Buying a car can cost you much more than what you see in the initial ad. In some cases, the closing price can rise up to Additional $2,800 for charges that appear just before signing, according to CarEdge data analyzed between 2025 and 2026.
These deceptive practices have already caused the intervention of the Federal Trade Commission (FTC): the March 13, 2026 sent warnings to 97 dealer groups to require them to publish the valid price of the vehicles.
For many Hispanic families who depend on the car to work, these charges They can become a debt that takes years to pay.
The deception: the price in the advertisement is not what you pay at the dealership
This is the most common trap. A car advertised for $28,000 can end up costing $30,800 or more because dealers add fees at signing that never appear in digital advertising: document processing fees, additional products presented as “required,” and market adjustments that are not properly justified.
According to the analysis of CarEdge based on 51,727 verified quotes of 11,574 dealershe 43% of distributors adds additional charges with an average cost of $1,267 dollarsplus an average documentation fee of $507 dollars. Those two charges combined add up to almost $1,800 before taxes and registration.
FTC targets nearly 100 dealerships
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said, “The FTC is committed to preventing auto dealers from misleading consumers with low advertised prices and then adding mandatory fees at the end of the purchasing process.”
The letters of March 13, 2026 detail what the practices considered illegal: advertising prices without mandatory charges, discounts not available to everyone, conditioning the price on dealer financing, requiring additional unadvertised products and advertising non-existent vehicles.
The charges that hurt the unsuspecting buyer the most
The most frequent charges, according to CarEdge and other industry data, are:
- Documentation fee (“doc rate”): of $85 in California to more than $1,200 in Florida for the same procedure
- VIN Etching: $300–$600 at dealer; valid equipment costs less than $10
- Paint or fabric protection: $800–$1,500 for a sealant worth less than $50
- Market adjustment: from $1,000 to $10,000 without technical support
- Extended warranty: the dealer makes 50%–70% profit on this product
Hispanics: the most exposed to paying inflated prices
A study of UnitedUS published in August 2017 found that Hispanic consumers consistently pay more for the same additional products than non-Hispanic buyers at the same dealership.
In one case documented in Kentucky, a buyer paid $299 for a VIN etching; another customer from the same location paid $1 for identical service. This practice persists to this day. For Latino families, where the car is a popular tool for connecting to work and school, overpaying on financing can mean hundreds of additional dollars in interest each year.
What California does differently to protect the buyer
To prevent these abuses, Governor Gavin Newsom signed the CARS Act (SB 766) of California, which establishes that as of October 1, 2026, requires that the advertised price be the final price, prohibits including additional products presented as mandatory and grants the right to cancel a used car purchase within three days.
At the federal level, the CARS rule was struck down by the Fifth Circuit Court in January 2025 and formally withdrawn in February 2026, leaving buyers outside of California unprotected.
Frequently asked questions (FAQ): Hidden charges when buying a car in the US
What are hidden charges when buying a car in the US?
These are costs that dealers add to the advertised price without informing them in advance. According to CarEdge, the average buyer faces up to $2,800 in avoidable fees.
What are the charges you should reject?
VIN etching ($300–$600), paint protection ($800–$1,500), no-excuse market adjustment, and dealer advertising fee. Ask if each charge is mandatory.
Can the FTC help me if I have already been overcharged?
Yes. You can file a complaint at ftc.gov/es. The FTC sanctioned Passport Auto, which had to pay $3.3 million in refunds to customers affected by illegal charges.
In which states are documentation fees highest?
Florida leads with averages over $1,200 with no correct limit. California has the strictest cap: $85. Research your state’s limit before visiting any dealership.
How do I request the full price before visiting the dealership?
Request the “out-the-door imprint” (closing price with all charges, taxes and fees). If they refuse to give it in writing, that’s a red flag.
Can I negotiate the charges even if the seller says they are mandatory?
In most cases, yes. Extended warranties, paint protection and VIN etching are optional. If they insist that they are mandatory, you can find another dealer.
Conclusion
The FTC’s warning to 97 dealer groups in March 2026 is an important step, but it is not enough to change these types of practices. The federal CARS rule was repealed before it took effect, and hidden charges persist as a widespread practice.
For Hispanic families, the best protection won’t come from the government before they sign the next contract: it will come from knowing exactly what they’re charging you, what to refuse, and when to get up from the table.
Keep reading:
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– Basic vehicle inspection before short trips
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