Community

Share your automotive expertise

2 Write a Blog Post

Filed in: Marketing

Breaking News: FTC Cracks Down on Auto Loan Schemes Today

We mentioned weeks ago that FTC enforcement of advertising regulations related to auto sales and loans would step up. Today was more evidence of that crackdown. The FTC came down on two California lenders promising consumers they could stop repossession and reduce payments. (FTC Press Release)

By all accounts, these companies were clearly involved in deceitful advertising practices, and they deserve what they have coming to them. In our follow-up discussion with the FTC, they acknowledged that the federal government has more "cops on the street" and is determined to combat deception aimed at consumers.

Today's actions were not aimed at dealers. Indeed the uncovering of these scams is good news for our industry. However, the bigger lesson is that getting your dealership within the clear parameters of advertising regulations is not optional this spring. These same scams went on for an extended period of time in the mortgage industry. Virtually every American was exposed to the radio and TV ads offering to save consumers from the threat of home repossessions before the crackdown in that industry took place. That era is gone. Swift action will be the calling card of Federal regulators, and even faster action must be the response of dealers who may be beyond the edge of compliance.

Comments

Thanks for the info Lindsey and Dennis. Wow, the FTC is certainly on a roll lately!

Apr 5, 2012

Credit rating is not a problem anymore. The best part about an instant payday advance is that you can pay everything back on your next paycheck and avoid worrying about this anymore. When a crisis comes, many people do not keep a lot of money lying around to pay for it. That means you need an instant cash advance to help you get through the emergency time. Get more information at: https://personalmoneynetwork.com/payday-loans/

Nov 14, 2013

Comments 1 - 2 of 2

You must be logged in to comment

Login Create an account

Add your comments:

   

Lindsey Auguste and Dennis Galbraith's Recent Posts

Related Posts

  • Dealers Shouldn’t Abandon Third-Party Sites Just Yet

    If you've been following the trends for the last year in the automotive industry, you’ll note that there are some dealers that are pushing all of their advertising dollars towards driving traffic to their websites. It’s a strategy that was made popular when a large dealer group declared that they were going to focus on generating their own leads and wrote an interesting piece about why they were doing it. Unfortunately, the strategy that they’re adopting has been misunderstood by many. The idea is that they wouldn't be buying leads from other sites anymore. They never declared that their inventory wouldn't be available on other sites. It’s a concept that makes sense – generate your own leads, whether they’re coming from third-party sites or the dealership’s website. In an article titled, Why Car Dealers Should Adopt a Modern Digital Merchandising Strategy, we went into detail about why many consumers prefer to shop on third-party sites rather than on a dealership’s ...Read post

  • Why Customers Leave Without Buying A Car And What To Do About It

    What's the most creative reason you've heard from a customer who is leaving your dealership lot without purchasing? Sure there are the typical, "have to check with my spouse," and "have to pick up my kids at their soccer game." Then there are the more atypical reasons: "I have a dentist appointment," or "My mother-in-law's in town." If it's one of the latter, warning bells should be ringing. Who would rather go to a dentist appointment or visit with their mother-in-law than buy a car?   According to AutoLoop Engage's call center statistics, only three percent of customers who leave without purchasing give the salesperson the real reason. Our agents have connected and engaged with thousands of unsold customers and here is why they're really leaving, according to our data:   55 percent leave because of payments/price/trade-in issues 26 percent leave because of inventory issues; your dealership didn't have the exact color or model they wanted 16 percent left because they had a bad...Read post

  • How to Find Out What Women Want and Reach The Modern Female Car Buyer

    A woman’s vehicle path to purchase needs may be prioritized differently than a man’s, and in order to sell to women, stores can benefit by understanding and caring about what women want when it comes to cars. They should ask Mel Gibson (about what women want…)Read post

    By Cobalt on October 23, 2014

  • Brand and Dealer Loyalty – a Fine Balance?

    Think about the last time you visited a business such as McDonald’s, Target, or a 7-11.  Now, think about the store itself – did you select the store because of convenience, or because you were dedicated to a specific location?  Sometimes the answer is both, but more often than not, like most consumers, you are making the choice based on convenience.  Either way, your decision was likely based on the brand or company name and not the individual business or the people that work behind its doors.Will a customer repeatedly choose your dealership for sales, service or your collision center because of who you are and the people on your team? Does your dealership name stand out in the minds of consumers? Or will they choose your location because of the brand you offer and the service they have previously received at a different dealership of the same brand?At your dealership, do you consider your regular customers brand loyal? Or do you consider them loyal to your dealership? If you...Read post

  • Your Message Must Match the Marketing Venue

    Let's call it what it is. This is a post about active digital marketing versus passive digital marketing. It's one that covers two of the types of marketing disciplines that are near and dear to my heart, but more importantly it lays the groundwork for an understanding of the various marketing styles and how we should classify them. First and foremost, let's get an understanding of what the difference is between active and passive digital marketing. In our industry, the word "passive" is often shunned, but in this particular case it's not bad at all. Passive marketing lets the customer make the first move. Search marketing is an example of passive marketing because you must wait for them to engage with the search engines to find a car before the marketing kicks in. Active marketing goes out to them - you make the first move. Email marketing is an example of active marketing because you're initiating the action. On our website, we compared it to stand hunting vs still hunting. With ...Read post

  • Conquesting 2.0: Attract Cross-Shoppers With Search Remarketing to Capture More Sales

    Once a qualified buyer browses your website and leaves to check out your competition, what tactics do you have in place to bring her back to choose your model? My most successful dealers have addressed this opportunity by combining two tactics that have been proven to drive increases in return website visits by cross-shoppers using mobile devices and PCs. Put simply, we’re running search ads in a new way that’s actually getting a response to help our dealers meet their sales goals consistently. Read post

  • Mobile Click-to-Call vs. Tap-to-Text: Controversial or Complementary?

    A July 2014 Automotive News article sang the praises of phone calls over email and form leads, citing faster responses and ease of use via mobile. What it didn't point out, though, is that text-based, one-to-one messaging is worthy of a verse or two as well.Read post

  • Do Your Salespeople Spend Too Much Time Managing Software...Instead of Selling?

    The fact is, lead generation is an expensive business and having the right tools to manage this investment and deliver the most qualified leads to your dealership is paramount to your success. When it comes to mining your database and working your in-market customers, you have two choices: use your internal team to run and manage all aspects of it (self-service) or outsource many of the functions to a service provider who does most of the heavy lifting (full service).  Self-service options demand the installation of comprehensive software that requires training and hands-on daily interaction to be effective, while a full service provider will take over the day-to-day tasks (i.e., database management, developing marketing materials, mailings, e-mails, etc.) and, instead, deliver qualified leads to your sales force. Both approaches have their pros and cons. Full disclosure, I currently work for a full service provider, but I also spent eight years as VP of Sales and Marketing for a la...Read post