What the CARS Rule is
The CARS Rule — formally the Combating Auto Retail Scams Rule — targets deceptive and unfair practices by motor vehicle dealers. It applies to most motor vehicle dealerships in the US and requires clear disclosures, prohibits certain misrepresentations, and requires dealers to obtain and retain express, informed consent for charges.
The core elements
- Offering price. The dealer must clearly and conspicuously disclose the actual offering price at which the dealer will sell or finance the vehicle to the consumer.
- Add-on prohibitions. Dealers may not charge for add-on products or services that provide no benefit to the consumer.
- Express, informed consent. Dealers must obtain the consumer’s express, informed consent for any charge, and retain evidence of that consent.
- Misrepresentations prohibited. Prohibits misrepresentations about material information — including, but not limited to, costs, financing terms, rebates, vehicle condition, and dealer affiliations.
- Record retention. Dealers must retain records evidencing compliance with the Rule.
Why documentation matters
Much of the CARS Rule turns on what the dealership can prove it disclosed and what the customer consented to. Verbal disclosures and unsigned work-ups do not survive a well-organized complaint. Signed, timestamped, archived deal documents do.
Where Test Drive Pro helps
Test Drive Pro captures the customer’s identity, the test drive agreement, TCPA consent, and any dealer-configured disclosures before the deal moves into F&I. The signed PDF is archived with timestamps and customer signature, and is available for export on demand. That is the “records evidencing compliance” side of the Rule — built into the flow, not bolted on later.
Checklist
- Offering price disclosure present and conspicuous on every work-up.
- No add-ons charged without express consent to each add-on.
- Express consent retained for each charge — signed, timestamped, archived.
- All material representations are accurate and consistent across web, phone, text, and in-store.
- Records retained for the period required by the Rule and by state law.
- Staff trained on the Rule; training documented.
This is general information, not legal advice. The CARS Rule has been subject to ongoing litigation and agency activity; verify current status with counsel.