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The FTC has been trying to curb a long-standing practice in car sales where dealerships advertise a low headline price but don’t fully disclose all required fees upfront, The Wall Street Journal reports.
The goal is to move toward all-in pricing, where the price shown to customers already includes mandatory charges so buyers can compare offers more accurately.
Even with warnings sent to hundreds of dealerships and increased scrutiny, the issue is still widespread. Many buyers continue to encounter extra costs late in the purchasing process.
These can include documentation fees, dealer preparation charges and dealer-installed accessories that are presented as required or difficult to remove. As a result, the final price often ends up noticeably higher than the advertised one.
Consumer advocates say this creates confusion and makes it harder for shoppers to compare vehicles across dealerships. They argue it can function similarly to a bait-and-switch strategy, since the initial price draws customers in but doesn’t reflect the real cost.
Dealerships, however, often defend the practice by saying some fees vary based on financing, trade-in deals or optional packages, and that pricing structures are complex in general. They also point out that many competitors use similar tactics, which makes it hard for any single dealer to change without risking a disadvantage.
Despite regulatory pressure, the “low price plus added fees later” model persists because it remains embedded in how car retailing works and continues to be financially advantageous for many sellers.
