100 | 2024 Membership Directory Credit Approval Claims It is this office’s position that terms such as “pre-approved” may be used only if the person to whom the offer is made has an unqualified right take advantage of it. There can be no conditions that a consumer must meet in order to take advantage of the offer, because “pre-approval” implies that a potential purchaser’s credit status has already been evaluated and found to be acceptable. Furthermore, offers of “pre-approval,” when used in conjunction with “an amount up to,” will be considered deceptive. It is, however, permissible to state that a consumer is pre- approved for a minimum amount. Discounts on Used Cars It is deceptive to compare used vehicle prices with the original Manufacturer’s Suggested Retail Price (MSRP) for the vehicles, because there is no MSRP for used cars. Advertisers may not state that consumers can save a specific percentage off of the MSRP, such as “up to 50 percent off.” False price comparisons on used vehicles, such as “was ____, now ____,” should not be used. It is a deceptive practice to compare a “sale” price to a reference price, unless the vehicle on sale and the nature of the reference prices are explicitly identified and the seller can substantiate the reference price. Therefore, references to a common source for vehicle values, such as N.A.D.A. prices may be used, only if the dealer can substantiate the reference price for the vehicle with the same features and mileage in the most recent edition of the pricing guide. Sellers should state the edition and pricing category. Example: May 2007 N.A.D.A. Official Used Car Guide, Southeastern Edition Retail Price: $12,996 [Dealer Name] Price: $11,995 Discounts on New Cars Advertising which utilizes price comparisons should clearly and accurately identify the terms used to make comparisons or to list reductions. When offering discounts or savings of “up to,” “as high as,” or terms of similar import, the advertisement must disclose the source of the “up to/saving” amount, for example “save $7000 off MSRP.” The disclosure must be made in close proximity to the offer. In addition, an example of a vehicle which qualifies for the largest advertised “up to” amount should be included in the advertisement. If a new vehicle is reduced from or compared to the MSRP, the advertisement must accurately state the original price. Rebates Advertisements must clearly disclose if a rebate involves dealer participation. If rebates are further limited to certain categories within a specific model, then these additional limitations must be disclosed. Advertisements must clearly disclose whether rebates have already been incorporated into the advertised prices. Use of claims of rebates “up to” a certain amount is deceptive unless the advertisement clearly and conspicuously discloses in close proximity to such offer the actual dollar amount of the largest advertised rebate and the vehicles or models to which they apply. Special Incentive Programs Special incentive programs are those that involve rebates, discounts, and/or financing that only apply to a small percentage of the buying public. Incentive programs that apply only to first time buyers, college graduates, military personnel, previous owners or programs of similar import will be considered special incentive programs. Since this special incentive only applies to a small percentage of the consuming public, it may not be figured in the advertised price. The amount of the special incentive may be listed in the advertisement as an additional incentive to those who qualify. Factory Invoice “Factory invoice” is generally understood to refer to the manufacturer’s initial charge to the dealer. Offers to sell vehicles for below, at, or near “factory invoice” are acceptable, provided they are honored and can be substantiated. The advertised price may exclude only tax, tag, title and Georgia Lemon Law fees. The term “factory invoice” may only be used if the dealer has a sufficient supply of vehicles with no dealer installed options to satisfy reasonably expectable public demand.
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