Buying a car can feel like walking through a minefield of shady sales techniques. You need to protect yourself against a number of deceptive dealerships that have long been using a whole host of tricks to extort money from consumers. Although a new Federal Trade Commission (FTC) ruling aimed at putting a stop to these underhanded practices was supposed to go into effect last summer, it now appears that date has been pushed back to 2025.
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The FTC's “Combating Auto Retail Scams” (CARS) rule was supposed to go into effect in July 2024, but due to an ongoing legal challenge, the effective date of the Final Rule is being postponed until further notice. It aimed to crack down on four of the most common scams car buyers face.
Regardless of whether the FTC can enforce 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 you can protect yourself with or without CARS.
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You see an advertisement for your dream car at an incredibly low price. But when you get to the dealership, the salesman hits you with the old “just kidding!” They may claim that the advertised price is a typo or that the car is no longer available. Their real goal? Use that too-good-to-be-true offer as bait to lure you in before switching to a much more expensive option.
Under CARS, this bait-and-switching of prices, discounts, rebates and inventory would be 100% illegal. Dealers couldn't falsely advertise to get one from you.
You've decided on the car and the price, but the paperwork is full of random charges you never agreed to – things like $500 for “nitrogen-filled tires” or a useless warranty for maintenance your car will never need. These hidden “junk fees” can drive up the total cost by thousands.
With CARS, dealers would have to get explicit permission for every single charge. They couldn't sneak anything in without your knowledge and approval. You also have the right to refuse add-ons that you do not want.
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Military personnel have often been targeted by unscrupulous traffickers. They face unique challenges, such as dealing with relocations and special repossession protections. Shady sellers often lie about their military ties or make false claims about issues service members care about.
