The Great Price Fix: How Private Equity Firms Are Rigging the-

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Microsoft Notes > EXECUTIVE ORDERS > Executive Order Establishing the Task Force for Market Transparency in the Automotive Sector

The Great Price Fix: How Private Equity Firms Are Rigging the Used Car Market—and Everything Else

Let’s call it what it is—a game, and not the fun kind. Private equity (PE) firms have turned the used car market into a grand Monopoly board, except they’re not just buying Boardwalk; they’re buying the entire board, jacking up prices, and daring the rest of us to pass Go without going broke. And this isn’t just about cars; it’s about the insidious grip PE firms have on every corner of our economy, squeezing consumers dry while they sip champagne on yachts paid for by our desperation.

A Rigged Market: The Used Car Racket

Used car prices aren’t just climbing—they’re defying gravity. Remember when a used car was the budget-friendly alternative? Now it’s priced like a collectible classic. How did we get here? Let’s dissect the sham:

- Auction House Collusion : PE firms own or heavily influence major auction platforms like Manheim and ADESA. These are the places dealerships source their inventory. When PE controls the baseline pricing, you can bet that number isn’t going anywhere but up. The result? Dealers pay more, pass the cost to us, and PE firms laugh all the way to the bank.

- Dealership Domination : PE-backed conglomerates are gobbling up independent dealerships faster than a teenager eats pizza. Once they own enough, competition dies. Suddenly, prices are less about market value and more about how much profit they can wring out of you.

- Algorithmic Price Gouging : Online platforms funded by PE, like Carvana, use pricing algorithms designed not to find you a deal, but to calculate exactly how much pain you’ll endure before walking away. It’s predatory math dressed up as convenience.

The Bigger Picture: PE Firms in Everything

Used cars are just the tip of the iceberg. These firms aren’t just tinkering with car prices; they’re redefining the rules of capitalism in their favor.

- Housing : PE firms are snapping up single-family homes, turning once-affordable neighborhoods into rental empires. Want to buy a home? Good luck bidding against an algorithm armed with billions in capital.

- Healthcare : Need a hospital visit? Thanks to PE-driven cost-cutting, you’re paying more for less. Quality of care? Secondary. Profit margins? Primary.

- Retail : PE buyouts of major retail chains often lead to job cuts, bankruptcy, and higher prices for consumers. Toys “R” Us, anyone?

The Shameless Playbook

Here’s the PE strategy in all its greedy glory:

- Acquire : Buy up everything that makes money or holds value.

- Strip : Cut costs, lay off workers, and squeeze suppliers until the whole system is a wheezing husk.

- Profit : Sell off what’s left or hike prices for consumers.

- Repeat : Move on to the next industry.

This isn’t innovation—it’s exploitation.

A Failing Car Market: PE Firms Are the Drivers

The car market didn’t fail us. PE firms failed it. By treating cars—essential tools for most Americans—as luxury commodities, they’ve turned the market into a free-for-all for the wealthy and a nightmare for the rest of us. Their reckless strategies have:

- Priced out the middle class : Forget saving for retirement; people are now taking out 7-year loans just to afford a used car.

- Destabilized the economy : Artificially inflated prices create unsustainable bubbles. Remember 2008? It started with housing. Cars might be next.

- Destroyed trust : The American Dream includes reliable transportation. When even a 10-year-old sedan costs as much as a down payment on a house, what hope is left?

Why This Matters

PE firms aren’t just controlling markets; they’re controlling lives. Every inflated price tag, every job lost to their cost-cutting measures, every family priced out of a car, a home, or healthcare—it’s a direct consequence of their greed. They’ve rigged the system so thoroughly that the average person is left with no choice but to play along.

Enough Is Enough

It’s time to call out these corporate vultures for what they are—parasites on the economy. The car market isn’t failing because of natural supply and demand. It’s failing because PE firms have turned it into a money-printing machine for their benefit alone. And if we don’t demand accountability, the same pattern will repeat in every market they touch.

So the next time you’re staring at a used car with a sticker price higher than its original MSRP, remember: it’s not just the car market that’s broken. It’s the system, rigged by the few at the expense of the many.

A Call to Action

We need:

- Regulation : Limit the influence of PE firms on essential markets like transportation, housing, and healthcare.

- Transparency : Force these companies to disclose their practices and pricing strategies.

- Public Awareness : Let’s stop pretending this is just how the market works. It’s not. It’s how PE works.

The game may be rigged, but it’s not unchangeable. Together, we can push back against this exploitation and reclaim markets for the people who actually use them—not the ones who just profit off them.

The American public has expressed significant frustration and concern over the escalating prices of used cars in recent years. This sentiment stems from several factors that have directly impacted consumers' financial well-being and access to essential transportation.

1. Financial Strain on Households

- Affordability Challenges : The surge in used car prices has made vehicle ownership increasingly burdensome, especially for low- to middle-income families. Many households find that the elevated costs of used vehicles strain their budgets, leading to difficult financial decisions.

- Increased Debt : To afford these higher prices, consumers often resort to larger auto loans, resulting in higher monthly payments and extended loan terms. This trend has led to a rise in auto loan delinquencies, particularly among younger buyers.

2. Impact on Younger Generations

- Delayed Financial Milestones : Younger individuals, including Gen Z and millennials, are disproportionately affected by rising used car prices. The financial burden of purchasing a vehicle can delay other significant life events, such as buying a home or saving for retirement.

- Transportation Necessity : In many areas, especially those lacking robust public transportation, owning a car is essential for employment and daily activities. The high cost of used cars limits access to reliable transportation, affecting job opportunities and quality of life.

3. Perception of Market Manipulation

- Private Equity Influence : The involvement of private equity firms in the automotive sector has raised concerns about market consolidation and price manipulation. Some consumers feel that these entities prioritize profits over affordability, contributing to inflated prices.

- Lack of Transparency : The complexity of the automotive market, combined with the influence of large financial entities, leads to perceptions of opaque pricing strategies that disadvantage average consumers.

4. Broader Economic Concerns

- Inflationary Pressures : The rise in used car prices is a significant component of broader inflation concerns. Consumers are worried about the diminishing purchasing power of their income as essential goods and services become more expensive.

- Economic Inequality : The disproportionate impact of rising car prices on lower-income individuals exacerbates existing economic inequalities, leading to increased public dissatisfaction.

Public Sentiment

Overall, the American public views the escalation of used car prices as a pressing issue that affects financial stability and access to necessary resources. There is a growing demand for greater market transparency, regulatory oversight, and initiatives aimed at improving vehicle affordability to alleviate the financial strain on consumers.

Rising Used Car Prices Impact on Americans

MarketWatchCars were once a financial engine of America's middle class. Now they're a 'wealth killer.'18 days ago

MarketWatchHalf of U.S. households can only afford a $400 car payment. Their options - new or used - are scarce.217 days ago

The Wall Street JournalThe New Math of Driving Your Car Till the Wheels Fall Off213 days ago

Real change can happen.. Request Trump to initiate this EO or I will in 4 years.

Executive Order Establishing the Task Force for Market Transparency in the Automotive Sector

By the authority vested in me as President of the United States by the Constitution and the laws of the United States of America, it is hereby ordered as follows:

Section 1. Purpose

The automotive industry is a cornerstone of the American economy, providing essential transportation for millions of citizens. However, rising prices in both the used and new car markets have raised concerns of potential manipulation by private equity (PE) firms and other market players. This Executive Order establishes the Task Force for Market Transparency in the Automotive Sector to investigate, analyze, and publicly disclose the extent of influence and manipulation within these markets.

The Task Force will ensure full transparency and involve public participation to hold accountable those entities that prioritize profit over fairness, accessibility, and the well-being of the American people.

Section 2. Establishment of the Task Force

There is hereby established the Task Force for Market Transparency in the Automotive Sector (the "Task Force").

(a) Membership The Task Force shall consist of representatives from:

- The Department of Justice (DOJ)

- The Federal Trade Commission (FTC)

- The Department of Transportation (DOT)

- The Securities and Exchange Commission (SEC)

- The Consumer Financial Protection Bureau (CFPB)

- Public representatives, including consumer advocates, automotive industry experts, and members of the general public.

(b) Leadership The Task Force shall be co-chaired by the Attorney General and the Chair of the Federal Trade Commission.

(c) Public Oversight Panel A Public Oversight Panel will be formed, comprising citizens selected through an open application process, ensuring representation across diverse backgrounds, regions, and economic levels. The panel will:

- Participate in Task Force meetings.

- Review findings before public release.

- Provide recommendations for further investigations.

Section 3. Duties and Responsibilities

The Task Force shall:

- Investigate Influence and Manipulation :

- Assess the role of PE firms in pricing strategies, dealership consolidation, auction house operations, and financing practices in both the new and used car markets.

- Identify any anti-competitive behaviors, market distortions, or collusion among market players.

- Engage the Public :

- Hold town halls, public forums, and online sessions to gather input from consumers, dealerships, and industry workers.

- Provide regular updates to the public through an interactive online portal, ensuring 100% transparency.

- Analyze Economic Impact :

- Quantify the effects of PE involvement on car prices, financing costs, and availability.

- Evaluate the broader economic implications, including impacts on middle- and lower-income families.

- Provide Policy Recommendations :

- Propose regulations to mitigate undue influence by PE firms.

- Recommend strategies to ensure fair pricing and market competition.

- Maintain Transparency :

- Publish all findings, data, and conclusions in real-time through a publicly accessible online platform.

- Ensure all Task Force activities, meetings, and decisions are recorded and made publicly available.

Section 4. Reporting Requirements

(a) Interim Reports : The Task Force shall submit bi-monthly interim reports detailing progress and preliminary findings to the President and Congress. These reports shall be made publicly available.

(b) Final Report : Within 12 months of the issuance of this Executive Order, the Task Force shall submit a comprehensive report to the President, Congress, and the American people, including:

- Detailed findings on PE firm involvement and manipulation.

- Policy and legislative recommendations.

- A roadmap for continued transparency and accountability in the automotive sector.

Section 5. Implementation

To ensure the success of this initiative:

- The Secretary of the Treasury shall allocate necessary funding for the Task Force’s operations.

- All federal agencies shall cooperate fully with the Task Force, providing data, expertise, and resources as needed.

- State and local governments are encouraged to collaborate and share relevant information.

Section 6. General Provisions

- This order shall be implemented consistent with applicable law and subject to the availability of appropriations.

- Nothing in this order shall be construed to impair or otherwise affect:

- The authority granted by law to an executive department or agency.

- The functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.

- This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.

Vincent Cordova