Consumer Alert
Car dealerships can’t charge you for add-ons you don’t want
Car dealerships offer buyers lots of add-ons — like service or maintenance contracts, or special car paint coatings — that add up quickly. So, when buyers decline optional add-ons, they don’t expect to end up paying for those extra things. But that's exactly what the FTC says happened to many buyers when three dealerships in Texas owned by Asbury Automotive used (illegal) ways to sneak in add-ons.
The FTC says that as many as 75% of Asbury Automotive’s car buyers reported their dealerships had tacked add-ons onto their sales contract, either secretly or by telling buyers they were required. (They weren’t.) Even worse, Asbury Automotive illegally charged Black and Latino car buyers hundreds of dollars more for the same add-ons.
How could Asbury Automotive sneak thousands of dollars of fees into buyers’ sales contracts? Among other tactics, the FTC says that buyers signed contracts on electronic devices that didn’t show the terms — only where you needed to sign. So you might not find out about those charges until after you’d driven off the lot — if ever.
Some illegal tactics are hard to spot, but here’s how to avoid overpaying for a car:
- Read the sales contract and financing agreement carefully. Ask for a printed copy. Make sure the terms you agreed on match what’s in the contract. Get answers about any extra fees you don’t recognize and tell the dealer to remove any add-ons you don’t want.
- Know your total cost, not just the monthly payment. Get it in writing and make sure it includes all charges, including any fees or add-ons. This will help you catch extra charges and add-ons dealers may try to tack on.
- Shop around for financing. Dealership financing often comes with marked-up interest rates. It’s not your only option. Start with banks, credit unions, and other financing companies. Get pre-approved and use that offer to negotiate with the dealer.
Spot a dealer acting illegally? Tell the FTC at ReportFraud.ftc.gov.
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Reputable dealers will disclose any options, and you can accept or reject them.
In reply to Reputable dealers will… by Scott
Thanks for the information.
In reply to Reputable dealers will… by Scott
Yea I guess that's true but where I live in Traverse City, Mi they try to make you feel pretty uninformed, uneducated, stupid and even mad if you want to pay cash. The finance manager got mad and was insulted that I did not want his extended warranty. The Ford/Lincoln Dealer seems Great, I just don't like the products.
Next time just through Consumers Report and online...
In reply to Reputable dealers will… by Scott
No they won't. I just bought a Jetta from a big dealer in Houston. They stated that there was an additional $1000 for tint, N2 tires, and locking lug nuts. I laughed and said I didn't want any of that, and told them it was not even on the car. They only back down when I started to get up and walk out, then they pulled the whole are you willing to loose the deal over $1000. I said are you? If I wasn't paying in cash I'd think they would have tried to hide it in the financing.
In reply to Reputable dealers will… by Scott
Looking for a good used car soon, thank you for the info!
In reply to Reputable dealers will… by Scott
Not true. Many dealers have done this within my own family. 3 separate dealerships. Seems to be a popular practice these days.
Thank you for the excellent advice. When I bought my car three years ago, the dealership had nitrogen in the tires. I didn’t want nitrogen in the tires and it was an extra cost wondering if I could’ve gotten that removed.
In reply to Thank you for the excellent… by Heidi Manti
One time a dealer tried pulling that on me, I told them they should go to Costco, the nitrogen is free. The fee came off.
I just bought a 2021 gmc canyon Denali they added 999.00 for paint protection and charged 699.00 for administrative fees then after the purchase they handed me one key no remotes it has remote start I had to get mad they made me a remote the truck I traded them had 2 remotes
So glad you posted this because Underrepresented racial minorities are at the mercy of crooked car dealers. Dealers' fees are outrageous and if you are a woman need to watch out for these tactics.
In reply to So glad you posted this… by Verene Lancaster
I just bought a car from a dealership in Alabama and the finance manager said that if I wanted their APR and monthly payments (which were significantly lower than what a bank preapproved me for) that I needed all the extra warranties they tacked on top of the price of the car. I am a Latina woman, first time car buyer, and I felt so helpless in that office because I knew that wasn't true and asked multiple times for them to take off the add-ons and they refused. I felt pressured to sign and now I'm in the process of cancelling all the add-ons to lower my loan amount to what it actually should be.
I’ve yet to get my paperwork from Right Toyota in Scottsdale , Az
It's a great piece of information that I will pass to my friends. I know many young people that purchased cars from some dealerships, resulting in the cars being stolen.
On the other hand Latinos or immigrants in need of transportation frequently are scammed by those dealerships and specially by fake insurances that at the end they deny to pay and keep passing the ball to each other to find out who will pay.
I know many cases of young people and immigrants who are facing these issues with these insurance companies and car dealers.
ERNESTINA Heller
I have the same add on problem with Chapman dealership in Yuma, AZ. I repeatedly told no. They lowered the price of 3 add on. I still said no.
They said they would take them off. But would not give the money back.
In reply to I have the same add on… by Gayle L Straight
Until you, FTC, develop a “complaint” PROCESS that is mandatorily given to car buyers listing the FINAL price agreed to with a list of ANY options that will be included in final price the seller has complete control over the purchaser.
Although I didn't buy a car from this Mazda Nevada dealer, they told me I must buy their paint and upholstery protection package costing $1,500 because it was applied at the port of entry and they had no control over it. Because of this and other maneuvers I felt were deceptive, I opted to not buy from them.
In reply to Although I didn't buy a car… by John Casey
That's the move. If you don't like what is happening, regardless of how much time and effort are in the deal, vote with your feet.
I've done it. Left the sales person sitting at the table baffled.
In reply to Although I didn't buy a car… by John Casey
Add-ons r deceptive period. It's a way for dealerships to gouge consumers.
In reply to Although I didn't buy a car… by John Casey
They also jack up the documentary fees, hundreds of dollars and it’s pure profit and nobody can explain what is involves for so much money!!
I recently bought a new Kia Telluride in Coatesville PA. The dealer added "ID etching for theft protection" and some type of stain proofing. The salesman said all of the vehicles there have it and it is not negotiable. It left a bad taste in my mouth but the car I wanted was there and I didn't fight him on it. Sucks they do that.
I had the same problem with a dealer in Hollywood Florida which charged me an extra $3000 add-ons on a vehicle 2018 Nissan Sentra
I purchased a new Volvo XC40 in 2022. We made the deal with the salesperson, but before writing the check, we were ushered into the office of a financial person who proceeded to lay out many various options we could purchase. It was overwhelming, and completely unexpected. We didn't have time to even digest what she was saying before she went onto another option. What had been a good experience with the salesperson, turned the entire experience of purchasing this car into a fiasco with our heads spinning. We were not told ahead of time to expect this; we were not provided information ahead of time to review and think about before committing; we had to make a decision that day at that moment. Talk about high pressure sales! We hated that, and while we've been Volvo owners for more than 20 years, this experience has left a very bad feeling about Volvo's tactics. They sure know how to drive a customer away!
In reply to I purchased a new Volvo XC40… by Lynn Swisher
I hated buying a vehicle so much because of that. So last time I went and bought a vehicle I walked onto the lot picked out my car. I was pre-approved financed by my bank. I told the salesperson this is how much I'll pay for this vehicle and I am not stepping foot in the door of that building I am going to stand right here beside this car and you will bring me paperwork out to sign. I was buying the car for $2,000 less than what the sticker said. He tried three times to get me in the building to which I told him no I told him I would stand there for a total of 20 minutes. And that if I wasn't in that car and driving away in 20 minutes I would be leaving. 18 minutes into it He came out with paperwork I signed it He handed me keys and I left. Best experience I ever had buying a car.
In reply to I hated buying a vehicle so… by Tracy Fowler
I love this idea
I feel the same as this person about car buying
I went to a Toyota dealership in Phx AZ that advertises their great service on tv bunk
I ended up having extra charges added to the car I had found online and felt very intimidated by the finance person
The FTC is doing a great job by alerting people to SCAMS that are going on.
The FTC is a good government organization that is working FOR THE PEOPLES INTEREST.
Thank you for your service,
Bruce
Who are the three dealerships/companies, because I bought a car last year from a Hyundai dealership and was told the package was required.
In reply to Who are the three… by Meres Thompson
The FTC alleges that three Texas dealerships owned by Asbury that operate as David McDavid Ford Ft. Worth, David McDavid Honda Frisco, and David McDavid Honda Irving, along with Ali Benli, who acted as general manager of those dealerships, engaged in a variety of practices to sneak hidden fees for unwanted add-ons past consumers.
In reply to The FTC alleges that three… by FTC Staff
AutoNation CDJR North in Richland Hills, TX did this to me in 2021. They had several "add-on" already on the Jeep, like an expensive anti-theft tracking system with a high annual fee that I absolutely did NOT want and fender guards. They informed me all of their vehicles receive this upon port entry and it cannot be removed. I took a train to pick up a particular color Jeep that only they had, so I had no choice but to go with it.
Same thing happened to me many years ago at now defunct Pacific Lincoln Mercury where verbally agreed to free items were to be included with new car purchase price that they tried to slip into the closing documents. I yelled & screamed "bait & switch" so all the surrounding customers could here me as I walked out with the Bank's check that I used at a different dealer to buy my car!
You keep us informed about the big purchases in our lives. Thanks a lot. I will pass this on to my children, brothers and sister’s friends.
Good to know. The same thing happened at a dealership here in Charlottesville. We saw the sticker price on the car, the salesman quoted a monthly finance figure, and only when he asked us to sign the sales contract did we notice the higher car cost. When we asked about the higher than expected cost, the salesman had to show us $1,500 extra charges for “clear coating,” nitrogen in the tires (they said they added it but it likely came standard), and accessories. We had them remove the accessories but still had to pay $680 in extra charges. My husband didn’t want to walk away. Buyer beware!
What about lease vehicles ? They put extra items on in the "package" like special paint sealant.
I bought a 2018 338 turbo from West Coast auto. They charged me exuberant prices for add-ons. They said that could not be removed from the car so I was stuck paying for them.
Nissan of Slidell charged me $495 because they etched the vin# in the glass. I made the finance manager aware that I did not want this, but he basically stated if I wanted to purchase the vehicle it's included in the deal.
In reply to Nissan of Slidell charged me… by Ashley
The FTC needs to tackle these fees too. I bought a car last fall and EVERY dealer I went to had "mandatory" add-ons. They all disclosed these, but would not take them off. One flat out told me that he didn't care if I bought the car because he knew someone would. I ended up driving to Denton, TX from Austin to buy a car because the dealer up there came down on the add-ons. I notified the Austin dealer of my plans and he said he didn't understand why any dealer would come down on the add-ons because cars were selling quickly.
I bought a car from Community Kia in Baytown Texas and I told them I didn’t want any add ons. I later found out that the finance person added on some things on because this is the only way the finance person makes money.
This made my car payments over $700 a month.
Thank you
I just bought a car and it was posted at 137000 miles little did I know that was untrue and the dealer tried sweeping under the rug when the actual mileage is determined to be unknown
I used to work at a DMV in West Virginia and whenever I checked on the bill of sale of a used or new car for the title, it was amazing to see how much scam and fake charges were added. Sometimes the prices had been so much inflatted, that I didn't even asked or told the owner to no not sour their days, when there were nothing to do at that time, (besides, dmv people shouldn't). I really felt shock on seeing how much these (some of them, not all) dealers were pocketing from their clients. It's really shameful. FTC is doing and should keep doing this good job, make them pay and spread the news.
As a colored person, I've been offered all these extras, plus high interest rate bank loans, and no budging on pricing. Even worse for my wife.
I learned to purchase cars from credit unions (used), CarMax and now Carvana. We've had great results, with no ads ons or additional fees and get our car loans from credit unions at really low prices. Bank of America and Wells Fargo will charge extra interest of your colored so stay away from them.
Colored meaning, any hint and I mean any hint of color and they will not treat you the same as your Caucasian counterpart.
hyundai topeka ks did this to us 3 years ago.
they put parts department items on the monroney sticker, that they didn't want us to negotiate out of the cars price. garbage you don't really need like hyundai branded $40 first aid kit, total contents probably less than $10 at walmart. Get get floor mats etc are extra cost, but what if I don't want them either?
I told the sales manager, Imagine I go to your parts counter, and you make me purchase air freshers in the cost of the part's I need, non negotiable add-ons, simply because you want to move merchandise you stocked up on to make a few extra bucks because you paid for them? Sound like a good deal for me? Or want free warranty work? Nope you'll have to purchase some worthless over priced hyundai branded swag, because the stealerships need to make money. lol
Family Toyota in Burleson, Texas and Arlington, Texas are telling the customer that they have to buy the Protection Package at $1299.00 No Negotiate over this, it is a must or they tell customer Family Toyota will not sell you a car.
I’m trying to buy a 2022 used suv right now and the dealer will not remove the paint protection for $1000. I tried to negotiate the $999 DOC fee as well and they won’t budge. They won’t increase the offer on my trade in or lower the price either. I don’t want to walk out a second time because I want the car! Do I give in or is there anything else I can do?
But what if the dealer will not sell the car without those add-ons? I was just in a dealership trying to buy a car and they had $4500 of add-on; nitrogen in the tires, interior and exterior chrome trim, saltwater clearcoat, tire locks, and pain protectant film; the trim and wheel locks were not on the car and I could not tell if the remainder of the items were installed yet. I said I did not want them, and the GM said they will either be installed or will be in the trunk of the car, but they are going to be included in the price. I walked out and bought a car elsewhere.
Is there a way to get our of a car loan recently purchased? I was rushed and my payment is way too high. They also said car was$23k and actually 33k, after fees They said I have to purchase LoJack-$5k just for that. Hate the car, can't afford it, just want out of this.
Most franchise desires in Texas will not remove any of the added fees and products. I've contacted dozens of dealers trying to make a purchase.
My son had a $4900 service warranty added to his loan by the
dealer and my elderly Dad had same thing done to him. It's not just black and Latino this happens to. You can't really report it on here since the form asks questions that don't pertain to this. Ftc should put a stop to this.