Have you asked for all these additional services? Protect yourself at the dealer
What are the signs of a good car buying experience? Things like trust, transparency and fairness at the dealership. What are the signs of a bad car buying experience? Things like misleading advertising, incorrect fees and discriminatory practices. How can you protect yourself when buying a car?
According to the FTC and the state of Arizona, many customers at Coulter Motor Company — which operates car dealerships in Arizona — noticed these signs of a bad car-buying experience. The FTC and Arizona say Coulter often advertised low vehicle prices to lure people into the store, then charged them thousands of dollars more at the dealership. Sometimes Coulter attributed the extra charge to a surprise “market fit.” In other cases, the FTC says, Coulter installed add-ons such as anti-theft devices, paint coating, nitrogen tires or tinted windows that people did not want or did not agree to. When people noticed the add-ons and asked to have them removed, Coulter often claimed they were required to buy the car. (…The add-ons were definitely not required.)
In addition, the FTC and Arizona allege that Coulter charged Latino customers higher financing costs – on average nearly $1,200 more in interest and additional fees. This is discriminatory and illegal.
Although some illegal tactics are difficult to detect, here are some ways to protect yourself when buying a car:
- Compare financing options. Dealer 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 dealer.
- Read the purchase contract and financing agreement carefully. Make sure the terms you agreed to match the contract. Find out about any fees or charges you aren’t aware of.
- Walk away if you don’t get what was promised. You don’t have to accept the offer if you’re not satisfied.
For more information, visit ftc.gov/cars.
And if you believe a car dealership has posted misleading ads, charged hidden fees, or discriminated against you, report it to the FTC: ReportFraud.ftc.gov.
