The Federal Trade Commission says a Long Island dealership group drew shoppers in with prices that left out required costs. The agency filed a complaint and a proposed order against Stream Auto Outlet on Nov. 9 in the Eastern District of New York. The proposed order would require the group to show what buyers actually have to pay when an ad lists a price, apart from government-required charges. A judge must sign the order for it to take effect. FTC announcement · Proposed order

What the FTC says happened

FTC complaint exhibit showing a Stream Auto Outlet listing for an Acura MDX with an internet special price of $22,475.
Figure 1 in the FTC complaint shows the $22,475 price advertised for a used Acura MDX.Stream Auto Outlet screenshot reproduced in the FTC complaint, Figure 1 (excerpt).

According to the complaint, Stream Auto advertised vehicles online at prices some shoppers could not get at the dealership. In one practice the FTC describes, the dealership treated the listed number as the price after a required down payment, then added that payment back when the shopper came in. The agency says the down payment could run into the thousands and appeared in small print on a vehicle details page. The FTC also alleges that the dealer added fees and products customers did not want. FTC complaint

The proposed order would bar the defendants from misstating vehicle prices or purchase terms and make the total price prominent in their own ads. It would also require them to provide the total price to third parties advertising those vehicles and take steps within their control to have it displayed prominently. The filing addresses these defendants. The FTC separately advises car shoppers anywhere to get a written quote before going to the lot. Proposed order · FTC car buying advice

What to put in your email to the dealer

A details window repeats the advertised price and shows a disclaimer referring to a $3,995 down payment.
Figure 3 shows the details window for the same listing. The small print refers to a $3,995 down payment.Stream Auto Outlet screenshot reproduced in the FTC complaint, Figure 3 (excerpt).

Ask for an out-the-door price tied to the vehicle identification number or stock number in the ad. Request the selling price, each dealer charge, any optional products, and an estimate of taxes, title and registration for where you live. Ask whether the price assumes a down payment, a trade-in, dealer financing or a discount you have to qualify for. A quote should make those conditions clear before you drive over.

Get the vehicle price in writing before discussing the monthly payment. If one dealer quotes a monthly payment and another gives a total, ask both for the cash price first. If you intend to finance, then compare the annual percentage rate, the term and how much you will pay over the loan. A longer term can reduce the monthly payment while increasing the total you pay. FTC car buying advice

Save a screenshot of the listing and keep the written quote. At signing, compare those with the itemized purchase agreement. Ask the dealer to explain or remove a charge you did not agree to before you sign. If a dealer will not honor its advertised terms, you can send the details and supporting documents to the FTC through ReportFraud.ftc.gov.