semi-OT: False Advertising

I usually see small print somewhere that states something like; All prices and payments based on $2000 down plus rebate financed at 2.9 apr, subject to buyers credit rating.

Yeah, that's my point. I understand the rebate...that's money coming off of their selling price. But say Honda X costs $15K, but with a $1K rebate and $2K down they advertise it for $12K, even though you're actually paying $14K for the car, plus financing if applicable. I'm having a hard time understanding how this is not illegal. The Crotch Viper '95 GT

(former Modless Wonder #1)

understanding how

It all has to do with a law concerning full disclosure. If an advertisement has nice large colorful numbers say they are selling X model Mustang for X amount of dollars and you go to the dealer and they give you N amount for the same model, you can't accuse them of false advertisement because they provided the terms in super-fine print that can only be read with 100x magnifying glass. They say, "The actual amount you pay is in the advertisement." and shrug when you give them the dumbfounded look.

Crappy way of getting you into the dealership, but they learned quick enough not to advertise a price so low as to be unbelievable. Now, I think all they advertise is how big a rebate they will put on a model and provide the MSRP in the fine print.

This is very similar to sale prices on most items in retail stores. In mice-type, you'll find the words, "price after rebate". Unless you're paying close attention, you'll think you're getting it cheap. And I'm sure that the lure of the rebate works psychologically in the retailer's favor as well.

-JD

_________________________________ JD's Locally-Famous Mustang Page: http://207.13.104.8/users/jdadams Please note: UCE is deleted at the ISP server level. Unless your address is on my 'accept list', your mail will never reach me. See my website for more information.

"CrotchViper" wrote in a message:

Most of the ads on TV for new cars are for Lease vehicles. If you read the fine print at the bottom of the screen, the first thing you see mentioned is Lease. They also throw in how much of a down payment is required. Sometimes, they will have the guy talking read the requirements real fast so you can't catch all of it.

That's a BIG difference.

Price after rebate, although slightly misleading is still accurate. Price after DOWNPAYMENT is a totally different thing.

the Rebate comes from THEM the DOWNPAYMENT comes from ME

so, if a store advertises "$1,000 after $200.00 rebate" I pay 1,200 and get 200 back = my NET cost IS 1,000 !

if a car advertised "20,000 after 2,000 downpayment " I pay 22,000 out of MY pocket

They should not be able to show numbers as the PRICE, when it is the BALANCE.

As another poster mentioned, Why don't they just say

2004 Mustangs $3,000 !!!

(with 27,000 downpayment )

The sad thing is it OBVIOUSLY WORKS which just goes to show how STUPID the average consumer is !

Amen to that!

Another lovely trend is the come-on price. Get (pick one) cable TV, DSL, cell phone, etc. for only $19.95 a month. Then in small print is the kicker, "for 3 months". Of course there is absolutely no mention (not even in print ads) of how inflated the price will be AFTER the initial "deal" period. Advertisers obviously think we are all idiots and will fall for this crap. I should say they KNOW we are idiots because we DO fall for this crap.

LJH

95GT

Amen! I've never believed a word of anything in new/used car ads, but they must lure morons into the showroom, or they wouldn't be advertising so heavily. Half my newspaper is nothing but car ads, all screaming how they have the lowest price, best service, yeah, yeah, whatever.

I'm now to the place where I distrust anything that must be mass-media'ed to the public. This includes 'no-hassle' credit cards, no-down-payment home loans, low-cal fast food and automotive advertising in general. If it's THAT GOOD, why must the company spend millions advertising it?

Hell, until recently, Ford hasn't needed to advertise Mustangs, and they sold

700,000+ units yearly. Contrast this to the constant barrage of Honda advertising you get pelted with on a daily basis.

-JD

_________________________________ JD's Locally-Famous Mustang Page: http://207.13.104.8/users/jdadams Please note: UCE is deleted at the ISP server level. Unless your address is on my 'accept list', your mail will never reach me. See my website for more information.

What was the last year in which Mustang sales topped 700,000?

dwight (don't believe everything you read)

1997.

-JD

_________________________________ JD's Locally-Famous Mustang Page: http://207.13.104.8/users/jdadams Please note: UCE is deleted at the ISP server level. Unless your address is on my 'accept list', your mail will never reach me. See my website for more information.