96 | 2024 Membership Directory 5. A statement that an extra charge may be imposed at the end of the lease term where the lessee’s liability (if any) is based on the difference between the residual value of the leased property and its realized value at the end of the lease term.12 “No Money Due at Lease Inception” Advertising While use of terms such as “no money due at lease inception” are permissible under the federal Consumer Leasing Act, they should only be used in those instances in which consumers may take delivery of vehicles with no out of pocket expenses. If the consumer is required to pay any money whatsoever, including, but not limited to, security deposit, capital cost reduction, first month’s payment and/or dealer fees, then such claims may not be used. Disclosing the fees/payments elsewhere in the advertisement will not cure a violation. It should be clear that the advertised prices are for the lease of a vehicle. Terms that are typically associated with purchasing, such as “No Money Down,” “No Down Payment,” “Zero Down,” and terms of similar import may never be used in conjunction with lease advertising. Special Finance Rates Special finance rates available by means of dealer buy-downs should specifically disclose that “dealer participation may affect purchase price.” Those special finance rates that are only available on certain models or for limited periods of time must disclose such limitations in the immediate proximity of the offered rate. B. Price Representations Advertised prices must state the actual total purchase price of the vehicle, excluding only government fees, which include tax, tag, title and Georgia Lemon Law fees. All additional fees must be included in the advertised price. Any advertisement which lists a price “plus” some additional amount will be considered to be deceptive. By way of illustration only, not meant to be exhaustive, the following are examples of fees that MUST be included in the advertised price of vehicles: 1. Additional fees, such as document fees, documentary fees, lot fees, processing fees, administrative fees, customer services fees, and any other terms of similar import; 2. Additional charges, such as freight charges, transportation charges, destination charges, dealer preparation charges, overhead charges, and any other terms of similar import; and Dealer installed options or accessories that are required or are routinely installed, or options which are already installed on the advertised vehicle at the time the advertisement is published, must be included in the advertised price. Only those options installed at the request of the consumer following contact/ negotiation with the dealership may be omitted from the advertisement.13 Specific Credit Scores The use of a specific credit score in conjunction with advertised vehicles may be a deceptive practice if the dealership has not ascertained whether a substantial number of the consumers to whom the advertisement is directed would qualify or if the score is so high that it is extremely unlikely that a substantial number of the consumers would be able to take advantage of the advertised offers. It is highly recommended that dealers refrain from conditioning claims on a specific credit score. For example, it is deceptive to condition offers on a credit score of “750 and above,” if the dealership has not determined whether the consumers to whom the advertisement is disseminated would qualify or if the dealership purchased consumer lists and knows or should know from that information that a substantial number of consumers would not qualify. “With approved credit” is an acceptable qualification, unless the advertisement contains representations that directly state or imply that the consumer has been “pre-approved.” The meaning of terms such as “tier” and “beacon score” may not be readily understood by the consuming public, so their use should be avoided. For policies regarding the use of unexplained terms, please review the section on Disclosure/Disclaimer Placement, above. 12 12 C.F.R. § 213.7(d) (2007). 13 See, e.g., In the Matter of Bill Crouch Foreign, Inc., 96 F.T.C. 111 (1980) (consent order).
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