4 Sneaky Car Dealership Scams That Could Be Illegal in 2025

Buying a car can feel like walking through a minefield of shady sales tactics. They need to guard against some fraudulent retailers who have long used a variety of tricks to try to fleece consumers of their hard-earned money. Although a new Federal Trade Commission (FTC) ruling aimed at putting a stop to these underhanded practices was set to take effect last summer, it now appears that date has been pushed back to 2025.

Read more: These 10 used cars last longer than the average new car

For you: 9 things you need to do to increase your wealth in 2025

The FTC’s Combating Auto Retail Scams (CARS) rule was scheduled to take effect in July 2024, but a pending legal challenge has delayed the final rule’s effective date until further notice. The aim was to tackle four of the most common scams faced by car buyers.

Whether or not the FTC can enforce this decision, there are still ways to spot a scam so you don’t get scammed at the merchant. Here’s what these slimy tactics look like and how you can protect yourself with or without CARS.

Trending now: Suze Orman’s Secret to a Prosperous Retirement – Have you made this money switch?

You see an ad for your dream car at an incredibly low price. But when you get to the dealer, the salesperson keeps telling you, “Just kidding!” You might claim that the listed price is a typo or that the car is no longer available. Your real goal? Use this too-good-to-be-true offer as bait to lure you in before you upgrade to a much more expensive option.

Under CARS, this bait and switch on pricing, rebates, rebates and inventory would be 100% illegal. Dealers must not falsely advertise that they will hit you.

You’ve decided on the car and the price, but the paperwork is filled with random fees you never agreed to – things like $500 for “nitrogen-filled tires” or a useless warranty for services your vehicle will never need . These hidden “junk fees” can add thousands to the total cost.

With CARS, dealers would have to obtain explicit consent for each individual fee. They couldn’t sneak anything in without your knowledge and consent. You also have the right to reject unwanted add-ons.

Discover more: Here’s the most popular car brand among baby boomers in every state

Military personnel were frequent targets of unscrupulous traders. They face special challenges, such as dealing with moves and special return protection measures. Shady salespeople often lie about their military affiliation or make false claims about issues military members care about.

The story continues