Ray and Zach dig into the FTC’s latest push on car advertising, focusing not just on deceptive pricing, but also on ads for vehicles that aren’t actually available. They discuss how dealers may use “unavailable” listings to draw shoppers in, and why the FTC’s disclosure expectations are stricter than many dealers assume—especially when fine print requires scrolling. A Swickard Auto Group settlement in Alaska is cited as a real-world warning. The hosts also riff on Ford CEO pay amid massive recall counts, then pivot to CarEdge beta tools for more transparent car buying and even dealer reverse-bids on trade-ins.
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
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"...uests. Enjoy all-inclusive farm-to-table dining, excursions, and all the gear you need. Visit us at uncruise..."
The Ford Excursion is a very large SUV made by Ford. It was designed to carry lots of people and handle heavy hauling, like towing a trailer. People mention it because it’s roomy and built for serious use.
The Ford Excursion is a large, full-size SUV built on a truck platform, known for its big towing capacity and roomy, three-row interior. It’s often discussed because it’s one of the most capable “workhorse” style SUVs from its era, appealing to people who need space and hauling ability. In a podcast, it might come up when talking about older, heavy-duty vehicles and what they’re like to own today.
"We're going to be talking about the FTC. Automative News just ran another article about the letter that they sent out about a week ago now."
The FTC is a U.S. government agency that protects consumers. When it changes rules or sends letters, it can change what car dealers have to tell you about prices and deals.
The FTC (Federal Trade Commission) is a U.S. agency that regulates consumer protection and competition. In car buying, FTC actions and guidance can affect how dealers and marketers disclose pricing, fees, and financing terms.
"You want us to actually contact dealers for you, and you want us to do the negotiations. We learn what matters to you, contact dealers, and compare real offers to help you get the best deal without the stress."
“Contact dealers” refers to reaching out to multiple dealerships to request quotes and availability. This is often the first step in getting comparable offers rather than relying on a single dealership’s pricing.
"[286.0s] deceptive pricing.
[287.2s] And the call out here with regards to deceptive pricing was pretty clear."
Deceptive pricing is when the price you see in the ad doesn’t reflect the real price you’ll end up paying. It can happen when important costs or requirements are left out.
Deceptive pricing is when advertised numbers don’t match what consumers will actually pay under the advertised conditions. In car ads, this often shows up as missing fees, unrealistic qualification requirements, or structuring the price around a down payment.
"[291.3s] Advertised prices that reflect all fees, advertised prices that actually don't include rebates
[297.8s] that people can't qualify for, advertised prices that have a down payment factored into them, etc."
Some ads show a low price but leave out extra charges. “All fees” means the ad should include the real add-ons so you can compare deals fairly.
This highlights the difference between an advertised “headline” price and the true out-the-door cost. If ads don’t clearly include fees, shoppers may think they’re getting a lower price than they actually will.
"[326.9s] Or is this a strategy that some dealers are using to try and get customers in?
[330.7s] And does this start to change things for car buyers if the FTC starts to enforce this rule?"
The segment suggests “bait” advertising—using an advertised vehicle that isn’t available to attract shoppers and move them into a dealership conversation. This is important because FTC enforcement can change how dealers structure ads and inventory claims.
"If you're going to advertise a car, it has to be a car that exists and is actually available for sale."
The key idea is simple: if it’s advertised, the car should actually be there and ready to buy. That’s what makes the ad trustworthy.
This is the core standard being emphasized: if a dealer advertises a car, it must exist and be genuinely available to purchase. It’s a practical rule for buyers because it directly affects whether the listing you see online is real.
"I would venture a guess and say that anybody who has ever seen an unbelievably great advertised price for a vehicle and has then shown up at that dealership that advertised it, heard something like this, oh my goodness, I'm sorry, Mr. Customer, but that car just sold an hour"
They’re talking about those ads where the price looks almost unbelievable. People go to the dealership expecting that deal, but then the car isn’t actually available.
This describes the buyer experience where an ad’s price is so good it seems too perfect, prompting a visit. The episode uses this as an example of how misleading listings can lead to disappointment once the buyer arrives.
"[504.2s] This is out of the state of Alaska.
[505.4s] A swickered auto group actually settled with the state attorney general and the FTC's involvement
[511.0s] here and this was about unavailable vehicles being advertised for sale."
The state attorney general can investigate misleading advertising. A settlement usually means the dealer agreed to fix the problem or pay/comply with requirements to end the case.
A settlement with a state attorney general typically means regulators and the dealer agreed to resolve allegations without a full trial. In this context, it’s tied to advertising practices—specifically ads for vehicles that weren’t actually available and/or pricing that didn’t match what buyers would pay.
"[505.4s] A swickered auto group actually settled with the state attorney general and the FTC's involvement
[511.0s] here and this was about unavailable vehicles being advertised for sale.
[515.2s] And you know, so I'm going to talk about what happened here with a swickered auto group,"
This describes a misleading advertising scenario where dealers list cars for sale even though those vehicles aren’t actually available at the time of the ad. It’s relevant because it violates the “availability” expectation tied to truthful advertising rules.
"We know many automakers that primarily Toyota and Lexus, they are undersupplying in many markets..."
Lexus is mentioned as part of the group of brands that may not have enough cars in some areas. That can change what dealers can sell immediately.
Lexus is cited alongside Toyota as an automaker that may be undersupplying vehicles in certain markets. The supply situation can influence how dealers advertise inventory and disclose whether cars are already on-site.
"We know many automakers that primarily Toyota and Lexus, they are undersupplying in many markets..."
Toyota is one of the brands mentioned as not sending enough cars to dealers in some places. That can affect what’s actually available to buy right now.
Toyota is mentioned as an automaker that may be undersupplying vehicles in some markets. In a dealer-advertising context, limited supply can increase the temptation to advertise incoming inventory.
"We know many automakers that primarily Toyota and Lexus, they are undersupplying in many markets the amount of vehicles they have available for sale."
It means some brands don’t send enough cars to dealers in certain areas. When that happens, dealers may have fewer cars on hand and customers may see ads for cars that aren’t there yet.
“Undersupplying” means automakers provide fewer vehicles to dealers than demand in certain regions. That can lead to shortages, higher prices, and more pressure on dealers to advertise what’s coming rather than what’s already available.
"We know Chevrolet actually is doing it a bit on the purposeful side. They're holding back and pulling back on production."
It means the manufacturer is making fewer cars than usual. That can lead to dealers having fewer cars on hand, so ads may be for cars that haven’t arrived yet.
This describes a strategy where an automaker reduces output to control inventory levels. Lower production can increase dealer shortages and make “in-transit” inventory more common, which then intersects with advertising rules and consumer expectations.
"We know Chevrolet actually is doing it a bit on the purposeful side. They're holding back and pulling back on production."
Chevrolet is described as deliberately making fewer cars than demand. When that happens, dealers may advertise cars that are still on the way.
Chevrolet is mentioned as intentionally “holding back” production to manage supply. When production is pulled back, dealers may have more vehicles in transit and fewer ready-to-sell units, raising advertising and disclosure questions.
"And we also know that there are other manufacturers out there that oversupply their dealers with inventory."
It means a brand sends more cars to dealers than they can sell right away. When dealers have lots of cars on hand, it’s easier to advertise what you can buy immediately.
“Oversupplying” means automakers send more vehicles to dealers than the market can quickly absorb. With plenty of on-lot inventory, dealers have less incentive to advertise cars that aren’t actually available for immediate sale.
"...I would include one other thing, that it is subject to availability based on the fact that somebody could reserve that vehicle between when we placed the ad and when you came in."
“Subject to availability” means the car might be gone by the time you show up. It’s a way of saying the dealer can’t promise it will still be available to you.
“Subject to availability” means the advertised car may not be guaranteed to the first person who responds, because inventory can change quickly. In this scenario, it’s tied to the idea that someone could reserve the incoming vehicle between the ad being placed and the customer arriving.
"It is long past due for enforcement actions to be brought into help hold these dealers accountable.
And so I think the next step beyond the conversation that they're having a car dealership guy or at automotive news or at car edge,"
Enforcement actions are when regulators actually take action against companies that break the rules. The point is that penalties make it harder for dealers to get away with misleading pricing.
Enforcement actions are formal steps regulators take against businesses that violate advertising or consumer-protection rules. The episode argues that conversation alone isn’t enough—real enforcement is needed to deter dealers “walking a fine line.”
"There is no reason for a dealer to have to advertise fraudulently.
And what's worse is that a dealer principle thinks that that is an OK way to operate your business."
This means advertising in a way that’s not honest—like showing one price online but making the real total cost much higher later. The speaker says buyers shouldn’t reward that behavior.
“Advertise fraudulently” describes intentionally misleading advertising—such as advertising a low price while omitting required fees until later. The episode frames this as unacceptable and argues buyers shouldn’t reward it with their money.
"...vehicle pops and 216 days on the market. [1071.7s] Holy cow."
Days on the market tells you how long the car has been listed for sale. If it’s been sitting a long time, it might mean the price isn’t right or the deal could be better.
“Days on the market” is how long a specific vehicle listing has been available for sale. Longer time on the market can indicate weaker demand, pricing issues, or other factors that may affect negotiation leverage.
"...here's the dock fee. [1076.7s] Here's the average amount of add-ons... [1081.5s] They're price accuracy. [1082.6s] They're fee scores."
Dealer fees are extra charges the dealership adds to the bill. They can make the final price higher than the sticker price, so you want to see them up front.
“Dealer fees” are charges added by the dealership on top of the vehicle price, such as documentation fees, processing fees, and other administrative costs. These fees can be a major part of the out-the-door total, so transparency matters.
"...Here's the average amount of add-ons that this dealer adds to vehicles, which in this case obviously is zero. [1081.5s] They're price accuracy."
Add-ons are extra items or services the dealer tries to add to the deal. They can raise your total cost, so you should review them carefully and ask what’s optional.
“Add-ons” are optional or semi-optional dealer-installed products and services added to the sale price (e.g., protection packages, accessories, warranties). They can significantly increase the out-the-door cost, so buyers should ask what’s included and whether each item is truly optional.
"[1266.3s] Dad, let's give a shout out to Francine real quick.
[1268.6s] We just bought a Honda Pilot Elite.
[1270.1s] We negotiate with confidence because of your videos."
The Honda Pilot Elite is a higher-end version of the Honda Pilot SUV. It usually comes with more features and comfort stuff than the cheaper versions, so it’s a good example of how trim levels affect what you’re really paying for.
A Honda Pilot Elite is the top trim of the Honda Pilot three-row SUV. “Elite” typically means you get more comfort and convenience features than lower trims, which can matter for buyers comparing total value rather than just base pricing.
"the number of recalls relative to the same timeframe as last year is significantly lower, low enough that I would want to compensate the CEO of that business."
A recall is when a car company has to fix a problem in certain vehicles. It’s usually done for safety reasons, and the number of recalls can hint at how well the company is doing.
A recall is when a manufacturer (or regulator) requires vehicles to be repaired because of a safety or compliance defect. Recall counts are often tracked over time to gauge whether a company’s quality and defect prevention are improving.
"You know, the one that took a $20 billion right off for EVs, I would want to compensate him at least $27 million maybe more for exceeding those quality targets."
EVs are electric cars that run on batteries instead of gas. The speaker is mentioning EV investment while talking about recalls and quality.
EVs are electric vehicles powered primarily by electricity stored in a battery rather than a gasoline engine. The speaker references a large EV-related figure, tying it to how the company is judged on quality outcomes while investing in electrification.
"The previous record for a manufacturer in one year was 69, which was held by General Motors. Ford has won the recall crown, if I'm not mistaken."
General Motors is mentioned because it previously had the record for the most recalls in a year. The speaker is using that history to show how extreme the new numbers are.
General Motors (GM) is referenced as the holder of the previous one-year recall record. The comparison is used to emphasize how unusually high the cited recall numbers are for the other manufacturer.
"So again, this is all in beta. This is all brand new. We need your feedback."
Beta means it’s a new feature being tested. It may not be perfect yet, and they want your feedback to improve it.
“Beta” indicates the feature is in a testing phase and may change based on user feedback. In this context, the host is asking for feedback on the new offer and bidding tools.
"We've also added a new kind of like a reverse auction where you can actually have dealers bid on your vehicle. So not only will you get a car max instant cash offer if you choose to get one, you can also set it up so that dealers get your vehicle information, not your information."
Normally, you bid to buy something. In a reverse auction, car dealers compete by bidding against each other for your car, which can help you get a better price.
A reverse auction flips the usual auction format: instead of you bidding on cars, dealers bid on your vehicle. It’s meant to create competition among buyers and potentially raise the offer you receive.
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It's noon here in Vintner City, New Jersey, and San Juan, Puerto Rico.
And this is Courage Live for Friday, March 27th, with your hosts, me, Ray,
here in Vintner City and Zach hanging out for his last day in San Juan.
Ladies and gentlemen, if you run into him, say,
oh, see you, bye.
It was so nice having you here.
How are you doing today?
You are such a funny and interesting man.
Dad, I'm doing fantastic.
Today's show is brought to you by caredge.com.
We're going to be talking about the FTC.
Automative News just ran another article about the letter that they sent out about a week ago now.
And I wanted to follow up on a few notes from that as well.
But before we jump into today's show, a friendly reminder at caredge.com.
Me, my dad, and our incredible team provide a car buying service.
So think about this, folks.
You know what you're interested in, but you want us to do more of the research.
You want us to actually contact dealers for you, and you want us to do the negotiations.
We learn what matters to you, contact dealers, and compare real offers
to help you get the best deal without the stress.
We continue to run our promotion here, $200 off our car buying service, 20% off Car Edge Pro.
If you're interested in the car buying service, I encourage you to learn more about our incredible team
or get a free consultation call.
But if you scroll down here, you can actually meet the members of our team
who are saving customers hundreds of thousands of dollars.
For example, I can click on Jammer right here, load his profile,
learn a little bit more about him, and see some recent deals Jammer's been able to do
on behalf of customers.
So not only are we finding difficult vehicles to get your hands on,
we're also saving you time and money.
Learn more back at caredge.com.
And another thing I need to announce today, Dan, caredge.com.
Beta just got a big upgrade.
Thank you, everyone, for your comments and feedback.
We now have dark mode over here, which is quite fun, Dad.
So you can toggle between dark and light mode.
We've added so many new features, for example, all new favorites and vehicle searches,
safe searches, updates to the car search as well.
So if you haven't checked out caredge.com.
Beta, please do.
We just made a bunch of new updates to it and would love your feedback over there.
Ads out of the way.
You're ready to jump into the show?
I do have to ask a quick question.
Sure.
You know, every day when I look at the countdown clock and yesterday when we did the show,
the countdown clock was, there's 20 hours left.
And then suddenly every time it hit zero, it adds two more days to it.
We have the most amazing countdown clock in the history of countdown clocks.
And I just, I wanted to thank you for resetting it every time it hit zero.
FTC target ads for unavailable vehicles.
What dealers need to know.
This pops was the headline in automotive news this morning.
We talked a lot about in the FTC warning letter that they sent out to 97 dealership groups,
deceptive pricing.
And the call out here with regards to deceptive pricing was pretty clear.
Advertised prices that reflect all fees, advertised prices that actually don't include rebates
that people can't qualify for, advertised prices that have a down payment factored into them, etc.
But we didn't spend a lot of time talking about this one.
Advertising unavailable or non-existent vehicles.
And this morning that automotive news dug deep into that.
So let's talk about that.
Let's talk about what happens here when dealers do advertise unavailable vehicles.
Is this just, hey, you know, it's an accident.
You know, we advertised that and it didn't actually just sell.
Or is this a strategy that some dealers are using to try and get customers in?
And does this start to change things for car buyers if the FTC starts to enforce this rule?
It's a strategy.
Yeah, lots of you've been coughing pretty much every show this week.
Are you feeling okay?
You know, I feel fine, except I have been coughing a lot and I have noticed it.
And I am going to make arrangements to see my doctor to find out why I'm coughing so much.
And I don't think it's because of the questions you're asking.
I think, I think I hate to say this, but I think perhaps there's something going on.
Maybe it's almost springtime allergies.
I don't know.
Could be, but I've noticed you're coughing a lot this week.
Okay, just wanted to call that out.
All right, back to the show.
Glad you're going to go see the doctor that concerned me.
Back to the show.
Yeah, is this a strategy that dealers are using?
Well, you know, I just started watching Mad Men on HBO, which is about the advertising
agencies and advertising industry.
And I did go to school for advertising and public relations back in the early 70s.
And to suggest that there have been advertising strategies that have been utilized by car
buyers and selling them would be an understatement.
I mean, dealers for years have advertised vehicles that didn't exist or advertise them
at prices that if a salesperson actually showed the car and sold the car, he or she would
have to go home with the customer because they were immediately fired.
So, it is, what the FTC is suggesting is you can't knowingly advertise a car that you
recently sold, that you have a deposit on, that you recently traded to another dealership.
If you're going to advertise a car, it has to be a car that exists and is actually available
for sale.
I would venture a guess and say that anybody who has ever seen an unbelievably great advertised
price for a vehicle and has then shown up at that dealership that advertised it, heard
something like this, oh my goodness, I'm sorry, Mr. Customer, but that car just sold an hour
ago or we just sold that car last night.
You know, the ad was placed on Wednesday and there's certain things we can't control.
And well, the FTC is taking its position.
We're not buying that crap anymore.
And Deb, we saw a recent enforcement.
I think you wanted to bring this up yesterday on the show.
This is out of the state of Alaska.
A swickered auto group actually settled with the state attorney general and the FTC's involvement
here and this was about unavailable vehicles being advertised for sale.
And you know, so I'm going to talk about what happened here with a swickered auto group,
but I also want to talk about afterwards that from Dan, if Toyota dealers couldn't advertise
in transit units, that could create some real challenges.
So, let's start here with swickered.
What happened up in the great state of Alaska and why is it relevant?
Well, the attorney general in Alaska has taken the position that there are certain guidelines
when it comes to advertising vehicles for sale.
And they pretty much follow the FTC guidelines.
If you're going to advertise a vehicle for sale, it has to be available.
If you're going to advertise a price, it has to be the price that the customer can buy it for.
And in this particular settlement, it is that, well, maybe perhaps maybe the cars that were
advertised weren't always available and there might have been extra charges associated with
the prices that you would then have to pay on top of the advertised price.
So, at least the attorney general's office in the state of Alaska said, you know what,
that's horse poopy.
We are not going to put up with that.
We have rules and regulations and laws on the books and damn it, we're going to do our best to enforce them.
And we are going to force dealers to treat Alaskans fairly.
And realistically, every state has similar laws and regulations that dealerships have to follow.
And the difference between Alaska and other states is that Alaska chose to enforce those
rules and regulations regarding advertising and most states choose not to.
So, dealers have some of the best lobbyists in America and they utilize those lobbyists to protect
their interests that are antithetical to the customer's interests.
But I do think that this whole practice of advertising vehicles that are not actually for sale,
which was a part of what Swickard got caught up in here, it is going to pose a significant challenge
both through dealers and regulators for how they want to handle intransit vehicles.
So, lawyers are already looking at this and this is from one of the lawyers that was interviewed by
Automotive News, quote, they don't indicate that it's a problem with regards to intransit vehicles,
to advertise intransit vehicles, but I would make sure that that's as clearly disclosed as possible.
We know many automakers that primarily Toyota and Lexus, they are undersupplying in many markets
the amount of vehicles they have available for sale.
And whether that's purposeful or not is a different question.
We know Chevrolet actually is doing it a bit on the purposeful side.
They're holding back and pulling back on production.
But, Dad, you have intransit vehicles.
Does this mean that in the future, car dealers won't be able to advertise those?
Is that a good or a bad thing?
And we also know that there are other manufacturers out there that oversupply their dealers with inventory.
And this is something they don't have to worry about at all.
But you've got to imagine that customers want to be able to, if they see an ad,
actually go buy the thing.
Well, yes.
And in a situation where there are automobile shortages and there are intransit vehicles,
I would agree with the attorney who said you just have to clearly state the fact that it is an intransit vehicle.
And I would include one other thing, that it is subject to availability based on the fact that somebody could reserve that vehicle between when we placed the ad and when you came in.
And, you know, I would think it would be beneficial to dealers to document that.
So you could put due to vehicle constraints or inventory constraints, whatever it is.
We don't necessarily have this vehicle here.
It is scheduled to be built and scheduled to come into the dealership within the next 60 to 90 days, whatever it is, but plainly state that in the ad.
And then if somebody does legitimately put a deposit down on that incoming vehicle,
be prepared to share it with the customer that came in that was looking to do the same thing.
It's a difficult situation, but if handled properly, it can be handled legitimately.
And customers could be made aware of the fact that it's not sitting on the lot yet.
Now, Dad, I want to turn our attention over at Car Dealership Guy.
They've been covering this as well.
And this is what's so important about what the FTC did with those letters is it is starting a really important conversation.
What I want to show here, Dad, is they brought on some folks to one of their programs, Dealer, Daily Dealer Live.
And these are folks that are lawyers that work in auto space.
And what I want to show you here is where is it?
So this is one of the lawyers, excuse me, Crow.
Took that further in his segment, noting that the FTC holds disclosures to a stricter standard than most dealers expect.
He said he's actually spoken directly with FTC attorneys about it and that if a customer has to scroll to find the fine print,
the agency does not consider it adequate disclosure, quote, they think that's an unfair and deceptive practice.
So Dad, not only is it the vehicles that are advertised that are not actually for sale, the disclosure of the actual price,
what makes up the price, and we have been tracking this obviously with our dealer ratings and dealer reviews
and the Dealer Transparency Index and all the screenshots we take of dealer websites to document,
hey, here's what the online advertised price is, here's what the outdoor price is when you contact them.
What they're saying here is even those dealers who are in the fine print putting, yeah, there is a $1,298 processing fee.
That's not good enough.
And so I think we are moving in a direction for car buyers where there will be more transparency,
there will be more upfront information.
It's just going to take time to get there.
Companies like ours, I think, are helping to push that forward in conversations like these also bring awareness to it.
I think it's the start of that, perhaps.
I think this was a way for the FTC to create some conversation around it.
And it definitely has.
And it has, and dealers are paying attention, industry publications are paying attention as well as they should.
It is long past due for enforcement actions to be brought into help hold these dealers accountable.
And so I think the next step beyond the conversation that they're having a car dealership guy or at automotive news or at car edge,
I think the next step is enforcement actions so that some dealerships out there that are walking a fine line or are already on the wrong side of the line
will say to themselves, I guess they're coming after us, or if they haven't come after us yet, they will be.
And so it would put more fear in dealerships and dealership groups and dealership organizations once they bring some enforcement actions.
I think it's a wonderful thing.
I think it's beyond time for transparency.
There is no reason for a dealer to have to advertise fraudulently.
And what's worse is that a dealer principle thinks that that is an OK way to operate your business.
I don't know.
I don't ever want to reward a business that is based on deception and deceiving me.
I don't want to reward them with my money and my business.
And so I think that's the direction we need to go is that there won't be rewards for those that advertise like that.
There'll be costs associated with that and not good costs.
Yeah, the costs will be where consumers choose to spend their money.
Again, a friendly reminder, we have a new car search in betacaredge.com.
We're seeking out your input.
We just made a big update to it this morning.
One of the things I want to show you is if you use the new beta car search, you can come here and you'll actually see integrated dealer ratings on the car search.
So for example, if you're in the market in this case for a Volvo in Manhattan, great.
It's going to show up right there.
Let's say I'm in the market for a Ford.
Let's see here.
You can actually see the dealer rating.
I can click into this vehicle pops and 216 days on the market.
Holy cow.
If I scroll down here, I can see here's the dock fee.
Here's the average amount of add-ons that this dealer adds to vehicles, which in this case obviously is zero.
They're price accuracy.
They're fee scores.
So please, y'all, not only can you request an outdoor price from this dealership right here, which is awesome, you can learn more about how transparent they are thanks to the dealer transparency index.
So this is again in beta.
So we're still seeking feedback and input, but it really, really, really want to bring awareness to the work we're trying to do there in the spirit of what the FTC is doing as well, which is create a level playing field for everyone, for good dealers, transparent dealers, and obviously for customers.
And, you know, what's really funny is this isn't a new thing to us as, you know, we've been screaming about transparency and fairness, and that was the whole, that was the whole concept of why you wanted to start the business.
It was as you always like to say, well, there's information asymmetry that dealers have all the information and the customers have none.
And so we need to do something about that.
So kudos to you, young man, for having done that.
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Dad, let's give a shout out to Francine real quick.
We just bought a Honda Pilot Elite.
We negotiate with confidence because of your videos.
Thank you so much. That's awesome. Congratulations.
Yes, congratulations for it.
So happy.
Dad, I know early in the show we don't do this often, but can you give me your favorite line please?
Really? You have got to be kidding me.
All right, folks, buckle your seatbelts, no pun intended.
Ford CEO Jim Farley's compensation rises to $27 million after exceeding quality targets.
I'm not going to leave this here.
Oh my God, if you saw, I haven't coughed before.
All right, recalls for 2026.
Any guesses what the red automaker is here in this pie chart, Dad?
Well, I'm going to guess it's Ford, but I will say this, if it is Ford and well, it is,
the number of recalls relative to the same timeframe as last year is significantly lower,
low enough that I would want to compensate the CEO of that business.
You know, the one that took a $20 billion right off for EVs,
I would want to compensate him at least $27 million maybe more for exceeding those quality targets.
You know, I have, I spent a lifetime in retail automotive.
I have watched a lot of people succeed who were, well, just failures.
And this is another example in my mind that nothing quite succeeds in America as failing.
You run a, the second largest automotive manufacturing company in the United States.
They had 153 recalls last year.
The previous record for a manufacturer in one year was 69, which was held by General Motors.
Ford has won the recall crown, if I'm not mistaken.
See, they're four out of the last five years or five out of the last six years.
And to suggest after a company has 153 recalls in one year and already has 24 recalls the next year,
that somehow, somehow the CEO deserves extra compensation
because they are dramatically improving their quality.
It's hard to fathom.
How do you look at any of those stats and say,
oh my God, yes, we're moving in the right direction.
Give that man a raise.
I am telling you, nothing quite succeeds in America like failure.
And this is just another shining example of that.
We don't reward people for the right things,
but we reward people who are maybe in a position that is actually above their capabilities.
I believe it was called the Peter principle where you rise to the level of your incompetency.
And so this could be another one of those examples of that, in my opinion,
where a man is in a position that is quite a bit over his head,
but yet has convinced others that he knows what the hell he's doing
and they should reward him with extra compensation
because I don't know, he's running the company into the ditch.
Okay, that makes perfect sense to me.
If I may pops, I do want to remind everyone that it was only about six weeks ago
that Ford actually increased compensation for bonuses for staff
based on the same initial quality.
So this is what's so ironic about this is obviously,
you know, the CEO making $27,519,558,
which is an unfathomably large amount of money,
is because the company exceeded initial quality targets.
To be clear here, the staff won too.
They all got bigger bonuses as well.
The irony in this is, yeah, last year they set the world record for most recalls,
or at least the US record for most recalls for an automaker in any given year,
and it wasn't even close.
Like, how would you describe,
what analogy would you use to describe how much they beat every other competitor?
And then this year, they're off to the hottest start imaginable.
They've got 24 recalls, the next closest is GM with nine.
What is the Usain Bolt, Dad?
There is no competition that can keep up with them.
Can I put it in Olympic terms?
Yeah, go for it.
Okay, back in the 90s, there was in basketball.
The United States lost the gold medal game one year to Russia.
And well, that was hard for us to take as a nation.
So we came up with the concept of the dream team,
like Michael Jordan, Magic Johnson, Charles Barkley.
I mean, it was incredible.
And so the number of recalls that Ford has associated with their brand
would be equivalent to when the United States crushed Angola in basketball.
It was like Charles Barkley was playing against eight and nine year olds.
Okay, so to say that your quality has improved,
it is the most ridiculous state.
First of all, quality is supposed to be part of what it is you do from Jump Street.
And I believe many, many years ago, in an effort to get their hands on quality,
their slogan was quality is job one.
Okay, to which I always said quality is job none.
Okay, and so the basics of what you produce should be based on quality.
And then to suddenly say after a history of producing poor quality vehicles,
that there should be some type of reward and extra enumeration for your employees
because you're doing your basic amount of work.
Okay, the basis of your business should be the produce a quality car.
It should take an extra bonus to do that.
I want to put you on the spot that do you remember the box score
when the United States on July 26, 1992 played Angola?
Do you know what the score was?
I think they crushed them by like 70 points.
What do you think the score was?
Come on.
It must have been like 140 to 70, something like that.
Any other guesses in the chat?
Does anyone remember what happened when the Dream Team on July 26, 1992
based off against Angola?
It is very similar to what Ford has done to the competition
when it comes to recalls.
You ready for this, Pops?
Yeah, let's hear it.
1-16 to 48.
There you have it.
Why are they paying extra millions of dollars to the people at Ford
for doing their job?
But did you like my Olympic analogy?
I did like your Olympic analogy.
That was spot on.
Dad, let's come here to the chat.
Thank you, Scott.
We appreciate the kind contributions so much.
Ford quality targets 140 plus recalls last year.
This made me spit out my copy.
Yeah, we have not done really have got to be kidding me for a while.
This is like, this is insane for anyone that has been paying attention
to what's going on in the recall world.
The idea that, like, to be fair, Dad, here are these headlines.
So it's not just about Jim Farley making $27 million.
Honestly, you know what, Dad?
I'm a capitalist.
More power to the guy.
Like, you want to make $27 million?
You are the CEO of Ford.
Great.
More power to you.
Your employees also made more money.
I think that's great.
The issue that I have with both of these is how can you justify spending more
money, initial quality improves?
That's what it said right there.
Let's go to the automotive news headline, exceeding quality targets.
This is the...
How old were the targets?
You're just using the wrong metric to measure performance is really what this
says to me because it's so ironic and asinite.
Well, I can't wait to come to you and tell you I want a bonus for being
adequate.
Okay?
Or maybe...
They're not even adequate.
That's the thing.
They're not even adequate.
Or maybe I want a bonus for being average or slightly below average.
Okay?
That's what I'm doing.
No, they're getting a bonus for being the worst.
Yeah.
Let's be very clear here.
They are the worst.
And the reason that they are the worst is because they have more recalls than anyone
and it's like the equivalent of the United States beating on Angola in 1992 by 70 points.
It's not even like they went into overtime and they snuck by to become the worst.
They are the worst definitively yet they're all getting compensated more.
That is bass accords.
That is so funny to me and just absolutely ironic.
Absolutely ironic.
Well, I think to a certain degree that that is a reflection as to exactly what is wrong
with corporations in this country where people get rewarded for being average or below average.
The equivalent of you get a participation award.
Except their participation award is in the form of extra dollars and cents for not having done your job.
So it is, I guess I'm beginning to understand why there's a certain generation of Americans that think they should be entitled to start at the top instead of having to start at the bottom and working their way up.
You know, because they're looking at it and they go, well, here's somebody that worked their way up and they are completely inadequate at what they do.
Well, I'll do the job for 25 million.
Okay.
And I don't have any experience, but I can't screw it up any worse than they have.
So, so yeah, I guess I'm beginning to understand why some people in this country want to want to start at the top and work their way back down.
Yeah.
Absolutely crazy, man.
Absolutely crazy.
Indeed it is.
All right.
Can I show you one more thing that we're working on with the beta?
Yes.
Yes.
All right.
So we've added back when you pulled up on the screen here for those of you that remember we have the carriage garage or you can come to carriage.com slash beta and click on what's my car worth.
So again, this is all in beta.
This is all brand new.
We need your feedback.
And when you come here, you can see your vehicles and now importantly, we still have all the same stuff like you can track your vehicle's value.
We've also added a new kind of like a reverse auction where you can actually have dealers bid on your vehicle.
So not only will you get a car max instant cash offer if you choose to get one, you can also set it up so that dealers get your vehicle information, not your information.
They do not get your information, but they get your vehicle information.
And then back here, they can bid on it.
All right.
So this is something new that we're working on.
You can upload your vehicle condition report as well.
The offers that you get from dealers and of course the instant cash offer from car max as well.
So, you know, we've got everything that we've had in the old car edge garage right here, but now we've added this opportunity for dealers to actually bid on your vehicle as well.
So I'm super curious what you think about that.
Then again, it's just what's my car work, but this is only on car edge icon slash beta.
Yeah.
So I'd love feedback on that as well.
I think it could be a killer killer.
I think that is a great idea.
And I think based on information that I shared or was shared with me by Igor today when he was at the sale again and it was just as crazy today at Mannheim as it was at Odessa last Wednesday.
That the values, the wholesale values of five year and younger vehicles, low mileage, good condition, especially EVs and hybrids are going crazy.
So if dealers are having a hard time or having to pay exorbitant sums of money at the auctions and then having to pay exorbitant fees to get them transported back to their dealerships,
perhaps other dealers would look at this as an opportunity to be able to buy some inventory at a slightly lower price than what they'd have to pay for it at the auction.
But it would afford the customer selling their vehicle more funds than they would have gotten otherwise.
The whole idea is why should I have my car go to auction?
If I have a car and I'm thinking about selling it or actually that, even if I'm not thinking about selling it, why not just see what dealers would pay?
It's like a kind of constant auction that could be running to see if a dealer wants to buy your car and you know what's going to end up happening.
Maybe not day zero, but in a couple months as this thing gets built out, people are just going to wake up and they're going to have offers that they never thought were possible because there's going to be a dealer somewhere.
That's going to say, wow, I really want that.
And so I'm really excited about this.
But again, this is all part of caredge.com slash beta.
Okay, so the link is in the description.
This is not normal caredge.com y'all.
This is very early.
We need feedback, really, really, really desperately want feedback back on caredge.com normal.
That's where we've got the car buying service.
So, you know, if we can help you with that, we have the promotion running there.
But all sorts of stuff from caredge that we're working on to try and make your life easier.
And this is a new one, Dad, that I wanted to make you aware of that very early stages.
But I'm very excited about what it could look like in the future for us.
I'm telling you, I think this is killer.
I think, can I, may I say one thing?
I can never control you.
Go for it.
Well, the one thing is that my son doesn't necessarily share with me what it is that we're working on until,
well, they've worked on it and they've done, they're doing beta testing.
And so, I think, based on some of the things that I see,
I think we're really, as an organization, moving so quickly and definitively
in the customer's direction that everything we're doing is trying to educate, inform, empower customers.
And the things that we're working on are just things that are going to make a customer's life that much easier.
And I guess, I guess, I don't know that I prefer the fact that you treat me like a mushroom
and you keep me in the dark and you cover me with excrement.
But if it produces really wonderful things, I guess I'm okay with it.
Appreciate you, pops.
Yeah, I feel really proud of what we're building right here.
Theta, there's going to be bugs.
We're going to iron them out.
We need your feedback.
We welcome your feedback.
But I want to make everyone aware of it on this Friday.
Okay, again, dad, please, please, please don't wait on it.
Get a doctor's appointment.
I don't like seeing you have a cough.
That makes me very concerned.
So, please jump on that.
I Google searched.
My dad has started to develop a cough.
So, let's review that quickly here.
Yes, common causes.
Could be post-viral cough.
Could be environmental irritants, medication side effect.
I don't know.
My mom had lung cancer.
So, you know what?
Where my mind goes?
My mind goes, for better or worse, definitely for worse,
you've got lung cancer.
So, please, please, please.
Well, here's the good news.
Here's the good news.
That's exactly where my mind went.
And let me share this with you.
If that is the case, okay, I will not fight it like your mother fought it.
I'm just letting you know.
Up front, I hope.
They have different treatment options now than when mom got sick.
So, you can live a long life with lung cancer.
You just got to catch early.
You got to catch early.
You got to do the genetic sequence.
Anyway, I hope you don't have a freak in lung cancer.
That would wreck me.
I am not prepared for that.
So, please, go get a doctor's appointment.
Here's what I think it is.
Last year, about this time, I had COVID.
Okay.
And I was pretty sick for a couple of days.
And I had a lingering cough after that.
And then it went away and it started to come back.
So, I don't know if this is like long-term COVID or whatever.
I think if I were to guess, I think that's what it is.
I don't want to be the one to guess.
I will change my filter.
That's a good idea because I haven't changed the air filter in the air in months.
So, I should do that.
But yes, I will try to get an appointment with my doctor as early as I possibly can.
Thank you.
Yeah.
And he's going to ask me to talk and cough and listen to my chest.
And then he's going to say, I don't know what the hell it is.
And maybe we'll get a chest x-ray or something.
We'll see.
But yeah, I've noticed it and I've thought about it.
And yeah, I'm coughing more and I'm occasionally bringing more gunk up when I do cough.
All right.
Come on.
Let us know.
Let us know about the...
Well, you don't have to let the whole world know, but let me know ASAP, all right?
Yeah, but then you'll let the whole world know.
So, what the heck?
Folks, we're back on Monday.
God willing, we'll be here with more Car Edge Live.
Enjoy the upcoming weekend.
Dad, I'm flying back from San Juan tomorrow.
Yeah, go ahead.
Say it.
Go ahead.
Our flight boards at 6.20 in the morning.
Yes.
I have TSA pre-checking clear.
The person I'm traveling with does not.
For everything I've read, it's going to take at least three, three and a half hours to
get through security.
Yeah.
And your flight boards at 6.20.
So, three and a half hours would put you at 3 a.m.
Yeah.
Yeah.
You know, I don't recall when we went through the San Juan airport.
I do recall.
I think it made...
They had long lines when we went last time.
Yeah.
Yeah.
But I was trying to remember if there were like any good restaurants in there, you know,
romantic spots for a last night dinner in San Juan, you know, at the airport.
I'm not aware of any, but, you know, I feel bad for the two of you.
Yeah.
But, you know, just try and be patient.
And I know it's hard.
And the other thing that's hard is you're going to be surrounded by thousands of other
people that were asking to be patient who don't want to be.
It'll be fine.
It'll be fine.
It's just going to be an interesting 24 hours.
Anyway, we're back on Monday, y'all.
I love you, Dad.
I'm sure I'll talk to you later on.
I love you as well.
Have a great weekend, everybody.
See you all back here Monday at the nine Pacific time, noon Eastern from, I think, Monday
will be here from vendor N, our nation's capital, Washington, DC.
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