on leasing you hit on some super important points the leasing ads are deceptive even the leasing ads by the manufacturers that really distresses me you'd think that General Motors and Toyota and Honda
Starting point is 00:49:24 and the rest of the manufacturers would understand that when you advertise prominently a payment this is a price this is when you lease a car the payment is what you're paying for the car essentially It's what it cost you.
Starting point is 00:49:39 So you put a $199 a month payment on a particular vehicle. And in the fine print, and the unreadable fine print on the television net. $10,000. $10,000 down. It is a violation of the Federal Trade Commission rule that the price of the vehicle or any product, the price of any product that is advertised, anything that will modify, change that price, has to be prominently and conspicuously, those are the exact words, conspicuously and prominently displayed in the near the price that's advertised.
Starting point is 00:50:18 So the manufacturers and the dealers violate that Federal Trade Commission Act day after day after day and all their advertising. Lease payments mean nothing. You see $199 a month, $99 a month, whatever it is, you can't lease the cost. car for that price. It is a terrible abomination on the U.S. consumer. Another thing to watch out for, you'll see things like zero down. And that's always a deception because they're not talking about totaled out of pocket. So the down payment is just, there's a down payment. It's something it's called cap cost reduction, but they're still going to hit, hit you up for dealer fees,
Starting point is 00:51:02 taxes, registration fees, first payment, it could be thousands of dollars on a zero dollar down lease. So watch out for that too. And the lease could also have a very small annual mileage allowance. I've seen leasing as... Eight thousand miles. I've seen five thousand miles. Yeah. You can put anything you want that the leasing company puts in their lease agreement and put in the fine print. And a guy comes in and he drives average 15,000 miles a year and he's looking at the lease payment that means you can only drive 5,000
Starting point is 00:51:37 and if you don't see that when you sign the paperwork and you end up with 30,000 extra miles at 25 cents a mile, you did the arithmetic, yeah. But those are the two. Let's get to the MSRP. The MSRP manufacturer's
Starting point is 00:51:52 suggested retail price is a good thing. It was established in 1958 in the law by Senator Monroney and it was a really good idea because it gives you an ability to compare apples and apples when you're shopping and comparing prices. If you go to a Chevrolet dealer
Starting point is 00:52:09 and you look at a Corvette and the Corvette's got a MSRP of $65,000 and you go to another Chevrolet dealer that's got a 65,000, you know, same Corvette for 65,000 MSRP, you can buy it safely from the dealer that gives you the biggest discount from that price. Just watch out for Phony Monroe.
Starting point is 00:52:29 Watch out for funny Minroni's. It's got to be the legitimate manufacturer's suggested retail price. But the dealer's got around that by putting addendum labels next to the Minroni, and they are counterfeit. They're identical. And you think you're paying the Monroney suggested retail price or being discounted from that, but you're not. Envoice, the last thing that Jim from Jupiter asks us about, the invoice is not the cost from the manufacturer. to the dealer. The dealer's cost of a car is not the invoice. Please remember that. The invoice includes thousands of dollars in profit to the dealer. Comes in forms of rebates, kickbacks,
Starting point is 00:53:12 phony fees like advertising fees, floor plan reimbursement, dealer cash, effectively reduce the true cost of the car. And why they call it an invoice is only one reason. It's to deceive you the buyer. Because when the dealer shows you the invoice of the car, he's able to make you think that he's selling you the car at that price or 500 order of invoice. 500 over invoice could be a $4,500
Starting point is 00:53:39 profit. I got four words you got to say to the salesperson who shows to the invoice. What about the holdback? Yeah. And that's just all the built-in profit. Some invoices, I can tell you Toyota, list what the holdback is. You have to know where to look, though. Yeah. It's in a little paragraph down there. Okay. Let's move along. Okay.
Starting point is 00:53:57 We have a text from Anne-Marie, long-time listener, long-time text her. Good morning. I saw the news story on TV when it aired. She's referring to the CBS story on Takata Airbags. What struck me was that Earl appears to be the only car dealer in the country who's willing to publicly appear on national TV to highlight the problem of recall Takata Airbags. Thank you, Earl. By the way, if anybody wants to see the story, and we've already plugged this, go to CBSNews.com
Starting point is 00:54:22 and click on the little magnifying glass at the top of the page and type in Takata Airbags. And the automation story will pop right up. And then she has a question. I have a basic question. Why can't Takata airbags be replaced with a different brand? Or is Takata the only manufacturer of airbags? Thanks. Well, Takata is bankrupt.
Starting point is 00:54:41 They no longer exist. We use the word Takata and another company acquired them, another airbag company. And Rick, and you remember, as anybody remember the name of the company that bought Takata? We can Google that for you. Yeah, we did that a while back. I'm going to have to Google it again. Yeah. In Amory, there's also other airbags out there that are problems.
Starting point is 00:55:05 Takata is the mother of all problems in airbags, but there are other airbag manufacturers that have their problems reported. And there's only one way to be sure, and that's to check with Carfax and with safercar.gov and with the manufacturer. That's right. Okay, we got a funny text here. It's just a picture. I sent it to your phone.
Starting point is 00:55:24 I don't know if it came through. You could probably put it on the camera. for our viewers on Facebook and Twitter and all that. It's a millennial anti-theft device, and it's a picture of the shifting pattern that you would have seen on a standard transmission vehicle, which would be completely alien to my children, which are not even millennials or Gen Z.
Starting point is 00:55:44 But, oh, yeah, it's been a long, you don't see too many of those. I learned to drive on one. I'm sure most of us did, but the kids just don't know. Here are you doing. I'm trying to hold up. And I'm getting it.
Starting point is 00:55:57 Oh, yeah, it's funny. I'm not getting it. Maybe Jonathan can edit into the video later. Yeah, not important. Yeah, we got a question on Facebook from Steve. He's a long-time viewer on our Facebook video. When did manufacturers start using Takata airbags? His 1988 Porsche had airbags before they became mandatory, and they're pretty old now.
Starting point is 00:56:18 Good question. When did they start using those? I'm not sure. I do know that it was a long time before anyone even talked about. problems. And Takata, one of the scandals, one of the reasons they went bankrupt, is because the liability exposure, because they've been lying. It was a conspiracy. And it was probably, I'm hops in my head early 90s. I'd have a guess. I mean, when we've been looking, sorry, Rick, most of them, the oldest one I've seen when we're searching these things is 2002.
Starting point is 00:56:48 So I don't know if that coincides when they started using it or when they started putting in bad ones. I don't know. Takata started making airbags in 1988, and the first faulty airbags that they were able to determine are as far back as 1998. So they had 10 years worth of airbags that did not have an issue, and apparently they changed the manufacturing process in 1998, and that was the first ones in Honda airbags, which that would coincide right about the time when they started producing. car manufacturers were wanting what are called dual-stage airbags, where the airbag can actually come out either full force in a severe accident or at half power in a less severe accident.
Starting point is 00:57:37 Ironically, the most effective way we're getting rid of dangerous airbags is by obsolescence and scrapping cars. So from 1998, we're looking at cars that, you know, 20 years old, you probably see a lot of cars being scrapped. And so fortunately, the ones that didn't blow up and kill somebody are in the junkyard being scrapped. That's right. They could still blow up, though. And just think of all the cars they were sold with no warning whatsoever is absolutely. This is so huge and there's so many cars out there that this is the reason that the legislators and the regulators are sitting on their hands. The lobbyists, the manufacturers and the dealers are lobbying the legislators and
Starting point is 00:58:19 And so the economic impact would crush the automotive economy, not just for retailers, but for the manufacturers. So that is the reason nothing's happening. Well, the total number has been reported as being over 110 million cars worldwide. Imagine if those cars were frozen legally by the World Court that said you cannot sell these cars. 100 million cars, it cannot be sold. that would have a huge impact on the world economy. You guys would ignore that. By the way, Takata was bought out by Chinese-based Ningbo-Joyson Electronic Corporation,
Starting point is 00:59:00 and Takata will be rebranded as Joyson Safety Systems. Ming-Bo-Ju-Zo-Juison. Your Mandarin is very good, by the way. Okay, let's move along here. We have some more text? We are all caught up. All caught up? You've got a text, did you?
Starting point is 00:59:14 We've got one. And Richard is asking, Earl, what's the average markup the dealer makes on a $30,000 car? That varies all over the charts. It depends on the model and depends on the manufacturer. I'll get to you in just a minute, Stu. I'd say that it would vary from a low of 10 or 11 percent to a high of 50 percent. And that's the reason you really can't negotiate or buy a car. car based on discount. And there's also various incentives and things like that that you never
Starting point is 00:59:49 see, never comes into discussion, doesn't appear on the invoice, even in the little hidden section of the holdback. I'd say, you know, I can just talk about Toyota's, you know, a $30,000 car probably has a spread of $2,000, $2,300 from invoice to MSRP, another $1,800 a holdback, and then possibly another thousand in incentives. So if selling it sticker, it's a ton of money, a ton of profits. The advertising that you will see, well, The dealer will typically take a particular car that happens to have a huge markup and reduce it. And maybe we talked to a lot of dealer last week on the show that was selling 2018 cars. And Lord only knows how big a discount was available to him in those cars.
Starting point is 01:00:33 But they'll say discounts as high as 50%. With the average car in his stock probably has an average discount of maybe 12, 14%. So you can't play that game with the dealer. he'll win. What you need to do is just compare prices on the same MSRP with different dealers. If you go to three different dealers, I wish you'd go to five different dealers, but you probably don't want to spend the time. Go to at least three different dealers on the exact same year make model car with the same MSRP and buy the one that gives you the biggest discount from the out-the-door price. And, of course, be careful about hidden fees, be careful about
Starting point is 01:01:12 dealer install accessories. With that mouthful, that's the way you get a little price. It is tempting to get into the weeds and figure out all the details, but we could probably shut this show down with one bit of advice, which is always get three bids. You use dealers, play them off each other. They're going to compete
Starting point is 01:01:28 and you wind up at the lowest price. But it does, you know, it changes by manufacturer incentive. Generally speaking, though, the more expensive the car, the bigger the markup. You know, if you get a car that's $15,000, you might see a $700 markup. from invoiced MSRP and a small amount of holdback.
Starting point is 01:01:44 So, but yeah, don't focus on that. Just plan against each other, get three bids. Yeah. The pricing is so complex that even the car dealers themselves often don't know their own cost. There's something called stairstep incentives. And stairstep incentives is something that's imposed on the dealers by the manufacturers.
Starting point is 01:02:07 Most famous ones for that at Nissan, Nissan dealers, Nissan manufacturers is infamous for the way they have these stair-step incentives. And what that does is cause the dealer to hit a certain quota in a given period of time before he gets rebates
Starting point is 01:02:24 effectively making the cost of the car vary all over the map. And you can go to one Nissan dealer who will effectively have a higher cost than another Nissan dealer based on these stair-step incentives. So you can see the dealer himself doesn't even know what his car
Starting point is 01:02:40 cost. This is like a massive conspiracy because if the dealer and the manufacturer are not sure about the cost of the gar how can you. So don't play the cost game. Just use the competitive bid game and you will win. Nancy? Ladies and
Starting point is 01:02:56 gentlemen, our number 877-960 9960. Earl, Rick, Stu, Jonathan, and even myself would love to hear from the ladies. First two, lady callers, you can win yourself $50 this morning.
Starting point is 01:03:14 Now we are going to go over to Rick because he has some YouTube to share with us. We do. Mark Ryan from Iowa is asking, what do you think about switching incandescent bulbs for LEDs on the headlights, brake lights, etc.? It says, thanks for providing a great show. I recently put LED headlights in my trucks, over from the regular incandescent bulbs that I had. And I like them a lot better. I like the color and the brightness. Provided they're done properly and aimed properly. I see nothing wrong with switching to LED bulbs. And one of the very tiny advantages that you might actually find
Starting point is 01:04:00 is because LEDs will use less power, you'll actually save a tiny little bit of fuel by switching over to the less powerful bulbs that are much brighter. Why don't the manufacturers put them in? They actually are a lot of newer cars. You'll see they have those bright white headlights and of course the brake lights are getting much brighter
Starting point is 01:04:23 the turn signals and other lights because they're all switching now to LEDs now that they've been able to get them so much brighter as available and they just work better so most new cars now come with LEDs already installed.
Starting point is 01:04:39 Okay. But if you are driving an older car, it's not a bad idea. I think all these are great. I'm surprised that it hasn't already happened, but most of them are. Yep. Most of the new ones now. More great information from Rick. We're going to take a pause, and we're going to go to John, who's calling us from Palm City. Good morning to everyone. I have a question for Rick, but I just want to give a little background, because it actually happened to my father. In 81, he bought a new Pontiac Bonneville from, I think it was Jack Nicklaus then. It was in Doree Beach, and later it was changing over then to Sherwood. So from day one on, he got the car.
Starting point is 01:05:20 He had quite a few oil leaks in it. And, you know, he just played it by ear. And he took the car, and he went all the way up north to the Adirondex Mountains in Vermont. and it leaked so bad it was like unbelievable he went into a small a Pontiac Cadillac dealer and they had to redo
Starting point is 01:05:41 the seals and do a lot of work on the engine and the theory was then that would leak from the beginning that the car when it was transported either by rail or truck it was assembled in Canada that the angle was not you know flat
Starting point is 01:05:58 it was a you've seen some of the car haul as the way there's a hole I mean it's unbelievable. It's a 90-degree angle almost. And they said that they believe that that's what the problem was. So I heard of a person over here now in Florida that had the oil overfilled. You go to some oil chain places, and, you know, it's strict. On some cars, it's 4.5, 5. It's even amount. It used to be 5 and 1 for the filter. If an engine is overfilled over period of way old fulfilled, and would you get oil leaks from the pan and front seal and rear seal?
Starting point is 01:06:40 Especially if you go on a long trip like a 95 with excess oil in the engine. Is that possible that the seals could be leaking? I find that highly unlikely, especially the angle thing. I don't think that's really a factor. Seals are actually lubricated by the oil that they help hold in. So having oil just resting against the seal is not going to affect anything if the car is not running. So the transport thing, somebody was playing a little bit of smoke and mirrors game there, just looking for an excuse for a defective vehicle. If you overfill with oil, you're going to get oil dripping down, and you may think you have an oil league, but you don't.
Starting point is 01:07:28 That's possible if they really seriously super overfill. filled it. The other factor that would happen overfilling it is you would actually wind up with oil getting through the breathing system, the PCV valve, and being burned in the engine, and you'd have a lot of smoke coming out the exhaust pipe. That, I think, would be the number one symptom that you would see for overfilling a car. And that case would occur. I've actually seen it a couple times where a tech goofed up, thought he had drained the oil, he got distracted, he went back, he put oil in the car, took the car out for a test drive, and of course it's now it doubled the amount of oil that he should have had and came back smoking ferociously. So that I think
Starting point is 01:08:15 is the number one symptom. And once we drained the oil, everything was fine. It's really not that huge of an issue. Answer your question, John? Yes, it does. But it's important. that people do go to a place that does get the oil change in its exact amount that's supposed to be in it, especially if it's short. It could be the problem. But Earl, as a Pontiac dealer at that time, what I thought was they were making excuses, Earl, if you remember, in the 80s, they were putting Buick engines and Pontiac Chevy engines and older wheels.
Starting point is 01:08:49 Oh, sure. And they were just screwing up completely. And I think they were just basically looking for excuse, in my opinion. That's what I think. One of the things, the only one good thing about being an old guy like me, I've been in the business for so long that I appreciate the increase in quality that we've seen. And back in the 70s and 80s, when I was a Pontiac dealer, those cars were so bad in comparison to today's cars.
Starting point is 01:09:14 And the quality, it was a joke. When I first got, bought a toilet dealership and found out what real quality was like, domestics have caught up to Toyota. But back in the 70s and 80s, the imports were Japanese imports, especially, were far higher quality. I used to, as a Pontiac dealer, used to make more money doing warranty work on cars than I did doing what we call customer pay. And we would, the customer pay, meaning people that would come in and pay us to repair their cars,
Starting point is 01:09:44 would be equal to the amount of warranty work that the Pontiac Motor Division paid us to fix cars under warranty. So it was really quite a Of course, all the cars were the same bad quality So it didn't really make any difference If you wanted to buy a car, it was going to be a bad quality car And everything averaged out Well, also, I remember driving in those days And a V6 and a heavy Pontiac Bonneville
Starting point is 01:10:10 Was way, way underpowered Yeah, no, the cars were amazing And he had a four-silver, and my father said That thing has more pep to it than my Bonneville, so How about the... You saw the problems. And you remember the GM diesel, you remember the... Using different engines from GM cars.
Starting point is 01:10:26 Or the GM diesels. That's another favorite story of mine, is that the GM diesel was such a bad car that General Motors Acceptance Corporation, the financing lending arm for General Motors refused to finance the cars that the General Motors is building. And that's not a story. That's a real, honest-to-God fact. That's great. Unbelievable.
Starting point is 01:10:47 But the good news is the General Motors strike looks like it's... finally settled after a month. I'm sure the union is not going to be stupid. They're going to definitely vote on this to go back to work. Absolutely. Forty-nine thousand workers affected. That's the good news. Yeah. That was a very expensive
Starting point is 01:11:04 strike. Very expensive. Unbelievable. The number is outrageous. All the plans next year that Canada assembly plants will be closed and they won't be built in Canada anymore. So where it's going to go to, hopefully not all
Starting point is 01:11:20 Mexico, it'll be distributed through demands of the United States. Okay, John, thanks again. I'm glad you're back online. You can get the show and listen and come calling. We missed you there for a while, so we'll be looking for your calls. Thank you very much. Thank you, John. Okay, have a good day.
Starting point is 01:11:38 Thanks, John. Everybody, hang on to your hats. I have an interesting story for everyone. It's a little ha-ha, but it's kind of serious. Okay, and this made it to TV. A station covered this. Okay, a couple found out where all their walnuts have gone. It turns out squirrels stored more than 200 of them under the hood of the couple's SUV.
Starting point is 01:12:10 The TV station that covered this said that the wife had called and said that the vehicle smelled like as if it was burning. She heard a rattle. When she popped the hood, she found walnuts and grass piled over the engine. They took the SUV to a mechanic who found half a trash can of walnuts under the engine. Anybody find this interesting? Well, it sounds like some healthy squirrels. There's a lot in the energy here. Okay, I'll continue.
Starting point is 01:12:47 Okay. There was extensive damage, and the squirrel had chewed through the fuel injector hose of his new truck. True story. Wow. We actually get a lot of rodent damaged cars, and I got to admit, one of the first encounters that I had with one like this was way back in the mid-90s. when I went to check an air filter on a car and the air filter box was full of dog food, dry dog food.
Starting point is 01:13:26 It was because a squirrel just kept storing the pieces would steal the dog food from an outside dish and would store them in the air cleaner box. Yeah, interesting trivia, by the way, and Earl's about to tell us to get off the subject, I can tell. But did you know that squirrels lose the location about 80% of the nuts that they hide? That's why we have so many trees that grow up from.
Starting point is 01:13:47 That's true. Anyway, this couple got a quote on removing the walnut tree from their property. Oh, I would have taken it. I hope we have some more text. We do. Oh, my goodness. I don't think I like that reply. We haven't run out of things to say if you came in.
Starting point is 01:14:07 Kia vehicles do not have to cut an airbag. You should highlight this on your show. You might have tuned in late. We actually did bring this up about 20 minutes ago. Kia and Hyundai don't have Dakota Airbags. That's on the NHTSA Recall Spotlight website. So that's true. And you made a great comment.
Starting point is 01:14:25 How could they not be advertising that? You Kia people out there, Hyundai people, your dealers, your salespeople, you've got yourself something to advertise. You're going up against you trying to crack into Toyota and Honda's dominance. And Toyota and Honda are just rife with Dakota airbags. I didn't know it until I should have I've known it for about three years I should have mentioned it a while ago
Starting point is 01:14:52 Well it's kind of like apathy You know people just don't Well not my apathy But it was something it wasn't remarkable I'm just looking for Takata Airbag All right the next one My brand new Ford Edge has an annoying Wind and Noise problem
Starting point is 01:15:04 It's less than six months old And the dealer's service is telling me it's normal It is not normal How do I get this taken care of? Yeah I'll let Rick answer this But I just have to tell you as a car dealer, one of my most maddening experiences with the manufacturer, or even with my own
Starting point is 01:15:22 service department. I don't. I just, I'm morphed into more of a consumer than a car dealer. And if I bought a car and I wasn't a car dealer and I went into my car dealer, and I had a wind noise, and the service advisor told me that that's just the way they all are, and they all make that noise, that wouldn't be acceptable to me. Why the manufacturer, I can kind of understand a dealer doing it because it's just lack of knowledge. But when the manufacturer backs up the dealer, and that will happen.
Starting point is 01:15:56 You know, you build a product with a problem, a squeak, a noise, a smell, a vibration, whatever it is. If you have something about your product, your car specifically that's annoying to the buyer, you've got to make it right. You just can't say that they all do it. If they all do it, then fix all of them, have a recall. But anyway, Rick, you're in the trenches. You see this every day. You have cases where a customer comes in with a Toyota with a problem.
Starting point is 01:16:30 And Toyota tells you that that's the way they all are. In a case like that, the best, the only real weapon that I have is what's called a dealer product report. where as a technician, I can send a report to Toyota that says, hey, this customer is not happy about this particular thing on this car. And as a matter of fact, Toyota takes them rather seriously. They award certain prizes to us for those of us that will go above and beyond really making sure that we're conscientious sending in these reports and really, you know, letting know what's going on.
Starting point is 01:17:13 In some cases, if you dig deeper on the situation you just suggested, customer comes in, let's say a wind noise, and then he's got a wind noise in a Camry, L.E. 2017. And the answer from Toyota is they all do that. And I'm just making this up. And unbeknownst to us, perhaps, or certainly, to the customer, they are working on a fix. So when a manufacturer, this isn't just Toyota, any manufacturer as a problem, it'll come
Starting point is 01:17:51 to light after they go to a market on the car and there's thousands of cars out. They will say, oh, look, we've had a lot of complaints from customers and deals around the country. We have this issue with a car, but we don't know how to fix it. Randy, we're going to get to your call real quick. Randy's calling from Toronto. and right so what they should do is come out and say we have a problem we're sorry we're working on a fix but they wait until they have the fix before they acknowledge the problem there's a lot of times
Starting point is 01:18:24 they do that yes okay let's go to randy good morning randy welcome thank you nice to be on the show thank you're calling from toronto i've called before i've uh haven't been able to get through on the phone, so that's why I haven't tried, so I got through today, so... Thank you for your persistence. I wanted to give a bouquet to
Starting point is 01:18:50 Earl. I saw his profile in the automobile news there. They did like a write-up on him, and it was very interesting. Well, thank you very much. We'll hold that up for our streamers out there, and we were very, very proud of this, and I hope I can get this centered, yeah,
Starting point is 01:19:07 right here, yeah. This is the anti-dealer. I kind of like that title. And there you can see Nancy Stewart and myself right here where we're sitting now on the radio show. It's like a picture within a picture. Yeah, we're very proud of that. And thanks for calling us to the attention, Randy. I appreciate it. Thank you. But my question today is we have a Ford factory in suburbs of Toronto in Oakville. They're advertising on TV, employee
Starting point is 01:19:37 pricing, is that the same as you say the dealer would like that because it's basically the same as buying at MSRP, buying it at invoice? Can you just talk about that? I still have the specifics on that, but I recall that the Ford employee pricing is very good, are very good prices. Oh, yeah, yeah, yeah. And it's something that you normally, if you can buy a car at the Ford employee price, it is a very low price. And they call it like the Z plan or there's some plan. Yeah, I can say Ford, we've looked into the Ford employee pricing plan or the Z plan or whatever they call it is legit and it's really good.
Starting point is 01:20:20 Can't speak for other manufacturers. Employee pricing kind of got bandied about as it became popular during the recession when the car business was just really struggling. And they began to offer employee pricing to the public. And unless you do your due diligence and really check on it. the cross shop, you know, there's no way to know if it's really good, but we've done the legwork for you. If you can get on the Ford Employee Plan and it's legit, then it's a good deal. And if I'm not mistaken, I believe they require the dealer not to add hidden fees.
Starting point is 01:20:49 Some of the other, I know, employee plans for other manufacturers allow the dealer to add hidden fees, maybe even dealer installed accessories, but not the Ford Plan. It's clean and it's honest. Okay, good. Okay, thanks very much. I'll let you. you go. I enjoy the show, and it's nice to get through on the phone. Thank you. Thank you, Randy. Thank you, Randy. Bye-bye. I hope to hear from you again.
Starting point is 01:21:13 Our numbers 877960 or you can text us at 772-4976530. We sure would love to hear from you at your anonymous feedback.com. And Rick, do you have any more? I do have one more. Wayne Vait is asking,
Starting point is 01:21:33 does the engine in the 2019 and 2020 CHR, Toyota CHR, have direct injection. And the answer simply to that one? Yes, they do. Very good. Direct injection just means, what, that the fuel is sprayed directly into the cylinder? Absolutely. It's a newer design.
Starting point is 01:21:55 They've been working on it for quite a few years and tried them several times in the past, different manufacturers. Well, now they seem to have got some of the bugs worked out. not only does it have injectors that spray into the intake manifold runners like a traditional gasoline engine, but it has a second set of gasoline injectors that spray directly into the combustion chamber. Double whammy, get a lot of fuel. Yep. Well, it actually gets better fuel economy, more power, and less emissions.
Starting point is 01:22:22 Evenly distributed. Much better. Yeah, very good. All right, we got a couple more coming in. I just sent you a picture, Rich and Jupiter, sent us a screenshot of the most recent Gallup poll, which actually shows car salespeople above members of Congress. Congratulations, guys. Yeah, so moving on up.
Starting point is 01:22:42 That sounds pretty good. Then, Rich also chimed in. He is listening to the texter with the problem with the wind noise and the Ford Edge. He says, if I was told, and this is a great advice, if I was told that they all do that, I would say, let me drive one of yours on the lot and see if it makes the same wind noise. So that's absolutely right. That's a great idea. A brand new one.
Starting point is 01:23:03 Unfortunately, sometimes they do make the same noise. But sometimes that's a ploy. And actually at our dealership, in full transparency, if you haven't tuned in before, I do have a Toyota dealership and I am a dealer and this is not an infomercial and we don't talk about our dealership and we don't try to push what we sell, which is Toyota's. But with the proof to a customer, sometimes when we have that sad situation, we will get get a new car out of stock and let them drive it and say, see, this has got the same problem. And every time that happens, I have a tear in my eye because I identify, empathize with that customer.
Starting point is 01:23:43 And why should that be an excuse? Because you build a problem into a car because all of them, all the cars have the same problem, I should be happy about that? What's that phrase? It's not a bug. It's a feature. Yeah. Steve on Facebook says, I took my wife's car for a quick oil change.
Starting point is 01:24:00 to a quick oil change place once. They pulled the car out, left it running, so you can drive it right off. When I got home, I had to add a quart of oil. I have since gone back to doing my oil myself. Yeah. You know, the whole oil change thing is a red flag. When we begin a mechanic at our dealership, a technician,
Starting point is 01:24:20 we start in changing oil and rotating tires and balancing. It's a preliminary to learning the mechanics and technology as you grow and get to be like Rick, a certified master diagnostic technician. So the red flag is the fact the kid changing your own, and I say kid, because they're mostly very young, and they're just starting in the auto industry. If they haven't had the proper training, you really got a lot of problems. They can inadvertently not rotate your tires properly or at all. They can maybe not put the right amount of oil in your car. They may not tighten your lug nuts tightly on your wheels. And these are things that can really affect severe damage to your car or even danger.
Starting point is 01:25:13 So you think it's a simple process when you go to Jiffy Loob, but all these oil change places, they're not paying these people a lot of money. That's a starting beginning wage. It's the lowest wage of any thing that a mechanic or a technician does is changing oil. So, you know, it's like buying
Starting point is 01:25:33 the joke about the U.S. government. Remember that all the tanks and all the planes were built by the lowest bidder. Right. Your oil is being changed by the lowest paid, right. The oil is being changed by the lowest paid employee in that dealership. And it's not right.
Starting point is 01:25:49 And, Rick. We actually have had a case one time where an oil changer, a new guy, was just simply checking an air filter on a car to see if it was clean or dirty, and he knocked off a vacuum line, and it caused a drivability problem with that car. Yeah. Yeah, they shouldn't have to learn at your expense, and it wouldn't be a bad idea. If I were taking my car into it and I wasn't in the business, I'd ask a question about
Starting point is 01:26:15 how long is this gentleman over there that will be changing my all and rotating my tires? How long has he worked here? If the answer is three days, I would go somewhere else. If he's been there for a year, he probably knows how to do it. And he's got the mistakes out of the way. The quote was from John Glenn. He said, as I hurled through space, one thought kept crossing my mind. Every part of this rocket was supplied by the low was bitter.
Starting point is 01:26:40 That's a great quote, yeah. Just to brag a little bit, though, our oil changers do spend about three days just shadowing another oil changer and learning the process and learning to double-check themselves. And even I myself, I have trained myself that I double-check every single thing I do
Starting point is 01:27:02 and quite often you'll see me run out to a car an hour later that's still parked in the lot just to triple check the oil level because at my age, I remember that I've made many mistakes in my life and if it doesn't leave the lot, it's not a comeback, so I catch him before I can. You're a mature senior citizen. You know, you have the wisdom over all those years to make sure you do.
Starting point is 01:27:31 So in our dealership, we can ensure them that the man that changes his oil has had three days' experience. That's right. Don't worry about it. Minimum. No worries here. Okay. I have a text, and the text reads, what is the text? what is the difference between a warranty and a service contract?
Starting point is 01:27:52 Well, I'll tell you what, Mary Elizabeth, I can't answer that question because it is such a gray area. Once you get in and you start signing these contracts, I'm not sure if I would know the difference between a warranty and an extended debt. I can answer that. Stu? Yeah, a warranty only comes from the manufacturer. It's backed by the manufacturer and has to do with defects and work.
Starting point is 01:28:17 Everything else that the dealership presents to you is a certain. I'll have to interject there. Sometimes the extended service contract is called a warranty. I called a warranty. Yeah, yeah, I'm saying, I'm defining what they are. So the name is used very loosely and you have to be careful of you. I'm saying I'm letting the listeners know that the, if a dealer is selling you a warranty, it's not a warranty. It's a service contract.
Starting point is 01:28:38 If they call it a warranty and you have to pay for it, it's not a warranty. It's a service contract. Sometimes it's all about the numbers. That's right. All right, we have a text here. It's an update from a caller who called in last week. Update on the raffle with the tires wearing on the edges. Now, spoke with Tier 1 Toyota customer service and the dealer.
Starting point is 01:28:57 Toyota looked up all the service records confirmed everything required was done by me. They still refused to do anything about it. They are blaming the dealership saying it's a service failure and they should have caught it. The dealer won't do anything about it as well. It's a shame. It's my mother's third lease, seventh Toyota, and it will be heard. and my entire family's last Toyota. What happened to Toyota?
Starting point is 01:29:17 They used to be the best when it comes to standing behind their cars. It's going to cost her $1,000 for new tires which she doesn't have. It's crazy. A two-year-old car, what 20,000 miles needs tires. Thanks. Love the show. That's from Ryan. Well, the dealer should be checking your
Starting point is 01:29:32 tire pressure every time you come in. And that should be part of the maintenance and your factory recommended maintenance. If they're not checking the tire pressure, your tires could have been underinflated. in which case where you'd have the edgeware. It should be a matter of proof, science.
Starting point is 01:29:50 A picture of the tire should tell anybody that why did you have the excess wear? And the dealer is to blame. The manufacturer is not the blame only in the sense that the manufacturer should lean on the dealer and say, you should take care of this customer. Unfortunately, they don't do that like they should. And I would still go back to the dealer,
Starting point is 01:30:13 try to take it up the ladder, try to talk to the service manager, the real service manager, meaning the guy that runs the entire service department, not somebody in the service drive that calls himself service manager or the general manager or the owner of the dealership. I'm going to add another advice is he said you call the Toyota customer the number. When you do that, basically they're going to refer the problem right back to the dealer. It comes in, it's called an 800 complaint. It comes in and basically describes to the dealer what, they already knew. And then you're going to be contact by a customer relations manager and
Starting point is 01:30:46 probably people who can't actually get anything done for you. Ask the dealer, some friendly voice or somebody who will actually listen to you at that dealership to call the Toyota customer experience desk or whatever they call it. Sometimes they'll step up, especially for long-term families that have bought a bunch of Toytas and they've made the threat to leave Toyota altogether. They could step in and assist you. So just keep pushing with the dealer, but that the 800 number for Toyota is probably not going to do too much to help you. Great information. We are going to be getting to the mystery shopping report, so therefore we will not be taking any more phone calls. But let me remind you that you too can vote on the
Starting point is 01:31:26 mystery shopping report, and you can do so at 772-497-6530. And two-year mentioning when we first aired this morning about the Chevy... dealership in Green Acres. Boy, all of a sudden, I feel this thought just came to me. I feel pretty old. Remember, Earl, playing racquetball with Steve Moore?
Starting point is 01:31:54 I do, yes. Do you? That was a long time ago. Long time ago. When did he sell out? Oh, 25 years ago. Wow. Okay. We have our mystery shopping report from Auto Nation Chevy Green Acres.
Starting point is 01:32:10 the Tagata Test. I sent a copy of this, by the way, this morning to Anna Werner, who is the CBS investigative reporter that broke this story about AutoNation having a lot of cars being sold with defective Tagata airbags. And hopefully she'll read this and maybe do a follow-up of some kind because you're going to see in a minute what happened when our mystery shopper went in. And again, as Nancy said, this is a mystery shopper. shop of Auto Nation, Chevrolet and Green Acres. That's southern or central Palm Beach County.
Starting point is 01:32:48 A lot of people don't know where Green Acres. It's near Lake Worth, West Palm Beach area. This week, CBS News featured a story on the Takata Airbag recall crisis. The piece focused on a report by the United States Public Research Group that concluded that one in nine used cars being offered for sale by Auto Nation. as a safety recall issue. One and nine. Now this is staggering. This is a large, large percentage.
Starting point is 01:33:19 You're familiar with the Russian roulette where you take a revolver and you spin the chamber and you hold it up to your head and you're drunk because you wouldn't do that unless you're drunk and you squeeze the trigger. I've seen it in the movies, you've seen in the movies, Russian roulette. This is what it is when you buy a used vehicle
Starting point is 01:33:38 from Auto Nation, you're playing Russian roulette. You have one chance out of nine of having bought a car that can kill you. And the fact that this is going on says something about our legislature, our politics, our regulators. It says something about the American system
Starting point is 01:33:56 where money can trump life, where money can trump safety, where the lobbyists for the manufacturers, auto manufacturers, the lobbyists for the auto dealers, can go to our legislators, and persuade them not to pass a law that would make it illegal
Starting point is 01:34:15 to sell a car with a dangerous recall. And they won't do it. They're afraid to do it because they won't get the donations from these giant lobbying groups to get reelected. A sad, sad statement on America. As you know, and I said before,
Starting point is 01:34:34 I was interviewed for the story about automation by CBS News reporter Anna Werner. Hope she's listening now, and I hope she's reading the same mystery shopping report that I'm reading to you now. I discussed my policy in my dealership of not selling dangerous recall cars, something I stuck with since July of 2016. I applaud CBS News for helping me to return the national attention to national attention of the public safety crisis that has shamefully been ignored by our media and political leadership. In the story, she asked me, in the interview, she asked me how much money it cost,
Starting point is 01:35:14 and it was bordering on $600,000 in depreciation and others, so it could cost by not selling these cars to you. It's been a very, very painful burden on me financially. And recently, I'm having to pay an additional $250,000, and I'll talk about that on a further show that had to do with the Takata issue that I had to, from a matter of morality and conscience, not sell cars, I sued another car dealer, and this resulted in costing me $250,000. Anyway, the PIRG, which is the U.S. public research group, by the way, this PIRG was funded by
Starting point is 01:36:00 Rosanne Schahan, Rosemary, I'm sorry, Rosemary Sheehan, who is the Consumer Advocate in California, California, the president of cars, it was one of the most influential, powerful groups, consumer groups for car buyers. And she funded this U.S. public research group research that caught automation doing what they're doing. They looked at 2,400 used vehicles at 28 automation locations and found 267 vehicles that pose serious safety threats. serious safety threats to their occupants. That's astonishing. Now remember, Automation is the largest retailer of cars in the world. They have more car dealerships, well over 200 car dealerships. So when I say one and nine cars are being sold by AutoNation, this pretty much translates to all car dealers. One and nine, when you buy a car from any car
Starting point is 01:37:01 dealer, including OnoNation, you have one chance of having an unfixed, dangerous safety recall. CBS highlighted the dramatic reversal taken by Onondation when just a year after announcing they would no longer sell cars, used cars with unfixed safety recalls. They went back to selling them. Michael Jackson, I saw the actual live appearance that he had on CNBC, when he said, it's unconscionable to sell a car with a dangerous recall.
Starting point is 01:37:33 The American consumer, we have to respect and be careful that we do not sell them a dangerous product. And AutoNation will not sell these cars. A year later, he reneged on it. And it was very little made out of it. I mentioned earlier in the show that Michael Jackson, the CEO at the time, did resign from Auto Nation. We don't know if there was any relationship between that. I personally feel that his conscience made him say that, and after a year, I believe the Board of Directors and the stockholders said, look, you're costing us money because you're not selling cars that our competition is selling, and therefore you're not upholding your fiduciary responsibility, and put pressure on Michael Jackson to reverse himself. I think that embarrassed him and angered him and eventually led to his resignation, but that's all speculation on my part.
Starting point is 01:38:27 Oh, the U.S. PIRG, the research group that found this information, does not act, or this is what, this is what. Yeah, they issued this statement. Yeah, this is a public relations release from AutoNation when they were caught and embarrassed. And they said that the USPIRG report does not accurately depict the buying process at AutoNation dealerships. The group's responsible of the report did not attempt to thorough. review the purchasing process at any of the other nation's 200 plus locations around the country. Well, I'll address that.
Starting point is 01:39:05 Everybody makes mistakes and people buy cars they shouldn't buy. There is not a check process that is effective. Obviously, if a used car manager at an automation dealership will take a car in his inventory and advertise it, all he has to do is check the Carfax Report or the safercar.gov or the manufacturer. or the manufacturers report. The data is there, and we looked in our computer, and we found a lot of cars out there at automation dealerships with unfixed Takata airbag recalls.
Starting point is 01:39:39 I found three in about five minutes. Yeah, three in five minutes. So this is BS about us, or this public relations report by other nations, saying that they didn't do their research, and they shouldn't have made this statement. Had they done so, they say that they'd be aware of all of our nation's robust policies and procedures that's designed to provide a transparent buying process. Well, it's not happening. It is not happening.
Starting point is 01:40:05 And the proof is in the pudding. The proof is in this mystery shopping report, which I'm going to get into it just a minute. It goes on to say, auto nation customers are required to sign a recall disclosure acknowledgement prior to purchase. Well, I'll fast forward them in a minute. No spoilers. Well, I'm a spoiler. They did not do this.
Starting point is 01:40:28 So that's a lie in the PR report. They did not disclose it. A lot of the bad things that happened with car dealers are based on carelessness and stupidity. And sometimes the guy in the ivory tower, the dealer or the CEO of automation, he thinks things are going okay. But in the trenches, they're not going okay. And we're in the trenches, and we're shopping these people. and the automation stores are selling these dangerous cars, and it's happening. And we can prove it, and we have a copy of the mystery shopping report in Anna Werner's hands right now.
Starting point is 01:41:05 We've conducted several Takata mystery shops at automation stores over the last three years. Only one effectively disclosed recall, only one and three years. Perhaps with a renewed attention, automation will make an effort to inform the individual, locations were not adhering to the recall policy. We selected one of these stores to see if this was the case, Auto Nation, Chevy, and Green Acres. It was easy to find cars with Takata recalls in Automation Chevy's online use car inventory. We found three in a few minutes. Three cars with dangerous recalls. All at the Green Acres site. All at one location. Now you multiply that by 200 plus locations, you got a lot of dangerous cars, one out of nine.
Starting point is 01:41:53 We chose, here's the three. There was a Mercedes C-Class sedan. Two of them. And two of those. And a Chevy Silverado. Now, this is a Chevrolet dealership. So we talked earlier in the show and talked to Rick about the fact that automation Chevrolet and Green Acres gets paid by General Motors to fix that Silverado. They get paid.
Starting point is 01:42:16 The technician that does the fix, he gets the commission. He gets the commission. He gets paid. the customer buys a saved car that's the reason I say this isn't premeditation this is stupidity a Chevrolet dealer
Starting point is 01:42:30 has a car with a dangerous recall he puts it on his lot he advertises it for sale and he sells it he cost his company his dealership money by not fixing it and he costs the commission
Starting point is 01:42:42 to the salesperson I mean the mechanic that could have fixed it why? Yeah because they're stupid and they're careless and it's not right We chose to shop and buy a 2014 Mercedes 250 with a no-fix to cut airbag recall.
Starting point is 01:43:00 That means that this car, if they did know and disclose, that it had a airbag recall, there's nothing they could do about it. Disclosure means nothing when you say you can't fix the car. And we send in a female mystery shopper, agent 26, and response to a lot of people that have been asking us to use more female shoppers. Here's a report speaking as if I were the shopper. I called the dealership prior to departing on my mission to found out if they still have the 2014 Mercedes C-250.
Starting point is 01:43:36 Now, 2014, that's a five- or six-year-old car. That car is ripe. That accelerant and that to cut airbag is degenerating. It's becoming unstable, and it can blow up spontaneously, very dangerous car. I spoke to a gentleman named Joe, who put me on a brief hold to check the key machine. He returned to the call, informing that it was there and ready for sale. I told Joe there I'd be in 45 minutes. I arrived at 11.30 a.m. and went inside the building.
Starting point is 01:44:09 I asked the receptionist if she could help me locate Joe. She tried for several minutes to reach him by phone, but gave up. She directed me towards the used car building where she said I could find him. I went back outside, got my car, and drove to the used car area. I was greeted by a salesperson. I told him, I'm looking for Joe. The salesperson walked me inside and introduced me to Joe. Now, I can call that a little bit of incompetence there.
Starting point is 01:44:36 You know, it's just the incompetence that creates the danger. In this case, it was just not being able to know where your salesman is. And here we're talking about just not knowing that you've got a danger. car on a lot you're about to sell. Joe was ready with the keys in a dealer plate, took me back outside, walked me to the car. He asked me if I wanted to drive it. I said I did.
Starting point is 01:44:57 He didn't ask for my license. There's a little more incompetence there. All car dealers require their insurance companies require them and they require the salespeople to get a copy of the driver's license before they'll let them take a test drive. So, policies are not enforced,
Starting point is 01:45:13 folks. Hey, CEO of AutoNation, I believe it's a woman, by the way. The current CEO of AutoNation, if you're listening to the show, I know you're not. You may be after some people talk to you. Your policies are not being carried out. And that is the true danger. I know no one in Auto Nation headquarters, board of directors, wants anybody to be hurt by a car you sell. But the policies are not being carried out. And what you're about to here happens in a lot of your car dealerships. So, no driver's license I asked for.
Starting point is 01:45:52 He asked if I want to drive it. I said I did. He didn't ask for my license. I said, on the test drive, Joe said it was a nice car and said it had never been in an accident. You'll find out later, that's some more incompetence, according to Carfax. He was really nice and made a pleasant conversation. I learned a lot about his career and the car business.
Starting point is 01:46:15 He'd been doing this a long time. I asked Joe if there was any mechanical issues to talk about. Joe simply replied that Auto Nation does a 125-point inspection on all their used cars. We went back to Small Talk. As we approached the dealership, I asked Joe if there were any safety issues with the vehicle that he was worried. Now he did say this. He believed there was an open passenger side airbag recall.
Starting point is 01:46:43 Credit Joe, okay? one for Joe. Rick? Joe's got little guts because he's sitting in front of that passenger side airbag. That's right. Either guts or stupidity, right? When we parked, Joe took a Carfax report and the service history report out of the folder in the car. We walked back to his office where he reviewed the Carfax Report with me. He said he had to correct an earlier statement he made, Joe said he mistakenly told me there'd been no accidents. Mistakes happened. And he pointed out accents on the Carfax report.
Starting point is 01:47:17 He did emphasize that the report included only minor damage. He told me that if any issue like severe damage, odometer problems, or lemon laws appear on the report within the year of my purchase, alternation would buy the car back. That's a nice touch.
Starting point is 01:47:32 That's a really good marketing thing to do because people are going to be aware of it anyway and a low-cost way to sell more cars. He never made mention of the recall again. I waited to see if he would advise me. Remember, this recall is unfixable.
Starting point is 01:47:52 There's no part available. Never mentioned it again. I waited to see if he would advise me of how or when. I could have the defect remedy, but he never did. I told him I loved the car. I was ready to make a deal. He said he'd get the manager to write it up for me. Joe returned with a buyer's order, and he reviewed it with me. The top line was Kelly Blue.
Starting point is 01:48:14 blue book retail value, $12,12211. Next they showed $1,523 in automation savings, which made my selling price $10,0598. And that was the same price I saw on mine. That's a good thing. That used to be the case. We're seeing more and more cardio chips. The online price equals the price that they sell the car,
Starting point is 01:48:41 or they say they sell the car for. They don't sell it for that price. look for that price. They say they do. Then they added, here we go, $799 dealer fee. Hidden fee, you don't know about it until you come in to buy the car. And pretty hefty, $549 tag in registration. We say hefty because it's suspiciously high that it might not really be that much. My total was $12,6.95, and I said I thought it was a fair deal. Joe said I could get into finance right away, But I said, I need to take the buyer's order home with me to go over with my mom. I explained, and she was advising me on my first car purchase.
Starting point is 01:49:24 And this is a young female car shopper. 26. 26, age of 26. That's where I got the moniker. I asked if he could hold the car for one day. Joe said he'd have to ask his manager. Joe returned said that, unfortunately, I'd have to leave it to pocket. for them to hold the car. I said I couldn't do that. My mom had specifically warned me
Starting point is 01:49:47 against that. It's good advice. Good advice. I said I would take my chances and would call the next day to see if it had been sold. I took my copies of the Carfax report, the buyer's order, the service history, and some warning info with me. Although Joe did acknowledge the Dakota recall, it fell far short of an effective disclosure. It was a far cry from what AutoNation describes as nation's robust policies and procedures. That's kind of a joke. Yeah, it is a joke.
Starting point is 01:50:18 AutoNation states that all customers are required to sign a recall disclosure acknowledgement prior to the sale. This didn't happen today. Maybe that forum would have come later in F&I. We don't know. Probably would have come later in F&I, and all the car dealers are putting the hairy stuff, the stuff they don't want you to see into the F&A. The non-sexy stuff. Yeah.
Starting point is 01:50:42 You buy the car when you shake the salesman's hand and you say, we have a deal. You buy the car, you're emotionally, mentally, and every other way you bought the car. The rest of it is annoying, detail, paperwork. You don't pay attention. Your attention dissipates. After they shake hands is when they call their friends, says, we just bought a car. Euphoric nature. You probably get a picture taken with a car.
Starting point is 01:51:11 Picture with the salesman in the car, you're smiling, and then you go into the box, which is the F&I department, and that's where you sign all these papers, and you don't know what you're signing, and that's the sad, sad truth. So this disclosure is a joke. The car dealers are saying they disclose this. AutoNation said they disclose this. They're not doing it, folks. They're not doing it. This is proof right here. This mystery shopping report is proof that AutoNation and the other car dealers are not disclosing what they did.
Starting point is 01:51:46 If they did disclose it, it's still immoral to sell a car with a dangerous Takata Air Bag Recall that can't be fixed. How could you imagine Rick comes into me to buy a car and I say, Rick, I'm going to make full disclosure. That car that you're going to drive your family home in tonight has a dangerous Tricot Airbag
Starting point is 01:52:10 that could explode like a hand grenade. And we can't fix it. And we can't fix it. And I have to give you that disclosure. Now, here are the keys and take your family home in that car. Now, that's a disclosure. Is anybody going to take their family home in that car?
Starting point is 01:52:28 Not me. I'd feel terrible if it blew up and I hadn't told you. Yeah. I mean... Yeah, I just wanted you to know. Let's get real. I had a time. So, the disclosure is a joke. And Senator Blumenthal, he was also on the CBS News and he addressed
Starting point is 01:52:45 that issue. Disclosure is a joke. It's not happening. What is happening is people are buying the cars and they're driving them home with their families and just not right. I guess we've got to vote, don't we? No, yeah. We already have some votes coming in. No, I got to say this. Nancy and I talked about this in the car on the way in. She said, how was the mystery shopping report? Meaning, is it a good report? Well, you know, the sad thing we have to say, it's kind of a good report because all the other car dealers are doing
Starting point is 01:53:18 the same thing. And we do have to have car dealers listed that you can buy a car from Florida. And if we didn't, if we, if we use an absolute scale, we wouldn't have any cardius listed. So we have to take that in the consideration. Let's get the score. Stu, you got some? Here they are. Alan Gisman F, Julie Gizum A D,
Starting point is 01:53:37 Lori Gizum M. F., Ed Gizman F. Linda Gizum, a big fat F, safety first folks. You know, I'm kind of conflicted here because I agree with you on the grading on the curve. I will say they did better than many.
Starting point is 01:53:52 at least the salesperson mentioned it, that it was an anemic warning. I don't think it would make any impression on any customer the way they did it. So I am going to concur with our listeners and give them an F. I'm sorry. Rick, you got some scores over there? We've got Mark who's chimed in with an F. So far, that's our only vote on YouTube. And myself is F.
Starting point is 01:54:21 Nancy? Okay. Well, I'd like to speak of branding. Isn't it powerful? And AutoNation has done a very great job in branding. I'll read you something here. AutoNation makes history with the first female CEO. First female CEO, that's Cheryl Miller. You talk about branding. Boy, I'll tell you what. Build that brand and then take advantage of the consumer. In September 2015, AutoNation made a major procedure change, announcing a policy not to sell lease or wholesale any new or used vehicles that had an open.
Starting point is 01:55:22 safety, recall. How do I grade it? F, F, F. Well, Rick. And we just got in, let's see, one, two, three, four more Fs, and a C plus from Tim in Florida. We have more Fs coming in on Facebook, too, so.
Starting point is 01:55:45 You know, I've got a picture here of Cheryl Miller. I'll show it up, hold it up. and Cheryl, you're the CEO, you're the boss of AutoNation. Is she? Or is she a pawn? And I think you mean well, and I think you're a good person. And I think that, I've got to believe the word of this Mr. Schaiming report will leak back to you. I'm going to send you a copy, and I send a copy to Anna Werner, CBS News. But you're the boss, right?
Starting point is 01:56:18 and you have a chance now to make a clean slate from the get-go you can't deny that you know about you don't know about what's going on now we're just a little radio station in South Florida but we stream all over the country and all over the world for that matter and there are thousands and thousands of people
Starting point is 01:56:37 looking at your face now Cheryl Miller, CEO of Automation and I'd like to talk to you I'd like you to talk to Anna Werner and I think we need to do something about this. You're the largest retailer of automobiles in the world. You set the example for the other car dealers. If you would take action now to lobby it to make it illegal
Starting point is 01:57:00 and make it illegal in automation for any of your dealerships to sell a car with a dangerous recall, you could go down in history. It would be your legacy. I challenge you, Cheryl Miller. Okay. You're talking about a very powerful, auto nation. I mean, this is...
Starting point is 01:57:20 We're going to fail this company. Amazing. We're going to fail Chevrolet and Green Acres. I start, I reverse myself, but I'm going to fail on the basis of the fact that they knew there was a recall and they knew it couldn't be fixed and they were willing to sell the car. I think that's got to be a failing offense and I know it's going to be hard to have recommendations out there. Absolutely. this criteria. Folks, we're at the end of another fantastic show. I want to alert everyone that we are going on vacation, and you'll be able to catch some really great reruns, and our vacation
Starting point is 01:57:58 will affect a few Saturdays. That's October 26th, November 2nd, November 9th, and we'll be back on the 16th. Have a wonderful weekend. We're all going together. Rick, we're all, Nancy. Jonathan, Thank you, Rick, everybody. Have a great weekend. That was a fun. Oh! Oh! No.

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