Hidden dealer fees are adding thousands to the price of a new car... even AFTER the feds warned them to end the practice

For millions of Americans, buying a car remains one of life's biggest purchases. 

But despite a recent crackdown by federal regulators, many shoppers say they're still being blindsided by thousands of dollars in surprise fees long after they've fallen in love with a vehicle.

Earlier this year, the Federal Trade Commission (FTC) warned nearly 100 dealership groups that advertised prices should reflect what customers are actually expected to pay. 

Mandatory charges, the agency said, shouldn't suddenly appear when buyers sit down to sign paperwork - yet industry data suggests the problem is far from solved.

According to car-buying service CoPilot, 59 percent of the 500 vehicle purchases it assisted between December and April included discretionary fees that weren't included in the advertised online price. 

Another analysis from CarEdge found meaningful differences between advertised prices and itemized quotes at nearly 40 percenr of dealerships it reviewed.

'The price you see online most of the time is not actually the price you're expected to pay to take that car home,' CoPilot co-founder Michaela Baker told The Wall Street Journal.

The extra charges can add up quickly. Buyers report seeing documentation fees, dealer preparation charges, warranty packages, paint protection plans, anti-theft devices and other add-ons worth hundreds or even thousands of dollars.

One shopper looking at a used Dodge Charger advertised for $35,490 discovered the real price was more than $40,000 before taxes and registration after additional charges were revealed during negotiations. 

Another customer shopping for a certified pre-owned Subaru found more than $4,000 in extra fees attached to the deal.

The FTC says that's exactly the kind of pricing confusion it wants to eliminate. 

Consumer frustration over the practice is easy to find online.

In a recent Reddit discussion about the FTC's warning letters, one buyer said they visited four dealerships while shopping for a car and claimed every one attempted to significantly raise the advertised price.

'I recently purchased a car and went to four dealerships in person, each one of them tried to substantially raise the price,' the user wrote. 

'I ended up messaging every dealership within three hours of my location and told them to send me their best out-the-door price.'

Another Reddit user said a dealership attempted to add thousands of dollars in charges after they arrived to negotiate.

The shopper claimed the dealer tried to impose a $3,000 penalty for using an outside lender, a $2,500 'mandatory' maintenance package, $700 in documentation fees, a $200 'carbon neutral' charge and a further $200 tag-and-title overcharge.

'All BS,' the user wrote, noting that most of the charges disappeared after they threatened to walk away.

The shopper estimated the extra fees totaled roughly $7,000 upfront. 

They added that the dealership's financing offer carried an interest rate about two percentage points higher than their pre-approved loan, which would have added thousands more in borrowing costs over time. 

After taxes and financing costs were factored in, the buyer calculated the deal would have cost about $11,000 more than the vehicle's advertised online price.

Others said they walked away from deals entirely.

'Every time this happens, walk out and give the dealership a one-star review for illegal hidden fees,' one commenter advised.

Dealerships claim the situation is more complicated.

The National Automobile Dealers Association says many businesses are working to comply with the FTC's guidance, but dealers often rely on third-party listing sites, manufacturers and website providers that can make pricing disclosures difficult.

FTC officials acknowledge that many dealerships have made changes. 

Christopher Mufarrige, director of the agency's consumer protection bureau, recently said he was encouraged by the industry's response but warned that 'you've always got your bad apples out there.'

The agency is now preparing to begin enforcement after what it described as an adjustment period for the industry. The stakes can be significant.

In April, the FTC announced a settlement with Maryland-based Lindsay Automotive Group, which agreed to pay up to $75 million in consumer restitution and a $3.1 million penalty over allegations involving false advertising and unwanted add-ons.

Still, consumer advocates say buyers should remain cautious.

Experts recommend requesting a written out-the-door price before visiting a dealership, comparing offers from multiple sellers, and taking screenshots of advertised prices in case discrepancies arise later.

For now, the FTC's warning may have put dealerships on notice - but many car buyers say the hidden-fee game isn't over just yet.