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Understanding brand and dealer retention in the new car market
: The Federal Trade Commission (FTC) finalized the "Combating Auto Retail Scams" (CARS) rule to target "bait-and-switch" tactics and hidden "junk fees". Dealers must now clearly disclose offering prices and confirm that add-ons, like extended warranties, are optional. Dealer
: In early 2026, the FTC warned nearly 100 dealership groups about deceptive pricing, such as advertising rates that do not include required fees or are contingent on specific financing. Understanding brand and dealer retention in the new
: Between 2019 and 2022, dealership markups increased by over 144%, significantly outpacing manufacturing cost growth. While these markups have somewhat subsided, they remain a key point of negotiation for buyers. : Between 2019 and 2022, dealership markups increased
The automotive dealer landscape is currently facing increased scrutiny regarding pricing transparency and sales tactics.
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