How To Avoid Auto Dealer Add-Ons Without Consent

You decide to buy a new car. Eventually, you find a great vehicle at a reasonable price. But as you sign the papers at the dealership, you notice a charge for pinstriping. You tell the salesperson that you didn’t ask for and don’t want the stripes. Can the dealership force you to pay for them? 

We explain how you can avoid unwanted dealer add-ons. Auto dealer fraud and consumer protection laws can be complex. After reading this article, discuss your situation with an auto dealer fraud attorney near you. 

Factory Options and Dealer Add-ons

The base model is the cheapest, most simple version of a motor vehicle. Some automotive manufacturers and dealers add special features to base models to make them more attractive to buyers. These features are called options or add-ons.

Factory-installed options are put into the car during or after manufacturing. Common factory options include cameras, navigation systems, and cruise control. Dealer add-ons are installed after the vehicle arrives at the car dealership. 

Dealer add-ons can be “hard” or “soft.” Hard add-ons include wheel locks, mud flaps, and floor mats. Soft add-ons are extras that aren’t attached to the car but make ownership easier. Common soft add-ons include service packages, extended warranties, and Guaranteed Asset Protection (GAP) insurance.

How Do I Know Which Items Are Dealer Add-Ons?

Every new car has a large sticker with information like the fuel economy and manufacturer’s suggested retail price (MSRP). This sticker also lists the vehicle’s standard features and factory-installed options. 

Next to this large sticker, you’ll see a second, thinner sticker. This is the addendum sticker, which lists all the dealer add-ons and their costs. 

Why You Should Avoid Dealer Add-ons 

Dealer add-ons are harmful to car buyers. First, many add-ons are entirely unnecessary. For example, some dealers offer nitrogen-filled tires. But there’s no evidence that tires perform better when filled with nitrogen instead of regular air. Other unnecessary vehicle add-ons include: 

• VIN etching: Federal law already requires the Vehicle Identification Number (VIN) to be placed in multiple spots in the vehicle. 
• Rustproofing: Today’s vehicle paints are designed to resist rust. 
• Color-changing valve stem covers: The valve’s changing colors tell you when your tires need air. Your dashboard does the same thing. 
• Oil change plans for EVs: Electric vehicles don’t use oil. 
• GAP insurance (sometimes): GAP insurance covers the difference between the amount you owe and your car’s value if your car is stolen or damaged. However, certain cars and neighborhoods aren’t eligible for GAP coverage. In these circumstances, GAP is worthless. 

Second, add-on products give car sellers a windfall at the buyer’s expense. Dealerships make very little money on cars, so they use optional add-ons to increase profits. The more the add-on costs, the more the dealer makes. A recent study found that the average markup on certain dealer add-ons was 170%. In other words, the average car dealer will charge you $1700 for something you can buy for $1000 elsewhere. 

For example, many dealers charge about $200 for fabric protection, while you can buy a can of fabric protectant for less than $30 at an auto parts or hardware store. The same applies to add-ons like mud flaps, roof racks, and tracking systems (e.g., LoJack).

Remember, even potentially helpful add-ons can increase your car’s purchase price by hundreds or thousands of dollars. Increasing the price will increase your monthly payment. So, be mindful of any add-ons that a dealer offers you. 

Can I Reject Dealer Add-Ons? 

Generally, yes. A dealer can’t force you to accept add-ons as a condition of sale. More specifically, your options depend on the add-on. 

• Factory-installed options: You can’t do much about factory-added options. They’re already included in the MSRP and are difficult to remove. If you don’t want a certain factory option, you can ask the dealer for a model with fewer bells and whistles. 
• Soft dealer add-ons: Feel free to reject soft add-ons. Remember, you don’t have to accept them to complete the sale. If you want an extended warranty or service contract, read the fine print to ensure the package is worth it. 
• Hard dealer add-ons: Sometimes dealers install add-ons before the vehicle gets to the showroom or lot.

What can you do if a dealer pre-installs an add-on that you don’t want? If the add-on is removable (e.g., floor mats), ask the dealer to remove it and adjust the price accordingly. If it can’t be removed, request a vehicle without the add-on. If it’s not removable and there aren’t any other options, negotiate.

Ask the dealer to reduce the add-on’s price. Never pay the price listed on the addendum sticker. 

If they won’t remove the add-on or refuse to negotiate, go to another dealership. Hopefully, your negotiations will be more successful there. 

Which Laws Govern Dealer Add-Ons? 

A new Federal Trade Commission (FTC) rule is on the way. The FTC’s Combating Auto Retail Scams (CARS) rule will require dealers across the nation to:

• Disclose the vehicle’s offering price clearly
• Forbid charges for useless add-ons
• Require written, informed consent for all add-ons

Until the FTC’s new rule takes effect, forced add-ons still violate most states’ laws. 

Most car dealerships and salespeople want to make an honest deal. But those who engage in unfair, high-pressure, or bait-and-switch tactics can worsen the already stressful car-buying process. If you believe that a dealer pressed you to buy a worthless add-on or put an add-on in your sales contract without your knowledge, you have legal rights. Use the LawInfo directory to find an auto dealer fraud lawyer near you.