The Federal Trade Commission has issued warnings to over 200 auto dealerships, demanding they cease advertising vehicles with questionable discounts or thousands of dollars in concealed fees online.

Not all dealers have heeded this warning.

Companies that assist consumers in negotiating with car dealers report that opaque pricing remains widespread in the industry.

Chicago-based shopping service CoPilot found that 59% of the 500 vehicle transactions it assisted with between last December and the end of April this year included discretionary fees not listed in the online advertised price.

"Most of the time, the price you see online is not actually the price you'll pay to drive that car home," said Michaela Baker, Co-Founder and Head of Product Management at CoPilot.

Baker noted the study focused on used cars, but this strategy is also common in new car sales, persisting even after the FTC's warning.

Another car-buying assistance firm, CarEdge, analyzed listings from over 10,000 new and used car dealers. It found significant discrepancies between advertised prices and actual itemized quotes at nearly 40% of the dealerships.

CarEdge CEO Zach Shefska stated this data only reflects dealers who provide written itemized quotes, as most do not offer them.

"The internet is still rife with widespread price misinformation," he said.

For example, a nearly new Dodge Charger that caught a CoPilot client's attention in late April was advertised by a Pennsylvania dealer for $35,490.

However, according to a record provided by CoPilot, over 21 emails exchanged within three days, the buyer learned the actual price was $40,025 plus a $490 documentation fee. The dealer, Quakertown Mitsubishi in Quakertown, Pennsylvania, did offer a $2,000 discount if the buyer financed through them.

The dealership's sales manager explained the online price was based on "eligible discounts," as detailed in a website disclaimer, which not everyone qualifies for. The dealer refused to budge when the buyer insisted on the advertised price.

"This is the company's advertising decision. At the price I offered, we are competitive in the market for similar vehicles," the sales manager told the buyer.

A spokesperson for the National Automobile Dealers Association said anecdotal feedback from dealers suggests compliance with the new FTC rules is improving, but vehicle price advertising can depend on many factors.

"The FTC's expectation across industries—that the advertised price a consumer sees should include all costs associated with the product—is reasonable," the spokesperson said. "In some cases, a dealer cannot comply by changing its advertising alone, as other entities like automakers, web providers, and third-party vehicle listing sites are often involved in the dealer's ad placement."

The spokesperson added that the association is working closely with the FTC to educate dealers, manufacturers, and other groups about the agency's compliance rules.

Christopher Mufarrige, Director of the FTC's Bureau of Consumer Protection, also stated that many dealers have taken steps to improve transparency.

"I'm encouraged by the response. That said, there will always be some bad actors," Mufarrige said.

He indicated the agency, after giving the industry an "adjustment period," is preparing to enforce its warning. During this time, the agency plans to publish answers to frequently asked questions.

When issuing the warning to dealers in March, the agency described a series of practices it considers deceptive.

Adam Crowell, Chief Legal and Strategy Officer at KPA, a company that helps auto dealers with compliance, said a major point of confusion is the requirement that a vehicle's advertised price include all mandatory fees except sales tax and registration.

The FTC's warning on hidden fees is not just talk.

In April, the agency announced a settlement demonstrating the potential cost for dealers: Maryland-based Chevrolet, Ford, and Chrysler dealer Lindsay Automotive Group agreed to pay up to $75 million in consumer redress and a $3.1 million penalty for advertising false prices and packing unnecessary add-ons into deals.

"That really scared a lot of dealers," said Scott Painter, CEO of car-buying website TrueCar. "These are not small fines."

The most common dealer charge (not always included in the advertised price) is the documentation fee for completing sales paperwork, far exceeding other fees in prevalence.

This fee is so entrenched that many states cap it. Some dealers also charge a separate, usually smaller fee for electronic filing.

Dealers may list dozens of charges as mandatory. These include anti-theft devices, paint protection coatings, vehicle identification number etching on windows, or other parts and accessories like door edge guards and floor mats.

Baker said for used cars, dealers sometimes charge a "reconditioning" fee, even though preparing a vehicle for sale is a necessary part of the process.

Last month, a CoPilot user received a quote for a certified used Subaru Outback advertised at $41,064. The itemization showed the dealer, Landers McLarty Subaru in Huntsville, Alabama, also charged an $899 documentation fee, a $550 certification fee, and an extra $3,250 for an extended warranty labeled "CPO Wrap."

For many car dealers, the goal is to get buyers into the store, as they may be more likely to accept various fees and add-ons after investing their time.

"You find the car you really want, the online price is attractive, you go to the dealer, and suddenly the price is $4,000 or $5,000 higher because of all the things pre-installed that the dealer decided to add," said Joe Belmonte, General Manager of Infiniti of Clarendon Hills near Chicago. "They tell the customer it's not optional; you have to buy it; it's already on the car."

Belmonte said add-ons like dent protection at his store are strictly optional, though he does mandate documentation and electronic filing fees.

However, enforcing the FTC rule that advertised prices must include all fees has been challenging because many car buyers first search for the lowest price on marketplace sites like Cars.com, CarGurus, and Autotrader.

Belmonte said dealers who include fees are at a disadvantage compared to those who aim to attract customers first and add charges later. These sites say they are taking steps to avoid promoting listings with misleading advertised prices. For instance, Kelley Blue Book and Autotrader have temporarily removed badges labeling certain cars as "Good Price" or "Great Price."

Painter said on TrueCar, most dealers choose to build more costs into the advertised price rather than eliminate fees and add-ons.

"The price is a little higher, but everyone's price is a little higher," he said. "Dealers are still dealers. They have to make money; it's just a question of how."