Even Dealers Support the FTC's Proposed Auto Dealership Rules
Image: David Zalubowski (AP)
Car dealers and their shady tactics finally got the attention of the Feds. The Federal Trade Commission proposed new rules that have broad support. But as Automotive News reports, with comments showing public support for the rules, the National Automobile Dealers Association and American Financial Services Association want more time for other points of view.
The FTC’s proposed dealerships rules covering everything from financing to advertising were opened up for public opinion. The 60-day window for public comments opened on July 13th and is scheduled to close on September 12th. But the NADA and AFSA want another 120 days.
The reason? The comments so far overwhelmingly support the dealer rules. The NADA and AFSA seem to want more time to get comments that favor opposing the rules. Right now, it’s not looking so good for those in favor of not being transparent with people. The NADA had a weak argument to begin with. And while it seemed as if most dealers were against the rules, some are speaking out in favor of them.
One dealer owner chimed in to support the rules by calling out all other dealers for being sketchy, saying, “Overwhelmingly, automotive dealership advertising is ridiculously deceptive. Advertised prices often assume a trade-in credit, a finance credit, or maybe some sort of incentive or rebate that usually doesn’t apply. The advertised prices will also not include add-on’s such as dealer fees, prep fees, market adjustment fees, and/or reconditioning fees. These fees add up to thousands of dollars that have been undisclosed to the consumer. It’s really become a joke.”
Remember, the NADA pretty much said that the FTC didn’t have enough evidence to support these rule changes. They should just come out and say they’re in favor of consumers being taken advantage of instead of making weak excuses.
