Tennessee Motor Vehicle Commission Urges Consumers to Avoid and Report Deceptive Car Ads

NASHVILLE – With the recent arrival of federal stimulus checks, some Tennessee consumers may use the funds to purchase new vehicles this spring. Unfortunately, some unscrupulous auto dealers and salespeople might seize the opportunity for financial deceit at consumers’ expense.

Before purchasing a vehicle, the Tennessee Department of Commerce & Insurance and the Tennessee Motor Vehicle Commission urge consumers to remember some simple tips to avoid being taken for a ride by misleading vehicle advertisements that might put a scammer in the driver’s seat.

The Tennessee Motor Vehicle Commission has primary authority over motor vehicle dealer advertising in Tennessee. Its authority is also shared with other authorities, such as the Tennessee Attorney General’s Office and the Federal Trade Commission. For federal advertising regulations, please visit ftc.gov. A copy of Tennessee advertising rules can be found here.

“In recent months, we have seen an increase of complaints related to auto dealers potentially violating state advertising laws,” said Commission Executive Director Denise Lawrence. “While Tennessee’s motor vehicle laws protect consumers, the best defense against deceptive automobile advertisements is education. By educating Tennesseans about automobile advertisement regulations, we hope to equip them with confidence in making their next vehicle purchase.”

If a consumer feels he or she is the victim of an unfair or deceptive business practice when dealing with an auto dealer or salesperson, consumers can file a complaint online with the Tennessee Motor Vehicle Commission or contact our team at (615) 741-2711 or by email at motor.vehicle@tn.gov.

To help consumers, the Motor Vehicle Commission is sharing a video about recognizing deceptive automobile advertising. Additionally, consumers are encouraged to remember these basic guidelines regarding automobile advertisements:

• Advertisements for new vehicles must indicate the vehicle’s stock number.
• Keep a copy of the advertisement or take a screenshot and reference it.
• Call ahead and make sure the advertised car is still on the dealer’s lot. Reference the stock number.
• If the vehicle on the lot is not what is being advertised, you should steer clear.
• Beware of balloon payments. Balloon payments promise you a temporary low price in order to entice you into signing a deal. But once you sign, the remainder of the loan is much, much higher than you thought.
• When it comes to payment advertisements that focus on how much you’ll pay, the ads must include all costs, charges and any fees payable.
• Avoid dealers who claim “We are No. 1 in car sales!”, “Name your own price” or “Lowest price in town!” Those are unsubstantiated and misleading claims and are prohibited.
• All advertisements must identify the dealer by their business name and/or their state issued dealer license number.
• Consumers should only buy a vehicle from a licensed salesperson or motor vehicle dealer.
• Before you buy, visit verify.tn.gov to check the license status of the salesperson or the dealership you’re visiting.

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