{"version":"1.0.0","episode":{"title":"SHADY Car Dealers Are DONE! The FTC Just CRUSHED THEM | Episode 1053","url":"http://getcarcurious.com/episodes/shady-car-dealers-are-done-the-ftc-just-crushed-them-episode-1053","audioUrl":"https://pdrl.fm/3359a6/pscrb.fm/rss/p/mgln.ai/e/1385/injector.simplecastaudio.com/14b42e71-1f9c-41b2-944f-bc8f2b3a3cb9/episodes/7acc4197-faac-40d9-a740-7d34d086d50c/audio/128/default.mp3?aid=rss_feed&awCollectionId=14b42e71-1f9c-41b2-944f-bc8f2b3a3cb9&awEpisodeId=7acc4197-faac-40d9-a740-7d34d086d50c&feed=gkrQ6WSC","description":"Today on CarEdge Live, Ray and Zach discuss the latest news from the FTC. Tune in to learn more. Hosted by Simplecast, an AdsWizz company. See https://pcm.adswizz.com\nfor information about our collection and use of personal data for\nadvertising.\n"},"annotations":[{"startTime":138.5,"endTime":165.6,"type":"company","title":"caredge.com","url":"/glossary/caredge-com","quote":"Today's show, folks, is brought to you by caredge.com. Save at least, on average, $2,487 on your next car. Let us do all the work. You can go ahead and click through on that right there, and you can learn a little bit more about how we are saving customers.","canonicalId":"company:caredge-com","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"CarEdge is presented as a car-shopping service that claims to reduce the cost of buying a vehicle. In the context of dealer pricing, services like this typically focus on sourcing pricing information and helping buyers avoid common markup tactics.","simplifiedExplanation":"They’re promoting CarEdge as a website that helps you find a better deal on a car. The idea is that it makes the buying process easier and can help you avoid overpaying."}},{"startTime":219.8,"endTime":222.5,"type":"concept","title":"97 dealership groups","url":"/glossary/97-dealership-groups","quote":"having sent out letters to 97 dealership groups and a massive settlement with Lindsay Automotive Group.","canonicalId":"concept:97-dealership-groups","priority":0.5,"confidence":0.78,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The FTC sent letters to 97 dealership groups, signaling broad enforcement rather than a single isolated case. For consumers, this implies the issue was widespread enough that regulators targeted multiple groups with similar pricing practices.","simplifiedExplanation":"The FTC contacted a lot of dealership companies at once. That usually means the problem was common, not just one bad dealer."}},{"startTime":222.5,"endTime":226.9,"type":"company","title":"Lindsay Automotive Group","url":"/glossary/lindsay-automotive-group","quote":"having sent out letters to 97 dealership groups and a massive settlement with Lindsay Automotive Group.","canonicalId":"company:lindsay-automotive-group","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Lindsay Automotive Group is referenced as the subject of a “massive settlement” tied to FTC action. Settlements like this typically involve allegations of misleading pricing or advertising practices, and they can affect how dealers structure their offers and disclosures.","simplifiedExplanation":"The speaker says Lindsay Automotive Group was involved in a big settlement with the FTC. That suggests the FTC believed their advertising or pricing practices were not fair or were misleading."}},{"startTime":230.4,"endTime":236.0,"type":"concept","title":"FTC advertisement warning","url":"/glossary/ftc-advertisement-warning","quote":"On the homepage of Automotive News this morning, price transparency requires staff training in wake of FTC advertisement warning. Dead shady car dealers are done.","canonicalId":"concept:ftc-advertisement-warning","priority":0.9,"confidence":0.9,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The FTC (U.S. Federal Trade Commission) can warn or take action when car dealers advertise prices in a misleading way. In this context, it’s about making sure advertised prices reflect the real out-the-door cost drivers will face, including required fees.","simplifiedExplanation":"The FTC is a government agency that polices misleading business practices. Here, it’s warning dealers that they can’t advertise a “cheap” price if the real price will be higher once required fees are added."}},{"startTime":256.5,"endTime":260.08,"type":"concept","title":"all required fees","url":"/glossary/all-required-fees","quote":"you cannot advertise a price that does not reflect all required fees.","canonicalId":"concept:all-required-fees","priority":0.9,"confidence":0.92,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“All required fees” refers to mandatory charges that must be included in the advertised price so the consumer isn’t surprised at checkout. This is a key point in FTC enforcement: if fees are required, they can’t be left out of the price consumers are shown.","simplifiedExplanation":"This means the dealer has to include the mandatory charges in the price they advertise. If the fees are required, you shouldn’t have to find out later that the total is much higher."}},{"startTime":360.3,"endTime":365.7,"type":"concept","title":"price that they advertise something for sale online for is the price of the car","url":"/glossary/price-that-they-advertise-something-for-sale-online-for-is-the-price-of-the-car","quote":"He said, yeah, that's what they need to train their sales staff on, is that the price that they advertise something for sale online for is the price of the car.","canonicalId":"concept:price-that-they-advertise-something-for-sale-online-for-is-the-price-of-the-car","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"This is a plain-language restatement of “out-the-door” style transparency—what’s advertised should reflect what the buyer can actually pay. In real dealership practice, this often ties into how dealers present fees, add-ons, and financing conditions.","simplifiedExplanation":"They’re saying the online price should be the real price you’re paying for the car. No surprises with extra requirements or hidden conditions."}},{"startTime":414.3,"endTime":417.9,"type":"concept","title":"FTC warning dealers not to do","url":"/glossary/ftc-warning-dealers-not-to-do","quote":"So, dad, again, what the FTC is warning dealers not to do\n[417.9s]  is the first one, advertise a price that does not reflect all required fees.","canonicalId":"concept:ftc-warning-dealers-not-to-do","priority":0.9,"confidence":0.92,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The FTC (U.S. Federal Trade Commission) can warn and enforce rules against deceptive or unfair business practices. In car sales, this often targets how dealers advertise pricing and disclose fees so buyers aren’t misled.","simplifiedExplanation":"The FTC is a government agency that helps stop unfair or misleading business practices. Here, they’re warning car dealers about how they advertise prices so customers aren’t tricked by hidden costs."}},{"startTime":616.8,"endTime":620.3,"type":"concept","title":"out-the-door price","url":"/glossary/out-the-door-price","quote":"is it's based on out-the-door price quotes that we've received from dealerships.\nSo, let's come here, Dad.","canonicalId":"concept:out-the-door-price","priority":0.9,"confidence":0.92,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Out-the-door price” is the total amount you pay to buy the car, including the vehicle price plus required taxes and fees (and sometimes dealer charges). It’s the number shoppers should compare across dealers because it reflects the real cost, not just the advertised base price.","simplifiedExplanation":"“Out-the-door price” is the final total you hand over at the dealership. It includes the car price plus the taxes and required fees, so it’s the fairest way to compare deals."}},{"startTime":621.3,"endTime":622.3,"type":"company","title":"Burge Toyota","url":"/glossary/burge-toyota","quote":"So, let's come here, Dad.\nBurge Toyota.\nHi.","canonicalId":"company:burge-toyota","priority":0.5,"confidence":0.78,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Burge Toyota” is mentioned as a specific dealership example in the discussion about using out-the-door price quotes and dealer reviews/ratings. Listener takeaway: dealership-level pricing transparency matters, and comparing the real total cost is the point.","simplifiedExplanation":"They name a specific Toyota dealership (“Burge Toyota”) as part of their examples. The bigger idea is that you should compare the final total price, not just a headline number."}},{"startTime":630.9,"endTime":632.8,"type":"brand","title":"Ford","url":"/glossary/ford","quote":"We're going to surprise Ford.\n[632.8s]  Okay, never worked there.\n[634.4s]  Limited data.","canonicalId":"brand:ford","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Ford is the automaker whose vehicles are being shopped in this segment. When dealers quote “Ford” cars, the pricing breakdown (selling price, add-ons, and fees) can vary significantly between stores, so it’s useful to compare quotes for the same Ford model.","simplifiedExplanation":"Ford is the car brand being discussed here. The point is that different dealers can quote very different prices for the same kind of Ford car."}},{"startTime":634.4,"endTime":636.9,"type":"concept","title":"limited data","url":"/glossary/limited-data","quote":"[634.4s]  Limited data.\n[635.3s]  Okay, so keep this in mind first.\n[636.9s]  I get limited data.","canonicalId":"concept:limited-data","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Limited data” here suggests the analysis is based on a small sample—only one dealership quote—so conclusions about pricing fairness may be incomplete. In deal-shopping, more data points (multiple dealers, multiple quotes) reduce the chance of being misled by a single outlier.","simplifiedExplanation":"“Limited data” means they don’t have enough information to be totally certain. With only one quote, it’s harder to know if the price is typical or just an unusual case."}},{"startTime":637.7,"endTime":641.0,"type":"concept","title":"one quote from this dealership","url":"/glossary/one-quote-from-this-dealership","quote":"We only have one quote from this dealership, but I'm going to scroll down, Dad.\n[641.0s]  And I'm going to look at this quote that we received from this dealership and let's zoom on in here.","canonicalId":"concept:one-quote-from-this-dealership","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Getting “one quote” means you don’t have a comparison point to judge whether the pricing is competitive. For car deals, comparing multiple quotes helps reveal markup, inflated add-ons, or unusual fee structures.","simplifiedExplanation":"If you only have one quote, you can’t tell if the price is fair. Getting quotes from multiple dealers helps you spot when one dealer is charging more than others."}},{"startTime":799.5,"endTime":803.0,"type":"term","title":"Smart Shield Window Tint","url":"/glossary/smart-shield-window-tint","quote":"...I'll jump back to it. We've got Smart Shield Window Tint. What is nothing promised or expected? That's a little crazy.","canonicalId":"term:smart-shield-window-tint","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Smart Shield Window Tint” appears to be a specific branded window-tint add-on being bundled with the vehicle. Window tint is a common dealer accessory, and the key is whether it’s clearly itemized, priced, and actually installed as described.","simplifiedExplanation":"Smart Shield Window Tint sounds like a specific tint product the dealer is adding to the car. Tint is a common add-on, so it’s worth checking that it’s real, installed, and included in the price the dealer quotes you."}},{"startTime":864.8,"endTime":869.5,"type":"term","title":"mystery shop","url":"/glossary/mystery-shop","quote":"Again, we mystery shop this dealership back at caredge.com.","canonicalId":"term:mystery-shop","priority":0.5,"confidence":0.78,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"A mystery shop is when someone poses as a typical customer to test how a dealership sells and prices a vehicle. It’s often used to verify whether advertised pricing and final quotes match up."}},{"startTime":898.0,"endTime":910.1,"type":"term","title":"online advertisement","url":"/glossary/online-advertisement","quote":"for $900. Window tint was not included in the online advertisement for $900.","canonicalId":"term:online-advertisement","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Online advertisement pricing refers to the number a dealer posts on the internet to attract buyers. In these cases, regulators expect the ad to be transparent about what’s included versus what will be added later.","simplifiedExplanation":"The online advertisement is the price you see on the dealer’s website or listings. The important part is whether that price truly includes the items and fees you’ll be charged."}},{"startTime":1031.1,"endTime":1032.9,"type":"term","title":"low jack","url":"/glossary/lowjack","quote":"Tint, perma plate, low jack.\nThere's the accessories.\nThis is the exact type of behavior that the FTC is saying is illegal and they're cracking down on.","canonicalId":"term:low-jack","priority":0.5,"confidence":0.9,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Low Jack” refers to an aftermarket vehicle recovery system (often branded as LoJack) that uses a hidden transmitter and tracking service to help locate a stolen vehicle. It’s typically sold as an add-on, and the important details are whether it’s installed, what the subscription/service cost is, and how long it lasts."}},{"startTime":1046.2,"endTime":1052.0,"type":"term","title":"train their staff","url":"/glossary/train-their-staff","quote":"And this is the type of stuff that shady dealers will have to update how they're operating or else they're going to end up in serious trouble.\nAnd they'll have to, they'll have to train their staff on how to tell the truth.","canonicalId":"term:train-their-staff","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Dealer “staff training” here refers to compliance training—teaching sales teams how to follow consumer-protection rules and communicate accurately. In practice, this often means consistent disclosure of add-ons, fees, and deal terms so customers aren’t misled.","simplifiedExplanation":"The idea is that dealers will have to teach their employees to follow the rules and explain the deal honestly. That helps prevent misleading add-ons or hidden charges."}},{"startTime":1317.9,"endTime":1324.1,"type":"concept","title":"sales opportunity","url":"/glossary/sales-opportunity","quote":"Dad, I think Memorial Day will end up being a big sales opportunity because we see these new cars sitting and not selling.","canonicalId":"concept:sales-opportunity","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Sales opportunity” here means a time window where demand and foot traffic are expected to be higher. Dealerships often plan promotions around these windows to convert more shoppers into buyers.","simplifiedExplanation":"They mean Memorial Day is a good time to sell more cars because more people are likely to shop. Dealerships try to take advantage of that timing."}},{"startTime":1358.7,"endTime":1373.9,"type":"brand","title":"Acura","url":"/glossary/acura","quote":"...back in the late 90s when I was at the Scottsdale Acura... before we went to Acura and North Scottsdale...","canonicalId":"brand:acura","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Acura is the luxury brand being discussed through the speaker’s dealership history. It’s relevant because luxury brands still run holiday sales events, and the same “inventory + incentives” logic applies."}},{"startTime":1426.9,"endTime":1432.0,"type":"concept","title":"sales are slower this year","url":"/glossary/sales-are-slower-this-year","quote":"We know inventory stacking up a little bit. We know sales are slower this year than what people dealerships had wanted. So I would think Memorial Day weekend will be a big sale weekend.","canonicalId":"concept:sales-are-slower-this-year","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"This refers to a softer retail market where fewer vehicles are moving at the pace dealerships expected. In practice, slower sales can lead to more discounting, more aggressive marketing, and longer time-to-sell for specific models.","simplifiedExplanation":"If fewer people are buying cars than expected, dealerships have to work harder to sell. That often means more promotions or discounts."}},{"startTime":1436.1,"endTime":1445.6,"type":"brand","title":"Cadillac","url":"/glossary/cadillac","quote":"All right, the other story I wanted to cover today, dad, February EV registrations plunge dragging share below 5% with Toyota Cadillac bucking the trend.","canonicalId":"brand:cadillac","priority":0.5,"confidence":0.75,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Cadillac is referenced as another brand “bucking the trend” in EV registrations. This matters because it suggests the EV market isn’t uniform—some brands may be gaining traction while others are losing it."}},{"startTime":1445.6,"endTime":1456.4,"type":"concept","title":"EV registrations fell 37% in February","url":"/glossary/ev-registrations-fell-37-in-february","quote":"So we had another month of new data come through and dad, you can see here new electric vehicle registrations fell 37% in February from a year prior.","canonicalId":"concept:ev-registrations-fell-37-in-february","priority":0.9,"confidence":0.95,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The speaker is citing a year-over-year drop in new electric vehicle (EV) registrations. This is a sales-demand indicator: fewer registrations usually means fewer buyers are choosing EVs during that period.","simplifiedExplanation":"They’re talking about how many new EVs were registered compared to the year before. A big drop usually means EV demand is cooling."}},{"startTime":1557.6,"endTime":1564.5,"type":"concept","title":"$12,000 off at Toyota","quote":"But I mean, if you told me I could get $12,000 off at Toyota, I'd be like, oh, that sounds kind of interesting, but it's in the electric power chain.","canonicalId":"concept:12-000-off-at-toyota","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“$12,000 off” is an example of a large manufacturer/dealer discount used to stimulate demand. When discounts are this big, it often indicates the vehicle isn’t moving as expected without incentives.","simplifiedExplanation":"They’re talking about a big discount—like $12,000 off the price. Large discounts usually mean the car isn’t selling as fast as the company wants."}},{"startTime":1575.8,"endTime":1580.2,"type":"concept","title":"subsidizing it","url":"/glossary/subsidizing-it","quote":"Maybe not in perpetuity, but for the time being. When nobody stops subsidizing it, sales weren't there. Well, obviously when, when the government stops subsidizing it.","canonicalId":"concept:subsidizing-it","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The speaker is arguing that EV sales are being propped up by subsidies/incentives rather than strong consumer demand. This frames EV adoption as incentive-dependent in the near term.","simplifiedExplanation":"They’re basically saying EVs are selling because of government or financial help, not because everyone wants them yet. Without that help, sales may slow down."}},{"startTime":1583.7,"endTime":1593.86,"type":"concept","title":"type of discounts that the manufacturers are trying to apply","url":"/glossary/type-of-discounts-that-the-manufacturers-are-trying-to-apply","quote":"Now, when you look at some of the type of discounts that the manufacturers are trying to apply, that indicates one of two things.","canonicalId":"concept:type-of-discounts-that-the-manufacturers-are-trying-to-apply","priority":0.5,"confidence":0.85,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The discussion is about manufacturer discounting strategies (incentives, rebates, or other price support) as a response to weak EV demand. This is a common market behavior when inventory builds or sales targets aren’t met."}},{"startTime":1637.8,"endTime":1644.2,"type":"car","title":"Volkswagen ID4","url":"/cars/volkswagen/id-4","image":"https://upload.wikimedia.org/wikipedia/commons/0/02/2020_Volkswagen_ID.4_Pro_%28Netherlands%29_front_view.jpg","quote":"Back to the Memorial Day question, bet you some of the deals you'll see on Volkswagen ID4s from Memorial Day will blow your mind away. We'll be like, holy cow, I could get $15,000 off of Volkswagen ID4.","canonicalId":"car:volkswagen:id4","priority":0.9,"confidence":0.95,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The Volkswagen ID4 is an all-electric compact SUV from Volkswagen’s ID electric lineup. In this segment, it’s used as an example of an EV that could be heavily discounted during Memorial Day sales.","simplifiedExplanation":"The Volkswagen ID4 is an electric SUV made by Volkswagen. The host is saying you might see big discounts on it during Memorial Day, because dealers/manufacturers are trying to move EV inventory.","imageAttribution":"Dennis Elzinga (CC BY 2.0)"}},{"startTime":1644.2,"endTime":1652.6,"type":"concept","title":"leftover EVs","url":"/glossary/leftover-evs","quote":"They've got to find ways to sell those leftover EVs. Yeah, or maybe they'll offer $159 a month lease programs.","canonicalId":"concept:leftover-evs","priority":0.5,"confidence":0.86,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Leftover EVs” refers to unsold inventory—vehicles sitting on dealer lots or in the pipeline after demand doesn’t match supply. The speaker implies dealers may need to discount aggressively to clear that inventory."}},{"startTime":1652.6,"endTime":1658.0,"type":"term","title":"lease programs","url":"/glossary/lease-programs","quote":"or maybe they'll offer $159 a month lease programs. I think you're absolutely going to see that.","canonicalId":"term:lease-programs","priority":0.5,"confidence":0.78,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"Lease programs are financing offers that let customers pay to use a vehicle for a set term, typically with mileage limits and an option to buy at the end. The segment suggests EVs may be pushed with low monthly payments to stimulate demand.","simplifiedExplanation":"A lease program is a way to drive a car by paying a monthly amount for a few years instead of buying it outright. The host is saying dealers might use cheap monthly lease offers to move EVs."}},{"startTime":1721.6,"endTime":1733.0,"type":"concept","title":"losing price leaders","url":"/glossary/losing-price-leaders","quote":"Are we just going to see these losing price leaders as the advertised specials and that there's no real savings on the vehicles that people want?","canonicalId":"concept:losing-price-leaders","priority":0.5,"confidence":0.82,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"“Losing price leaders” are advertised specials where the seller intentionally prices a vehicle below what’s profitable to generate traffic. The speaker suggests this could mean big headline discounts, but limited real savings on the most in-demand vehicles."}},{"startTime":1832.0,"endTime":1839.6,"type":"concept","title":"dealer grading (A/B/C/D/F)","url":"/glossary/dealer-grading-a-b-c-d-f","quote":"We grade all the dealers that we interact with... most dealers get an A grade... very few, 12% get D and F grades.","canonicalId":"concept:dealer-grading-a-b-c-d-f","priority":0.5,"confidence":0.8,"source":"hybrid-fuzzy+gpt-5.4-nano","data":{"explanation":"The hosts describe a grading system for dealers they interact with, using letter grades (A through F). This is relevant because it frames how the community evaluates dealer behavior and transaction quality, not just whether a dealer is “in business.”"}}],"speakers":[{"id":"s1","name":"Ray","role":"host"},{"id":"s2","name":"Zach Shefska","role":"host"},{"id":"s3","name":"Bleav","role":"host"}],"transcripts":[{"url":"http://getcarcurious.com/episodes/shady-car-dealers-are-done-the-ftc-just-crushed-them-episode-1053/transcript.vtt","type":"text/vtt"}]}