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High urgency

Combating Auto Retail Scams Trade Regulation Rule

Detected July 6, 2026 · in Auto Dealer F&I Compliance

The FTC's CARS Rule imposes new requirements on auto dealers to prevent deceptive practices in vehicle sales and financing, including clear disclosures on pricing, add-on products, and financing terms.

Aforeworn detected this change in the Auto Dealer F&I Compliance space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. All auto dealers (franchise, independent, BHPH) and F&I managers should confirm how it applies to their specific situation before acting. There is a time constraint attached: July 30, 2024 (effective date). Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Auto Dealer F&I Compliance continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.

What changed

New FTC rule prohibits misrepresentations about price, add-ons, financing, and yo-yo tactics; requires clear disclosure of total payment, add-on costs, and financing terms; bans certain practices like charging for prohibited add-ons.

Who it affects

All auto dealers (franchise, independent, BHPH) and F&I managers

What you must do

Review and update sales and F&I processes, training, and disclosures to comply with the CARS Rule by the effective date.

Deadline

July 30, 2024 (effective date)

Source: https://www.federalregister.gov/documents/2024/01/04/2023-27997/combating-auto-retail-scams-trade-regulation-rule

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