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.
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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.
The FTC’s “Combating Auto Retail Scams” (CARS) rule was supposed to take effect in July of 2024, but due to a pending legal challenge, the Final Rule’s 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 don’t get duped at the dealership. Here’s what these slimy tactics look like and how to protect yourself with or without CARS.
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 “just kidding!” 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.
You’ve decided on the car and price, but the paperwork is filled with random fees you never agreed to — things like $500 for “nitrogen-filled tires” or a useless warranty for services your vehicle will never need. These buried “junk fees” 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.
