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State of Texas Files Lawsuit Against Vroom Over Deceptive Practices Following Thousands of Complaints
The State of Texas is alleging in a new lawsuit that online car retailer Vroom has routinely failed to disclose vehicle history, vehicle features, and work done on vehicles it sold to customers in Texas. On April 20, Texas Attorney General Ken Paxton filed a lawsuit in the District Court of Travis County against Vroom, which also operates as Texas Direct Auto.
An unrelated class-action lawsuit has already been filed against the online retailer, and Florida has filed a complaint regarding Vroom’s title transfer issues in the state. Consumer advocacy groups have repeatedly issued warnings following the multitude of complaints received about Vroom.
The lawsuit notes that since 2020, consumers have filed nearly 5,000 complaints with the Better
Business Bureau and Office of the Attorney General of Texas. The vast majority of complaints have been filed over the past year. The lawsuit states that Vroom has “not managed their growth effectively and have allowed inadequate systems and procedures to spiral into violations of the DTPA [Texas Deceptive Trade Practices Consumer protection Act].”
Specifically, the lawsuit alleges the following violations:
- Misrepresenting the condition and characteristics of vehicles
- Misrepresenting financing approval
- Failing to obtain clear title before selling
- “Spot delivery scams”
- Failing to disclose systemic delays in processing title and registration
- Failing to disclose higher insurance premium requirements for some customers
Flood Vehicles, Hidden Accidents, and More
The State of Texas’ lawsuit details a few examples of the poor conditions of vehicles misleadingly sold to Texas customers.
“In one case, within hours of delivery, a Texas consumer reportedly noticed that the oil change and engine service lights came on, and there was an irregularity in the windshield and scratches on the wheel. The consumer took the vehicle to a nearby dealership, and after an inspection was told it needed spark plugs, new filters, an oil change, and a radiator leak to be repaired.”
“In another case, a Texas consumer complained that when Defendants delivered the vehicle, the consumer immediately noticed a strong odor in the interior that she described as similar to being near a boat. She noted that the interior carpet looked as if it had been completely replaced. The next day, she took it to a mechanic for a standard inspection. The inspection identified several areas of internal rust that could only be caused by sitting in water for an extended amount of time, as well as other conditions that indicated flood damage.”
Yet another example quoted a Vroom customer whose ‘new’ car needed $8,000 in repairs soon after buying from the online retailer. In a sad but almost comical case, a customer bought a car from Vroom with a driver’s seat that was pushed as far back as it could go without the ability to move it forward. So much for the “rigorous inspection process” that Vroom claims to abide by.
The Texas lawsuit against Vroom also details numerous examples of title and registration delays stretching far beyond the 60-day window permitted for registering a new vehicle.
Vroom’s Record profits Come At the Expense of Consumers
In 2021, Vroom reported well over $2.4 billion in revenues. profits rose 171% year-over-year to $164.7 million. With a class action lawsuit already filed and the States of both Florida and Texas hot on their tails, Vroom’s honeymoon with the American consumer may be coming to an abrupt end. We’ll keep you up to date with the latest at caredge.kinsta.cloud.
Have you experienced something similar at Vroom or any other car retailer, including a traditional dealership? Leave a review of your car buying experience to help others avoid headaches. Had an amazing experience? Your review can help car buyers give their business to honest dealers who deserve it. You can also simply view the results to see what others are experiencing near you!
If you think you’ve been the victim of deceptive dealer practices, you can find contact info for every state’s attorney general and consumer protection office here.
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The Need For (Charging) Speed: Is This the Charging Solution We’ve All Been Waiting For?
My very own Hyundai IONIQ 5 has a special trick up its sleeve. In fact, even Tesla can’t claim it. In 2022, very few electric cars are engineered with 800-volt architecture. While still an outlier, all signs point towards an auto industry heading in the direction of faster charging, better efficiency, and smaller battery sizes – all of which are unlocked by promising 800-volt electrical systems in EVs.
800-Volt Electric Powertrains Bring Faster Charging and Engineering Benefits
The mass adoption of electric vehicles largely depends on the ability to find real solutions for a few ownership challenges for today’s EV drivers:
- Charging is too slow
- Range is not enough
- Batteries are too expensive to replace
Most electric vehicles in 2022 are built on 400-volt systems, but these systems have limits. Indeed, some automakers are quite happy with their 400-volt EV platforms. Tesla manages to find other ways of mastering efficiency and power delivery, and has not mentioned plans for a voltage upgrade. One BMW senior engineer called settling with a 400-volt platform the “best compromise”, but not everyone agrees.
800-volt systems can deliver double the power through the same current, or if desired, the same power through half the current. The result is roughly 50% faster charging for the same battery size. As a result, batteries can be made smaller and overall weight is reduced, increasing efficiency and ideally lowering the cost of the vehicle.
Would a car need a massive battery with a 500-mile range if it can charge a smaller battery that’s good for 250 miles in just 15 minutes? What is that smaller battery was A LOT cheaper?
Which Electric Vehicles Use 800-Volt Architecture?
In 2022, just a few electric vehicles use 800-volt systems for power delivery and charging.
Of particular interest is the different paths taken by Ford and GM for their upcoming electric trucks. The F-150 Lightning is built on 400-volt architecture, while the Chevrolet Silverado EV is jumping to 800-volt architecture, and the result is much faster charging speeds for the Chevy. Will this matter to consumers, or will brand loyalty win out?
Why doesn’t Tesla use 800-volt charging? We’re not sure, but clearly they’ve found success with their existing 400-volt architecture.
Solid-State Batteries Approach Production
Fortunately, a whole host of solutions are uniting to offer a better way forward for EVs. And it’s not all about charging speeds. Solid-state batteries are finally approaching real-world usability following decades of research and development. For the better part of the last decade, $100 per kilowatt-hour was the affordability target for battery development. That goal was reached, but the latest raw material shortages are sending prices back up, and electric car prices have gone up accordingly. The U.S. Department of Energy thinks that $60 per kilowatt-hour is within reach, however it’s increasingly looking like solid-state batteries may offer the only path to such low-cost batteries.
Toyota says it will be the first to bring a solid-state battery into a production vehicle. In typical Toyota fashion, their solid-state battery will debut in a hybrid powertrain rather than a full battery-electric vehicle. It looks like the world will see what solid-state battery chemistry is capable of in 2025.
Innovation Continues at Lightning Speed
Faster charging, better range, and (hopefully) lower prices are promised time and time again with every new EV model announcement. 800-volt architecture and solid-state batteries are the headlining developments that automakers are working on behind the scenes. We didn’t even touch on new battery chemistries, manufacturing methods, and electric motor breakthroughs in the works. We’ll have to save that for another day, as there’s always something new to talk about in the EV space.
But the promise of faster charging and energy-dense batteries begs the question: would you take faster charging over more range? It’s looking like that will be the EV debate of the decade. What are your thoughts? Let us know in a comment or over at the CarEdge Community Forum. What matters most when you head out on a journey?
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Koons Kia Fined $1 Million by Maryland Attorney General for Fake Fees
Maryland Attorney General Brian E. Frosh announced that his office’s Consumer protection Division has reached a settlement with Koons Kia of Owings Mills, MD to address allegations of the systematic practice of forcing customers to pay for hidden fees and phony freight charges.
The settlement requires Koons Kia to stop charging car buyers fees, other than taxes or title
fees, if the fees were not included in the advertised price for a vehicle. The dealership also
agreed not to charge consumers for shipping if freight charges were already included in the advertised price for the vehicle.
Victims Will Receive Reimbursement
Koons Kia agreed to return all fees it collected from consumers other than taxes and title fees that were not included in the advertised price of the vehicle, as well as all freight charges that were already included in the advertised price of the vehicle.
Attorney General Frosh estimates that more than $1 million will be returned to consumers. Koons Kia also agreed to pay the Consumer protection Division $100,000 for the costs associated with the investigation.
“Car dealers must honor the price they advertise for their vehicles,” said Attorney General Frosh.
“I am glad that Maryland consumers will receive refunds for the fees that they paid above the
advertised price.”
Consumers who are owed refunds under the settlement will be contacted directly by the Maryland Attorney General’s Consumer protection Division.
A Growing Problem Nationwide
Tales of dishonest pricing and unfriendly dealer tactics are unfortunately commonplace. That’s why CarEdge exists; to put car buyers back in control of their purchase. If you or anyone you know have experienced something similar to what happened to customers of Koons Kia, please see our new resource on how to contact your state’s attorney general office and consumer protection division.
Dealers take complaints filed with the attorney general’s office very seriously, and this serves as a reminder why.
If you’re still shopping for a new or used vehicle, follow these steps to push back against forced dealer add-ons.
How to File a Complaint Against a Dealership With the Attorney General’s Office
At CarEdge, we recently shared the steps you can take to challenge dealer add-ons, but what if it’s too late? When do misleading pricing, forced add-ons and financing games cross legal boundaries? Does the consumer have any recourse? Here’s what you need to know, and how you can file a complaint against a car dealer.
When Can I File a Complaint Against a Dealership?
Did a dealer sneak fees or add-ons into the contract after you agreed upon the price? Were there two versions of the final paperwork, one with add-ons that you weren’t supposed to see? Did someone in the finance office tell you that you could only secure financing if you purchased a product? These are all justifiable reasons for filing a complaint.
Where should you start? Before paperwork is signed, follow these steps to push back and demand transparency. If the car has already been bought and driven off the lot and the dealership management refuses to right their wrongs, filing a complaint with the state attorney general’s office will surely get their attention.
Here’s how to contact your state’s attorney general to file a complaint against a car dealer in all 50 states, DC and Puerto Rico:
Dealerships would rather not become the subject of legal action, so the mere mention of filing a complaint with the attorney general could be the motivation they need to make things right for you. If the state consumer protection agency receives too many complaints about a particular dealership or dealer group, the whole business can ultimately be at stake.
Keep your auto advocates at CarEdge in the loop if you’re thinking about filing a complaint. Don’t forget to leave a review of the dealership you worked with at CarEdge Car Dealer Reviews to let others know what you experienced.
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The 5 Step process to Buying an Electric Car in 2023
Buying an EV today is no walk in the park, but a good deal can be had with patience, research and flexibility. And having just gone through this process myself, I can confirm it was totally worth the work. These are my secrets to success, and how you can adapt these buying strategies to your unique situation in 2023.
Plus, be sure to check out the free template below to help you find the best deal on an EV in today’s competitive market.
Step 1: Know what you want, and what you’ll settle for
In 2023, it will save you a lot of strife to figure this out from the get-go. Which electric car models are you serious about? Are you solely considering Tesla with their direct-to-consumer, non-negotiable prices, or are you heading out to dealerships to find the best deal? Have you test driven your favorite EVs or even rented them on a service like Turo?
Once you have your short list of electric cars, trucks or SUVs that made the cut, it’s time to talk trim options, powertrains, and colors.
Drivetrain and range
Do you prefer better range, or traction and acceleration? For some, all-wheel drive versus rear-wheel drive is front of mind. My driveway in snowy West Virginia is as steep as it gets, so I knew that AWD was a must for me. There’s always a tradeoff though. RWD electric cars get better range, sometimes 20% more. However, they’re not as fast for the speed freaks out there. Do you care more about going the extra mile on the highway, or zipping around town with the best 0-60 time?
And then there’s charging time. Before you settle on an EV model, have a plan for how you’ll charge it. If you live near a major metro area or along a major interstate, don’t fret. Fast chargers are already available near you. However, charging at home is MUCH more affordable.
Would you be okay with adding a few miles of driving range per hour (30 miles overnight) by simply plugging in to a normal 110 Volt wall outlet? Or would you rather spend $1000 on the installation of a faster charger for your home? The answer to that question may depend on what the rated range and charging speeds of your car are.
Trim options
It’s often easier to find a base trim at MSRP. I just experienced the hassle of finding a fully-loaded IONIQ 5 Limited in America. There aren’t many out there. Depending on the EV you’re in the market for, finding the trim you want may or may not be a challenge. For Tesla, it’s a non-issue. I’ve found that the only way to avoid regretting your trim selection is to experience each trim firsthand.
Remember: The average price for an EV remains 20% higher than the overall market in 2023. Buying an EV under MSRP is possible, as proven by our own CarEdge Car Coaches. However, if a higher trim makes it more likely that you’ll keep the vehicle long-term, it might be worth it to shell out a few thousand more dollars to get the upgrade. I’m glad I did.
The real value (and fuel/maintenance savings) of an EV will only be had if you keep it long-term (or if it ends up keeping good residual value down the road).
Step 2: Set your boundaries
How long are you willing to wait? How far are you willing to go over MSRP? What will you do if the dealer tries to force add-ons? Would you be patient to save thousands of dollars? These are all questions you should be asking yourself early on.
Would you buy out of state?
As ridiculous as it is, I took a one-way flight 600 miles to New York to pick up my lovely new car at MSRP. Sure, I could have bought a base trim with a $3000 markup a few hours away, but my plane ticket was only $250. What are you willing to do for the perfect car at the perfect price (by 2022 standards)? How far would you go? Would you rather travel to pick up the electric car, or pay $1,000 – $2,000 for delivery?
Would you pay over MSRP?
How much are you willing to pay? Strictly the manufacturer-suggested retail price (MSRP), or a tad more? What will be your plan of action if the perfect car is local for $2,000 or $3,000 over, but the same car is at MSRP five hours away? Remember, EVs ARE negotiable in 2023.
Step 3: Get organized
I’m a spreadsheet guy. Google Sheets and Microsoft Excel are my best friends. Perhaps you prefer lists on a notepad or on your phone. Whatever the case, get organized. If you don’t, you may end up calling the same dealership twice, or even worse, losing track of where the best deals are.
Here are some important things to keep track of:
- Dealership name (of course) and the state it’s in
- Does the dealer sell to out-of-state customers?
- Do they sell your desired car at MSRP? If not, what’s the markup?
- Do they push dealer add-ons? What are they?
- Do they have existing inventory available, or incoming allocations that are not pre-sold?
- Do they accept refundable deposits to reserve a car?
Here’s an example template that you can copy and make your own.
I can not emphasize the importance of staying organized throughout your car search, especially if you don’t want to spend more time than absolutely necessary on this.
Step 4: Finally, make contact
Now it’s time to contact dealers and fill up that spreadsheet. Fingers crossed! Do you prefer phone calls, or messaging the internet sales team? I was impatient, so I called each dealer, and if it sounded like they might be one to work with, I then began the email process. It’s VERY wise to document all communications (especially about pricing) in emails or at least text messages.
Don’t make it any harder than it has to be. Start with a search radius you’re comfortable with, and work outward from there. In fact, start with CarEdge Car Search to find the inventory leads, and don’t forget to check out CarEdge Car Dealer Reviews, where dozens of electric car buyers have already shared their dealership experiences. Don’t forget to add yours!
Step 5: proceed with caution, and document everything
When you find what you want (hopefully with no dealer markup and no or negotiable add-ons, find out if you can place a deposit. Some dealerships don’t accept deposits, which means you’d have to show up on the day the car arrives. Even then, nothing is a guarantee. Do a risk/reward analysis.
Does the price and spec of the car justify what it would take to get the car?
When you find the deal you’d like to move forward with, get EVERYTHING in writing.
Specifically, these bits of info should be documented at the very least:
- Name of the salesperson and sales manager
- Detailed ‘worksheet’ pricing with the vehicle’s VIN number and options included
- Note: If you’re ordering a new factory build from the dealer, there won’t be a VIN assigned yet.
- Financing options. If you plan to finance, find out what rate you’d qualify for with the dealer, and be ready to bring outside financing with you if necessary. Here are 5 things you need to know about the dealership finance office.
- Note: Financing approval is only good for a maximum of 30 days, so apply and arrange for financing when the vehicle is due for arrival at the dealership.
- Bringing a trade-in? You’ll likely need to bring the vehicle to the dealership to get a firm quote on how much they’ll give you for it, or else you’re risking a low-ball offer for the trade-in. If possible, find out what they will pay for the trade-in.
- Take care of the what-ifs: Before traveling far and wide to buy your EV, consider using your offer to negotiate a better price at a local dealership.
- Document, document, document!
Make sure you’re aware of the possible arrival date if awaiting a shipment. Be flexible. My delivery date was actually moved up, but others have had to wait a few extra weeks.
Success!
Even in today’s hectic, supply-constrained auto market, I’m confident that electric car buyers can find a great deal by following this game plan. Clearly, documenting everything is my thesis. Let us know if you have any questions, thoughts or suggestions. We’d especially love to know how your electric car buying experience turns out!
Be sure to leave a dealer review to help others find pro-consumer dealerships!
Plus, check out our new CarEdge Electric live show every Monday, Wednesday and Friday. We’re excited for what’s to come, and we’re thrilled to have you along for the ride.
