Car advertising can take you on a wild ride. So, BBB|NCTX offers a few rules of the road for auto dealers that will help to give your advertising a tune-up. Here are a few of the most commonly misused claims spotted in auto dealer ads.
Disclosures for open & closed credit offers
In general, there are four credit-related triggers in auto ads that require additional disclosures:
- The amount or percentage of any down payment.
- The number of payments or period of repayment.
- The amount of any payment, expressed either as a percentage or as a dollar amount.
- OR, the amount of any finance charge.
If you make any of these statements in an ad for the sale of a vehicle, be sure that you also include the required disclosures:
- The amount or percentage of the down payment
- The terms of repayment
- The “annual percentage rate” (APR)
- AND, let the buyer know if the rate can increase after the deal is complete
“Internet price” or “ePrice” claims
Many dealerships have not heard that the Texas DMV updated its advertising guides for Texas auto dealers on June 4, 2014. Accordingly, per the Texas Administrative Code, terms like "Internet price," "e-price," or similar terms that create the impression that there is a different sales price for an on-line or Internet transaction are prohibited.
You should follow up with the Texas DMV for more details.
“Free” claims
Free is the one word that all auto dealers should generally avoid. Why? Since most people arrive at the final price for a vehicle through negotiation, there is almost no way for consumers to know that they aren’t paying for that “free” item when they settle that a final price.
To avoid confusion, you may want to simply say “with purchase” or “also receive,” when offering incentives to purchase a vehicle.
On the flip side, if the free item isn’t dependent on whether a new or used vehicle is purchased, no worries. You can give away all the “free” burgers or t-shirts you’d like.
Free prior to publication review services: If you want to find out whether your ads adhere to BBB standards for honest advertising, contact BBB Serving North Central Texas's Advertising Review Department at adreview@nctx.bbb.org. We will gladly review any content free of charge for all businesses, BBB Accredited and non-accredited.
BBB is not a government agency. We do not enforce or interpret the law, nor do our suggestions protect advertisers against liability.