Selling Cars For More Than Advertised Prices - Vachon Law Firm (2024)

Think you paid too much money for your car or truck? Usually, there is no legal remedy for striking a bad bargain (even if it was the result of high-pressure sales tactics). However, in California there is one exception. Under California Vehicle Code section 11713.1(e), when car dealers publish advertisem*nts for cars and trucks, and those ads include asking prices, then the dealers are prohibited from selling the advertised vehicles for more than their advertised prices, unless the ads specifically list expiration dates that have passed. Further, Section 260.04(b) of the regulations promulgated by California’s Department of Motor Vehicles further mandates that advertised vehicles “must be sold at or below the advertised price irrespective of whether or not the advertised price has been communicated to the purchaser.”

Therefore, if a car dealer sold you a car or truck for more than the price at which the vehicle was advertised, then the dealer likely violated the law, and it does not matter whether or not you saw the advertisem*nt prior to buying the vehicle.

How Can I Find the Prior Advertisem*nts For My Car?

Typically, the easiest way to find old advertisem*nts for your vehicle is to do an internet search. Modern car dealerships publish virtually all of their advertisem*nts on the net. That being said, internet ads can be taken down, and usually are shortly after the vehicle is sold, so if feasible you should do an internet search as soon as you possibly can.

How do you find advertisem*nts for you vehicle on the internet? The easiest way is to type your vehicle identification number (“VIN number”) into a Google, Yahoo, or Bing search. Under California law, ads for specific vehicles must contain the vehicle’s VIN number, or at least an abbreviated version of the number. So a simple Google search for your car’s VIN number will likely return any existing ads still published on the net.

Finding “Cached” Versions of Website Ads That Have Been Taken Down

When you run a search of your VIN number, you will occasionally encounter results that appear to describe an ad for your vehicle, but when you click on the link you will be taken to a page stating that the vehicle has been sold or is no longer available. When this happens, you should attempt to access any “cached” versions of that page that the search engine has saved.

To access the cached pages saved by Google (or any of the other popular search engines), look for and click on the green upside-down triangle immediately to the right of the url address. In the picture below, the red arrow is pointing to where you need to click.

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Then, when you click the green upside-down triangle, a button will pop up that says “Cached.” See image below, which depicts the “Cached” button.

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Clicking on the “Cached” button will reveal any old versions of the page that the search engine has saved. Further, at the top of the cached page you can find information that will specify when the cached page was published on the internet.

Comparing Your Vehicle’s Purchase Contract to Any Ads That You Find

Selling Cars For More Than Advertised Prices - Vachon Law Firm (3)When comparing the advertised price of your vehicle to your purchase contract, what matters is not the total price that you paid or are going to pay (since the total price includes things like sales tax, registration fees, optional items, etc., which do not need to be included in advertised prices), but rather the “Cash Price Vehicle” listed in the contract.

To find the “Cash Price Vehicle” disclosure in your automobile purchase contract, you need to find the “Total Cash Price” section, which is the first set of disclosures in the “Itemization of Amount Financed” section of vehicle purchase contracts. The image to the right demonstrates approximately where this section will be in your vehicle’s contract (see the section highlighted in red).

Once you find the “Total Cash Price” section, the number that is important is the amount disclosed as the “Cash Price Vehicle.” The image below depicts a vehicle purchase contract in which the “Cash Price Vehicle” disclosure is highlighted. Under California law, the amount listed as the “Cash Price Vehicle” must be less than or equal to – but not greater than – the advertised price of your vehicle.

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Did a Car Dealer Charge You More Than Your Vehicle’s Advertised Price?

If you find an old internet advertisem*nt for your vehicle, and it lists a lower asking price than the “Cash Price Vehicle” disclosure in your car or truck’s purchase contract, then you should save a copy of the ad so that you have some evidence of the advertised price and something to show an attorney who is willing to take your case. Further, since your car has already been sold the advertisem*nt could be taken down any time it is extremely important that you save it immediately. The ad might not be there if you do the same search tomorrow. So preserve it by printing out a copy (on paper or as a .PDF file) or saving it to your computer.

Once you find the ad and have preserved a copy of it, you should contact an experienced auto fraud attorney to discuss your legal rights.

The Vachon Law Firm has experience in litigating claims against car dealers for failing to sell cars at their advertised price. We also offer free consultations. Call us today toll free at 1-855-4-LEMON-LAW (1-855-453-6665) to learn more about your legal rights! You can also contact us via email.

Selling Cars For More Than Advertised Prices - Vachon Law Firm (2024)

FAQs

Selling Cars For More Than Advertised Prices - Vachon Law Firm? ›

The Vachon Law Firm has experience in litigating claims against car dealers for failing to sell cars at their advertised price. We also offer free consultations. Call us today toll free at 1-855-4-LEMON-LAW (1-855-453-6665) to learn more about your legal rights! You can also contact us via email.

Can I do anything if the price on the signed contract is higher than the listing price of the car? ›

Even if a customer signs a contract for the increased price, there are laws in place that protect consumers. So, if you believe a dealership has charged you unfairly based upon the advertised price, contact the auto dealer fraud attorneys at the Margarian Law Firm by calling (818) 553-1000.

Can I sell for more than MSRP? ›

And as I recall from ECON 101, high demand and low supply will result in higher prices, even prices that exceed MSRP. The question is, may dealers sell above MSRP? The short answer is yes, you may sell a vehicle for more than the MSRP.

What is false advertising in car sales? ›

Under Federal and California law, it is unlawful to advertise any statements which are untrue or misleading, or as part of a plan or scheme with the intent not to sell any vehicle or service so advertised at the stated price.

Do dealerships have to honor price mistakes? ›

Yes, most states have consumer protections laws in the books that will requires Dealers to honor advertised prices. But to enforce it, you might have to be very aggressive if you are facing one that is not honoring their posted advertising.

What happens if bid price is higher than ask price? ›

When the bid volume is higher than the ask volume, the selling is stronger, and the price is more likely to move down than up. When the ask volume is higher than the bid volume, the buying is stronger, and the price is more likely to move up than down .

Do sellers have to accept the highest bid? ›

Because an offer to buy at the list price with no contingencies addresses only two of the matters that buyers and sellers need to agree on, sellers are free to counter a "perfect" offer or even reject it for any non-discriminatory reason.

What is the FTC cars rule? ›

The primary purpose of the FTC's CARS Rule is to add truth and transparency to the car buying or leasing process by making it clear that certain deceptive or unfair practices are illegal – for example, bait-and-switch tactics, hidden charges, and other conduct that harms consumers and honest dealers.

What is the FTC cars rule 2024? ›

The CARS Rule prohibits dealers from lying to servicemembers and other consumers about important cost and financing information, and about whether the dealers are affiliated with the military or any other governmental organization.

Why are car dealerships charging more than MSRP? ›

When a dealer charges more than the MSRP to adjust for demand, this is known as a markup or a market adjustment. Often, dealers set markups at a higher price with the expectation that consumers will try to negotiate for a lower price.

Can a car dealer charge more than the advertised price? ›

Under California Vehicle Code section 11713.1(e), when car dealers publish advertisem*nts for cars and trucks, and those ads include asking prices, then the dealers are prohibited from selling the advertised vehicles for more than their advertised prices, unless the ads specifically list expiration dates that have ...

What happens when the seller gets the price wrong? ›

In many jurisdictions, sellers are not required to complete a sale if the price was clearly a mistake. However, advertising laws and consumer protection regulations may impact how such situations are handled.

Is it illegal to not honor an advertised price? ›

Assuming that an incorrect advertised price is truly an error rather than an attempt to deceive, companies are only obligated to honor it if a customer makes an offer at that price and the company accepts it. This exchange creates a contract between buyer and seller.

Can a seller accept a higher offer after signing contract? ›

A seller cannot typically accept another offer while under contract unless there is a kick-out clause in place.

Can you change the price after signing a contract? ›

Generally speaking, neither you nor the vendor has the right to unilaterally change the agreed-upon terms. But some contracts are crafted in anticipation of future changes in the size and scope of projects, with the flexibility for price adjustments.

Can you negotiate price after signing purchase agreement? ›

Armed with an appraisal report that sets a lower value on the property than the accepted offer, the buyer can choose to either cough up the extra money at the closing, walk away from the deal and get their deposit back or renegotiate the price with the seller.

Can you renegotiate a signed contract? ›

Renegotiating a contract can be a delicate and challenging process, but sometimes it is necessary to protect your interests, adapt to changing circ*mstances, or resolve disputes. However, you should not renegotiate a contract without a clear strategy, a valid reason, and a respectful approach.

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