Consumer Alert
Did you ask for all those add-ons? Protect yourself at the dealership
The signs of a good car-buying experience? Things like trust, transparency, and fairness at the dealership. The signs of a bad car-buying experience? Things like misleading ads, bogus fees, and discriminatory practices. How can you protect yourself when buying a car?
According to the FTC and the State of Arizona, at Coulter Motor Company — which operates dealerships in Arizona — many customers got those signs of a bad car-buying experience. The FTC and Arizona say Coulter often advertised low vehicle prices to get people in the door, then charged them thousands of dollars more at the dealership. Sometimes Coulter blamed the upcharge on a surprise “market adjustment.” Other times, the FTC says Coulter slipped in add-ons — like theft protection, paint coating, nitrogen tires, or tinted windows — that people didn’t want or agree to. If people noticed and asked to remove the add-ons, Coulter often claimed they were required to get the car. (…The add-ons were definitely not required.)
On top of all that, the FTC and Arizona allege that Coulter charged Latino customers more for financing — an average of nearly $1200 more in combined interest and add-on costs. That’s discriminatory, and that’s illegal.
While some illegal tactics are hard to spot, here are some ways to protect yourself when buying a car:
- Shop around for financing. Dealership financing isn’t your only option. Start with banks, credit unions, and other financing companies. Get pre-approved and use that offer to negotiate with the dealership.
- Read the sales contract and financing agreement carefully. Make sure the terms you agreed to match what’s in the contract. Get answers about any fees or charges you don’t recognize.
- Walk away if you’re not getting what was promised. You don’t have to take the deal if you’re not satisfied.
Learn more at ftc.gov/cars.
And if you think a dealership published misleading ads, charged hidden fees, or discriminated against you, tell the FTC: ReportFraud.ftc.gov.
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I recieve the alert.i did not asked for those adds
Very helpful, interesting article. Thanks!
My son pretty good with paper work , but they slip one past him , or couple and my son was on phone with Capital One Finance .They told him to take the car back it was brand new car and if they could not fix the contract they would find other dealer for my son .So he went back and ask them to fix the contract they said nothing wrong with contract. My said they few problems one i didn't ask for 2.500.00 dollar maintenance fee ,second i didn't ask for 3000.00 extended warranty . and i didn;t ask for this hidden fee of 1000.00 AC service for life of car as long as i own it . If you add all that with price plus finace fee 6.500.00 added into balance so it come out more and you get paid more . Well they got on phone it didn't take long they had new contract and car was not 18.500.00 it was 6.500.00 lower . It was new car maintance comes with new car ,like filters ,oil ,lot others things ,that also the AC if it needs service .and warranty it comes with car because it new car not used car . so if you by new car watch the paper work .They will rip you off and the more money they add the more they make and more you pay .This was in Arkansas ,Little Rock dealership
In reply to My son pretty good with… by joseph D tate
My own cousin did me in. cheated me at a car lot on a car deal.
In reply to My son pretty good with… by joseph D tate
We had a bunch of fees on our car that we didn’t need. This was at Basil near Buffalo, NY. We signed for them, but we were naïve. There was a charge for etching the vin on the glass, seat upholstery spraying, undercoating, extended warranty and gap coverage, and probably more. When all was said and done the used car was so expensive like $30,000 because we were underwater on our trade which had a blown engine. Our credit union wouldn’t refinance the high rate we got at the dealership which I hoped because the total was so high. That was the worst deal we ever made. Only got $800 for the SUV with the blown engine.
I was swindled out of $2,000 on my last car purchase. I thought I knew all the scams but I got robbed by an unscrupulous car dealer. When it came time to sign the paperwork the dealer jacked up the price by $2,000 and I didn't catch it because I didn't have my reading glasses with me at the time. I thought I was dealing with honorable people and signed the paperwork. When I got home I discovered they had changed the contract on me. And when I went back to the dealer the next morning there was another car buyer at the reception area with the same issue. Needless to say this dealer refused to write up a new contract based on the price we negotiated the night before because " I had signed the paperwork ". What grifters these dealers are nowadays!
I've always been by myself when I have bought in the past. The dearlership always puts maximum pressure to buy an extended warranty. It's always an issue and they make comments like if you don't get it, you'll be so sorry. They will put so much pressure on people. I feel since I'm a female they really try and take advantage of women. Has anyone experienced this scenerio?
We recently bought a vehicle without financing and the financial expert tried to slip in thousands of dollars in charges we had not agreed to. He was the most rude, incompetent person I've ever met and the regional manager will know.