The FTC warned car dealer groups Across America about hidden fees &
misleading pricing. New CarEdge ‘State of Dealer Fees 2026’ report
— built from 51,535 verified out-the-door quotes across 11,042 U.S.
dealers — reveals the widespread problem still persists
In one of the most sweeping automotive-retail actions in recent
memory, the Federal Trade Commission warned nearly 100 dealership groups
across the U.S. to cease advertising prices that don’t reflect the
mandatory fees consumers are actually charged, signaling that hidden
fees, mandatory add-ons, financing contingencies, and pricing
discrepancies are no longer being treated as isolated complaints, but as
a marketplace-wide problem.
As the industry moves to downplay the issue as a fringe concern, data
from auto retail analytics purveyor CarEdge tells a different story at a
scale no survey or one-off study can match. The consumer-advocacy
platform’s newly released “State of Dealer Fees 2026” report,
accessible at no cost online [1], is built from 51,535 verified
out-the-door (OTD) quotes collected from 11,042 dealers between July
2025 and June 2026, and updated in real time as new quotes are verified.
WHAT THE NEW REPORT FOUND
- Across more than 40,000 verified quotes, the advertised price routinely turns out to be only the starting point of the transaction:
- The average documentation fee is $490 nationally, but ranges from $114 in California (where fees are capped at $85) to $923 in Florida, and reaches $1,299 in Washington, D.C. The gap between the cheapest and most expensive doc fees exceeds $2,635.
- A majority of dealers (57%) charge no mandatory add-ons, but those that do average $1,189 in extras such as protection plans ($1,586 avg), accessories ($1,550 avg), and paint protection ($924 avg), much of it negotiable.
- Transparency is achievable but far from universal: 62% of scored dealers earn an A, while 7% land at the bottom with a D or F.
- Eight states cap doc fees by law, and capped states average dramatically lower fees than uncapped ones — evidence that pricing behavior is shaped as much by policy as by competition.
- The pattern is industry-wide: Toyota, Ford, Hyundai, Honda, and Chevrolet dealers alone account for more than 23,000 verified quotes.
- Knowledge pays: buyers who compare out-the-door quotes from multiple dealers save an average of 3–5% off the first price they’re quoted.
Unlike surveys, opinions, online reviews, or self-reported dealer data,
these findings originate from real pricing requests, actual
negotiations, and authentic transaction documentation collected through
CarEdge’s AI negotiation platform across more than 104,000 negotiation
sessions and over 1.7 million messages exchanged with dealers.
“The story is larger than dealership fees,” says CarEdge Co-Founder
and CEO Zach Shefska. “It raises broader questions about transparency
in one of the largest purchases Americans make. Most consumers have
access to vehicle reviews, safety ratings, inventory listings, and
financing calculators. Far fewer have visibility into how an individual
dealership actually prices a car once negotiations begin … and
that’s exactly the gap the FTC is now focused on.”
THE DATA BEHIND THE DECEPTION
Two controlled experiments make the point vividly. In a nationwide test,
CarEdge requested pricing on the exact same 2026 Toyota RAV4 Hybrid XSE
from 100 Toyota dealerships across 46 states, using an identical buyer
profile. The resulting price spread reached $9,221. The vehicle didn’t
change. The buyer didn’t change. The dealership was the only variable.
A parallel analysis of a Ford F-150 XLT documented a $13,871 difference
between the highest and lowest verified out-the-door quotes.
- See the full RAV4 experiment — breakdowns, patterns, and receipts: caredge.com/experiments/rav4-hybrid-2026 [2]
- Video breakdown of the test: youtu.be/R1oKSrqg3TQ [3]
CONSUMER ADVOCACY AT WORK
CarEdge publishes the free, public Dealer Transparency Index (DTI), a
scoring system that grades 11,042 U.S. dealerships A through F on actual
pricing behavior, not advertising or reviews. Unlike review platforms or
pay-to-play “certified dealer” programs, DTI scores are calculated
purely from verified out-the-door quotes collected through CarEdge’s
AI negotiation platform. Dealers cannot pay to improve their score.
The impact is measurable. To date, CarEdge’s AI agent has negotiated
more than $652 million in vehicle purchases and saved buyers over $25.9
million — an average of $2,451 on every successful negotiation — while
sparing them the back-and-forth that would otherwise eat up their time.
- Browse the Index: caredge.com/dealer-ratings [4]
- Read the full State of Dealer Fees 2026 report: caredge.com/reports/state-of-dealer-fees [1]
EXPERTS & LIVE DEMOS AVAILABLE
Co-Founders Zach Shefska and Ray Shefska (the latter a 43-year
auto-industry veteran) are available to discuss whether FTC scrutiny is
changing dealer behavior, the pricing tactics consumers still encounter
most, why identical vehicles vary by thousands of dollars between
dealerships, and how AI is creating unprecedented visibility into
marketplace behavior.
Zach Shefska recently delivered the opening keynote at AutoIndustry.AI
2026, where he ran a live on-stage demonstration in which CarEdge’s AI
agents “secret shopped” 100 dealerships in real time in front of an
auditorium of actual car dealers.
- Keynote video: youtube.com/watch?v=WGSnvhr9r6k [5]
Exclusive media opportunity: Reporters can request a live, real-time
demonstration in which CarEdge’s AI agents shop dealerships on the
spot. Journalists may choose the vehicle, region, brand, or dealer
group, and watch pricing disclosures, add-ons, and negotiation behavior
unfold as they happen.
EXAMPLE STORY HOOKS
- Has federal scrutiny actually changed dealership behavior — or just the messaging?
- Why can the same vehicle cost thousands more depending on where you shop?
- Are hidden fees and mandatory add-ons replacing traditional markups?
- Which states expose consumers to the highest documentation fees?
- Is AI becoming the new consumer watchdog for major purchases?
CarEdge is a leading consumer platform, founded by father-and-son team
Ray and Zach Shefska, that is dedicated to empowering car shoppers to
make confident, informed and financially savvy decisions. The
company’s CarEdge Pro subscription service gives car shoppers
real-time market insights and an expert __AI Car Negotiator_ [6]_ agent
to make the process simple, easy and fair. It’s premium-level CarEdge
Concierge offers buyers a white-glove experience with a dedicated
automotive expert who locates, negotiates and secures the best possible
deal on your behalf. Both CarEdge tiers help consumers save money, time
and hassle. Also with trusted resources that includes hundreds of guides
on YouTube, CarEdge is redefining transparency, fairness and value in
the automotive industry. Connect with him at __www.CarEdge.com_ [7]_ or
on social media on _ _YouTube_ [8]_, __TikTok_ [9]_, __X_ [10]_,
__Facebook_ [11]_, and __Instagram_ [12].
