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• Know what your contract says
  Sep 08, 2010

  Posted: May 06, 2010 7:16 PM EDT
  Updated: May 06, 2010 7:16 PM EDT

  By Diane Walker - bio | email
  Posted by Terry Alexander - email

  RICHMOND, VA (WWBT) - What happens when your contractor wants to change the price after the contract is signed? Are they required to do the work for the price in the original contract? 12 On Your Side looked into a homeowner's complaint.

  It depends on what's spelled out in the contract. In this case though, a consumer law attorney says, no.

  George May hired 'AAPCO of Richmond, LC' to demolish his porch and build a brick veneer one with sand filler, vinyl rails, and post columns. Total cost, $6,000. The written contract called for a $2,000 down payment which George paid. Before the crew broke ground, AAPCO found a problem with the price.

  "He said the measurement is right but the problem is with the brick. They didn't charge enough for the bricks," said George.

  The job would cost $10,000 instead of $6,000; not what George agreed to when he and the salesman signed the contract.

  "That's the price I should be paying not an extra $4,000," George said.

  AAPCO's GM said, "We want the work. We don't like surprises, but a company can go under on the 'unexpected'." It also says it's a 3rd party contract, which is "not" binding to either party until a company official does a pre-job inspection and signs - accepting the agreement. That line is blank on George's contract.

  "I think the attempt to say it's a 3rd party contract & they're not obligated is a clear example of a misrepresentation," said Consumer Law Attorney John Gayle.

  Gayle says AAPCO should honor the contract.

  "I don't see where the contract does give them the power to change the deal," Gayle said.

  Unexpected things do crop up, through no fault of the contractor, who then may be able to draw up an addendum depending on what's in the contract. The Department of Professional and Occupational Regulation says a contract should state - price changes must be done in writing, and signed by all parties and include a ‘buyer's right to cancel'.

  AAPCO's contract has those elements, but if May's contract isn't official -- then when does his right cancel take affect?

  "My opinion is it is a way for them to stonewall and talk people who are not lawyers into changing the terms of a contract," said Gayle.

  AAPCO chose not to talk on camera. The homeowner and AAPCO have reached a compromise, which keeps the job at the original price. Meantime, it's smart to ask the contractor -- if the 'unexpected' happens, what will this contract do for you?

  Copyright 2010 WWBT NBC12. All rights reserved.

   

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• Beware the Rip-Off Sticker: Provided by edmonds.com
  Apr 21, 2010
  By Ronald Montoya, Consumer Advice Associate

  As we ventured onto the dealer lot to purchase a Ford Fusion Hybrid for our long-term fleet, we noticed a small sheet of paper listing additional costs, posted next to the window sticker. It caught us off guard, since we hadn't seen these additional charges when we viewed the car on the dealership's Web site.

  This seemingly harmless sheet of paper, containing two additional dealer add-ons, inflated the price of the vehicle by $600. Worse yet, it complicated our negotiations. In the industry, this list of add-ons is called the "supplemental sticker." We call it the rip-off sticker.
  
  Added Dealer Profit
  
  The rip-off sticker adds high-profit items for a dealer that hold little or no value to the consumer. In our case, the sticker added two products: an interior "protection" package, and an "Express Code Marking System."The interior protection package is a chemical sprayed on the vehicle's upholstery to waterproof it and protect it from stains. The dealer was charging $195 for this service. We performed a quick search online and found a bottle of 3M Scotchgard Auto Interior Fabric Protector for about $9 on 3M's Web site. This product promises the same advantages as the stuff sprayed onto your upholstery at the dealership, but costs $186 less.
  
  The second product was the Express Code Marking System. This marking system consisted of a special label placed on key body parts of the vehicle that if removed, would leave the imprint of an ultraviolet identification number. It wouldn't notify the police, ruin the part or make any sort of noise. The dealer was charging $400 for this product.
  
  Your Items May Vary
  
  Products added to the rip-off sticker vary by dealership. Somewhere else it might be chrome wheels, paint sealant or a "protection package." A dealership near our offices had its own list of add-ons to many of the new vehicles it sold. One vehicle's rip-off sticker added nearly $1,200 to the price of the vehicle. On one car, the sticker listed two add-ons: an applied sealant package and a protection package.
  
  According to the salesman we spoke to, the applied sealant is a special layer that protects the car's paint and is backed by a warranty. Since every new car comes from the factory with a protective "clear coat" layer, it might be difficult to prove if this product is working. If your car's paint looks good after a few years, would you credit the sealant or the factory clear coat?
  
  The $595 protection package consisted of a rubber cargo tray, wheel locks and splash guards. We called the parts and service department and asked for the same items over the counter. Individually, the price totaled $375, installed. If we installed the parts ourselves (not hard to do), we could save an additional $70. We knew that the items were less expensive à la carte, but few buyers know these items are negotiable — or that you could ask to have them removed.
  
  The Choice Is Yours
  
  "Most customers never bothered to remove the add-ons," said Hector Moreno, a former Honda dealership employee. "When they put the addendum near the Monroney [window sticker] it looks official, and most people just assumed it came with the car."
  
  During negotiations for our long-term Fusion we told the assistant sales manager that we weren't interested in the extras. "I'll let them know," he said, referring to his managers, "but they're going to give me some pushback on this." The assistant manager came back with a reduced price for the add-ons. Things were starting to get complicated. Not only were we negotiating the price of the vehicle, but the add-ons as well.
  
  Each offer we made brought down the cost of the add-ons, but kept us distracted from our primary goal of getting the best price on the vehicle itself. This is exactly what they wanted. The negotiation kept going in circles, and the dealer's last offer was $300 higher than where we began, so we walked away. We eventually bought the car online at another dealer, and avoided all the hassle.
  
  Stickers Everywhere
  
  After the fact, we found other customers who had had similar experiences at this dealership. One stated in an online review: "I purchased a 2010 Mustang from this dealership. Before they even had the car on their lot, I asked them if there would be any additional fees. The salesman told me 'yes, we will add interior protection [$295] and VIN etching [$495].'" I adamantly stated I did not want either service, and was told that this is mandatory on all vehicles that enter the lot. The services hadn't been rendered and they refused to oblige my request. Due to the circumstances I couldn't choose another dealer. Had things been different I would have gone elsewhere in a heartbeat."

  This is a widespread issue, and in no way isolated to the local dealerships we visited. If you come across a dealer that uses a rip-off sticker, how should you handle it? On our CarSpace forums, Dave from Manassas, Virginia, has a strategy we agree with: "A good dealership will present these offers and let the consumer decide for him/herself whether they need/want them. The bad ones force [the products on] them. Me, I don't need any of this stuff. I'm convinced I can go without, do it myself, or find it MUCH cheaper elsewhere."

  If you see the rip-off sticker, it might be an indication of how the dealership operates. But if they have the vehicle you want, remain firm about having the products removed or not paying for them. By telling a dealer that you aren't interested in add-ons, you'll send a message that these items hold no value to you. If they are persistent, don't be afraid to walk away from the deal.

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• Secret tips for buying a new car: Provided by CNNMoney.com
  Mar 30, 2010

  NEW YORK (Fortune) -- Want to know the best day to buy a car next month? It's April 12th, the Monday before taxes are due, according to a new study. Since shoppers will be preoccupied and feeling poor, dealers will be eager to make a deal so they can move some inventory.
  
  The worst day will be likely Easter Sunday, April 4th. Shoppers will be out in abundance and eager to celebrate the holiday by buying with a new model. Dealers can sit back and just take order.
  
  Which cars carry the biggest discounts as a percentage of sticker price? The survey says two of them are Chevies: the Cobalt and the Malibu both sport $3,000 incentives. But there is also $6,000 on the hood of the Volvo XC70, and a whopping $10,000 for the customer who can afford the $80,000 BMW 6 Series.
  
  This kind of data has long been difficult to collect and, when it is, rarely disseminated. It is the rawest kind of competitive information and it can dictate the shape of marketing and incentive campaigns costing hundreds of millions of dollars.
  
  A new service called TrueCar says it has acquired transaction information for more than 43% of all the new cars and trucks sold in the U.S. For the first two months of the year, that represented more than 600,000 sales.
  
  TrueCar has massaged the data to show which vehicles sell for the greatest variability from the sticker price. That lets analysts know which models are resonating in the marketplace -- and informs the customer where the best deals are.
  
  Want to know which brands are offering the largest incentives? TrueCar ranks Ford and Hyundai first and third. Ford is offering discounts that are 13% off the sticker price and Hyundai 12%. These two makes have been heralded for their sales results this year, but, if the data is accurate, their success may be coming at the expense of profits. Chrysler and Jeep rank second and fifth, which is no surprise, because both are short of new models, and their dealers have been in revolt.
  
  Some of the TrueCar data requires an extra layer of analysis. For instance, the service lists five 2010 models with the largest discounts below sticker price. Four of them, however, are being replaced this year or are being phased out -- the Hyundai Sonata, Jeep Grand Cherokee, Jeep Commander, and Chevrolet Cobalt -- which means they are being discounted more heavily to clear out inventory in the path of new models.
  
  

  The same goes for the list of cars with the least flexibility in their transaction prices. Topping the list is the Mercury Grand Marquis, an old-fashioned body-on-frame sedan that hasn't been updated since the first Bush administration. The Grand Marquis is in short supply and is sold primarily to older buyers, who are presumably set in their ways and aren't inclined to dicker over price.
  
  Likewise the Mazda MX-5 Miata and Chevrolet Corvette are listed as among the models with the most price flexibility. That presumably will change when spring arrives and demand surges for convertibles and sports cars.
  
  Still there is a boatload of data here that provides new insights:

  • Which manufacturer does the best job of managing its end of the year sell-down? Subauru, where only 0.3% of its sales came from 2009 models.
  • Which vehicles move fastest off the lot? The Mercedes GL550, BMW 335D and Chevy Equinox. Blame limited production for the two German makes and a hot new model for the Equinox.
  • Which sit around the longest? Among the top five are the Ford Mustang, Chevy Malibu and Dodge Grand Caravan.
  • Sometimes reports like these have the effect of altering consumer behavior. So if an army of shoppers hit the showrooms on April 12 looking for a deal, the discounts will dry up
  
  

  Car buying just got a bit more interesting.

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• 'No evidence of failure' after US recall fixes: Toyota
  Mar 09, 2010
  Fri Mar 5, 2:09 am ET

  TOKYO (AFP) – Embattled Toyota said Friday it had found no evidence of failure in vehicles it had fixed for accelerator problems after some 60 post-recall complaints were sent to US authorities.

  US regulators said Wednesday they were looking into complaints from Toyota drivers who say they experienced sudden spikes in speed in vehicles that had been repaired under the auto giant's recall.

  However, Toyota said it took the reports "extremely seriously" but had found no evidence that the problem was persisting.

  The company said it "moved quickly to evaluate the vehicles and interview the owners", stressing that the reports "involve a tiny fraction of the more than one million vehicles dealers have repaired to date".

  With US authorities "now reviewing the results of our evaluations, it is inappropriate for Toyota to provide specific information about the company?s conclusions," said a statement by Toyota Motor Sales USA.

  "However, the evaluations have found no evidence of a failure of the vehicle's electronic throttle control system, the recent recall remedies or the brake override feature," said the statement released from California.

  Toyota said it would continue verifying all such cases after the US National Highway Traffic Safety Administration said it received dozens of complaints from Toyota drivers even after their cars were repaired.

  The Japanese auto giant has recalled more than eight million cars and trucks worldwide, including six million in the United States, to address potentially deadly defects blamed for incidents of sudden, unintended acceleration.

   

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• U.S. satisfied with Toyota recall remedy: By John Crawley John Crawley
  Feb 12, 2010

  Safety regulators are satisfied with a Toyota Motor Corp. plan for fixing a sudden acceleration problem that is part of a massive recall and unprecedented sales and production halt, a government official said on Saturday.  (Read More) - 25 - 30

• GM to make its own electric motors in 2013: By DEE-ANN DURBIN, AP
  Jan 26, 2010

  The automaker said Tuesday that starting in 2013, it plans to build its own electric motors for hybrid and electric vehicles. GM has been getting electric motors for those vehicles from suppliers, but wants to make the motors in-house in order to lower costs and improve quality and reliability.  (Read more.) - 26 - 30

• 10 SUVs That Keep Going and Going and Going...: by Eric Mack Monday, July 20, 2009
  Dec 21, 2009

  See Vehix.com Article. - 27 - 30

• Most Popular Cars of 2009: By Jeff Voth, CarNews Media
  Dec 07, 2009

  The year 2009 will go down in history as a watershed moment for the automotive industry. American icons General Motors and Chrysler filed for bankruptcy protection, seizing as much taxpayer money as possible in their efforts to fend off impending doom. Both survived, but under much different circumstances than anticipated decades earlier.
  
  

  Going or almost gone from the GM’s portfolio were Hummer, Saturn, Pontiac and Saab along with a myriad of employees. Chrysler, sold to Italian automaker Fiat SpA, was now under the control of Canadian-born chief executive Sergio Marchionne and harboured an immediate need for new product. A summer launch of the Cash for Clunkers program would help both, but for how long?

  Ford was in amazingly good shape, declining offers for government aid in an effort to keep its counterparts from going under. Ford realized, without a healthy GM and Chrysler, it too would be out of business, not large enough on its own to keep afloat the supply network necessary to run an entire industry. New products were streaming full speed into the market, with Taurus, Fusion and Flex leading the way.

  Not surprisingly, Yahoo! Autos most searched for car brands in 2009 represent the strengths and sometimes failures experienced in the auto industry this past year. Toyota and Honda placed first and second on our list. Both companies shared the spotlight with successes in new products, the 2010 Toyota Prius, and continuing sales of mainstays such as the Honda Civic and Accord. Not all was roses, however, Toyota suffered from unexpected recalls while both companies encountered downward trends and the need to exit racing, specifically Formula 1, to conserve cash and develop new products faster.

  Ford ranked third, with Nissan fourth and BMW fifth. Nissan did feel the pinch of a tighter economy, but under the strong leadership of CEO Carlos Ghosn, it seemed well positioned to tread carefully while others succumbed to economic pressures. BMW continued their A-plan of designing new and exciting vehicles such as the 535i Gran Turismo, and for the most part, consumers responded. With additional product set to launch, both Nissan and BMW appear poised for additional success in 2010.

  When it came to ranking the most searched for individual models, it turns out that the enduring popularity of the iconic American muscle car, such as the Chevy Camaro and Ford Mustang, is still tough to beat. In fact, five of the top 10 most searched cars are American made. However, smaller, fuel-efficient models are still top of mind with consumers as evidenced by the continued popularity of the Honda Civic, Mini Cooper and Smart ForTwo.

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• Volkswagen Steals Toyota's Crown as World's Largest Automaker: By Sean Tucker
  Nov 23, 2009

  The people want an empire, apparently, with that unassuming little black VW bug at the head of it.

  The U.K.’s Guardian explains, "Volkswagen-Porsche has overtaken Toyota to become the world's largest car manufacturer as the German group benefits from state-backed stimulus packages around the globe." VW has "produced 4.4 million vehicles so far this year, outstripping its Japanese rival which has seen four million cars roll off production lines since January."
  
  Ironically, VW reached the milestone in part by taking over Porsche – which it was forced to do after Porsche failed in an attempt to take over VW earlier this year.

  "Of course," Autoblog notes, there is "some number play involved" in the Guardian’s numbers. "We're talking about the combined entity VW-Porsche, which has built 4.4 million cars to date, which is roughly 400,000 beyond Toyota's mark. However, Toyota halved its production earlier this year and shut down all its plants in February." VW also "benefited much more than Toyota from the European cash-for-clunkers programs," though Toyota saw more sales than VW spurred by the U.S. version of the car-swap program.
  
  The news doesn’t just push Toyota down a notch. Jalopnik notes that VW has "passed Toyota and GM at the top of the heap." America’s largest automaker – the world’s largest just three years ago – now sits in third globally.

  The change may not be permanent. The Guardian notes that Toyota "has the capacity to make 10 million vehicles a year but it expects to make seven million vehicles in 2009" as production picks back up. VW, however, may see its production increase long-term enough to stay ahead, or at least to take the title again even if it loses it later this year.

  After all, Autoblog notes, "VW's also got the edge on Toyota" in the huge Chinese market, "where it has spent years introducing models."

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• 6 Car Buying Mistakes You Might Have Made: by Katrina Ramser
  Nov 10, 2009

  A vehicle owner is likely to find less than two issues with their new car in the first three months of ownership, states a J.D. Power sales satisfaction study. Small things surface, such as the climate control knob not feeling just right or the stitching on the leather seats appearing cheap. But is something more serious gnawing at your investment?

  Hopefully it's not the transmission, but more or less uncommon buying mistakes. No one likes to be pointed out the auto you so proudly acquired through hours of careful research and tough negotiations could actually be taking you for a long and tiring ride. If we don't learn from our mistakes we're destined to repeat – and pay huge monthly sums year in and year out for them – so here's 6 big ones. 
   

  Mistake # 1: Didn't hold your cards long or close enough

  You traded your old car in before you settled on a final price for the new one. When the salesman asked what you wanted to pay each month, you named a figure. You didn't wait to purchase at the end of the year when dealers need to sell cars the most to make not just monthly and quarterly but annual goals. If any of the above sounds familiar, you took a few dings.
   

  Mistake #2: Paid extra for too many new standards

  There was a day when power windows came at an extra cost, but this oh-so-standard feature is a given – as are many other flashy new standards many carmakers are sticking the cost to you. Great buys honoring new standards as part of the overall vehicle package include an economic buy like the Subaru Impreza WRX, where the GPS navigation system, leather steering wheel and heated mirrors are built in the price; or an upscale Acura TSX offering a healthy size of features at one affordable price. Your knowledge of new standards could have been a negotiating chip.
  
  
   

  Mistake #3: Bought way too small (or big) for your lifestyle

  To slim down your transportation budget, you went with micro-wheels. But you failed to calculate long destination drives in small cars stink and now airplane rides add astronomical carbon emissions and costs. Breakthroughs on the mid-size SUV front include the Toyota Highlander Hybrid garnering an average of 24-mpg and a huge cut in greenhouse gases. Solo commuters stuck in traffic with half-ton, big-engine vehicles are also feeling their own private regrets. 
  
  
  

  Mistake #4: Erred on calculating unexpected costs of ownership

  You did your homework and narrowed in insurance, gas and maintenance costs on top of your monthly car payment before you signed. But did you figure you'd tire of washing your big truck and need bi-monthly professional washes at $50 a pop, expensive accessories like roof racks or a Yakima, or gas prices would get goofy? The only way to accurately trace what your personal total monthly car budget looks like is to track receipts and tally up on a spreadsheet – unfortunately you’re now the defining experiment. 

   

  Mistake #5: Deal was short on cash, but long on an assortment of payments

  Car loans are a necessity, but not payments blown into 72-month long oblivion. You'll pay thousands on interest no matter the rate. Always shoot for a three to four-year loan. Signing up for an extended warranty has proven itself to be a colossal a waste of dollars. Also, making a 20 percent down payment on big purchases is how society used to deal with these financial issues 30 years ago – its time for cash to make a comeback.
  
  
  

  Mistake #6: Had your heart set on just this one car

  To reach objectivity or simply a state of blasé, you've got to test cars like an auto journalist. That means inspecting dozens of cars, inside and out, for what attracts you and what doesn't. I've loved the looks of many rides only to change my opinion once seated inside them; I've also detested first appearances only to be sold after a week long driving affair. There might be brands more reliable as a whole than others, but lesser-than-thou makers do come out with some outstanding cars.

   

  Don't feel like a chump if any of the above mistakes made contact with your ego and pocketbook. Fortunately, there are a lot of moves you can make today to ease the financial and emotional burden these 6 unforeseen mistakes caused.
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