FTC could enact dealer reforms

October 31, 2011 12:00 AM

In last year's Wall Street reform bill, the Federal Trade Commission (FTC) was given new powers when it came to regulating auto dealers. Now, The Baltimore Sun reports, the organization is beginning to investigate just how it may use them.

The FTC is currently in the fact-gathering stage before enacting any new rules or regulations, but it has already looked at auto financing and dealerships that target military service members after a number of consumer complaints

With regards to financing, shoppers have complained about "yo-yo financing." This is essentially when the dealer says a loan is approved, only to call the shopper back weeks later and say their financing fell through. They then give them a loan with more expensive and less favorable terms.

As for military members, some dealerships have been known to swindle these young men and women into buying a car, taking advantage of their lack of experience and offering phony discounts that don't ring true.

Consumers also need to exercise caution when it comes to car repairs. Be sure to take your vehicle in to a certified auto maintenance expert that you trust to get the work done right the first time, as this is an extremely important aspect of vehicle ownership.

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