Purchasing a car can feel like walking through a minefield of shady sales tactics. You have to arm yourself against some deceitful dealerships that have long employed a bag of tricks to nickel-and-dime consumers out of their hard-earned cash. Though a new ruling by the Federal Trade Commission (FTC) designed to put the brakes on these underhanded practices was meant to take effect this past summer, it now looks like that date has been pushed to 2025.
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The FTCâs âCombating Auto Retail Scamsâ (CARS) rule was supposed to take effect in July of 2024, but due to a pending legal challenge, the Final Ruleâs effective date is delayed until further notice. It meant to crack down on four of the most common scams that car buyers have had to navigate.
No matter if the FTC can push through this ruling or not, there are still ways to spot a scam, so you donât get duped at the dealership. Hereâs what these slimy tactics look like and how to protect yourself with or without CARS.
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You see an ad for your dream car at an unbelievably low price. But when you get to the dealership, the salesperson hits you with the old âjust kidding!â They might claim the advertised price was a typo or that the car is no longer available. Their real goal? Using that too-good-to-be-true offer as bait to lure you in, before switching you to a much pricier option.
Under CARS, this bait and switch on pricing, discounts, rebates and inventory would be 100% illegal. Dealers could not falsely advertise to pull one over on you.
Youâve decided on the car and price, but the paperwork is filled with random fees you never agreed to â things like $500 for ânitrogen-filled tiresâ or a useless warranty for services your vehicle will never need. These buried âjunk feesâ can blow up the total cost by thousands.
With CARS in place, dealers would have to get explicit consent for every single charge. They could not sneak anything in without your knowledge and approval. You also would have the right to refuse any add-ons you did not want.
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Military members have been frequent targets for unscrupulous dealers. They face unique challenges, such as dealing with relocations and special repossession protections. Shady salespeople often lie about their military affiliations or make false claims about issues service members care about.
CARS would make it illegal for dealers to misrepresent their ties to the military or feed misinformation that could impact active duty personnel and their families.
At the end of the deal, many shoppers realize the quoted costs and payments donât match the final numbers. Thatâs because dealers often hide fees or exclude important expenses from their initial pricing.
Under CARS, dealers would have to disclose the full âoffering priceâ that includes all costs except basic government fees like registration. They also would have to outline the total price if theyâre advertising monthly payments.
The bottom line is that if CARS is enacted in 2025, the FTC estimates it would save car buyers over $3.4 billion and 72 million hours per year in headaches. Dealers who play fair also would benefit by no longer losing business to competitors using deception as a sales tactic.
The National Auto Dealers Association is crying foul over the new rules, claiming the FTC overstepped. However, most consumer advocates are cheering the long overdue crackdown on anti-buyer behaviors that have become standard practice at too many dealerships. With both sides pushing for the advancement of their cause, it seems like CARS has hit a few roadblocks.
While the new rule canât completely remove the stress of car buying, it should eliminate some of the shadiest schemes that consumer advocates consistently fall victim to. Emerging from the dealership without feeling cheated in 2025 would be a nice change of pace.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 4 Sneaky Car Dealership Scams That Might Be Illegal in 2025
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