New law seeks to protect consumers from unscrupulous car sellers – Telemundo 52

Experts expect new car sales to reach pre-pandemic levels by 2024, so if you're considering a purchase, you need to know your rights as a new federal rule goes into effect that will protect you from unscrupulous sellers.

The rule, known by its English acronym “CARS,” seeks to provide greater protection and resources to consumers who are searching for a vehicle and encounter hidden costs or deceptive sales tactics.

Buying a car is a solid investment for anyone.

“It's a very big deal. One of the most expensive things many of us make. So, it's worth taking some time before you go to the dealership and prepare yourself. That is, think about whether you You will apply for a loan or if you have already obtained a loan from your bank or cooperative.”

An excellent recommendation for any buyer, because this way you will be able to control your loan, but oftentimes, beyond financing, there are other unpleasant surprises that many encounter when they go and buy a car, according to the FTC.

An expert explains the best way to fix your finances in 2024. Azalea Iñiguez presents the expert response segment on January 1, 2024.

“We receive over 100,000 complaints about agents every year, and it's actually one of the 10 most common complaints we receive at the FTC,” Puig said.

One of the biggest problems is that even though the price they initially offer the consumer is the same, they end up paying much more, which is why, starting in 2024, the Federal Trade Commission will implement the rule to combat car sales fraud, Puig explained. Or CARS for short in English.

“The new rule specifies several things that dealers have to do. For example, they have to give you the total price of the vehicle you're purchasing, including all the fees they'll charge you. If there are additional fees, or additional services,” Puig said. Or products they provide to you, they must tell you the price of those services or products.”

Not only do they have to inform you in advance, but they will also give you the opportunity to decline or accept it and respect your wishes.

“In many cases, people are complaining that they have been charged hundreds or thousands of dollars. So, this rule will give consumers more rights than they have, and it will make it clear to merchants that they have to abide by the law. “If they don’t abide by the law there will be consequences,” he added.

Some of the violations that will be punished by the CARS rule are:

• Charging the buyer for unnecessary products, such as duplicate warranties, electric vehicle oil change service contracts that don't require it, or tires that are supposedly full of nitrogen but actually contain no more nitrogen than is actually in the air, Or even “GAP” insurance policies, which don't cover your car in the city you live in, or that exclude you from getting the other benefits of the deal.

Remember that you have rights as a consumer, and if they are not respected, you must report it, which you can do at reportfraude.ftc.gov, so that an investigation can be initiated and companies that do not behave as indicated by the law can be enforced.

The FTC estimates that thanks to the CARS Rule, consumers will save $3.4 billion annually. The rule comes into force from July 30, 2024, but the laws protecting consumers already contain provisions that protect them, so do not hesitate to report violations to the authorities.