CarGurus Just Put the Entire Auto Industry On ALERT | Episode 1099
About this episode
CarGurus is shaking up the auto industry by giving dealerships a strict deadline to disclose all fees on their platform or face lower search rankings. While hosts Ray and Zach applaud this push for transparent pricing, they dive deep into why this policy might be easily gamified by dealers. Using real-world examples from their own mystery shopping data, they expose how dealers can list official fees while still hiding costly add-ons like theft protection and paint sealants. It is a critical look at whether these new platform rules will actually protect buyers or just create a new set of loopholes.
CarGurus
"Car Gurus, which if you're unfamiliar with Car Gurus, the odds are you're probably not... Car Gurus gives dealers July 14th deadline to disclose fees."
A popular website where people can search for and compare new and used cars for sale near them.
An automotive research and shopping website that assists users in comparing local listings for used and new cars. It is one of the largest automotive marketplaces in the United States and recently mandated that dealers disclose all fees on their listings.
Carvana
"We've got the FTC putting pressure on dealers. We've got Carvana putting pressure on dealers."
An online store where you can buy used cars completely online and have them delivered to your house, bypassing traditional dealerships.
An online used car retailer known for its multi-story car vending machines and direct-to-consumer digital sales model. It has put pressure on traditional dealerships by offering haggle-free pricing and home delivery.
dock fee
"You can see it right there. They've got their $995 Dock Fee."
A fee charged by the dealership to handle the paperwork for your new car. Some states limit how much they can charge, but in others, dealers can make it very expensive.
Short for 'documentation fee' or 'doc fee,' this is an administrative charge levied by dealerships to cover the cost of processing paperwork, title transfers, and registration. While some states cap this fee, others allow dealers to charge whatever they want, often exceeding $1,000.
Dealer Transparency Index
"Again, for those of you that don't know, we have the Dealer Transparency Index. Our grades and our badging come from mystery shopping dealerships and getting out-the-door price quotes."
A grading system created by CarEdge that rates car dealerships on how honest and upfront they are about their pricing and fees.
A proprietary scoring system developed by CarEdge that grades automotive dealerships based on their willingness to provide transparent, itemized, out-the-door pricing without hidden fees or forced add-ons.
out-the-door price
"...mystery shopping dealerships and getting out-the-door price quotes."
The absolute final price you pay for a car, including all taxes, registration, and extra fees. It is the actual total cost of the purchase.
The total final price of a vehicle including the base price, dealer documentation fees, sales tax, registration fees, and any dealer-installed accessories. It represents the actual amount a buyer must write on a check to drive the car away.
dealer add-ons
"Dylan's right, maybe it's semantics, fees versus add-ons. Okay, maybe. But I think that would really make what the FTC's striving for here to be pretty hollow. Hey, you have to disclose fees, but don't worry about disclosing add-ons."
Extra items or services that a dealership installs on a car before selling it, like window tinting or alarms, and then charges you extra for. They are often overpriced and hard to decline.
Optional or pre-installed products and services added to a vehicle by the dealership, such as paint protection, window tinting, nitrogen-filled tires, or anti-theft GPS trackers. These are highly profitable for dealers and are often forced onto buyers as non-negotiable items.
Earl Stewart
"Earl Stewart, dad, who we love. We love Earl Stewart and what he stands for. Down in South Florida. Earl Stewart on his radio show has been mystery shopping dealers for decades."
A well-known car dealership owner in Florida who became famous for fighting against dishonest dealership sales tactics and helping car buyers get fair prices.
A prominent South Florida Toyota dealer, consumer advocate, and author known for his 'red phone' policy (allowing customers to call him directly) and his long-standing crusade against hidden dealer fees and deceptive advertising.
Monroney label
"We got to have a like a Monroney label, but an OTD label for all vehicles called the Shepska label for all that we care."
The official sticker on the window of every new car that lists the manufacturer's suggested retail price (MSRP), what features are included, and how many miles per gallon the car gets.
A window sticker required by US law to be displayed on all new cars, detailing official pricing, standard and optional equipment, fuel economy ratings, and crash safety ratings. It is named after Senator Almer Stillwell 'Mike' Monroney, who sponsored the Automobile Information Disclosure Act of 1958.
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