The Federal Trade Commission (FTC) has taken action against three Texas car dealerships owned by Asbury Automotive Group, accusing them of illegally charging customers undisclosed fees and add-ons. The FTC alleges that up to 75% of customers were unknowingly billed for additional products, often concealed within electronic contracts that displayed only the signature areas. As a result, many buyers remained unaware of these charges until after they had driven their vehicles off the lot.
Robyn Householder, CEO & President of the Better Business Bureau (BBB), emphasized the need for consumer vigilance, condemning the dealerships for violating customer trust through deceptive practices. “Trust is the cornerstone of any business transaction,” Householder noted, urging buyers to be informed and ask questions to protect themselves.
According to the Federal Trade Commission, car dealers under the Asbury Automotive Group name not only included add-ons without the customers consent, they were also accused of discriminating against black and Latino car and truck buyers (See the FTC allegations HERE).
Research is important when buying a vehicle and that research should be deeper than verifying the automobile your purchasing has a clean title. With auto dealerships abundant throughout Middle Tennessee, local buyers are reminded that they can actually verify the dealerships they visit have a license to sell vehicles.
So you know, the Tennessee Department of Commerce and Insurance reports there are 153 licensed automobile dealers in Rutherford County alone. And state rules and regulations surrounding auto dealerships suggests that anyone who sells more than five motor vehicles per year in the Volunteer State must obtain a license to do so. This requirement applies to the sale of cars, trucks, RVs, motorcycles, and more.
Additionally, 925 motor vehicle salesmen currently hold active salesmen licenses in Rutherford County, though over 3,400 have salespersons have allowed their licenses to expire, and 1,780 licenses have been terminated throughout the years in the Murfreesboro, Smyrna, and LaVergne areas.
The state also file’s disciplinary reports each month, highlighting the importance of due diligence. Over the past three months, several auto dealers have been cited for minor violations while at least two dealerships have been accused of more serious problems.
In Nashville, a company called “Tennessee Motors of Murfreesboro, Inc.” was fined $12,500 for issuing temporary tags to salvage vehicles without rebuilt titles. A dealer in Morristown, Tennessee named “West-Side Motors,” voluntarily surrendered their license after being accused of deceptive practices and issuing more temporary tags than permitted.
James Price from the BBB office in Murfreesboro advised consumers to also review their auto insurance policies before purchasing a new vehicle. He emphasized the importance of choosing a policy that fits individual needs, ensuring that buyers are fully protected. Price said different policies offer different coverage options...
The FTC and BBB urge car buyers to take specific steps to protect themselves:
1. Review All Documents Thoroughly: Always read the sales contract and financing agreement carefully. Request a printed copy to ensure you can review every detail. Confirm that the terms outlined in the contract match those agreed upon during negotiations. Insist on the removal of any add-ons or fees you did not agree to.
2. Understand the Total Cost: Focus on the overall cost of the vehicle, not just the monthly payment. Obtain a written statement that includes all charges, fees, and add-ons. This helps prevent dealers from sneaking in extra costs.
3. Explore Financing Options: Dealership financing often carries marked-up interest rates. Consider securing financing through banks, credit unions, or other financial institutions. A pre-approved offer can also serve as leverage when negotiating with the dealership.
Find out if the auto dealership you plan to visit is accredited by the BBB and if they have past complaints filed by customers by visiting BBB.org.
Always report suspected fraud to the BBB by filing a complaint, visiting BBB.org/Scamtracker, and contacting the Federal Trade Commission (FTC) at reportfraud.ftc.gov or call 877-FTC-Help.
