FI showroom red and grey logo
MenuMENU
SearchSEARCH

Lesson From a Close Call

Dealers could use the breathing room created by the FTC’s CARS Rule defeat to bolster their reputations with customers.

February 28, 2025
Lesson From a Close Call

Liberal-leaning states are likely to ramp up enforcement during the new Trump years, so strong customer relations are paramount for dealers.

Credit:

Pexels/Gustavo Fring

2 min to read


A little over a month ago, the Federal Trade Commission’s CARS Rule ceased to worry auto dealers when a federal appellate court shut that regulatory door.

Two and a half years since the agency proposed it, the car-shopping regulation seemed destined to fade into dealers’ bad-memories files, since the FTC under the Trump administration is highly unlikely to resurrect it in any form.

Ad Loading...

The FTC said it proposed the rule to protect consumers and make the car shopping and buying process more transparent. Industry leaders, though, said its measures are already on the books and that the rule would have burdened dealers – and consumers – with redundant and expensive requirements.

Unnecessary rules shouldn’t be on anybody’s priority list. But consumers do need to be able to trust businesses they buy from, particularly for big purchases like cars. 

So the court’s decision seems like a good excuse for dealers and their F&I departments to conduct an “audit” of sorts to make sure they’re doing everything they can to help customers feel comfortable. After all, when a consumer trusts a salesperson, he or she is far more likely to buy, including add-on products.

Such a review could focus on vehicle and F&I sales processes with an eye toward ensuring they unfold in such a way as to reassure customers that dealers have their best interests in mind.

As F&I and Showroom columnist and training expert Rick McCormick recommends in his latest Peak Performance column, processes should be consistent among customers, and the customer should be the focus of them. 

Ad Loading...

“You must decide that what the customer wants from the process is more important than what you want,” he says in part.

The more trust dealers cultivate with their customer bases, the better sales will be, and the less likely that regulators will propose new laws like the CARS Rule. 

Especially when some bend the law, it’s inevitable that regulators will take notice. As industry legal expert Terry O’Loughlin points out in a recent Compliance column, liberal-leaning states are likely to ramp up enforcement during the new Trump years. 

Of course, most dealers do the right thing. So those can only further burnish their good reputations by tuning up their sales approaches.

DIG DEEPER: Five-Star F&I: The Secret to Customer Delight

 

 

 

Subscribe to Our Newsletter

More Industry

Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →
Person pumping gas into car.
Showroomby Lauren LawrenceJune 17, 2026

Used EVs Outpace New

While North American electric-vehicle sales remain down year-over-year, May sales saw a 3% increase from April’s numbers as used EVs led the market.

Read More →
Gas pumps.
Industryby Lauren LawrenceJune 15, 2026

Consumer Outlook on the Rise

Younger generations are feeling more positive about their financial futures and current affordability pressures than older generations, according to recent TransUnion data.

Read More →
Ad Loading...
red Toyota name and logo on white building
Industryby Lauren LawrenceJune 10, 2026

AutoNation Acquires Top Toyota Store

The automotive group added Toyota of Newnan, a high-performing dealership in Georgia, to its roster of over 300 rooftops across the U.S.

Read More →
Man in blue suit smiling for photo.
Industryby StaffJune 9, 2026

Reynolds Names Speakers for Amplify Event

The keynoters will explore challenges that are reshaping the industry, speaking on how dealerships can adapt, innovate and thrive in a rapidly changing atmosphere.

Read More →
Orange Mitsubishi car on grass
Showroomby Lauren LawrenceJune 8, 2026

Mitsubishi Sets Growth Strategy, Structural Transformation

The Japanese automaker aims to 'strengthen products and technologies that embody its brand identity,' focus on its strongest markets and expand value-chain businesses 'that leverage its unique strengths.'

Read More →
Ad Loading...
Man holding magnifying glass over sales volume paper.
F&IMay 29, 2026

Why Your F&I PVR Is Misleading You

Here’s a handy checklist of the numbers to track in 2026 instead.

Read More →
Hands holding phone over graphic.
Digitalby Lauren LawrenceMay 27, 2026

Need for Speed: EV Apps Lack Consistency

Fifty-five percent of surveyed EV owners said their mobile applications had a major or moderate impact on their purchasing decisions, but connectivity issues remain a problem.

Read More →
Orange BMW with windshield wipers sticking up.
Industryby Hannah MitchellMay 18, 2026

Inventory of New Units Stable

Auto brands spent April clearing out most of their 2025 supply with incentives while holding firm on 2026 prices, striking a balance to meet demand and protect their bottom lines.

Read More →
Ad Loading...
Car exhaust pipe blowing exhaust.
Industryby Lauren LawrenceMay 18, 2026

Auto Trade Group Supports Emissions Delay

The Alliance for Automotive Innovation announced its support of a delayed timeline for federal emission standards for light- and medium-duty vehicles.

Read More →