Press release · Commentary
Hidden Dealer Fees Hurt Buyers and the Auto Industry
The Association of Motorists of Long Island explains how incomplete advertised prices undermine trust and make it harder for transparent dealerships to compete.
LONG ISLAND, N.Y. — A buyer searches for a used car, sorts by price, and calls the dealership with the lowest listing. If the dealer reveals a mandatory fee after the buyer arrives, the shopper has already spent time on an offer they couldn’t accurately compare. The dealership that disclosed its full price from the start may never get the call.
That is the industry problem behind hidden mandatory fees. An incomplete price can win clicks, calls, and showroom visits before the buyer knows the full cost. It puts transparent dealers at a disadvantage and gives other sellers a reason to make their listings look cheaper. Over time, shoppers have less reason to trust the prices they see online.
How an incomplete price distorts competition
Consider two comparable vehicles. One dealer advertises $19,000 and discloses a required $1,500 charge at the showroom. Another advertises its full price of $20,000. The first car appears $1,000 cheaper in a search, then costs $500 more before government charges. The first dealer gets an advantage in search results simply by leaving part of the price out.
Buyers also bear a cost when they walk away. They may have taken time off work, arranged transportation, or passed up another vehicle. When the price changes late in the process, they have to choose between starting over and accepting a deal they would have rejected at the outset.
On November 9, 2026, the Federal Trade Commission announced a proposed settlement with Stream Auto Outlet, a Long Island dealership group operating in Valley Stream, Amityville, and Islip. The FTC alleges that the group advertised prices below what consumers were ultimately asked to pay. The agency lists the matter as pending. The association’s commentary addresses the broader effects of the practices alleged in the complaint.
What dealerships and listing platforms can do
The Association of Motorists of Long Island urges dealerships to include all mandatory dealer charges in the prominently advertised price, clearly identify optional products, and provide an itemized out-the-door quote before a visit. If a financing offer carries conditions, explain them alongside the offer and keep the price available to any buyer prominent.
Vehicle listing platforms can help by requiring dealers to include mandatory charges in the prices shown in search results and giving shoppers a way to flag discrepancies. When listings use comparable prices, dealers can compete on the actual cost of the vehicle, its condition, and the quality of their service.
Buyers can ask for a written price before visiting and keep a copy of the ad. The association’s buyer resources explain what to ask, and its complaint resources link to the agencies that handle reported issues.
About the Association of Motorists of Long Island
The association provides consumer education for motorists in Nassau and Suffolk counties, with practical resources on vehicle purchases and links to official complaint channels.