Nota de Prensa en Español
A Groundbreaking First Look, Based Upon a National Data Set, Reveals What Dealers Pay for Add-ons and What They Charge Customers; Advocates Urge Federal and State Action
Download the report, 19 charts, and tips for consumers at: http://bit.ly/2kmubox
BOSTON – Most consumers would be surprised to learn how car dealers prey on them with sucker pricing of add-on products, such as service contracts and window etching, which can add thousands of dollars to the price of a car. For example, one customer in Kentucky who paid $299 for window etching never knew that another customer at the same dealership paid $1 for the same product. But now, for the first time, NCLC unlocks the door on this hidden market in Auto Add-Ons Add Up: How Dealer Discretion Drives Excessive, Arbitrary, and Discriminatory Pricing, an analysis of a national data set of three million add-on products sold from September 2009 through June 2015. Key findings: add-ons lead to unreasonably high and inconsistent pricing, and Hispanics pay higher prices than non-Hispanic customers for the same product.
”Our analysis demonstrates the negative consequences of opaque and inconsistent pricing of auto add-on products and the urgent need to bring transparency and consistency to this market,” said John W. Van Alst, director of the National Consumer Law Center’s Working Cars for Working Families Project and the report’s primary author. “Our findings also reveal the troubling practice of dealers charging Hispanic customers more for the same product.”