If you’ve ever sat in a dealership finance office watching the price of a car somehow balloon by $3,000 in the final 10 minutes of paperwork, congratulations: you’ve lived the full American car-buying experience. The good news? The federal government has apparently had enough of it too.
The Trump administration’s Federal Trade Commission sent warning letters this week to 97 dealership chains across the country, putting them on notice to clean up what the agency is calling “deceptive” pricing practices. Translation: stop advertising one price and quietly stapling a bunch of mystery fees onto the bill when the customer is already exhausted and emotionally committed to leaving with a new car.
“The Trump-Vance FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding on mandatory fees at the end of the purchasing process,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection.
It’s a mouthful, but the message is simple: the sticker price should actually mean something.
So What Counts as Deceptive?
The FTC laid out a handy list of no-nos that dealers will now be monitored for. Among the highlights: advertising a price that doesn’t include all required fees, quoting discounts that most buyers don’t actually qualify for, making the advertised price contingent on using the dealer’s own financing (surprise — their financing is rarely the best deal), and bundling in add-ons the buyer never asked for. Oh, and advertising cars that don’t exist. Yes, that’s apparently a thing.
For those keeping score at home, this is basically a list of things any regular car shopper has experienced and quietly seethed about while signing twelve different pieces of paper.
Some Dealers Are Already in Hot Water
The FTC didn’t stop at warning letters. The agency is actively pursuing cases against Lindsay Chevrolet, Leader Automotive Group, and Asbury Automotive Group. Surveys of customers at all three found evidence of shady practices in at least 75% of responses — which is a staggering number, though anyone who’s gone car shopping in the last decade probably isn’t shocked.
Look, car enthusiasts will tell you the real joy is in the hunt: the research, the test drives, the agonizing decision between the trim levels. And sure, that part can be fun. But nobody — not even the most devoted gearhead who has memorized every horsepower figure since 1987 — enjoys discovering that the car they thought they were buying for $32,000 is somehow $36,400 by the time someone slides a tablet across the desk.
Transparent pricing doesn’t make cars less exciting. It just means the only thing making your heart race at the dealership should be the test drive, not the final invoice.
The FTC’s move is one of those rare moments where the policy seems pretty straightforwardly good for everyday consumers. Whether dealers actually change their ways — or just get more creative about what they call their fees — remains to be seen. But the warning shots have been fired. Consider this the government’s version of asking to speak to the manager.