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.

Liberal-leaning states are likely to ramp up enforcement during the new Trump years, so strong customer relations are paramount for dealers.
Pexels/Gustavo Fring
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.
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.
“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.
More Industry

Philly Family Sells Stores
The Hills are exiting the automotive retail market after serving the Philadelphia area for more than 30 years.
Read More →
Automakers Must Switch Routes to Compete With China
An analysis of the ascendant players’ increasing market share and how they got there advises Western OEMs to follow a similar playbook to protect their businesses.
Read More →
Managing Expectations
Learn how proactive communication, setting clear expectations, and providing solutions when plans change can strengthen customer trust and improve the overall service experience.
Read More →
Hawkeye State Dealerships Trade Hands
One auto group and a single store sell as part of a recent deluge of U.S. buy-sell transactions making 2026 a hot M&A year.
Read More →
Mainstay Georgia Auto Group Sells
Acquisition by Group 1 extends its presence in the U.S. luxury retail market with the addition of the 10-store stable.
Read More →
New Auto Group Enters the Market
The Iowa transaction involved a Chevrolet GMC Chrysler Dodge Jeep Ram rooftop.
Read More →
Connection Drives Consideration
Convenience and safety are top priorities for American drivers when it comes to connected vehicles and the services they expect with their next car.
Read More →
New-Vehicle Prices Stay Put
Affordability pressures and model availability shaped new-vehicle sales in September, according to an analysis by Kelley Blue Book.
Read More →
EV Buyer Consideration Shifts
What drives American consumers to purchase an electric vehicle is shifting as the question moves away from Should I?' to 'Which features and experience do I want to have?'
Read More →
Auto Nameplate Loyalty Holds in Tough Times
Consumers have been faithful to brands despite financial pressures, and JD Power says that’s because automakers have made some wise moves.
Read More →