Transparency and Talent on the Minds of Automotive Association Leaders This summer, I spent a few days with my southern retail automotive association executive peers in the foothills of the Appalachian Mountains of North Carolina. It’s an annual opportunity to gather and talk about our own work and issues on our members’ minds. The biggest topic of discussion: state and federal regulators putting dealers in the bullseye over advertising practices. And, to be frank, for good reason. As dealers face margin pressure on new vehicles, they are increasingly forced to find creative ways to maintain profitability. While understandable, it’s important you know — and if you know, follow — state and federal advertising practices and fee disclosures. It takes only a Google search to find examples of dealerships nationwide that have been targeted by regulators. The FTC, of course, has pushed A MESSAGE FROM PRESIDENT AND CEO DON HALL the CARS Rule, implementation of which has been postponed pending a judicial review pushed by the National Automobile Dealers Association and our Texas counterparts. While we continue to believe the Rule adds time, costs and complexity for car buyers and makes it harder to conduct online sales, it’s proof positive that your livelihood is under the Feds’ microscope. That delay aside, you are still bound to clear-cut rules in both the federal and state law: Dealers must disclose all fees upfront in advertising. Yet, many still hide additional costs until the final stages of the buying process. Some dealers do so intentionally. Others aren’t aware of the rules. There’s no excuse for either. This practice of withholding fees is not only illegal but also undermines consumer trust. Some dealerships argue they have no choice, citing the fact that the competition may be doing it or the razor‑thin margins imposed by manufacturers — particularly with the rise of electric vehicles, which often come with no margin at all. No matter the reason, the argument won’t stand up to scrutiny. The FTC and state attorneys general are increasingly holding dealerships accountable, and as pressure mounts, our businesses must adapt or face heavy fines — and worse, reputational damage. 4 Virginia Auto Dealer
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