AAH #783 - No More Hidden Fees? FTC’s Dealer Crackdown, Rising Gas Pains,Tragic Reason for Hyundai’s Stop-Sale
About this episode
The discussion covers a wide range of current automotive industry topics including the recent FTC crackdown on hidden dealer fees, the impact of rising gas prices on EV demand, and Hyundai's tragic Palisade stop-sale due to a seat safety issue. Guests explore the challenges facing EV sales post-tax credit, the evolving dealer model with car brokers, and the effects of tariffs on automakers like Toyota. They also delve into emerging in-car technologies like breathalyzer sensors and the complexities of exporting left-hand drive vehicles to Japan. The conversation highlights industry shifts, regulatory impacts, and consumer concerns shaping the market today.
EV
"I was thinking that that there is some serendipity to that glut of EV's coming on the market. In addition to Toyota a big, big player bringing on an onslaught of new EV's..."
An EV is a car that runs on electricity instead of gas. It helps reduce pollution and can save money on fuel.
EV stands for electric vehicle, which is a car powered entirely or partially by electricity instead of gasoline or diesel. EVs produce no tailpipe emissions and are considered more environmentally friendly.
Toyota Highlander
"...ned woodland as well, and then they announced the Highlander. So we have all these evs coming at the exact sam..."
The Toyota Highlander is a bigger SUV that can fit more people and their things. Toyota is making electric versions of this car to use electricity instead of gas.
The Toyota Highlander is a midsize SUV that offers three-row seating and a reputation for reliability and family-friendly features. Recently, Toyota has announced electric versions of the Highlander, reflecting the shift toward electrification in their SUV lineup. It is often discussed in the context of Toyota’s expanding electric vehicle offerings.
full-size trucks and SUVs
"Paul Jacobson was at an investor event and he said that if you look at previous oil shocks, you know it takes four to six months to filter through the system, and that you know, demand for their you know, full size trucks and SUVs is still very strong..."
Full-size trucks and SUVs are big cars that can carry lots of people or heavy stuff, but they use more gas, so their sales can change when gas prices go up.
Full-size trucks and SUVs are large vehicles often used for towing, hauling, or carrying multiple passengers. They typically consume more fuel and are sensitive to changes in gas prices.
oil shock
"Paul Jacobson was at an investor event and he said that if you look at previous oil shocks, you know it takes four to six months to filter through the system, and that you know, demand for their you know, full size trucks and SUVs is still very strong..."
An oil shock happens when the price of oil suddenly goes way up, making gas more expensive and affecting many parts of the economy.
An oil shock refers to a sudden increase in oil prices, often caused by supply disruptions or geopolitical events, which can impact fuel prices and the economy.
inflation adjusted
"Right, So you say inflation adjusted. Well, both inflation adjusted, and just like if you just you know, three three point fifty, it's just kind of where we are right now."
Inflation adjusted means changing prices to match today's money value so you can compare prices from different years fairly.
Inflation adjusted means accounting for the change in purchasing power of money over time, allowing for fair comparison of prices from different years.
electric vehicle (EV)
"You know, what is the impact if people suddenly care more about fuel efficiency than they did before, Like, are we assuming that that means they're going to be ready for the lifestyle change and everything that's a ssociated with going full EV or does it just increased demand for hybrids for plugins. I think it'll do both. You know, people who are on the on borderline on should I get an EV or not will be more inclined to say, maybe I'll take the plung People who are anti EV doesn't matter, they're just not going to do it."
An electric vehicle is a car that runs on electricity instead of gas. You charge it like a phone, and it doesn't make smoke from the tailpipe.
An electric vehicle (EV) is a car powered entirely by electricity stored in batteries, rather than gasoline or diesel. EVs produce zero tailpipe emissions and typically require charging from an external power source.
fuel efficiency
"You know, what is the impact if people suddenly care more about fuel efficiency than they did before, Like, are we assuming that that means they're going to be ready for the lifestyle change and everything that's a ssociated with going full EV or does it just increased demand for hybrids for plugins."
Fuel efficiency means how far a car can go using a certain amount of fuel. A car with good fuel efficiency uses less gas and saves you money when you drive.
Fuel efficiency refers to how effectively a vehicle converts fuel into distance traveled, often measured in miles per gallon (MPG) or liters per 100 kilometers. Higher fuel efficiency means the vehicle uses less fuel for the same distance, saving money and reducing emissions.
plug-in hybrid
"You know, what is the impact if people suddenly care more about fuel efficiency than they did before, Like, are we assuming that that means they're going to be ready for the lifestyle change and everything that's a ssociated with going full EV or does it just increased demand for hybrids for plugins. I think it'll do both. You know, people who are on the on borderline on should I get an EV or not will be more inclined to say, maybe I'll take the plung People who are anti EV doesn't matter, they're just not going to do it."
A plug-in hybrid is a car that uses both gas and electricity. You can charge it by plugging it in, and it can drive some distance just on electricity before using gas.
A plug-in hybrid is a vehicle that combines a gasoline engine with an electric motor and a rechargeable battery. It can be plugged in to charge the battery and can run on electric power alone for limited distances before switching to gasoline.
tax credit
"me that if you look at what happened when the tax credit went away, that suddenly lots of people said, well, I'm really not that interested in buying a EV. Now. They didn't stop buying vehicles, they just stopped buying that type of vehicle, right,"
A tax credit is money the government lets you keep when you buy certain things, like electric cars. It helps make the car cheaper for you.
A tax credit is a government incentive that reduces the amount of tax owed, often used to encourage the purchase of electric vehicles by lowering their effective cost.
MSRP
"So I think that well, except for what Chris was just pointing out MSRP, you're right, but an actual transaction price."
MSRP is the price the car company says the car should cost before any sales or discounts.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price a carmaker recommends dealers charge for a vehicle before any discounts or incentives.
incentives
"I mean, it really is very situational, depending on you know, primarily on the inventory level and the particular models. But you know, you'll see very high incentives on some evs and pretty you know, normal incentives on others."
Incentives are deals or discounts that help make a car cheaper to buy.
Incentives are discounts, rebates, or special offers from manufacturers or dealers to encourage customers to buy certain vehicles, often used to move inventory.
fuel economy regulations
"I think it's a it's a consequence of a production plan and schedule that was in place, presuming that the seventy five hundred was here to stay, and presuming that EVS would be necessary in a world where you needed to comply the compliance. The ever restricting fuel economy regulations and those things you're referring to, right, Yeah, exactly, yeah, those there was you know, that one big drastic shift in all those things, and that's changing incentives."
Fuel economy regulations are rules that make car companies build cars that use less gas to help the environment.
Fuel economy regulations are government rules that require automakers to produce vehicles that meet certain efficiency standards to reduce fuel consumption and emissions.
Honda Prologue
"..., you guys quickly mentioned, you know, Honda the prologue going away as well as the cars that they had anno..."
The Honda Prologue is a new electric SUV made by Honda. It runs on electricity and is part of Honda’s plan to make more electric cars.
The Honda Prologue is Honda’s first all-electric SUV, marking a significant step in the brand’s move toward electrification. It is designed to compete in the growing EV market with modern technology and a spacious interior. Discussions about the Prologue often focus on its role in Honda’s future EV plans and its upcoming discontinuation or changes.
Ford F-150 Lightning
"..., and like you know, the Ford forward killing the Lightning and you know, having the Lightning name is going ..."
The Ford F-150 Lightning is a big truck that runs on electricity instead of gas. It is made for people who need a strong truck but want to use electric power.
The Ford F-150 Lightning is an all-electric version of Ford’s best-selling F-150 pickup truck, combining traditional truck capabilities with electric powertrain benefits. It has been significant for pushing electric trucks into the mainstream market and retaining the iconic Lightning name. It is often discussed for its performance, technology, and impact on the pickup segment.
800-volt charging system
"So do you really need super fast charging that an eight hundred volt system gives you? Maybe not at this point in time, so I can understand why they'd stay with four hundred."
Some electric cars use an 800-volt system to charge their batteries faster than usual. This means you can fill up the battery quicker, like a faster gas pump for electric cars.
An 800-volt charging system allows electric vehicles to charge at higher power levels, enabling faster charging times compared to the more common 400-volt systems. This technology is used in some modern EVs to reduce charging duration significantly.
Hyundai Palisade
"So so speaking a Hundai Robin, what do you what do you make of this stop sale on the palisade? I mean, well, so tragic event. What happened. Explain, Explain."
The Hyundai Palisade is a big SUV that can fit many people and has lots of features. It was recently stopped from selling because of a safety problem with its seats.
The Hyundai Palisade is a midsize SUV known for its spacious interior and family-friendly features. It offers multiple rows of seating and advanced technology, but recently faced a stop-sale due to safety concerns with its automatic folding seats.
stop-sale
"So so speaking a Hundai Robin, what do you what do you make of this stop sale on the palisade?"
A stop-sale means the company has to stop selling a car because of a problem, usually for safety reasons, until they fix it.
A stop-sale is an official order by a manufacturer or regulator to halt sales of a vehicle model due to safety or compliance issues until a fix is implemented.
automatic folding seat
"A two year old was crushed by I think it was a third row automatic folding seat. It's just terrible. It was probably the second row seat moving backwards towards the third I'm guessing. And they it sounds to me like there's no pinch mode like you have on automatic windows that if they're going up in the fingers there they stop."
Some car seats can fold down by themselves when you press a button. This helps make more room in the car, but they need safety features so they don't hurt anyone when moving.
An automatic folding seat is a vehicle seat that can fold down electronically at the push of a button, often to increase cargo space or ease access to rear rows. Safety features like pinch protection are important to prevent injuries.
pinch mode
"And they it sounds to me like there's no pinch mode like you have on automatic windows that if they're going up in the fingers there they stop."
Pinch mode is a safety feature that stops windows or seats from closing if something like your finger is in the way, so you don't get hurt.
Pinch mode is a safety feature in automatic windows and seats that detects obstructions like fingers and stops or reverses movement to prevent injury.
over-the-air update
"There's there's a band aid that's an over the air update. Then there'll be a fix."
Over-the-air updates let car makers send new software to your car through the internet, so your car can get better or fix problems without going to the shop.
An over-the-air (OTA) update is a wireless software update delivered to a vehicle remotely, allowing manufacturers to fix bugs or add features without a physical recall.
calligraphy trim
"Yeah, but I you know it for the limiting and calligraphy, the top two trims of palisade, there's this. It's a really clever system in of itself where highly automated, you can independently or all at once, just electrically have the second and third rows go down..."
Calligraphy is a fancy version of a Hyundai car with nicer seats, better tech, and special looks.
Calligraphy is a premium trim level offered by Hyundai on some models like the Palisade, featuring luxury interior materials, advanced technology, and exclusive styling.
radar system
"I was just at or Via the supplier this week, and they were showing off how you know, they've got this sophisticated radar system inside, like from the rear view mirror. It looks back and it like can tell not only you know whether the seats occupied, but who's in the seat."
Radar systems in cars send out invisible waves that bounce back when they hit something. This helps the car know if someone or something is inside or near it, making driving safer.
A radar system in cars uses radio waves to detect objects and movement inside or around the vehicle. It can sense presence, motion, and sometimes even breathing, enabling safety features like occupant detection and collision avoidance.
occupant detection
"It looks back and it like can tell not only you know whether the seats occupied, but who's in the seat. Is it a person, is it a shopping bag or whatever?"
Occupant detection means the car knows if someone or something is sitting in a seat. This helps keep people safe and reminds you if you left someone or a pet inside.
Occupant detection technology uses sensors like radar to determine if a seat is occupied and sometimes who or what is occupying it. This helps with safety features such as airbag deployment and alerting drivers to passengers or pets left inside.
hot car death
"They leave their kids in the correy of the hot car death. Yeah, that was just not supposed to happen, but it happens."
Hot car death happens when someone, usually a child or pet, is left alone in a car that gets very hot, which can be very dangerous or even deadly.
Hot car death refers to the tragic incidents where children or pets are accidentally left inside a parked car that heats up to dangerous temperatures, leading to heatstroke or death. Advanced occupant detection systems aim to prevent these occurrences.
breathing detection
"They can tell if something is breathing in the car as minimally as your chest might move if you're if you have very shallow breathing, dar can pick it up instantly, So you don't even need an infant in a child seat in a seat. They can be lying on the floor and these radars will pick that up."
Breathing detection means the car can tell if someone is inside by noticing tiny movements from their breathing, even if they aren't sitting up.
Breathing detection is a feature of some advanced radar systems that can sense the subtle movements caused by a person's breathing, even if they are lying down or very still. This improves occupant safety by detecting presence without relying on seat sensors.
backup camera
"Yes, this is like the backup camera from what Wooden was that man in twenty twelve? Was it? When the I think you're right? Yeah, And this is the next generation of that of the I mean, it's so you're telling me technology."
A backup camera is a small camera on the back of a car that shows you what's behind when you are backing up, so you don't hit anything.
A backup camera is a safety feature installed at the rear of a vehicle to provide the driver with a live video feed of the area behind the car, helping to prevent collisions while reversing.
seat belt reminder
"Also, seat belt binders ding ding ding ding ding ding ding ding. Ah, they drive me up the wall. Look, I'm a guy who always wears my seat belt. One of the time,"
A seat belt reminder is a warning sound or light in a car that tells you to put on your seat belt so you stay safe.
Seat belt reminders are alerts in vehicles that notify occupants to fasten their seat belts, often through audible chimes and dashboard lights, enhancing safety compliance.
touchscreen glove compatibility
""In Lexus, certain functions on the center screen work with gloves on, and but other functions did not, which was weird. And most cars... most cars will not touch screens will not work with gloves on.""
Some car touchscreens can still work if you're wearing gloves, but many don't. This means you might have to take your gloves off to use the screen.
Touchscreen glove compatibility refers to the ability of a vehicle's touchscreen to register inputs when the user is wearing gloves. Some vehicles have screens that work with gloves on, while others require bare fingers or special conductive gloves.
adaptive cruise control
""...a lot of adaptive cruise controls, it will basically in the lane center, you know, basically do the driving for you. But if you take your hands off the wheel, it freaks out and put your hands back on the wheel.""
Adaptive cruise control helps your car keep a safe distance from the car in front and can even help steer to stay in the lane. It makes driving on highways easier and safer.
Adaptive cruise control is an advanced driver assistance system that automatically adjusts a vehicle's speed to maintain a safe distance from vehicles ahead. It can also help keep the car centered in its lane, reducing driver workload on highways.
trade deficit
"It's right, the Trump Administration's breathing down their import so many cars. We want you to help reduce our trade deficit arago, you should export cars back to Japan."
A trade deficit happens when a country buys more things from other countries than it sells to them. This can be a problem because it means money is leaving the country.
A trade deficit occurs when a country imports more goods and services than it exports, leading to a net outflow of domestic currency to foreign markets. Governments often seek to reduce trade deficits to support domestic industries.
foreign OEM
"but there are foreign OEMs that have real significant export businesses like BMW here you know, in in in the US doesn't seem like that's what we're going for here with with these announcements."
A foreign OEM is a car company from another country that makes cars and parts. For example, BMW is a German company that sells cars in the US.
Foreign OEM stands for Original Equipment Manufacturer companies based outside the domestic market, such as BMW in the US. These manufacturers produce vehicles and parts that are sold under their own brand names.
BMW
"And plus it was a BMW."
BMW is a car company from Germany that makes fancy and sporty cars. People like them because they drive well and look nice.
BMW is a German luxury automotive brand known for producing performance-oriented and premium vehicles. It is often associated with sporty driving dynamics and advanced engineering.
Mercedes-Benz
"It was luxury cars. It was BMW and Mercedes and the like."
Mercedes-Benz is a famous car brand from Germany that makes very nice and comfortable cars. Many people think of it as a symbol of luxury.
Mercedes-Benz is a German luxury car manufacturer known for its high-quality, comfortable, and technologically advanced vehicles. It is one of the most prestigious automotive brands worldwide.
1500 Bighorn
"...even a trim level. It's actually a package on the Bighorn and it's but it's this new thing. Check it out, a..."
The '1500' is a name for a type of pickup truck or a special set of features on a truck. It means the truck is made for everyday work and driving.
The '1500' designation typically refers to a half-ton pickup truck trim or package, often indicating a light-duty version of a larger truck model. In this context, it appears as a package on the Bighorn trim, adding specific features or capabilities. It is relevant for buyers looking for particular configurations within a truck lineup.
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