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Whether you’re excited about buying the car of your dreams or just trying to make your budget stretch to get reliable transportation, the car buying process can be stressful. It can also be costlier than expected, because of misleading ads and hidden fees at the dealer. The FTC’s new Combating Auto Retail Scams (CARS) Rule aims to change that by stopping bait-and-switch tactics and hidden fees.

Here’s what the Rule means for car and truck buyers like you.

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

Real consent for all charges

  • 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.

The CARS Rule will make it easier to shop around for a vehicle based on the actual price. And the FTC estimates that car buyers will save $3.4 billion per year.

Stay tuned in the weeks and months to come for more advice about buying a car or truck at a dealership.

[Note: This blog was updated on January 24, 2024 to remove the Rule’s effective date. The rule has been paused pending judicial review.]

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New CARS Rule will protect car buyers and honest dealers.

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David Castle
December 12, 2023

The problem is the rule doesn't start now.

Mark
December 13, 2023

In reply to by David Castle

Seriously? I've never heard of any dealer charging for oil change contracts on an EV. If they did and someone isn't smart enough to know that then they probably shouldn't be driving. That aside, none of the mentioned items have ever been required and I've absolutely never had a problem with a dealer when I just told them that I'm not buying any extras. The dealers can't force anyone to buy a car with paint protection add ons or anything else. If they tried it, then just go buy the car somewhere else. Leaving a Google review is more productive than more government rules.

Emerald
December 13, 2023

In reply to by Mark

Good morning Mark,
I had fallen a victim of this extra charges from dealers, such as extended warranty and additional insurance, even though I had my own insurance already.
I did a trade in before I got my present car, the dealer never told me my trade in valued, the car I purchased was $17,000 and I signed the financing paper, but the dealer forged and my signature and also changed the car price to $22,000, now the total price that I have pay back is $35,000, I have been dealing with this issues for over 1 year, but I not got justice yet, this seller took advantage of me because I am female.
I have filed this case with BBB and consumer affairs ,
Dealer offers upgrade or fix mechanical issues on the car.
but I disagreed because it is a case of false price, forged signature and dealer open bank account on my name and without my consent.
I am still trying to find help on this issue.
Have a nice Day

Andrew
January 09, 2024

In reply to by Emerald

Americans must stick together and stop bickering- come together. There is an advocacy group out of California that has helped a neighbor in another State; but could not represent them in Court for Georgia. A Dealer Car Max allows lenders to do business in Georgia that are being Sued that overcharge/inflated loan amounts or even forged your signature on Paperwork from CarMax Dealership. The California Advocate Group was able to step by step guide them. Georgia does Not have anything like that Group. In fact, the loan company is in business under a different Name and is being being Sued in another State. Not sure of the trade name that the loan company operated now; but they do change the terms of the Loan from the dealer to over 23% as increasing the price. CarMax doesn’t help either as they allow this to go on. Pleading- We don’t have control what or which Lender does whatever they want. Just Sell those cars. Bad Car Lenders get away. Americans that need help pay the price. I hope the FTC and other Non-Profit Groups would work together to STOP these thieves that take Our hard earned money from us. Being Sued in One State go Open Up shop in another State under ANOTHER NAME. disclaimer: may not have proper names or made errors in recalling information it is not my intent.

Barry
December 21, 2023

In reply to by Emerald

Emerald,
What you describe likely constitutes several crimes including forgery, filing a false instrument, bank fraud and possibly others. I would suggest that you bring all your documentation to your local District Attorney's office.

Cindy
January 09, 2024

In reply to by Barry

Barry, I agree. Emerald, I sure hope you contact "someone", even if they refer you to someone else, you shld hold that dealership responsible.

I wish this wld've been in effect 6 yrs ago. The dealership where I purchased my car, took advantage when I took my car in for a heater core shortly after I purchased the vehicle, with the agreement to replace the heater core that went out before I purchased the vehicle. A yr later, I took the vehicle back in bcuz the heater core went out again (apparently, the dealership did not replace the heater core the first time). They had my vehicle for 23 days for a simple heater core that wld've taken 1 - 2 days at most. The awful thing was that my 90 yr old father who lived 2 hours away was in hospice dying. They wld not give me a vehicle to go say goodbye to my father. They wld give me excuses that the truck that delivered their parts had broken down, etc. After the funeral I went to pick up my vehicle. It had over $1,800 dollars damage. The windshield had been replaced, there was serious damage to the doors where they pushed my doors into a steel beam to keep the doors open while they took out the windshield, etc. I went to an atty & he said the judge wld only tell me, "you have insurance to cover that". :(

Thomas Fellenberg
December 27, 2023

In reply to by Emerald

Contact a attorney that deals with consumer affairs. Me & wife bought a used vehicle that was clearly advertised as AWD. 2 days later found out that it was not. Got a attorney involved & we got $6000 refund,attorney got $2000 of that $6000

lexus
January 02, 2024

In reply to by Emerald

I literally just made a complaint of something similar and i am forced to get a higher loan on a better vehicle because im a female. No lawyers would help so now i figured if i have to pay what im paying atleast ill do my research and get something worth it. Im sorry you have experienced this also.

Laszlo
January 09, 2024

In reply to by lexus

Report the Dealer to your local DMV Department of Motor Vehicles I think you will get very quick action. Dealers don't want DMV coming in and doing investigation on other possible fraudulent activities. They can shut a dealer down. Once the dealer knows DMV is involved your problem will be solved :)

Denise
January 16, 2024

In reply to by Laszlo

DMV only covers for dealerships and themselves. Brought a Range Rover in for a windshield 9 weeks I get a flood vehicle back and no windshield fixed brought it to DMV inspection couldn't verify the vin and fake title they said it's under investigation with a Dave Fruwirth in the fleet dept. 3 yrs no answer and why would it be under fleet.

Tina
January 09, 2024

In reply to by Emerald

Hello Emerald,Have you tried sending all the information you have to your State Attorney General? If not I would start there.

Peter James
January 16, 2024

In reply to by Emerald

All of this comes from the fact that cars are the only retail item that aren't supposed to make money. Consumers want dealerships to discount everything to the point where the dealer is losing money, so the only way they can make a profit is by selling extended warranties and so on. Jewelry, furniture, and many other avenues mark their products up by a ridiculous margin. A normal car has barely any markup on it at all from what the dealer owns it for, to the MSRP. I understand hating that car-buying is scary, but these people are just trying to feed their families too. Most sales people are very friendly. and most managers and owners are family-men and women. If everyone wants the fear-factor to go away, everyone should just agree to let the dealer make a few thousand dollars on the transaction, and I guarantee they will happily serve you and take very good care of you. But instead, what most people do is go in and demand the lowest possible price, blow up social media about how awful the dealership was, and demand extra stuff for free. See the problems we as a society have created for the car business?

BOB
January 31, 2024

In reply to by Emerald

Start buy purchasing at a reputable franchise dealer and not a rock lot privately owned bad credit buy here pay here auto broker. Too many government regulations to protect the .000001% of the idiots in the world get in the way of good business.

Keith Wermann
January 18, 2024

In reply to by Emerald

I brought a vehicle at a dealership. They added a extra charges cause I used a credit card. Can they do that?

Mike
December 13, 2023

In reply to by Mark

Have you ever bought a used car? I can't believe how much bait and switch still goes on. I have the internet on my phone and they still deny they said this or offered that. Anything the FTC that helps stop these scammers is appreciated.

Davro
December 13, 2023

In reply to by Mark

True. I just traded our new truck for a newer SUV and the ridiculous hoops I had to jump through to keep from getting cheated were a nightmare. They now have a lower rating and lost sales. Their parent company immediately trained them again. They Probably trained them to smile more while they are selling worthless add ones that nobody needs and don't get back when you trade in within a year but lesson learned. Will be going to a different dealership and Company next time. More laws just mean more Government fees. That seems to only help the politicians, not the people

Tp
December 18, 2023

In reply to by Mark

Sure they can. They simply add the bogus charges to the car price and if you refuse to pay, they don't sell you the car. It happened to me more than once.

Angela Mack
December 20, 2023

In reply to by Mark

Lots Lots of young people and 1st time buyers don't know that they don't have to buy extended warranty, etc. so these laws help those people. This law is not intended for someone that knows everything about shopping for, and doing research on cars. Sales dept knows how to decieve and misinform.

JI
December 21, 2023

In reply to by Mark

I agree with you Mark. I know some dealers try to do all the things people stated in the replies, but they can't force anyone to buy, or accept the terms. If a dealer attempts these things, you are at the wrong dealer. Leave and write a Google review.

Carlos
January 09, 2024

In reply to by Mark

This gentleman could pass as an advocate for a car dealership. As much that he portends to know, not all consumers are as savvy as he, or perhaps they’re more so. Sir, you don’t know what you don’t know.

Nick
January 09, 2024

In reply to by Mark

We need government rules in cases like this a google review isn’t going to do anything for the people who don’t know about google or justice isn’t done with google regardless.

Laszlo
January 09, 2024

In reply to by Mark

I agree you have to be pretty dumb to be paying for oil changes on an electric vehicle they have no business even buying a car by themselves in that case they could be sold anything and everything

Eric K
January 23, 2024

In reply to by Mark

I applaud the FTC for doing this.
I wish they would have done it sooner.
Not everyone has an electrical/ mechanical engineering degree.
My 78 year old mom doesn't.
If everyone knew the meaning of integrity we wouldn't need any laws.
Unfortunately that's not the case.

Andi
December 18, 2023

In reply to by SUSAN

It says the Cars Rule takes affect June 20, 2024

Andi
December 18, 2023

In reply to by SUSAN

I stated the wrong date.
The correct date according to the notice I just read, the CarsRule starts July 30, 2024.

Allan Avila
December 18, 2023

In reply to by David Castle

That is the sad part, actually. And in that case, what kind of protection can I expect if the deceptive maybe even fraudulent sale happened just two weeks ago?

But I do appreciate and applaud this move.

Dennis R. FURMAN
December 12, 2023

GREAT JOB
THANK YOU

Martin L Sherman
December 12, 2023

Thanks especially for the tip on the Nitrogen filled tires.

Sherri Rhoden
December 12, 2023

I want to thank the FTC for this new rule when it comes to purchasing cars. I have turned in a dealership with what their comptroller was doing to the FTC and to the state of Florida I have also come across car dealerships doing bait and switch because they didn't even have the car on the lot this company I did not turn in. If I did not have experience with a car dealership and how they operate I would not have known the difference but having 8 years experience working for a Ford dealership I did know the difference. People do not know how the as is works on vehicles and dealerships do not explain this to them. I work for a printing company when this one came out and I did ask the NADA what this stood for and they explained it to me. I do have a hard time buying a car because no one wants to work with me which tells me their integrity. Knowledge is power I do hope he will take advantage or learn what their options are.
Thank you again

Diane
December 12, 2023

Good to know. Thank you. Recently I used a car broker to transition from my lease to purchasing my car. It was great not to step foot in a dealership!

Maria Mascaro
December 18, 2023

In reply to by Diane

can you advice me on what car broker should i use to do the same??

Bruce Rolph
December 12, 2023

People have been getting ripped offed for too long. Thank you.

George Pfeiffer
December 12, 2023

Thank you. It is about time these deceptive practices are ended.

Roger Digel-Barrett
December 13, 2023

The CARS rule is similar to the rules in Ontario. There, a dealer must list the total price of a vehicle, excluding the taxes which can vary from town to town.

It's about time! This would never have taken place under a GOP administration, I'm sure.

Andy
December 13, 2023

In reply to by Roger Digel-Barrett

People have a hard time taking accountability, educating themselves and having a backbone. More regulation equals higher fees to the consumer because of all the hoops the dealer has to jump through to be compliant because a few bad actors. Find a reputable dealer, they are abundant! Do your homework, if you don't like the deal walk away. Dig on GOP? Give one example of modern DEMS making a city, state or the country better.

Albo K
February 16, 2024

In reply to by Andy

Don't bring politics into this dude. Chill out. It's going to save money not have higher fee's. Read what it says .

Si Bi
January 02, 2024

In reply to by Andy

The new CARS Rule will only level the playing field for the reputable car dealers, and make no mistake, there are many reputable dealers. There is ABSOLUTELY no reason whatsoever, other than trying to pull off a fast one, for the hidden unscrupulous seller to not quote the full and actual price. I can understand the exclusion of tax and registration because if the sale happens to be to an out-of-state buyer, these particular costs must be determined on a case by case basis.

Read some of the thousands of reviews of people who set out to buy a vehicle from unscrupulous dealers who are not obviously so. As things stand currently, there is so much time, money and energy wasted in trying to get down to the real price. This waste is totally unnecessary unless you're the seller hoping to gain from the chaos.

Caroline Hurley
December 13, 2023

It's about time!!!

John G Flynn
December 13, 2023

Thanks for trying to help me and the people who

Sir Steven
December 13, 2023

Just Grate. Information over 6 Months in advance of taking
Effect.

Mark
December 13, 2023

Pretty ridiculous. We don't need any more regulation. I've also never had a problem with dealers when I tell them I'm not buying any add ons. That's literally all the buyer has to say. No one has ever forced these things with a car sale. If they did, then you leave and go somewhere else.

Albo K
December 14, 2023

In reply to by Mark

Most people are ignorant when it comes to buying a car and are intimidated at a dealership. the the freaking dealers know this and take advantage of ignorant people. This will help the Ignorant.

Rose Tyler
December 18, 2023

In reply to by Mark

Have you bought a car lately? I had to buy when the lots were bare and any new stock was spoken for within hours. When I got the call, I was told that these addons were “already installed at the factory” and couldn’t be removed. My choices were to waste almost two thousand on this nonsense, continue waiting, or buy something different that I didn’t really want.

We need regulations to prevent shady behavior like this. There is no free market in action here. You take it or leave it when demand is high and stock is low.

Shelly
January 02, 2024

In reply to by Mark

On the contrary, when you tell them you don't want the add-ons, many dealerships will never list the optional add-ons or price in writing. They will try to deceive that certain add-ons are required when they are not. Then many will include the add-on that you said not to add in the contract anyway, trying to slip it past any non-hyper vigilant buyer. Figuring out some of the sales contracts and the figures therein also makes it more difficult for a consumer to know exactly what was charged and what was not. I daresay the average person cannot decipher the numbers on the sales contract, so, no matter what was said verbally, often it is not followed through with on the actual contract.

These totally deceptive and often illegal practices at dealerships have gotten completely out of hand. I applaud this new law.

Kamal Thakar
December 13, 2023

Like this information but please provide which fees are optional with sample or example would help.

Linda Calderon
December 13, 2023

Great!

Tom Jasionowski
December 13, 2023

Can you look at doing something about "shop fees" . With labor rates in the $140 per hour range, shop fees are a real rip off.

The newest one I saw was on Shop fees. Posted at a repair shop in Chantilly Va. - This facility uses the flat rate schedule or clock time or a combination of both to come up with a job cost. How is that for not knowing what a repair could cost.

Gale Schmidt
December 13, 2023

This legislation should also include forbidding additional charges for paying cash because they lose their incentive kickback from the financing company for initiating a new loan with the finance company.