Electric vehicles now make up almost 18% of the car-buying market in California. That's up 42% from 2021, according to the latest data from the California Energy Commission.
Right now, low-income buyers can get up to $9,500 in grants and rebates. But Rosemary Shahan, president of Consumers for Auto Reliability and Safety, said these rebates become meaningless when dealer markups are out of control.
"Some of them are charging $50,000, $60,000 or even more, over the manufacturer's suggested retail price, the sticker price," she said, "and we're concerned that whatever rebates people get can just be swallowed by the dealers."
Consumers can look online at markups.org to find out which dealers are selling cars at the MSRP, versus which ones are jacking up the prices. A recent study by iseeCars.com found the hybrid models with the biggest markups include the Ford Maverick truck and the Lexus RX 450h SUV.
Proposition 30 on California's November ballot would raise taxes on the wealthy to pay for more rebates on zero-emission vehicles, build more EV charging stations and fund wildfire prevention. But Shahan saif more rebates could motivate dealers to raise their prices even more, unless the California Air Resources Board moves to cap prices.
"If they want taxpayers to help fund those transactions, and assist low- and moderate-income consumers into getting into cars, to make them more affordable," she said, "they have to be more affordable."
Dave Clegern, a public affairs officer for the California Air Resources Board, said the agency expects EV prices to drop as the supply grows. Asked if the agency would consider price caps, he responded that it would have to "think carefully about the best consumer protection approach" if it became necessary to place a limitation on price above the manufacturer's suggested retail.
Disclosure: Consumers for Auto Reliability and Safety Foundation contributes to our fund for reporting on Consumer Issues, Environmental Justice, Social Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email
This session, Minnesota lawmakers are expected to take a strong look at preventing more fraud attempts against state government. Meanwhile, consumer advocates hope they do not forget about separate scams increasingly targeting everyday citizens.
Organizations such as AARP said consumer fraud has reached a crisis point, with federal data showing U.S. consumers reported losing more than $10 billion to fraud in 2023, a record high.
Cathy McLeer, state director of AARP Minnesota, said in a digital world, it is getting harder for authorities to clamp down on the threats and give people an avenue to recoup what they lost.
"In many cases, these are bad actors who are overseas," McLeer explained. "You can't track them down. And it's very, very difficult for anyone who has been defrauded to get even some of those resources back."
McLeer pointed out such situations can be especially harder on older adults because their life savings can quickly evaporate.
A proposed bill would create a state-managed restitution fund, where proceeds from civil penalties would be redirected and awarded to fraud victims having trouble getting their money back. The bill is sponsored by lawmakers in both parties but it is unclear whether it will gain traction amid other priorities.
A key provision in the bill said Minnesota's attorney general has to bring a case against the scammers and obtain a court order. McLeer argued the extra tool might prompt more people falling prey to fraud to speak up.
"We also know that so much fraud is underreported," McLeer observed. "We believe that having a Consumer Fraud Restitution Fund would provide the incentive for more individuals to report financial crimes, frauds and scams when they happen."
A handful of other states have created similar funds, including North Dakota in 2023. Meanwhile, AARP Minnesota will host an online discussion on the topic Thursday at 10 a.m. CT. The public is invited to take part.
Disclosure: AARP Minnesota contributes to our fund for reporting on Budget Policy and Priorities, Consumer Issues, Health Issues, and Senior Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Military borrowers pay higher costs and face greater financial risks than civilian borrowers when taking out credit to buy a car - according to a new report from the Consumer Financial Protection Bureau.
The report found service members tend to borrow larger sums, at higher interest rates over longer terms.
Rosemary Shahan, president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety, said yo-yo scams are common - where the victim signs an initial contract on good terms but then the dealer claims the financing fell through.
"And then they say, 'If you don't agree to sign this other contract where we're charging you for a lot of worthless add-ons you don't really want and a higher interest rate,'" said Shahan, "'then we'll report the vehicle stolen, and you'll be in trouble with your command, and it'll ruin your career.' "
The report finds many service members are young and far from family members who might help them negotiate a large purchase.
Last year under former President Joe Biden, the Federal Trade Commission finalized the CARS rule, which would combat dishonest sales tactics. Automakers sued and last month a federal judge put it on hold.
Shahan said the CARS rule would require dealers to tell you the price up front before you even go to the lot.
"It also has additional protections for military service members," said Shahan. "It prohibits car dealers from representing that they're somehow affiliated with the military, or have been approved by the military when that's not true, and would also require them to be more honest about the price of the add-ons and actually get your affirmative approval before adding them."
The Federal Trade Commission under the Trump administration will now have to decide whether to stand behind the rule and fight for it in court, or withdraw it.
Disclosure: Consumers for Auto Reliability and Safety Foundation contributes to our fund for reporting on Consumer Issues, Environmental Justice, Social Justice. If you would like to help support news in the public interest,
click here.
get more stories like this via email
Tax season is in full swing and locations are available across Idaho to assist people with preparing their returns.
The AARP Foundation's Tax-Aide program offers in-person help to people with low and moderate incomes. They don't have to be AARP members.
There are 27 sites available across the Gem State. Tax-aide State Coordinator for AARP Idaho, Karen Cummings, said the program can help people get back money they didn't know they were owed.
"It saves a lot of money and it refunds a lot of money from the IRS," said Cummings. "Some people wouldn't normally, maybe even go get a paid preparer, because it wouldn't be worth their time if they don't have a filing requirement. So, we help a lot of people."
Because filing taxes primarily involves computers now, Cummings said the tax-aide program is especially helpful for people who aren't very computer literate.
Last year in Idaho, volunteers filed more than 14,500 federal returns and nearly 14,000 state returns, with refunds totaling $16.7 million.
Cummings also noted that everyone involved gains something from the experience.
"We both benefit," said Cummings. "Both the volunteers feel good about helping the community and the community is extremely grateful that we're there to help them out."
Volunteers for the program pass IRS-certified tests. The program can help in most cases, although not complex ones.
Most sites will assist people through April 15.
Disclosure: AARP Idaho contributes to our fund for reporting on Consumer Issues, Energy Policy, Health Issues, Senior Issues. If you would like to help support news in the public interest,
click here.
get more stories like this via email