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New rules for dealerships offer more protection for car buyers

Rule expected to stop bait-and-switch tactics, hidden fees

JACKSONVILLE, Fla. – The Federal Trade Commission’s new Combating Auto Retail Scams rule, CARS, is expected to stop bait-and-switch tactics and hidden fees among car dealerships. It takes effect July 30, 2024.

Here’s what the rule means for car and truck buyers:

Pricing and Payments

  • A dealer must tell you the offering price, which is the full price of the vehicle. The offering price must include all costs and fees except for required government fees, like taxes and license and registration costs.
  • If a dealer is quoting monthly payments, they must tell you the total amount you’ll pay for the vehicle. And if they offer you a lower monthly payment, they must tell you if it will raise the total cost of the vehicle.

Add-on products or services

You have the right to refuse any products or services that increase the price of the vehicle. Like what? Rustproofing, protective paint coatings, extended warranties, guaranteed asset protection (GAP) agreements, and wheel and tire warranties.

A dealer can’t charge you for products or services that have no benefit like:

  • A duplicative warranty
  • A service contract for oil changes on an electric vehicle
  • Nitrogen-filled tires that contain no more nitrogen than normally exists in the air
  • A GAP agreement that doesn’t cover your vehicle or your neighborhood or other parts of your deal

Director of Advocacy for Consumer Reports Chuck Bell explained how this will help car and truck buyers.

“So it’s very common that when you get to the end of the purchase transaction, you’re ushered into the finance and insurance office at the dealership and so, they will ask you to fork over a lot of extra money for extended warranties, vin etching, various kinds of paint coatings, nitrogen filled tires, gap insurance and so, this rule will make clear that the consumer has the right to refuse those add-ons,” he said.

You should also know under these new rules a dealer can’t charge you for any item unless they’ve told you what it is and how much it costs, and you’ve agreed to the charge.

To learn more about the new CARS rule click here.


About the Author
Jennifer Waugh headshot

Jennifer, who anchors The Morning Shows and is part of the I-TEAM, loves working in her hometown of Jacksonville.

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