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Two new staff reports from the Federal Trade Commission highlight some of the challenges and confusion consumers can face in buying and financing a car, particularly relating to charges for add-on items after the initial price negotiation that can lead to them paying more than expected.
The reports are based, in part, on a study of auto buyers conducted by the FTC that consisted of in-depth interviews with 38 consumers about the car buying and financing process.
A staff report from the FTC’s Bureau of Consumer Protection (BCP) notes a number of issues that arose in the study, from the advertising that draws consumers in through the entire car buying experience.
The BCP report notes that consumers were sometimes not aware of key terms of sales and financing contracts, and it points in particular to issues that potentially keep them from having an accurate picture of the amount they are paying. One issue noted was focusing on monthly payments rather than considering other important terms as well, like the total price of the vehicle and the amount and length of the financing.
READ: FTC Reports Volkswagen Repaid More Than $9.5 Billion to Car Buyers Who Were Deceived by “Clean Diesel” Ad …
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