It’s been almost a year since the Federal Trade Commission (FTC) introduced the Combating Auto Retail Scams (CARS) Rule, setting out to bring greater transparency and fairness to car buying. Although the rule’s original July 2024 effective date has been postponed, the FTC hasn’t slowed down its enforcement actions against dealerships that engage in payment packing or inconsistent pricing practices.
The pressure from fines and regulatory scrutiny isn’t the only challenge. With increasing news coverage around these enforcement actions, consumers are now more aware than ever of deceptive practices in the auto industry, expecting consistent, transparent pricing whether they’re browsing online or visiting a showroom. To meet these expectations and secure compliance, dealerships need solutions designed to keep them CARS-compliant across all sales channels.
With WebBuy, you can manage transparent pricing, ensure consistency across platforms, and protect your dealership from regulatory risks—all while improving customer satisfaction and profitability.
Understanding the FTC’s CARS Rule
The FTC’s CARS Rule aims to reduce deceptive practices in car sales by requiring transparency at every stage of the buying process. This regulation mandates that dealerships:
- Disclose the Full Offering Price: Show the complete price of a vehicle, excluding only government-mandated fees, so that consumers understand the full cost upfront.
- Obtain Informed Consent for Add-Ons: Secure explicit consumer consent before adding charges for extras like warranties or other products, ensuring these add-ons are beneficial to the buyer.
- Avoid Misleading Statements: Prohibit any deceptive information regarding pricing, financing, or availability, ensuring honest and consistent communication with customers.
Even as the rule awaits full implementation, the FTC has continued to fine dealerships that engage in misleading practices, demonstrating their commitment to a fair and transparent auto retailing industry.
Why CARS Compliance Matters for Your Dealership
Choosing a CARS-compliant tool like WebBuy delivers significant benefits beyond regulatory adherence, even for dealerships who don't engage in any of these practices:
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Protecting Honest Dealers: The CARS Rule isn’t just about penalizing bad practices; it also helps protect dealerships that already prioritize transparent transactions. Even if your dealership doesn’t engage in deceptive practices, demonstrating compliance shows customers your commitment to honesty and builds confidence in your brand. This can even become a powerful advertising message, positioning your dealership as a trustworthy, consumer-first choice in a competitive market.
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Improved Customer Satisfaction: Clear, straightforward pricing and consent-based add-ons build trust, leading to higher customer satisfaction scores and repeat business. Car buyers are twice as likely to return to the same dealer for their next purchase if they find dealer is trustworthy.
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Higher Profit Margins: Compliance reduces the risk of costly fines and creates a more efficient sales process, ultimately increasing profitability. Additionally, almost half of car buyers are willing to go to a dealership with higher prices if they know they can trust that dealership.
How WebBuy Helps Your Dealership Achieve CARS Rule Compliance
WebBuy’s platform is built to align your dealership with CARS compliance standards seamlessly:
1. Transparent, Consistent Pricing Across All Platforms
One of the core requirements of the CARS Rule is pricing transparency, and WebBuy's omnichannel platform ensures that pricing remains consistent across your dealership’s website, digital retailing tools, and showroom. As a fully transactional DR tool, it eliminates the need for multiple DR vendors and automatically ensures pricing and practices across all channels and CTAs are in alignment. This alignment not only builds consumer trust but also shields you from potential regulatory fines associated with inconsistent or misleading pricing.
2. Customized Compliance to Local Legal Standards
Auto dealership regulations can vary by state or region. WebBuy’s customizable platform adapts to your local legal requirements and offers penny-perfect pricing, helping you remain CARS-compliant with tailored solutions that meet both federal and regional standards.
3. Transparent Add-Ons with Explicit Consent
WebBuy’s user interface makes it easy to offer add-ons like accessory packages, service contracts, and other options in a clear, itemized manner. The platform gains explicit customer consent before adding any charges, ensuring compliance with the CARS Rule while making add-on options transparent and allowing customers to make informed decisions.
4. Eliminate Payment Packing for Better Customer Experience
Payment packing—or inflating monthly payments with undisclosed fees—can lead to significant fines and customer dissatisfaction. By offering clear and itemized pricing, WebBuy helps you avoid this practice, safeguarding your dealership from penalties while enhancing the customer experience.
5. Streamlined, Trust-Building Transparency
Transparent, CARS-compliant pricing isn’t just about following regulations; it’s also a powerful trust-building tool. By aligning your practices with CARS Rule guidelines, WebBuy helps you demonstrate a commitment to honesty and clarity, which translates into higher customer satisfaction scores and even higher profits. Our dealers consistently see increases in front-end gross and after-market F&I gross on WebBuy leads without needing to engage in deceptive practices.
Conclusion:
To avoid fines and ensure customer satisfaction, dealerships must adopt transparent, consistent pricing practices that align with CARS Rule requirements, regardless of whether it goes into force soon or not. Why? Because consumer patterns are in line with the FTC and lost business can be just as damaging as a fine. WebBuy provides a comprehensive solution to support your dealership in becoming CARS-compliant and building lasting customer trust. Contact us today to learn how WebBuy can help protect your dealership’s future while driving your bottom line
Start Your CARS Compliance Journey with WebBuy
With WebBuy’s CARS-compliant platform, you can meet potential federal and local regulatory standards while driving transparency, trust, and profitability. Stay proactive in a changing industry and turn compliance into a competitive advantage with WebBuy.
