Buying a Car in America is Broken & This PROVES It | Episode 968
About this episode
Car shopping in America is riddled with inconsistencies and deceptive practices, as revealed by a recent study where 104 dealerships were contacted for pricing on the same vehicle. The hosts discuss the staggering price differences, sometimes reaching up to $18,000 for identical models, and the lack of transparency in dealer advertising. They explore the systemic issues within the automotive retail industry, including the failure of dealerships to respond to inquiries and the implications of state regulations. The conversation highlights the need for better consumer awareness and the challenges of navigating the car buying process.
out-the-door pricing
"...asking for out-the-door pricing on pretty much the same vehicle that they had in stock nationwide. We're gearing up to do round two of that."
Out-the-door pricing is the final amount you pay for a car, including everything like taxes and fees. It helps you know exactly how much money you'll need to spend to buy the car.
Out-the-door pricing refers to the total cost of purchasing a vehicle, including the vehicle price, taxes, registration fees, and any additional dealer fees or add-ons. It gives buyers a complete picture of what they will actually pay when they finalize the purchase.
MSRP
"...all the same make, model, and trim with MSRP's between 64,500 bucks and 65,500 bucks."
MSRP is the price that the car maker suggests you should pay for a new car. It's like a starting point for how much a dealership might charge you.
MSRP stands for Manufacturer's Suggested Retail Price, which is the price that the manufacturer recommends for the vehicle. It's often used as a benchmark for pricing negotiations at dealerships.
Ford F150
"...for the same MSRP, Ford F-150 XLT. We'll dig into more of the data here. We'll click through to some of the dealer websites..."
The Ford F-150 XLT is a version of Ford's popular pickup truck, known for being tough and versatile. The 2025 model has features that make it good for both work and everyday use.
The Ford F-150 XLT is a popular trim of the F-150 pickup truck, known for its blend of utility and comfort. The 2025 model continues the tradition of offering a range of features suitable for both work and leisure.
retail automotive
"Okay, it's retail automotive. It is states not enforcing FTC and state advertising regulations..."
Retail automotive is about how cars are sold to people. It includes everything from the prices you see advertised to how dealerships help you buy a car.
Retail automotive refers to the sale of vehicles directly to consumers through dealerships. It encompasses the entire process of selling cars, including pricing, financing, and customer service.
FTC
"It is states not enforcing FTC and state advertising regulations, allowing dealers to manipulate the prices..."
The FTC is a government agency that makes sure companies don't lie in their ads. This includes making sure car dealers are honest about prices.
The FTC, or Federal Trade Commission, is a U.S. government agency that enforces laws against deceptive advertising and unfair business practices, including in the automotive industry.
dealer discount
"MSRP, dealer discount, retail bonus cash. Here's your price."
A dealer discount is when the car dealership lowers the price of a car. This can happen for sales events or if they have too many cars in stock.
A dealer discount is a reduction in the price of a vehicle offered by the dealership. This discount can be based on various factors, including promotions, inventory levels, or negotiation.
TASCA Ford
"[432.2s] TASCA Ford. [434.0s] Yes."
TASCA Ford is a car dealership that sells Ford vehicles. They help customers buy new or used cars and provide services like maintenance.
TASCA Ford is a well-known Ford dealership that offers a range of vehicles and services. They are recognized for their customer service and competitive pricing.
out-the-door price
"[449.0s] ...we're actually going to get out the door prices from as many of these dealers..."
The out-the-door price is how much you will actually pay for a car after adding everything like taxes and fees. It's the total cost to take the car home.
The out-the-door price is the total cost of purchasing a vehicle, including the car price, taxes, registration fees, and any additional dealer fees. It represents the final amount a buyer needs to pay to drive the car off the lot.
Flood Ford
"this one here from Flood Ford, which is also in Rhode Island,"
Flood Ford is a car dealership that sells Ford vehicles. They also provide services like car repairs.
Flood Ford is another Ford dealership located in Rhode Island. Like other dealerships, they offer a variety of Ford vehicles and services to customers.
Woodhouse discount
"...and get an $8,528 Woodhouse discount? And then obviously I've got the trade assistance too..."
The Woodhouse discount is a special price cut offered by a car dealership called Woodhouse. It helps make buying a car cheaper.
The Woodhouse discount likely refers to a specific promotional discount offered by Woodhouse Auto Family, a dealership group. Discounts like these can vary by location and dealership and are designed to attract customers.
trade assistance
"...and then obviously I've got the trade assistance too and the retail bonus cash that they're all adding up for my $51,551 price point."
Trade assistance is money that car companies give you when you trade in your old car for a new one. It helps lower the price of the new car you want to buy.
Trade assistance is a financial incentive offered by manufacturers to encourage customers to trade in their old vehicles when purchasing a new one. This assistance can help offset the cost of the new vehicle.
retail bonus cash
"...and the retail bonus cash that they're all adding up for my $51,551 price point."
Retail bonus cash is money that car manufacturers give to dealerships to help them sell cars. It can lower the price you pay when buying a car.
Retail bonus cash refers to manufacturer incentives provided to dealerships that can be passed on to consumers as discounts. This cash can significantly reduce the purchase price of a vehicle.
price point
"...for my $51,551 price point. Like this is what's broken about buying a car in America."
Price point is the specific price at which something is sold. When talking about cars, it means the amount you expect to pay after discounts.
Price point refers to a specific price level at which a product is marketed or sold. In the automotive context, it often indicates the target price for a vehicle after considering various discounts and incentives.
rebate
"let's apply every rebate known to man, let's not include the $2,495 destination fee"
A rebate is a way to get some money back after you buy something. In car sales, it means the dealer or manufacturer gives you a discount after you've paid for the car.
A rebate is a partial refund to someone who has paid too much for tax, rent, or a utility. In automotive sales, it often refers to discounts offered by manufacturers or dealers to incentivize purchases.
destination fee
"let's not include the $2,495 destination fee from the manufacturer and we're just gonna advertise"
The destination fee is the cost to deliver a car from the factory to the dealership. It's an extra charge you might see when buying a car.
The destination fee is a charge that covers the cost of transporting a vehicle from the manufacturer to the dealership. It's typically added to the MSRP and can vary based on the distance and method of transportation.
dock fees
"...when you add back in, you know, the dock fees or the add-ons."
Dock fees are extra charges that car dealerships might add to cover the cost of getting the car from the shipping dock to their lot. It's something to watch out for when buying a car.
Dock fees are charges that dealerships may add for the transportation and handling of vehicles from the port to the dealership. These fees can vary significantly and are often negotiable.
add-ons
"...the dock fees or the add-ons."
Add-ons are extra features or services that you can buy when getting a car, like special coatings or warranties. They can make the car more expensive than the base price.
Add-ons refer to additional features or services that a dealership may offer when selling a vehicle, such as extended warranties, paint protection, or aftermarket accessories. These can increase the overall cost of the vehicle.
advertised price
"And then you look at this spreadsheet again. This is advertised price, MSRP."
The advertised price is what the dealership shows as the price for a car, which might be lower than what you actually pay after negotiations.
The advertised price is the price that a dealership publicly displays for a vehicle. It may include discounts or promotions but can differ from the final sale price after negotiations.
price difference
"So what's the price difference from the lowest to the highest?"
Price difference means how much the cost varies between different places selling the same car. Some dealers might charge more or less than others.
Price difference refers to the variation in cost between different dealers for the same vehicle. This can be influenced by factors such as dealer fees, demand, and regional pricing strategies.
online research
"And it will further validate the need to do online research before you actually walk into a dealership."
Online research means looking up information about cars and prices on the internet. It helps you know what to expect before you go to a car dealership.
Online research refers to the process of gathering information about vehicles, pricing, and dealership offers through the internet. This practice helps buyers make informed decisions before visiting a dealership.
Ford Bronco
"...ave a recent recall and it's actually on the Ford Bronco. What's interesting about this recall?"
The Ford Bronco is a tough-looking SUV that you can drive on rough trails and in the wilderness. Recently, there was a recall for some of these vehicles, which means that the company found a problem that needs fixing to keep drivers safe.
The Ford Bronco is a classic American SUV that has been reintroduced to the market after a long hiatus. Known for its rugged design and off-road capabilities, the Bronco has garnered attention for its recent recall, which highlights ongoing quality control issues that can affect consumer confidence.
instrument panel display
"This has got an electrical system issue. The instrument panel display fails, but I'm so I'm fascinated here"
The instrument panel display is the part of the dashboard that shows things like how fast you're going and if there are any problems with the car. If it stops working, you might not know important information while driving.
The instrument panel display is the dashboard area that shows important information to the driver, such as speed, fuel level, and warning lights. A failure in this system can lead to a lack of critical information while driving.
Ford Bronco Sport
"...229,000 Bronco and Broncos sports in the 2025 and 2026 model year"
The Ford Bronco Sport is a smaller version of the Bronco, made for people who want an SUV that can handle both city driving and some off-road adventures.
The Ford Bronco Sport is a smaller, more compact version of the Bronco, designed for urban use while still offering off-road capabilities. It shares some styling cues with the larger Bronco but is built on a different platform.
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