That bargain price on a car may be nothing more than bait.
You see the ad, compare the numbers, and make the trip to the dealership. Then come the mandatory packages, dealer fees, and discounts you may never qualify for. Suddenly, the price that got you through the door is nowhere near the price you're expected to pay.
If you have financing arranged, say so before visiting. Confirm whether the quoted price changes if you use your own lender.
In one recent case, the Federal Trade Commission alleges the difference averaged more than $3,350, with buyers paying above the advertised price in more than 92% of the transactions examined.
For someone who has spent weeks comparing vehicles and working out a budget, that can wreck the deal. By the time the additional charges appear, the dealership already has your attention — and several hours of your day.
Thousands more than advertised
On October 8, the FTC announced a proposed settlement with Greenway Auto Group over allegedly deceptive advertising. The agency's complaint describes mandatory administrative, dealer, delivery, and processing fees, along with packages and advertised discounts unavailable to some buyers.
The FTC warned Greenway about its pricing practices in March. According to the complaint, the company responded by adding false assurances of price transparency to its websites while continuing to advertise vehicles for thousands less than their actual prices.
Under the proposed settlement, Greenway agreed to prominently advertise the actual price consumers must pay, excluding required government charges. The proposed order also prohibits misrepresentations about whether fees, products, or particular financing arrangements are required. The allegations are not findings from a contested trial.
Greenway isn't the only dealership group facing enforcement. In April, the FTC and Maryland attorney general announced a settlement with Lindsay Automotive Group that included a $3.1 million civil penalty and refunds for eligible consumers. The agencies said more than $75 million in charges could qualify for redress; that does not mean that amount has already been returned.
Their complaint alleged that buyers encountered unavailable rebates, were told they needed dealership financing to obtain advertised prices, and were charged for unwanted products such as service plans and tire-and-rim protection. Some customers allegedly pressured to finance through the dealership already had financing arranged through military credit unions.
These practices also hurt honest dealers. A business advertising a complete price can look more expensive than a competitor leaving mandatory charges out. The customer may never visit the dealership offering the real deal.
The rule is gone. The obligation remains.
The federal Combating Auto Retail Scams Rule was vacated by a federal appeals court in January 2025 on procedural grounds and formally withdrawn in February 2026. That did not make deceptive advertising legal.
In March, the FTC warned 97 dealership groups about potentially deceptive practices, including leaving mandatory fees out of advertised prices, advertising discounts unavailable to everyone, and requiring additional purchases.
The agency followed in September with price-transparency guidance for auto dealers. Its position is straightforward: advertised prices should include dealer-required charges, with an exception for government-required charges owed by the consumer.
That includes mandatory document fees. A fee does not become exempt from the advertised price simply because a state permits a dealer to charge it.
Conditional discounts can still be advertised, but the price available to any consumer should be the most prominent. A first-responder discount, for example, should not make the headline price look available to a buyer who cannot qualify.
California adds protections
While federal regulators pursue deceptive pricing under existing law, California has gone farther, giving car buyers additional protections.
California's Combating Auto Retail Scams Act, Senate Bill 766, became operative October 1. Its requirements address advertised prices, disclosures, add-on products, and record-keeping.
The law also establishes an automatic three-day cancellation right for qualifying used vehicles priced at $50,000 or less, subject to mileage, condition, and other return requirements. Buyers should review the written cancellation disclosure rather than assume every purchase qualifies or every return is free.
These are California protections; buyers elsewhere need to check their own states' rules.
Get the number before you go
Whatever regulators do next, buyers can insist on clearer information before committing an afternoon to a dealership.
Ask for an itemized, written out-the-door price for the specific vehicle. It should identify the vehicle and include dealer charges, taxes, title and registration costs, and any products included in the quote. Ask which discounts depend on your occupation, trade-in, financing choice, or other qualifications.
If you have financing arranged, say so before visiting. Confirm whether the quoted price changes if you use your own lender.
At the dealership, compare that quote with the purchase agreement. Ask about every added charge. If a product is optional and you do not want it, have it removed before signing. If the salesperson says it is mandatory, ask who requires it and where that requirement appears in writing.
Never negotiate a monthly payment until you have agreed on the total out-the-door price.
An extra $30 a month over a 72-month loan adds up to $2,160. A payment that fits your budget does not establish that every product bundled into it is worth buying.
Save the advertisement, quote, messages, and final paperwork. The FTC accepts reports of potentially deceptive dealership practices, and its guidance specifically encourages consumers to identify supporting advertisements and contracts.
Dealerships have every right to make a profit. Consumers have every right to know what they are agreeing to pay.
If a dealer cannot explain the difference between its advertisement and its contract, don't let the time you have already spent there pressure you into signing.
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[H/T Blaze Media]
