Federal and California junk fee bans

Markarian421

Well-known member
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Mar 8, 2024
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SFBay CA
Vehicles
2025 Land Cruiser, 2014 FJ Cruiser, 2023 Volvo S60 T8
I’m wondering what impact California’s junk fee ban (which went into effect today) and the federal CARS ban of junk fees in auto sales (goes into effect at the end of the month?) will have on dealer markups and add ons. There are a couple local dealers that don’t list prices online, they simply post the window sticker — any surprise fees added to that would seem to violate these laws? Another local dealer says they don’t mark up cars but requires a bunch of junk dealer add ons which looks like it will soon be against federal law? And our local dealer that adds a $10k market adjustment, I have no idea where that stands with these two laws. Googling I haven’t found clear answers.
 
This is from the FTC website: FTC Announces CARS Rule to Fight Scams in Vehicle Shopping

“What the CARS Rule Requires:

  • No Misrepresentations: The rule prohibits misrepresentations about key information, like price and cost.
  • Offering Price, Total Payment, and Add-Ons Optional: Dealers have to provide the offering price—the actual price any consumer can pay for the vehicle; tell consumers that optional add-ons (like extended warranties) are not required; and give information about the total payment when discussing monthly payments.
  • No Bogus Add-Ons: The rule prohibits dealers from charging for any add-on that does not provide a benefit to consumers. Examples of such add-ons include: warranty programs that duplicate a manufacturer’s warranty, service contracts for oil changes on an electric vehicle, GAP agreements that do not actually cover the car or neighborhood in which it is housed, or other parts of the deal, and software or audio subscription services on a vehicle that cannot support the software or subscription.”
 
I'm hoping my LC gets delivered after the 30th. I would love to bring this up in the finance office.
 
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