Car Dealers Deception Continues Despite FTC Warnings, Citations- CarEdge

The FTC warned car dealer groups across America about hidden fees & misleading pricing. New CarEdge ‘State of Dealer Fees 2026’ report — built from 51,535 verified out-the-door quotes across 11,042 U.S. dealers — reveals the widespread problem persists.

In one of the most sweeping automotive-retail actions in recent memory, the Federal Trade Commission warned nearly 100 dealership groups across the U.S. to cease advertising prices that don’t reflect the mandatory fees consumers are actually charged, signalling that hidden fees, mandatory add-ons, financing contingencies, and pricing discrepancies are no longer being treated as isolated complaints, but as a marketplace-wide problem.

As the industry moves to downplay the issue as a fringe concern, data from auto retail analytics purveyor CarEdge tells a different story at a scale no survey or one-off study can match. The consumer-advocacy platform’s newly released “State of Dealer Fees 2026” report, accessible at no cost online, is built from 51,535 verified
out-the-door (OTD) quotes collected from 11,042 dealers between July 2025 and June 2026, and updated in real time as new quotes are verified.

WHAT THE NEW REPORT FOUND

• Across more than 40,000 verified quotes, the advertised price routinely turns out to be only the starting point of the transaction:
• The average documentation fee is $490 nationally, but ranges from $114 in California (where fees are capped at $85) to $923 in Florida, and reaches $1,299 in Washington, D.C. The gap between the cheapest and most expensive doc fees exceeds $2,635.
• A majority of dealers (57%) charge no mandatory add-ons, but those that do average $1,189 in extras such as protection plans ($1,586 avg), accessories ($1,550 avg), and paint protection ($924 avg), much of it negotiable.
  Transparency is achievable but far from universal: 62% of scored dealers earn an A, while 7% land at the bottom with a D or F.
• Eight states cap doc fees by law, and capped states average dramatically lower fees than uncapped ones — evidence that pricing behaviour is shaped as much by policy as by competition.
• The pattern is industry-wide: Toyota, Ford, Hyundai, Honda, and Chevrolet dealers alone account for more than 23,000 verified quotes.
• Knowledge pays: buyers who compare out-the-door quotes from multiple dealers save an average of 3–5% off the first price they’re quoted.
  Unlike surveys, opinions, online reviews, or self-reported dealer data, these findings originate from real pricing requests, actual negotiations, and authentic transaction documentation collected through CarEdge’s AI negotiation platform across more than 104,000 negotiation sessions and over 1.7 million messages exchanged with dealers.

“The story is larger than dealership fees,” says CarEdge Co-Founder and CEO Zach Shefska. “It raises broader questions about transparency in one of the largest purchases Americans make. Most consumers have access to vehicle reviews, safety ratings, inventory listings, and financing calculators. Far fewer have visibility into how an individual dealership actually prices a car once negotiations begin … and that’s exactly the gap the FTC is now focused on.”

THE DATA BEHIND THE DECEPTION

Two controlled experiments make the point vividly. In a nationwide test, CarEdge requested pricing on the same 2026 Toyota RAV4 Hybrid XSE from 100 Toyota dealerships across 46 states, using an identical buyer profile. The resulting price spread reached $9,221. The vehicle didn’t change. The buyer didn’t change. The dealership was the only variable. A parallel analysis of a Ford F-150 XLT documented a $13,871 difference between the highest and lowest verified out-the-door quotes.

• See the full RAV4 experiment — breakdowns, patterns, and receipts: caredge.com/experiments/rav4-hybrid-2026.

CONSUMER ADVOCACY AT WORK

CarEdge publishes the free, public Dealer Transparency Index (DTI), a scoring system that grades 11,042 U.S. dealerships A through F on actual pricing behavior, not advertising or reviews. Unlike review platforms or
pay-to-play “certified dealer” programs, DTI scores are calculated purely from verified out-the-door quotes collected through CarEdge’s AI negotiation platform. Dealers cannot pay to improve their score.

The impact is measurable. To date, CarEdge’s AI agent has negotiated more than $652 million in vehicle purchases and saved buyers over $25.9 million — an average of $2,451 on every successful negotiation — while sparing them the back-and-forth that would otherwise eat up their time.

Browse the Index: caredge.com/dealer-ratings

Read the full State of Dealer Fees 2026 report: caredge.com/reports/state-of-dealer-fees [1]

 

EXPERTS & LIVE DEMOS AVAILABLE

Co-Founders Zach Shefska and Ray Shefska (the latter a 43-year auto-industry veteran) are available to discuss whether FTC scrutiny is changing dealer behaviour, the pricing tactics consumers still encounter most, why identical vehicles vary by thousands of dollars between dealerships, and how AI is creating unprecedented visibility into
marketplace behaviour.

Zach Shefska recently delivered the opening keynote at AutoIndustry. AI 2026, where he ran a live on-stage demonstration in which CarEdge’s AI agents “secret shopped” 100 dealerships in real time in front of an
auditorium of actual car dealers.

Exclusive media opportunity: Reporters can request a live, real-time demonstration in which CarEdge’s AI agents shop dealerships on the spot. Journalists may choose the vehicle, region, brand, or dealer group, and watch pricing disclosures, add-ons, and negotiation behaviour unfold as they happen.

EXAMPLE STORY HOOKS

• Has federal scrutiny actually changed dealership behaviour — or just the messaging? Why can the same vehicle cost thousands more depending on where you shop? Are hidden fees and mandatory add-ons replacing traditional markups?
• Which states expose consumers to the highest documentation fees?
• Is AI becoming the new consumer watchdog for major purchases?

CarEdge is a leading consumer platform, founded by father-and-son team Ray and Zach Shefska, that is dedicated to empowering car shoppers to make confident, informed and financially savvy decisions. The company’s CarEdge Pro subscription service gives car shoppers real-time market insights and an expert __AI Car Negotiator_ agent
to make the process simple, easy and fair.

It’s premium-level CarEdge Concierge offers buyers a white-glove experience with a dedicated automotive expert who locates, negotiates and secures the best possible
deal on your behalf. Both CarEdge tiers help consumers save money, time and hassle. Also with trusted resources that includes hundreds of guides on YouTube, CarEdge is redefining transparency, fairness and value in
the automotive industry. Connect with him at __www.CarEdge.com.