A true crime story....deceptive automotive advertising is only slightly better than robbing a bank...because it only affects you
About this episode
Lenny Lawson dives into the murky waters of deceptive automotive advertising, highlighting how some dealers lure customers with enticing offers that often lead to worse deals. He shares his frustrations with false claims, particularly regarding trade-in values and financing incentives. Lenny emphasizes the importance of understanding the fine print in ads and offers practical advice for consumers to navigate the car-buying process. He also touches on the impact of recent changes in EV tax credits and how they are affecting the market.
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Ford F150
"...for example, on this dealer's website, it shows, let's say, a $9,660 discount on an F-150. Now you have to really look for it..."
The Ford F-150 is a popular pickup truck that many people use for work and everyday driving. It's known for being tough and reliable.
The Ford F-150 is a full-size pickup truck known for its durability, versatility, and strong performance. It's one of the best-selling vehicles in the United States.
MSRP
"...you can find the actual window sticker on that vehicle and click on it and you can see the factory MSRP. You have to see that in order to know whether the discounts are real."
MSRP is the price that the car maker suggests dealers sell the car for. It's a starting point for how much you might pay for a new car.
MSRP stands for Manufacturer's Suggested Retail Price. It's the price that the manufacturer recommends a dealer sell a vehicle for, which can serve as a baseline for negotiations.
gap insurance
"...they wanted to cancel their gap insurance that they had in another dealership. So they had purchased gap insurance, which is guaranteed asset protection. It pays off the vehicle. If it's towed older or stolen and the insurance, the regular car insurance, doesn't pay off the payoff..."
Gap insurance helps you pay off your car loan if your car is stolen or damaged beyond repair. If your regular insurance doesn't cover the full amount you owe, gap insurance pays the difference, so you don't have to worry about still owing money on a car you can't drive anymore.
Gap insurance, or guaranteed asset protection, is a type of insurance that covers the difference between what you owe on a vehicle and its actual cash value in the event of a total loss, such as theft or an accident. It ensures that you are not left with a financial burden if your vehicle is declared a total loss and your regular insurance does not cover the entire amount owed.
Nissan Altima
"to a guy that had purchased a Nissan Altima from another dealer. I said, do you normally buy extended service contracts..."
The Nissan Altima is a popular car that is known for being comfortable and good on gas.
The Nissan Altima is a mid-size sedan known for its comfortable ride and efficient performance, often competing with other sedans in its class.
extended service contracts
"I said, do you normally buy extended service contracts, warranties and gap insurance and all these protection packs?"
Extended service contracts are like extra insurance for your car that helps pay for repairs after the regular warranty ends.
Extended service contracts are agreements that provide coverage for vehicle repairs and maintenance beyond the standard warranty period, often for an additional fee.
extended warranty
"Yes, you've got $5,000 worth of extended warranty, gap insurance, did it again, and multiple different protection packs."
An extended warranty is like extra insurance for your car that helps pay for repairs after the regular warranty runs out. It can save you money if something goes wrong later on.
An extended warranty is a service contract that provides additional coverage for a vehicle beyond the manufacturer's warranty. It typically covers repairs and maintenance for a specified period or mileage after the original warranty expires.
protection packages
"and multiple different protection packs. There's two different types of protection packages."
Protection packages are extra services you can buy to help keep your car looking good and running well. They might include things like cleaning or special coatings to protect the paint.
Protection packages are bundles of services or products designed to safeguard a vehicle. They may include features like paint protection, interior protection, and other maintenance services to keep the car in good condition.
prepaid maintenance
"Oh, and prepaid maintenance as well."
Prepaid maintenance is when you pay for car services ahead of time, like oil changes and tire rotations. It helps you budget for car care and makes sure your car gets the maintenance it needs.
Prepaid maintenance is a service plan that allows car owners to pay upfront for scheduled maintenance services over a certain period. This can help ensure that the vehicle receives regular care without unexpected costs.
EVs
"They really like EVs. That's all they want to talk about in their news."
EVs stand for electric vehicles, which are cars that run on electricity instead of gas. They are better for the environment because they don't produce harmful emissions.
EVs, or electric vehicles, are cars that are powered entirely by electricity instead of gasoline or diesel. They produce zero tailpipe emissions and are becoming increasingly popular due to environmental concerns and advancements in technology.
federal tax credit
"And so the federal tax credit is gone. And so what's going to happen?"
A federal tax credit is money the government gives back to you when you pay your taxes, which can help lower the cost of things like electric cars.
A federal tax credit is a government incentive that reduces the amount of tax owed by individuals or businesses. In the context of electric vehicles, it often helps to lower the purchase price and encourage buyers to choose EVs.
Hyundai
"Hyundai just announced that they are reducing prices on their EVs by $9,000 across the board."
Hyundai is a car company from South Korea that makes many types of vehicles, including electric cars.
Hyundai is a South Korean automotive manufacturer known for producing a wide range of vehicles, including electric vehicles (EVs).
supply and demand
"You know, this is what happens when you allow the free market to control pricing, the law of supply and demand."
Supply and demand is a way to explain how prices are set based on how many people want something and how much of it is available. If lots of people want it but there isn't much of it, the price goes up.
Supply and demand is an economic principle that describes how the price of a good or service is determined by the relationship between its availability (supply) and the desire for it (demand). When demand exceeds supply, prices tend to rise, and when supply exceeds demand, prices tend to fall.
estimated range
"...my estimated range on the last tank was close to 700 miles. I like that. And when I get low on fuel..."
Estimated range is how far a car can go before it needs more fuel or a charge. It can change depending on how you drive and the road conditions.
Estimated range refers to the distance a vehicle can travel on a full tank of fuel or a fully charged battery. This figure can vary based on driving conditions, driving style, and vehicle load.
Dodge Charger
"... get low on fuel, then I don't have to look for a charger. I don't have to wonder whether it's going to be ..."
The Dodge Charger is a big car that looks sporty and can go really fast. It's popular because it combines being a regular car with the excitement of a race car, and people often talk about it when discussing how far it can go on a tank of gas.
The Dodge Charger is a full-size sedan known for its powerful engine options and muscular styling, making it a popular choice among performance enthusiasts. It has a rich history dating back to the 1960s and has evolved into a modern vehicle that balances everyday usability with high-performance capabilities. The Charger is often discussed in the context of its performance and practicality, especially in relation to fuel efficiency and range.
EV
"And until they get an EV that will charge in like 10 minutes or less to a full charge..."
An EV, or Electric Vehicle, is a car that runs on electricity instead of gas. This means you charge it at home or at charging stations instead of filling it up at a gas station.
EV stands for Electric Vehicle, which is a type of vehicle that is powered entirely or partially by electricity instead of traditional gasoline or diesel fuel. They are known for being more environmentally friendly and often have lower operating costs compared to conventional vehicles.
GM
"...GM laid off 900 workers at one assembly plant..."
GM stands for General Motors, a big company that makes cars like Chevrolet and Cadillac. They are known for making both regular cars and electric vehicles.
GM, or General Motors, is one of the largest automotive manufacturers in the world, known for producing a wide range of vehicles under various brands, including Chevrolet, GMC, Cadillac, and Buick. They have been involved in both traditional and electric vehicle markets.
Chrysler
"...Chrysler completely decided to eliminate their EV plans with particular vehicles."
Chrysler is a car company that makes vehicles like minivans and SUVs. They are currently changing their plans for electric cars.
Chrysler is an American automobile manufacturer that is part of Stellantis. They produce a variety of vehicles, including sedans, SUVs, and minivans, and have been involved in the development of electric vehicles as part of their future strategy.
Dodge Challenger
"...getting rid of the EV Dodge Charger, the EV Dodge Challenger. Nobody wants them."
The Dodge Challenger is a stylish car that looks like the classic muscle cars from the past and is known for being very powerful. People often mention it because it's fun to drive fast, but now there are also electric versions coming out that some people are not excited about.
The Dodge Challenger is a classic American muscle car that offers a retro design and a range of powerful engine options, appealing to those who appreciate performance and style. It has become a symbol of the muscle car revival, competing with other iconic vehicles in the segment. Discussions around the Challenger often center on its performance capabilities and the shift towards electric vehicles, as seen with the upcoming EV versions.
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