Automobile Dealer Fees

[quilthappi]

What is the name of your state (only U.S. law)? Florida
Throughout the Daytona Beach area, and I suspect throughout the entire state of Florida, unsuspecting purchasers of new or used cars or motorcycles are billed a “dealer fee” of up to $900 per vehicle. This fee is not required by law or by the manufacturer, yet it is listed at the bottom of the sales contract along with sales tax and licensing fees. Charging the fee is not illegal, even though no other states subscribe to this practice, but advertising prices that do not include the “dealer fee” and newspaper advertisements that place these fees in footnotes is illegal according to Section 501.976(16), F S. In 1988 the Florida AG issued an opinion on this issue and among other things concluded that advertised prices can not exclude dealer fees by grouping them with fees required by state law. In fact, the dealers who were not in compliance were fined $3,000, and signed a Letter of Agreement promising future compliance. The Agreement specifically banned footnotes that list dealer fees. Every newspaper advertisement of automobiles in the Daytona Beach area, without exception, lists “dealer fees” in footnotes and fails to include them in the advertised price. I have written to the AG for two years concerning this matter, but have achieved no serious response. The newspaper columnist is not interested nor is a local attorney who deals in class action lawsuits. How can I force action on this issue? What are my alternatives?

 

[justalayman]

How can I force action on this issue?

You can't. Right now it is within the AG's control whether to act or not. Unless you are injured, you have no standing to do anything.

What are my alternatives?

stop reading the newspapers maybe?

 

[adjusterjack]

What are my alternatives?

Don't buy the car if you don't like the fee.

If enough car buyers walked out of the dealership without buying that practice would stop pretty quick.

Unfortunately, most people who go to car dealers are sheep and aren't capable of walking out without buying on the dealers' terms.

 

[quilthappi]

?????

You can't. Right now it is within the AG's control whether to act or not. Unless you are injured, you have no standing to do anything.

stop reading the newspapers maybe?

Thanks for your replies. I guess I am naive, but I find it difficult to believe that the AG will not enforce written law that has a precedent. Especially when the issue involves the scamming of thousands of Florida citizens.

 

[Silverplum]

Thanks for your replies. I guess I am naive, but I find it difficult to believe that the AG will not enforce written law that has a precedent. Especially when the issue involves the scamming of thousands of Florida citizens.

Why discuss the AG's actions here? Why not contact the AG directly and discuss the matter with her, or file a complaint? http://myfloridalegal.com/

 

[adjusterjack]

Thanks for your replies. I guess I am naive, but I find it difficult to believe that the AG will not enforce written law that has a precedent.

Maybe you are being ignored because you are getting it wrong.

Here's the statute you referred to.

501.976 (16) Advertise the price of a vehicle unless the vehicle is identified by year, make, model, and a commonly accepted trade, brand, or style name. The advertised price must include all fees or charges that the customer must pay, including freight or destination charge, dealer preparation charge, and charges for undercoating or rustproofing. State and local taxes, tags, registration fees, and title fees, unless otherwise required by local law or standard, need not be disclosed in the advertisement. When two or more dealers advertise jointly, with or without participation of the franchisor, the advertised price need not include fees and charges that are variable among the individual dealers cooperating in the advertisement, but the nature of all charges that are not included in the advertised price must be disclosed in the advertisement.

Says nothing about prohibiting footnotes. Only requires that fees be disclosed IN THE ADVERTISEMENT.

And here's a link to the AG's opinion of 1988:

http://www.myfloridalegal.com/ago.nsf/Opinions/1E69BB02FD0AAE85852565710068FA39

I don't have time to wade through the whole thing but if you find anything in there that prohibits the use of footnotes, be sure to quote the applicable section.

Especially when the issue involves the scamming of thousands of Florida citizens.

Every one of those citizens had the opportunity to get up and walk out if they didn't like what was in the purchase contract that was put in front of them.