Troubled GM customers can hit sales: dealer

An ignition switch failure in connection with deadly crashes and in the Assembly recalls motor showrooms, according to dealers, who are fielding more and more calls from customers worried about the safety of GM cars are afraid in General.

Ancira auto group in San Antonio, Texas, a banner expected after March, but there was a strong February 28 vehicles short of their goal of selling 200 cars and trucks, Vice President April Ancira said in an e-Mail.

GM Chief Mary Barra on Wednesday with allegations, endure a devastating attack at a US Senate hearing, that the company "a culture of cover-up" promoted and Ancira said the bad news on this switch ignition, helped miss their sales group centered.

"It will take some time for the brand back to attract the customers who lost it," she said. "But I must believe that General Motors will take advantage of this opportunity to really focus on improving the safety of their products."

GM spokesman Jim Cain said the company is aware that some dealers worried how the recall will affect sales.

"Time will tell," Cain said. "In the long run we will be judged on how we take care of customers. We have to use advertising, if it is proven that the revenue might be affected in the short term incentives and other tools. But we haven't seen that. "

Concerns that sales, also in a recovered would be used car market under pressure this week showed interviews with more than 20 US GM dealer. Traders also made it clear that there are a growing number of nervous current GM owners and the claims threaten after repairs to clog some repair service.

"they request information. People are a little confused, what they need to do. There are a lot of these cars out there, "said Al Belford, Ed Bozarth Chevrolet in Las Vegas, which is about 50 more operations Director set customer calls a day for the last three weeks."

Jacqueline Aguilar, service Coordinator at Brickell Buick GMC in Miami, said the dealership handles got up to 40 calls per day between 14 and 18

Holland, Michigan DeNooyer Chevrolet was always 10-15 calls per day, said Sales Manager Dominique DeNooyer local television, added that the dealers "Influx" of people find challenging was.

Since February has GM 2.6 million vehicles because of concerns ignition switches recalled, that unexpectedly turn off engines during the operation and airbags, power steering, and the service brake unusable. And this year, GM vehicles or reminded about the same number has a total value of nearly 7 million in the last four years together.

Toyota recall 2010

In January 2010, Toyota recalled nearly 2.6 million vehicles in the United States and Canada to sticky Accelerator pedals. The callback and the controversy, which punished sales in the run-up to the vote.

Less than two weeks after the recall, Toyota sales reported a decline of 16 per cent in January 2010 U.S.. Sales fell in February before rebounding again in March. However, has the U.S. market share set not the automakers, their peak of 17 percent in 2009 regained.

In contrast, GM improved figures in March, the month after the first phase of the recall were announced. Dealers delivered 256.047 vehicles in the United States in March, fueling a 4 percent of total sales from last year's level. Retail sales by 7 percent and GM said that it gained retail market share.

Overall the car market in recovery mode and many managers in the dealership remain optimistic, including Brad Sowers, owner of Jim Butler Chevrolet in the suburban St. Louis Fenton.

"I'm still in the mode in which it has a good year for us and the cars, which are 11 or 12 years old and the prices will be really low", Sowers said.

"Our sales have been average", said James Mardenli, general sales manager at Cerrone Chevrolet Buick & GMC Truck Dealership in South Attleboro, Massachusetts. "April is a good month in sales since April, may and June are usually the months where most have bought cars."

But Morgan Stanley analyst Adam Jonas wrote in a research note that his uncle was a car dealer in Canton, Ohio.

"I think that April is reached a low point for us. We know we will get through this, but only hope, as soon as possible this problem passes "Jonas cited his uncle say. Jonas his uncle not to call or immediately respond to a phone call from this discussion.

If the GM dealers in the vicinity of the cities of the United States in Boston, Cleveland, Los Angeles, Miami and San Antonio agreed Manager, that it much more time earnest customer concerns issued.

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Shady car dealers to military customers

Herb white tree, the ConsumerMan
Cody Cameron, a marine stationed in Jacksonville, n.c., burned when he bought a used car. He paid $17,000 last year on a 2004 Nissan 350 z with 60,000 miles it. He thought that car would take him a long time. It did not come.

"I drove the car for about two weeks." One day all the studs on the left rear tire fetched just way and the tires on the road moved, "he recalls."

He was able to pay for the repairs the traders. But about a week later, the tunnels broke again. They refused this time pay.

Cameron could afford, he took the car to a different dealer, hope, money for a trade-not the repairs to something. That's when he was in a wreck his car discovered. The AutoCheck report showed extensive damage to the left side of the vehicle.

"When I bought it, I specifically asked the seller - several times - if it had been in a wreck," Cameron tells me. "And he said no." "There were no accidents."

Right now, camerons 350-Z not shut. But he is still on the hook for the payments. He is suing the dealer.

It is a common problem
It is regrettable. Shady car dealers goal often military customers. Unethical sellers see it as easy marks.

Holly Petraeus, Director of Office of boots Affairs at the consumer financial protection Bureau, warns military personnel on alert be when on a car much foot.

"They have these places, cars for a sell the spring up to military facilities very marked-up price and then put on top of that used high finance," says she.

Vulnerable customers can be military personnel. You are young. This can be your first car purchase. They often have a limited or negative credit history.

Petraeus (whose husband Gen David Petraeus will be Director of the CIA) tells me everyone in the service is fear of something that they could their screening costs. A bad credit report is pulled the No. 1 reason for this distance.

"they are aware that", she says. "So someone can threaten and say:" If you don't pay then you'll in trouble, "which is of course the last thing they want."

Holly Petraeus is not the only alarm bells. Advise military customers to fraudulent sales practices ensure the auto experts at Edmunds.

"Military personnel have a steady income." The Government pays you every month for their service. Unscrupulous traders know that are really trying to get into this source of income ", says Edmunds of Carroll Lachnit."

Sales representative warns Edmunds military families looking after crafty to use the patriotism as part of their sales pitch.

"We try be aware of them that appeal on their pride or flattering them, cannot be sincere appreciation for their military service, but only another way to their hooks in this content," Lachnit said.

Auto dealer rip-offs affect mission readiness
Rosemary Shahan, President of consumers for auto reliability and safety, having a long list of "unscrupulous practices" says unethical traders use to military buyer. These include: fake loan applications, they know bait-and-switch financing and selling a car, was to say in a wreck without the customers.

"Car sales and financing scams cause problems of financial readiness for military service members and their families lead," she says.

Two years ago, during the Dodd-Frank Act to reform of financial Congress discussed air force Secretary Michael Donley wrote a letter to the legislature. He said:

"I am sure you agree that plane, which in turn reduces financial questions to home be distracted readiness." "Protection from unscrupulous auto loan enables our plane to focus on their Hauptaufgabe--fly, fight and win in air, space and cyberspace." (See full letter)

Secretary of the army wrote a similar letter, John McHugh:

"Over the years many of our soldiers have been predatory lending practices to the victim and contracts for prohibitively expensive financial products, supported by some unscrupulous car dealers and lenders entered." "Although the army, our soldiers for the purchase of cars in our normal financial education curriculum, the fact remains, that registered soldiers... educate junior keep an easy target for dishonest brokers." (See full letter)

McHugh's letter lists the results of an informal survey of the Ministry of defence of the officers, financial consulting for the four main branches of the US armed forces. The vast majority (79 percent) reported that they military members with car saw funding problems. Many of these customers, reported, provide could make it not their car payments.

The national independent auto boggles Dealer Association(NAIDA) not away from the issue.

"Try as we, can get rid them, there are still bad actors in our industry," says Steven Jordan, rescued-the Chief Operating Officer. "We know the growing problem with regard to vehicle purchases and financing of military personnel and we feel, is no place for it in our industry for those who use or want to cheat our military personnel with illegal disclosure or unfair & deceptive trade practices."

Protect yourself
There are things all military and civilian - should do when buying a vehicle.

Do your homework. Check out the car dealership. Talk with friends and visit the Web site of the better Business Bureau. Find out all the vehicles you are interested in are the current market price. It is easy. Just go to the Edmunds, Kelly Blue book, or TrueCar. Never shop alone. You should have someone to watch your back. Keep in mind that traders seller do that every day for a living. No matter what they say is their job, most of the money for each transaction. Let someone you pressure to sign the sales contract. Once you sign it, the car is yours and you are legally required to make the payments. There are no three days "cooling-off period" for car sales. Never a used car to buy until you have it by a qualified independent mechanic. You can damage by a prior wreck or potential mechanical problems on the ground. The small price you pay for this test (typically $100 to $150) you could save literally thousands of dollars on the street.
More detailed advice for U.S. service members is on "Boot camp for military car buyers."

You can read also my car buying tips at ConsumerMan.com.

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