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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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Buying or leasing a car? Watch out for financing mark-ups and unwanted add-ons. Learn more: ftc.gov/cars
Topics
Buying and Owning a Car

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Annmarie Bowen
August 15, 2024

I recieve the alert.i did not asked for those adds

Tom Turner
August 15, 2024

Very helpful, interesting article. Thanks!

joseph D tate
August 15, 2024

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

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