As you may have heard, the FTC’s new CARS Rule is set to bring significant changes to the car buying and leasing process. This rule aims to eliminate deceptive practices and promote transparency in the industry. These new rules are under judicial review and so no effective date has been set at this time. It was originally scheduled for July 30, 2024. To help our dealers stay compliant and navigate these new regulations, Dealerslink has implemented several key features and offers a range of tools designed to assist.
Understanding the FTC CARS Rule
The FTC’s CARS Rule is designed to protect consumers and promote fair competition among dealers. It addresses issues such as bait-and-switch tactics, hidden charges, and misleading advertisements. By establishing clear standards, the rule aims to make the car buying process more transparent and fair.
Key Principles of the CARS Rule:
- Prohibiting Misrepresentations: Dealers must not misrepresent material information such as costs, terms, availability, rebates, financing, and consumer reviews.
- Disclosure of Offering Price: Dealers must clearly disclose the offering price, excluding only required government charges.
- Illegal Add-ons: Dealers cannot charge for add-ons that don’t provide a benefit to the consumer.
- Express, Informed Consent: Dealers must obtain clear, informed consent from consumers before charging for anything.
How Dealerslink is Helping Dealers Comply
Dealerslink is committed to supporting our dealers in meeting these new standards. Here’s how we can help:
Accessories Pricing for Exports
- We’ve added accessories breakdowns and pricing fields to properly display what’s on the vehicle. This ensures that all additional features and their costs are clearly communicated to the consumer, adhering to the rule’s transparency requirements.
Fee/Accessory Pricing for Window Stickers
- Our window stickers include a section for additional fees. This ensures that any extra charges are clearly displayed, helping dealers comply with the rule’s requirement to disclose all costs upfront.
Additional Custom Price Fields
- We’ve introduced additional custom price fields to allow dealers to show all pricing needs comprehensively. This flexibility ensures that every cost, from base price to optional add-ons, is transparently presented to potential buyers.
Incentives
- Dealerslink offers the ability to include new vehicle incentives and OEM incentive data. This ensures that incentives are uniformly presented across multiple platforms, eliminating confusion and promoting honest advertising.
Immediate Compliance Steps for Dealers
To ensure your dealership is compliant with the upcoming CARS Rule, follow these steps:
- Clearly Disclose All Costs and Terms: Make sure all advertised prices include all costs except required government charges.
- Avoid Misleading Claims: Ensure all promotional materials are honest and straightforward.
- Require Explicit Consent for Added Charges: Always obtain clear, informed consent from buyers for any additional charges.
Practical Examples and Compliance Tips
- Clearly Disclosing All Costs and Terms: If a vehicle is priced at $10,999 with a $200 Doc Fee, advertise it as $11,199. Include all costs in the total payment amounts for financed or leased vehicles.
- Avoiding Misleading Claims: Do not advertise vehicles at prices not available to all customers or promote non-existent rebates.
- Requiring Explicit Consent for Added Charges: Make sure buyers are fully informed about, and consent to, any added services or products like GAP insurance or service contracts.
Impact on Servicemembers
The CARS Rule also aims to protect young servicemembers from predatory practices. Dealers are prohibited from misleading servicemembers about costs, financing, military affiliation, vehicle mobility, and repossession laws.
Dealerslink is offering free FTC CARS Consulting Sessions
To further support our dealers, Dealerslink is offering a free FTC CARS consulting session. This service will help evaluate how you price and fee your cars, ensuring you stay compliant with the upcoming regulations. Our commitment is to make pricing and disclosure as easy and transparent as possible for our customers.
Resources to Get Informed
If you are unaware of the CARS Rule or need more information, here are some resources to help you get informed:
By leveraging the tools and features provided by Dealerslink, you can ensure your dealership stays in compliance with the upcoming CARS Rule. Our commitment is to make pricing and disclosure as easy and transparent as possible for our customers. As
“Dealerslink is committed to making pricing for our customers as easy as possible and we have improved our platform to be able to provide that for our customers.”
– Devon Peterson, VP Dealer Services
Stay informed, stay compliant, and ensure your dealership thrives under the new regulations with the help of Dealerslink.
Contact Us
Ready to ensure your dealership is fully compliant with the new FTC CARS Rule? Contact Dealerslink today to schedule your free consulting session. Stay compliant, stay ahead, and let Dealerslink guide you through the FTC CARS Rule with confidence.
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