I am writing to urge you to support and advocate for new legislation requiring automotive dealerships to provide comprehensive and transparent disclosures to consumers regarding the true cost of purchasing a vehicle. Many consumers face significant financial harm due to a lack of transparency and incomplete information provided by dealerships. To protect consumers and promote fair business practices, it is essential that dealerships are mandated to disclose the following details clearly, both verbally and in written form, using language that can be understood by the general population:

• Hidden Fees:
  • Dealer Fees: All extra charges, including documentation fees, administrative fees, destination fees, and other miscellaneous fees.
  • Add-Ons: Detailed costs for optional add-ons such as extended warranties, gap insurance, rustproofing, and other services.
• Loan Terms:
  • Interest Rates: The actual interest rate being charged, without dealer markups.
  • Loan-to-Value (LTV) Ratio: The ratio of the loan amount to the vehicle's value to prevent consumers from taking loans exceeding the car’s value.
• Trade-In Value:
  • True Value: An accurate assessment of the trade-in vehicle’s value, comparing current market values versus what the dealership is willing to pay for the vehicle.
• Out-The-Door (OTD) Price to Value:
  • Dollar Amount: The final price, excluding interest related to a loan, that a consumer will pay to leave the dealership keys in hand, compared to the fair market value of the car.
  • OTD Ratio: The ratio of the final dollar amount compared to the fair market value, expressed as a percentage.
• Vehicle History and Condition:
  • Accident History: Complete disclosure of any past accidents or damages.
  • Repair and Maintenance Records: Detailed records of previous repairs and maintenance.
• Dealer Invoice Price: 
  • The actual dealer invoice price to provide a realistic understanding of the vehicle’s cost.
• Market Value:
  • The current market value or fair market price of the vehicle to ensure consumers do not overpay.
• Cost of Credit:
  • The total cost of credit over the loan term, including all interest and additional financing fees.
• Markups for Services:
  • Service Costs: Transparent pricing for services such as emissions testing and vehicle registration, temporary permits, along with competitive pricing information.
  • Alternative Costs: Estimates of what these services would cost if performed elsewhere.
• Promotional and Incentive Terms:
  • Detailed terms and conditions of all promotional offers and incentives, including eligibility criteria and hidden conditions.
• Negative Equity Rollovers:
  • Clear explanation of the financial implications of rolling over existing debt into a new loan, to prevent consumers from falling into negative equity.
• Financing and Leasing Details:
  • Residual Value: For leases, a clear explanation of the residual value and its impact on lease-end purchase options and costs.
  • Early Termination Fees: Disclosure of any fees associated with early termination of leases or loans.

Furthermore, I propose that dealerships be required to provide a 30-day cancellation policy. This policy would give consumers adequate time to review the disclosure information and ensure they are satisfied with their decision. Under this policy:

• Consumers should be allowed to return the vehicle within 30 days of purchase if they are not satisfied.
• The vehicle must have had no more than 350 miles added during the consumer's possession and must be returned in the same condition as delivered to the consumer at the time of purchase, with regards to the cosmetic condition of the inside and outside of the vehicle.
• The dealership must return the consumer to their original condition or compensate the consumer accordingly.

Transparency in vehicle purchasing is essential to maintaining consumer trust and ensuring that the automotive market operates fairly and efficiently. By requiring dealerships to provide clear and comprehensive disclosures, along with a 30-day cancellation policy, consumers can make more informed decisions, avoid unexpected costs, and ultimately protect themselves from financial harm.

I strongly believe that implementing these disclosure requirements and the cancellation policy will significantly benefit consumers by providing them with the necessary information and time to make sound financial decisions when purchasing a vehicle. I urge you to consider this proposal and work towards enacting legislation that protects and empowers consumers.

Thank you for your attention to this important matter. I look forward to your support in promoting transparency and fairness in the automotive industry.