Look Twice Before You Buy: Deceptive Car Ads
File a Complaint If you have a complaint about a motor vehicle purchase or seller, contact the Tennessee Department of Commerce and Insurance’s Division of Consumer Affairs or the Tennessee Motor Vehicle Commission. To check out a company before you do business with them or to file a complaint against a company, an individual, or a business entity, contact Consumer Affairs by calling 1-800-342-8385 (toll free inside Tennessee) or (615) 741-4737 or going online to http://tn.gov/consumer/.
Tennessee Attorney General’s Office The Attorney General’s Office protects consumers and businesses from those who engage in unfair or deceptive business practices. The office is charged with enforcing the Tennessee Consumer Protection Act. These enforcement actions are brought on behalf of the Division of Consumer Affairs and in the name of the State of Tennessee. Although the Attorney General may seek restitution for consumers who have suffered ascertainable losses, the office cannot represent individual consumers.
Look Twice Before You Buy: Deceptive Car Ads Buying a car may be one of the most expensive
Deciphering the Ads
•
Credit approval. Federal law prohibits car dealers from advertising that customers
purchases a consumer
The following tips can help a consumer
are preapproved for credit unless the
makes, and it is important to
decipher a potentially deceptive car ad:
dealer has retained a lending institution
make an informed decision.
•
which has approved each consumer.
Trade-in allowances. If a dealer offers
Ultimately, lenders have final credit
more than the value of the trade-in, the
Car Advertisements
new vehicle may end up costing more to
It can seem like car dealers advertise new
allowance.
promotions every day. Offers may include high trade-in allowances, free options, invoice
documentation showing the dealer has
cover the value of the extra trade-in
•
Low price specials. An ad offering a car for a lower price than other dealers may
prices, prizes, special credit approval and low
received final approval for the loan or other financing. •
Tennessee law requires certain disclosures
options like air conditioning or power
Advertisements should provide correct
windows. Some car dealers may advertise
information and should not be misleading.
a low price, then say the car is no longer in
Tennessee law prohibits companies and
stock. Or an advertised low monthly
individuals from engaging in deceptive or
payment may be for a lease rather than a
misleading advertising and other deceptive
purchase price. •
Prize giveaways. Car ads sometimes offer a cash or prize incentive for buying a car.
not be comparing cars with the same
interest rates.
business practices.
approval. Consider asking for
be made in the ad when prizes are offered as an inducement to purchase a product. Often, dealers fail to disclose conditions such as being able to finance the car at a certain rate before the prize becomes a part of the package. Also be aware that
Low interest rates. While some
any sweepstakes advertisement must
When shopping for a car, carefully read
manufacturers may offer legitimate low or
clearly disclose the value of the prizes and
advertisements including the fine print.
0% loans, sometimes a low interest rate is
the odds of winning.
Compare ads for the same type of vehicle from
not the good deal it seems to be. A low
different dealers. Ask the dealer to explain
rate may require paying a substantial
terms included in the advertisement.
down payment, purchasing a car at sticker
Always remember that dealers are in the business of selling cars, and the market can be very competitive.
price, or repaying the loan in a shorter time period. Check with other lenders for competitive rates. If the rate seems too good to be true, it probably is.
•
If an advertisement sounds too good to be true, it usually is. You may end up paying for any incentives in other parts of the total sales price. Carefully read all documents including the fine print. Ask all the questions you need to make an informed purchase and be a satisfied customer.
Tennessee Attorney General’s Office The Attorney General’s Office protects consumers and businesses from those who engage in unfair or deceptive business practices. The office is charged with enforcing the Tennessee Consumer Protection Act. These enforcement actions are brought on behalf of the Division of Consumer Affairs and in the name of the State of Tennessee. Although the Attorney General may seek restitution for consumers who have suffered ascertainable losses, the office cannot represent individual consumers.
Look Twice Before You Buy: Deceptive Car Ads Buying a car may be one of the most expensive
Deciphering the Ads
•
Credit approval. Federal law prohibits car dealers from advertising that customers
purchases a consumer
The following tips can help a consumer
are preapproved for credit unless the
makes, and it is important to
decipher a potentially deceptive car ad:
dealer has retained a lending institution
make an informed decision.
•
which has approved each consumer.
Trade-in allowances. If a dealer offers
Ultimately, lenders have final credit
more than the value of the trade-in, the
Car Advertisements
new vehicle may end up costing more to
It can seem like car dealers advertise new
allowance.
promotions every day. Offers may include high trade-in allowances, free options, invoice
documentation showing the dealer has
cover the value of the extra trade-in
•
Low price specials. An ad offering a car for a lower price than other dealers may
prices, prizes, special credit approval and low
received final approval for the loan or other financing. •
Tennessee law requires certain disclosures
options like air conditioning or power
Advertisements should provide correct
windows. Some car dealers may advertise
information and should not be misleading.
a low price, then say the car is no longer in
Tennessee law prohibits companies and
stock. Or an advertised low monthly
individuals from engaging in deceptive or
payment may be for a lease rather than a
misleading advertising and other deceptive
purchase price. •
Prize giveaways. Car ads sometimes offer a cash or prize incentive for buying a car.
not be comparing cars with the same
interest rates.
business practices.
approval. Consider asking for
be made in the ad when prizes are offered as an inducement to purchase a product. Often, dealers fail to disclose conditions such as being able to finance the car at a certain rate before the prize becomes a part of the package. Also be aware that
Low interest rates. While some
any sweepstakes advertisement must
When shopping for a car, carefully read
manufacturers may offer legitimate low or
clearly disclose the value of the prizes and
advertisements including the fine print.
0% loans, sometimes a low interest rate is
the odds of winning.
Compare ads for the same type of vehicle from
not the good deal it seems to be. A low
different dealers. Ask the dealer to explain
rate may require paying a substantial
terms included in the advertisement.
down payment, purchasing a car at sticker
Always remember that dealers are in the business of selling cars, and the market can be very competitive.
price, or repaying the loan in a shorter time period. Check with other lenders for competitive rates. If the rate seems too good to be true, it probably is.
•
If an advertisement sounds too good to be true, it usually is. You may end up paying for any incentives in other parts of the total sales price. Carefully read all documents including the fine print. Ask all the questions you need to make an informed purchase and be a satisfied customer.
