SCDCA is sounding the alarm on several misleading and deceptive motor vehicle dealer practices.

After receiving consumer tips, investigating complaints and conducting standard compliance reviews related to motor vehicle dealers, SCDCA sent a memo to all auto dealers in South Carolina detailing the issues.

Beware of these Misleading and Deceptive Practices when Shopping for a Car:

• Official fees are charges paid to a government agency for items like tax, tag and title.  SCDCA is seeing dealers upping the price of official fees and adding on fees for “processing.” The dealer’s add-on is not an official fee and cannot be listed that way. If dealers want to charge for things like this, it must be included in the closing fee. Consumers should ask for a breakdown of all official fees before signing.

• An advertised price must include any fee the dealer chooses to charge. SCDCA is seeing dealers advertise the price of a car for one amount but when a consumer goes to buy it, suddenly it costs thousands of dollars more. Adjusted market value fees have become common during the pandemic. These fees can range from a few hundred to thousands of dollars for popular cars. A dealer may also fail to include a closing fee or add-on fees for things like inspections, security systems or refurbishment fees in the advertised price.

• While a consumer may find it helpful to know a used car’s original value, a Manufacturer’s Suggested Retail Price (“MSRP”) does not apply to used cars. Some dealers are representing discounts on used vehicles as a savings off the MSRP. Using the MSRP to imply a consumer is getting a discount at the listed price or that the used car is still valued at MSRP is deceptive and misleading.

Have any of these things happened to you?

Consumers who run into any of the above issues are encouraged to file a complaint with SCDCA by clicking the button below:

Do your homework before buying!

SCDCA always encourages consumers to do their homework before buying anything, especially a huge purchase like a car. Consumers can also look up and compare dealer closing fees and max rate filings by clicking on the button below:

For educational guides, click the buttons below to download the corresponding guides.