The price in the ad and the price on the buyer’s order are often two different numbers. The gap is usually made up of dealer fees, add-ons, and “market adjustments” that only appear once you are sitting at the desk. Some of that is legal, some of it is not, and the rules depend on where you live.
This guide explains what the federal rules say, what happened to the FTC’s CARS Rule, a few examples of state rules, and the simple step that protects you no matter which state you buy in.
What happened to the FTC CARS Rule?
In January 2024 the Federal Trade Commission published the Combating Auto Retail Scams Rule, known as the CARS Rule. It would have required dealers nationwide to disclose an “offering price” that any buyer could pay, to stop misrepresenting costs and terms, and to stop charging for add-ons that give the buyer no benefit.
It never took effect. On January 27, 2025, the U.S. Court of Appeals for the Fifth Circuit vacated the rule, finding that the FTC skipped a required procedural step when it wrote it. The court did not rule on whether the protections themselves were a good idea.
What still protects you at the federal level
Section 5 of the FTC Act still prohibits unfair or deceptive practices. In plain terms, a dealer still may not misrepresent what a car costs, advertise a price it will not honor, or run a bait and switch. The FTC can and does bring cases against dealers under that law. What went away with the CARS Rule was a detailed, nationwide checklist, not the basic ban on deception.
State rules are often stricter
Many states have their own consumer protection laws for car sales, enforced by the state attorney general. A few examples:
- Massachusetts. The Attorney General’s motor vehicle regulations require dealers to clearly disclose all included and excluded charges in an advertised price, and the AG has said dealers cannot refuse to sell a vehicle at the price they advertised. Separate fee rules that took effect on September 2, 2025, also target hidden mandatory fees.
- California. The California CARS Act (SB 766), signed in October 2025, became operative on October 1, 2026. Among other things, a dealer’s advertised total price must include the dealer markup and anything already installed on the car, a rebate cannot be subtracted to make that price look lower, the dealer’s first written reply about a specific car must state the total price, and add-ons must be described as not required.
Rules differ from state to state and change over time. Your state attorney general’s consumer protection page is the best place to check what applies to you.
The one step that works in every state
Ask for an itemized out-the-door price in writing before you visit. A written out-the-door quote lists the vehicle price, every dealer fee, every add-on, taxes, and title and registration, and it is much harder to change once it is in writing.
- Compare the out-the-door total to the advertised price. Ask the dealer to explain every line that was not in the ad.
- Ask which items are optional. Add-ons you did not request can be refused, and should come off the paperwork, not just be “discounted.”
- Check the math yourself. The out-the-door price checker adds up the lines on a dealer’s worksheet so you can see whether the total matches.
- Read the buyer’s order again before you sign, especially in the finance manager’s office, where extra products are most often added.
If a dealer will not honor an advertised price or adds charges you did not agree to, you can file a complaint with your state attorney general’s consumer protection office.
Where we come in
Getting the real total in writing, before anyone sits in a showroom, is the core of what we do. We negotiate the price, question every fee and add-on, and send you an itemized out-the-door figure first. More on dealer add-ons to avoid, or see what the service costs.
This article is general information, not legal advice. Laws and regulations change, so check your state attorney general’s website or speak with an attorney about your situation.
