Dealer Advertising Tips

Invoices:
If an ad says a vehicle is being sold at invoice price or above or below invoice price, then the represented price must be the actual cost the dealer paid to acquire the vehicle from the manufacturer.

Dealers can also include the actual cost of transporting the vehicle from manufacturer to dealer and any mandatory advertising fees in the represented price.

But they can’t calculate dealer holdbacks, flooring incentives, manufacturer-to-dealer incentives, optional advertising fees, dealer overhead, document fees or consumer rebates as part of the represented invoice price.

Prizes and promotions:
Any advertised prize or promotion must include these disclosures:

• Name and address of sponsor and promoter
• Retail value of each prize
• The odds to win in immediate proximity to prize
• Whether winner must attend presentation or pay any money to claim prize (disclosure must be in a size equal or greater than prize claim)
• All material limitations of offer
• The words “no purchase necessary” and “a purchase will not increase your odds of winning” in a clear and conspicuous manner
• Any simulated check used as part of a promotion must state “This is Not a Check” diagonally in predominant typeface
• State on the first page of the offer if a winning ticket must be presented to receive a prize.

Don't imply an offer is “free” if any money must be spent to receive the item.

Rebates:
Dealers may only offer these types of  rebates in conjunction with sale: authorized  manufacturer rebate, those generally available to the public, rebates available in combination with each other and rebates expressed as a component part of the advertised price. But they can’t advertise optional equipment rebates. Disclose all material limitations in a clear and conspicuous manner. And disclose specialty and loyalty rebates separately.

Credit offers:
Credit offers must include these disclosures:

• Amount being financed
• Whether a down payment is required
• Total amount due at delivery
• Annual percentage rate
• Payment amount and frequency of payments
• Total payment price
• Model or vehicle to which the offer applies
• Other material conditions

Leases:
Ads for cars available for lease must include these disclosures:

• State the offer is a lease
• The amount due at delivery
• Number of payments, amount of payments and lease term
• Security deposit, if required
• Buyer’s liability (remaining cost) at end of open-end lease

Additional requirements for vehicle ads:

• Number of vehicles available at a specified price
• Expiration date of ad
• Complete VIN number, license number or “vehicle identification available on request”
• Disclaimers must appear in 10 pt or larger font
• Whether a car is used or new
• Photos of used cars must be the exact vehicles available for sale
• Photos of new cars must be substantially similar to those available for sale
• If a document fee is charged, the fee and amount must be disclosed as follows: “A documentary service fee in an amount up to fifty dollars may be added to the sale price.”

However, don’t include any of the following in an advertisement:

• Don't use “cost,” “wholesale,” or “reference” pricing
• Don't use auto or lending industry terms. Use only terms commonly known by the public.
• Don't charge a line item for B&O tax
• Don't advertise “free” merchandise unless deminimis
• Don't create a false sense of urgency or distress
• Don't imply an offer originates from a government agency
• Don't mix numbers and words

Dealer Advertising in a Nutshell (PDF)

Disclaimer: This information is provided as guide and it is not a substitute for legal advice to ensure full compliance with the law.