“NO FEES. NO GAMES. JUST CARS.” It is a slogan that sounds like a breath of fresh air to anyone who has ever sat in a dealership office, waiting for a salesman to come back with a number. The Federal Trade Commission says the reality at a Long Island dealer group was a lot different.
According to the FTC press release, the agency has reached a settlement with Stream Auto Outlet, a dealership group in Long Island, New York. The case was filed in federal court in the Eastern District of New York.
Low Advertised Prices That Allegedly Were Not Honored
The FTC alleges that the dealer advertised cars at artificially low prices that were not honored. In other words, the price in the ad was not the price a shopper could actually get.
Any of us who has shopped for a car knows the pull of a low number. It gets you off the couch, into the car and through the door, and once you are there, it is hard to walk away.
That is why advertising matters so much, and why the agency treats a price in an ad as a promise.
Thousands In Down Payments Disclosed In Small Print Behind A Popup
Next, the agency alleges that shoppers were told they had to make down payments of thousands of dollars. That information, according to the FTC, was in small print behind a popup.
Picture the experience on your phone or computer. You see a great price, you tap to learn more, and a fine-print window hides the part that says how much money you must bring on day one.
A down payment is a big piece of any car deal, so it belongs in plain view, right next to the price.
Thousands More In Dealer Fees And Add-Ons Despite “NO FEES. NO GAMES.”
The third allegation is the one that stings most given the slogan. The FTC says the dealer charged thousands of dollars more in dealer fees and add-ons.
That is where a car price can grow. A handful of extras, such as protection packages, service plans or paperwork charges, can add up fast, and they are easy to miss when you are tired and ready to go home.
The agency says all of this happened despite the “NO FEES. NO GAMES. JUST CARS.” message the dealer used in its marketing.
What The Settlement Order Would Require
Under the proposed order, the dealer would be barred from misrepresenting costs. It would also have to make its ads show the actual price a buyer must pay.
That is a plain and sensible rule. The number in the ad should be the number on the check, without a surprise hidden behind a window.
The order needs approval from a judge. The FTC vote to approve the settlement was 2-0.
How To Shop For A Car Without Getting Burned By Fees
Whether or not you live near Long Island, this is a story worth remembering at any dealership. Ask for the out-the-door price, which is the total you will pay including the car, taxes, dealer fees and add-ons.
Ask for it in writing, and ask for a line-by-line breakdown. If a fee appears that you did not expect, ask what it is for and whether it is required.
Ask about the down payment up front, before you spend an afternoon at the dealership. If the answer is different from what the ad said, you are free to walk out.
Be careful with add-ons you did not ask for. Many are optional, and you can say no to them, so take your time reading each line before you sign.
Dealer fees deserve a closer look. Some are tied to real costs, such as government registration or title charges, while others are the dealer’s own charges, and the difference can be hundreds or thousands of dollars on one deal.
It also pays to shop by phone or email before you drive anywhere. Ask two or three dealers for an out-the-door quote on the same car, and compare the totals side by side.
If a dealer will not put the number in writing, that tells you something. A dealer proud of its price will usually be glad to send it over.
Bring a friend if you can. A second set of ears is a great help in a long conversation with a finance office, and it makes it easier to stay calm and stick to your plan.
Why A Slogan Is Not A Substitute For A Price
Marketing slogans are cheap, and every business has one. A promise of no fees is only worth something if the final paperwork matches it.
The simplest protection is to get the numbers on paper and compare them with the ad. Take a screenshot of the ad when you see it, and keep it with your records.
If you feel you have been misled by an advertisement, you can report it to the FTC or to your state attorney general. These complaints are how cases like this one get started.
The next time you are ready to buy, take a deep breath, bring a notebook and remember that the price you were promised is the one you should pay.
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