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originally published
4/25/10 |
Your state's
attorney general can protect you
against such questionable automobile
dealer
practices as misleading or
bait-and-switch advertising, failure
to disclose prior accident damage or
prior rental use and fraudulent
repair claims. Your AG can enforce
lemon laws and be a strong advocate
for your consumer rights.
However, he or she cannot prevent
any salesperson from high-balling or
low-balling you on the lot or in the
showroom until you've signed a
purchase agreement.
By employing the
high-balling
tactic, disreputable dealers lead
you to believe
(usually
by not disagreeing with your own
inflated estimation)
that your trade-in is worth
significantly more than what you
will ultimately receive. This
forces you to re-visit their
dealerships after everyone else has
put a lower number on your trade.
The
low-balling
tactic
is designed to give you a false
sense of how little you will pay for
your next car, which also forces you
to return to the scene of your "best
deal". But an
"oh by the way...how were you
going to cover sales tax and
documentation fees?"
or some other added-cost question is
innocently asked just as you are
about to sign on the dotted line.
One of the foremost carguys on the
planet, Ed Whitacre, chairman/CEO of
General Motors Company, may be in
hot water with the Federal Trade
Commission for a new high-balling ad
campaign that states:
"We have repaid our government loans
in full -- with interest -- five
years ahead of the original
schedule,"
in which he asks Americans to give
his formerly bankrupt company's
vehicles another look.
Another look at the total amount
that Congress appropriated for GM's
bailout, however, would lead us to
believe that Government Motors still
owes American and Canadian taxpayers
a whole
lot more to settle its debt.
GM has
received a total of $52 billion in
U.S. government aid, with the
"repaid" $6.7 billion referred to in
the current ad campaign as the loan.
The rest of the debt would be repaid
if and when the company sells stock
to the public.
The
Obama administration's continued job
creation claims are another example
of the government low-balling us.
Obama’s senior economic advisers
released a report just before he
took office that projected
unemployment would remain at 8%
through 2009. Instead, unemployment
topped-out at over 10% in October
and remains well over 9% despite all
of those
"millions of jobs created and/or
rescued."
Even
the 600,000-plus temporary Census
jobs haven't created the
"250,000 jobs a month and 500,000
jobs a month"
increase that the official Jobs
Spinmeister, Joe Biden, has
promised. In true low-balling
tradition Joe will, once again, be
forced to try the old "oh by the
way" close when his high-balling
claim is revisited.
"At the time our forecast seemed
reasonable. Now, looking back, it
was clearly too optimistic,"
is what Biden schmuckishly told
reporters a year after the
aforementioned 8% unemployment cap
propaganda was launched to low-ball
us into a false sense that
Obama/Biden was our best deal.
Then
there's the continued high-ball
claim that economic recovery has
been
"so
strong"
despite the expenditure of a mere
fraction of the $787 billion
Stimulus money. The converse, of
course, is that spending anywhere
from zero to the current number
would have had pretty much the same
effect without the "oh by the way"
debt incurrence that we will have to
deal with whether or not a full
recovery ever occurs.
Predictably, the FTC says it
"could not provide any comment on
the GM ad or whether it had received
any complaints or inquiries about
GM's claims from the public or from
government officials,"
which is a pretty slick way of
shilling for the administration, its
benefactor.
But
Iowa Senator Chuck Grassley, in a
more formal explanation of flim-flam
tactics than presented herewith, has
called on Treasury Secretary
Geithner to provide more information
about why the company was allowed to
use bailout money to repay bailout
money, and how much of the remaining
escrow money GM would be allowed to
keep.
"The bottom line seems to be that
the TARP loans were 'repaid' with
other TARP funds in a Treasury
escrow account. The TARP loans were
not repaid from money GM is earning
selling cars, as GM and the
administration have claimed in their
speeches, press releases and
television commercials,"
Sen. Grassley wrote.
No, your state's attorney general
cannot advocate for you in regard to
GM's latest advertising gimmick. As
stated, high-balling and low-balling
in the absence of a signed buyer's
order is unenforceable.
Nonetheless, this instance is
tantamount to a car dealer keeping
your rebate and low-balling you into
believe that he has discounted your
new car by that much...or by
high-balling you into believing that
he was able to be so much more
aggressive than those other
cheapskates when he merely added the
hidden rebate to your trade-in
allowance.
There will be a Lemon Law
Proposition on your ballot on
Election Day. I urge you to vote
YES.
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