Car Dealers Wince at a Site to End Sales Haggling

hen it comes to negotiating a price on a new car, the script has not really changed much over the years: The dealer’s salesman writes down a price, you counter and then he walks to the back of the showroom to talk with the manager to “see what we can do.” Enlarge This Image A screen shot from TrueCar.com showing the estimated price of a Toyota Camry in New York. Enlarge This Image Tim Boyle/Bloomberg News Carmakers say TrueCar's efforts will squeeze their already thin profit margins on new cars. At least consumers no longer have to enter the process blind. Prospective buyers can educate themselves on Web sites like Edmunds and Kelley Blue Book and get suggested retail prices and find out how much their trade-ins are really worth. Still, the auto industry has not embraced the digital age in the way other businesses, like real estate or travel, have. In part, that is because the auto dealers’ business practices are protected by state franchise laws. But then, a company called TrueCar.com came onto the scene and tried to shake things up. It started running television commercials late last year, which attracted a lot of attention, and the industry immediately pushed back — hard. Here’s why: Besides showing what other car buyers paid for a particular car, TrueCar also gave an estimate of the dealer’s true cost. But what really alarmed the industry was TrueCar’s promise to deliver a guaranteed price from several dealers, essentially eliminating the need for any haggling. The auto industry worried, perhaps rightly, that all this would squeeze their already thin profit margins on new cars. So, after several dealers’ associations complained that TrueCar was violating various laws, regulators from several states told TrueCar that they questioned the site’s business practices. Honda Motor Company also protested loudly, threatening to cut off marketing dollars to dealers that did not follow its guidelines when promoting its brands on TrueCar’s site. “There is a fear that TrueCar might work too well,” said Scott Painter, the company’s chief executive, a serial entrepreneur who also started many other auto-related sites, including CarsDirect.com. So how long can the car industry continue to operate the way it did when your grandfather walked into the showroom? And does TrueCar really provide the best model for consumers who want a fair price without the hassle? Clearly, at least some dealers fear that showing their hand will drive them out of business. “Dealers are afraid if they give customers their best price, they will just take that price and go to another dealership and see if they can beat it,” said Jeremy Anwyl, vice chairman at Edmunds, an auto research Web site. And even Mr. Painter acknowledged that though most of the dealers that his site works with have managed to hold their profit margins steady, dealers in some markets became so incredibly competitive that their business would not be sustainable over the long run. “We have always said it is not a race to the bottom,” Mr. Painter said, adding that for his service to succeed, dealers need to succeed. “But there is no question that dealers’ natural tendency to compete with one another has resulted in extremely low prices.”

Indiana State Police warn motorists of bogus troopers on I-80

Indiana State Police officials are warning motorists to be cautious after a woman was stopped and robbed on the Borman Expressway near Hammond today by two men who were misrepresenting themselves as troopers. The incident happened between 9:30 a.m. and 9:45 a.m. as the 28-year-old woman was westbound on I-80 near Kennedy Avenue when a black car described by officials as a "police-type vehicle" -- possibly a Ford Crown Victoria -- activated emergency lights and pulled her over, police said. The woman told police that the car had a red and blue light mounted in the front window of the car. Both men wore black clothing and were clean-shaven. The woman said the men flashed badges and identified themselves as state police. After pulling her over they told the woman that her car came up suspicious and they indicated that they wanted to search the vehicle, police said. They told the woman to get out of the car and took money and other items from her. When she tried to use her cell phone, they took it from her and threw it, police said. While the woman was outside of the car, she noticed that the black vehicle had a rusty front passenger tire and she then noticed that the windows were not tinted. The men left in their vehicle, police said. Anyone who may have seen this “traffic stop” or the unmarked vehicle is asked to call the Indiana State Police Lowell District at 219-696-6242. Officials said that when Indiana State Police make a traffic stop in Indiana an officer must be either in uniform or in a marked vehicle. If an unmarked car does try to stop you and you do not feel safe, police suggest you put your hazard lights on to show that you recognize that you are being stopped and drive to a well-lit area where other people are present. Police also recommend calling 911 or local police and tell them you’re being stopped by an unmarked unit and driver, police said. They ask for people to be ready to give them location, description of vehicle, appearance and anything else observed. If you have stopped and realized the driver is not in uniform keep the door locked, roll the window down only enough so he can hear you, officials said. Ask to see a badge and identification and tell them that you called 911 and are waiting for a marked police car. chicagobreaking@tribune.com Featured Articles Pregame blitz for Super Bowl ads Jim Belushi champions gout treatment Younger onset Alzheimer's patients stay active MORE: Groupon Super Bowl commercial gains the wrong kind of attention Website gives Illinois customers power to compare electricity rates Doctors rethinking prescribing Abbott's Niaspan Super Bowl ad winners and losers Belvidere plant a linchpin in auto industry recovery Chicago's 2012 summer festival schedule Related Articles Two Chicago police officers injured in Loop crash

Vintage cars delight the Capital

The charm of yesteryear's motoring marvels lit up the city roads at the 46 edition of the Statesman Vintage and Classic Car Rally, with 82 cars revving up their engines on a balmy Sunday morning before a large number of vintage enthusiasts. Chief of Army Staff General V. K. Singh flagged off the rally and sat through the opening phase of the motoring extravaganza. A 1909 Willys Overland owned by Dipak Sood led the way, making its rally debut, followed by the all- time favourite – the 1914 John Morris fire engine of the National Rail Museum. Then followed cars of all description like the Austin Seven and the original Morris Minor. Also participating were Buicks, Lagondas, Chryslers, Pontiacs, Chevrolets, Bentleys, Mercedes and Jaguars. The Rally also displayed the evolution of automobile design, with some of the early models inspired by horse-drawn carriages, and the more recent ones based on the aero-dynamics of a jetliner. There were also a range of military jeeps and troop carriers. Avid spectators cheered the vintage cars on as they made their way from Connaught Circus to Fortis in Gurgaon, where singer Raja Hasan regaled the participants with his performance. The atmosphere at the Jawaharlal Nehru Stadium in the evening, when the judges made their final evaluation, was also merry. That majority of the cars were in prime condition testified the commitment of their owners towards preservation. With as many as 24 of the cars on the list being “first timers”, it became evident that the stress laid on restoration was paying dividends. Quite a few of them were said to have been salvaged from junk in the past two years. General Singh's wife Bharati Singh presented a glittering array of trophies to the winners at the Stadium. Prizes were awarded on the basis of age, maintenance, performance and restoration. Quite a number of cars picked up more than one piece of silver. The Statesman Trophy for the oldest participant was awarded to the 1914 John Morris fire-engine of the National Rail Museum, while the 1909 Willys Overlander was adjudged the oldest car on show and won the Indian Oil Trophy. The Rolls-Royce company presented a special memento to every prize-winner of that make. The prestigious C. R. Irani Trophy for the Queen of the Rally went to the 1937 Rolls-Royce entered by J. Housing and the Bikram Singh Memorial Trophy for restoration was awarded to a 1930 Stutz, owned by Diljeet Titus. The Kanti Kathpalia trophy for the best lady driver was awarded to Ms. Bhavana and her 1934 Ford.

Vintage delight: 1909 Willys-Overland was the oldest car at annual car rally

ome gleaming beauties added to the charm of a bright and sunny morning in the Capital when they took to the roads for the 46th Vintage & Classic car rally on Sunday. The rally was flagged off by Army chief General VK Singh from Barakhamba Road, and the golden oldies travelled to Fortis Hospital, Gurgaon, before arriving at the Jawaharlal Nehru Stadium for a prize distribution by Bharti Singh, the Army chief's wife. The oldest car participating in the rally was a 1909 Willys-Overland, while the youngest was a 1962 Mercedes. Vintage and classic cars took part in the rally in New Delhi on Sunday Vintage and classic cars took part in the rally in New Delhi on Sunday Vintage car Vintage car The attractions included a 1914 John Morris, India's first fire engine owned by the Nizam of Hyderabad and now the National Rail Museum. Army chief General VK Singh flags off the rally in New Delhi on Sunday Army chief General VK Singh flags off the rally in New Delhi on Sunday Other notable entrants were a 1919 Citroen, a 1925 Phantom 1 Rolls Royce, a Ford 1928, a Ford 1930 which was directly imported from the US for the Pope's visit to India in the same year, a Citroen 1938 that has been featured in films like Gandhi, a Buick 1938, a Plymouth 1938 and a Sunbeam 1947, along with a collection of Austins, Chevrolets, Jaguars, Mercedes, Pontiacs, etc. A total of 43 running trophies were given out to the owners, including The Statesman Challenge Trophy to the John Morris 1914, the Fortis Trophy for the most consistent participant to a 1934 Lagonda, and the CR Irani Memorial Trophy for the 'queen of the rally' to a 1939 Rolls Royce.

Car crashes claim two lives

Two people have died in separate crashes today, taking Victoria's road toll to 37 - nine more than at the same time last year. This morning an elderly man died after crashing his car into a power pole in Melbourne's north. The man had been driving on Mickleham Road near Rylandes Drive in Gladstone Park about 10.10am when he struck several parked vehicles. Victoria Police say the man then performed a U-turn at a nearby roundabout, but shortly afterwards lost control of his car again and crashed into the pole. A spokeswoman from Ambulance Victoria said paramedics treated the man but he died at the scene. Advertisement: Story continues below The man, believed to be aged in his 80s, has not been identified. He was driving a green Holden sedan. Police are appealing for anyone who witnessed the crash, or the owners of vehicles damaged on Mickleham Road, to contact them. A report will be prepared for the Coroner. Meanwhile, another elderly man died after his car left the road and struck a tree near Newborough in Victoria's east. A passerby alerted police to the accident about 11am. A Victoria Police spokeswoman said investigators believed the man had been travelling west along John Field Drive towards Newborough last night when his white Toyota van left the road and struck a tree. John Mullen from the Rural Ambulance Service said the man was "heavily trapped" inside his vehicle. "He was deceased when paramedics arrived on scene," Mr Mullen said. Also this morning, an elderly woman was taken to hospital after she was struck by a car in Melbourne's western suburbs. Paramedics were called to an address in Lauriston Quay in Caroline Springs just after 8am and found the woman, aged about 70, with injuries to her chest, abdomen and pelvis. She was taken to the Royal Melbourne Hospital in a serious condition. A Victoria Police spokeswoman said it appeared the woman had been struck outside the front of a property, but could not confirm reports the woman had been hit in a driveway. Anyone with information about these accidents should contact Crime Stoppers on 1800 333 000, or visit

Auto show in Baltimore draws shoppers, but mostly dreamers

Motor Trend International Auto Show runs through Sunday February 11, 2012|By Meredith Cohn, The Baltimore Sun They came to the Motor Trend International Auto Show in Baltimore with five cars on their list and a plan to narrow it down to three. "We're moving out of the minivan category because we're now 50-somethings with no kids to haul," said Mindy Doring, who was checking out the inside of a Hyundai Elantra with a sticker price of $16,445 and 40 miles per gallon on the highway. "It's now about comfort and the ability to throw down the seats and move a piece of furniture." Doring and her husband, Mark, came from their home in Catonsville to shop and were part of the all-business category among attendees of the show, which runs through Sunday at the Baltimore Convention Center. The other, much larger crowd of people lining up to get into the showroom Saturday: the dreamers. This group included wide-eyed children and their wide-eyed dads, who seemed most often to warm to the trucks — the bigger and more loaded the better. "I like the Acura MDX, a high-end SUV that's out of my price range," said Chris Moneymaker, who came to the show with his dad, brother and 6-year-old son, Carter, whom he was helping into a red Toyota Tacoma four-door pickup. "My wife said not to even look at anything like that." The Acura starts at $42,930. But that was nothing compared to the $92,850 Jaguar XJL sedan that Predrag Durkovic was looking at. Though, he said, for that kind of money, they could have built in a little more legroom. "It's not worth it," he said. "It's too small." If the British luxury car wasn't going to do it, the show — presented by the Maryland Automobile Dealers Association and produced by Motor Trend Auto Shows LLC — included hundreds of cars, trucks and crossovers. There were Subaru wagons with standard roof racks for the outdoorsy types, boldly colored Ford Mustangs for the muscle guys, crisp silver Cadillacs for the overachievers and the new Fiat 500 for the city folks with tight parking options. The little Italian hatchback was declared "cute" over and over by female showgoers and "small" by their male companions. Perhaps the biggest dreamer was James Dickerson of Forest Hill. He just got his learner's permit, and his car of choice was — a car. Though, as he tested out the driver's position in a $25,720 Volkswagen Beetle turbo, he said if he really had a say his new ride would be a Subaru Impreza WRX (starting at about the same price). His father, Bob, who gave up his Beetle when his son became too big to fit in the back seat, said he might like that Jag he could see out of the corner of his eye. James' mother, Carole, who comes along to the auto show every year as part of the family's Valentine's weekend, just wanted something reliable. For others, the dream was also part practical, and green. There were dozens of cars offering more than 40 miles to the gallon, including many hybrids and plug-in electric cars such as the Nissan Leaf and Chevrolet Volt. "I like the savings on fuel and being green," said Jen Sauer, as she photographed her 2-year-old son, Kaleb, on his grandfather's lap in the driver's seat of a Toyota Prius. "It gets twice the mileage of my Chevy Equinox. Maybe in a few years." It may be more than a few years for Kevin Freeman, whose love of small, sporty coupes and roadsters has taken a back seat to fatherhood. But that didn't stop him from taking a look at the highly anticipated Subaru-Toyota collaboration: the Subaru BRZ. "There's a lot of buzz about this car," he said of the 2013 model of the two-door coupe. "It's a very nice-looking car, very sexy." His nearly 3-year-old daughter Kylie's favorite car: The one that was shiny and spinning.

Motor ace Webber champions Australian car industry

AUSTRALIA'S leading motor sport driver, Mark Webber, says Australia should be a country that makes cars, talking up the benefits of a functioning auto industry. But the formula one ace, who last week started testing his newly designed Red Bull 8 ahead of the 2012 season, appears to be as conflicted as the rest of the country about how the nation's car industry can survive its dollar-driven crisis. Surrounded by the marque brands of international motoring in the testing paddock of the Circuit de Jerez in southern Spain, Webber conceded he had heard little about the debate over how best to ensure the ailing industry survives in Australia. Advertisement: Story continues below But he said: ''I know the Australian dollar is strong, which is hurting something like that [but] there's going to be a lot of people that benefit out of having a car industry down there ... something on our own shores.'' His comments came amid furious political debate over the future of Australia's manufacturing sector. Last month the federal government announced $34 million in assistance funding to keep a Ford manufacturing plant in Victoria until 2016. But Toyota has announced it will cut 350 jobs at its plant in Melbourne's west, with the company saying the redundancies are necessary because of unprecedented market conditions and the soaring dollar. Prime Minister Julia Gillard has said the Ford assistance will create an additional 300 jobs at a time when the resources boom and the high Australian dollar are putting pressure on manufacturing. Opposition Leader Tony Abbott has signalled a Coalition government would cut about $500 million in funding assistance to the car industry and said it would be scaled back to similar levels of aid provided to the local car industry by the former Howard government. The Automotive Competitiveness and Investment Scheme - initiated by Mr Howard - began in 2001 and provided about $5.5 billion in assistance to car makers in the period to 2010. The former boss of Ford in the United States, Jacques Nasser, said Australia would be shortsighted if it did not support the automotive industry as it goes through tough times. Manufacturing was centre stage in Canberra today, with Alcoa workers meeting Ms Gillard, Industry Minister Greg Combet and Australian Workers Union national secretary Paul Howes. The crisis talks came as Alcoa announced a review of its Victorian operations last week, putting a question mark over 600 jobs. In Spain, Webber, who benefits from the skills of a team of designers and engineers drawn from the elite of world motor sport, said it was important talent was developed and nurtured. ''We have some bloody gifted and clever people down there and it's clearly an area where we can still have people having expertise in designing and building automotive,'' he said. ''I think it would be nice if we can continue to do that.''