Automakers might be slashing prices to help move inventory, but they are also cutting out some of the amenities in those vehicles, the USA Today reported on October 13, 2011. Nissan, Chrysler, Volkswagen and General Motors’ Chevrolet division have all lowered prices of certain models in recent months by making once-standard equipment optional. While the strategy is to use low prices to attract shoppers to the showroom, Edmunds.com said automakers and dealers know buyers will turn right around and add options that boost the final price of the vehicle. For example, USA Today noted that the Volkswagen Jetta compact had its price cut by about $1,700 because of the features being taken out. The 2012 Jetta is sticker priced 13.4 percent less than the previous version, but buyers usually add enough options back that the price cut actually comes to about 8.8 percent. The reduction in goodies included in newer…
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California Lemon Law Specialists BLOG
Car Prices Cut, But So Are Some of the Features
October 25th, 2011Dealers Prepare For Online Effects of 75 Million New Shoppers
October 24th, 2011“A lot of customers don’t want to deal with the dealer,” Mark Bonfigli of Dealer.com told WardsAuto.com in an article published on October 13, 2011. “They want the product; that’s why they come to see it. But the dealership experience matters.” The article was discussing a CEO panel discussion at the DrivingSales Executive Summit on how auto retailing is “moving closer to the day when many customers will completely, or almost completely, purchase cars online.” DealerTrack CEO Mark O’Neil told Wards that because of the Internet, 75 million Generation Y shoppers will be in the automotive market two years from now and “much of what now happens in the store will happen online.” O’Neil told Wards that impending trends he foresees include finance, insurance and sales departments growing closer together to make a faster, more efficient process, and dealers relying more on real-time data for inventory and pricing decisions. Those…
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When Dealerships Cannot Cancel Car Contracts
October 21st, 2011Yesterday, we discussed what to do when a dealership cancels your car contract. However, it is important for you to know of a few things that car dealerships cannot do. For instance, the car dealer cannot charge you for using the vehicle you purchased from them. It also cannot charge you for the miles put on the car during the 10-day period. However, you are responsible for any physical damage to the car during the time it is in your possession. If the car dealer exercises its right to cancel the purchase contract within 10 days, you are not required to sign a second contract to purchase that same car. Again, a car dealer cannot force you to sign a second contract. If the car dealer cancels the purchase contract within 10 days, you are obligated to return the car, and the car dealer must give you back any down payment or…
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What to Do When Dealerships Cancel Car Contracts
October 20th, 2011Yesterday, we discussed how dealerships are allowed to cancel your car contract, but only if they do so within 10 days of the date on the purchase contract. If the dealership cancels within 10 days, you get your down payment or trade-in back. The purchase contract requires the car dealer to return everything that was given for the purchase. This includes your trade-in vehicle. If you gave a $2,000 down payment and a car as a trade-in, the car dealer must give you back both the $2,000 and the trade-in when you return the car you purchased. Sometimes a car dealer may tell you that it already sold your trade-in, and will offer you the value of the trade-in as listed on the purchase contract. The language of the purchase contract does not appear to give the car dealer this option. It requires the return of the trade-in. However, if the…
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