On Monday, the Center for Automotive Research (CAR) issued an updated study assessing the costs and impacts associated with the Federal Trade Commission’s (FTC) Vehicle Shopping Rule following the final rule’s release on January 4, 2024. Automotive News covered the updated report in their June 3 article, “FTC regs will still cost dealers money, consumers time — just less than originally thought, NADA-backed study finds.”
The Vehicle Shopping Rule is projected to significantly affect consumers by adding time, complexity, paperwork, and cost to car buying and shopping for millions of Americans annually. According to CAR’s estimations, the Final Rule would require at least an additional hour to complete the vehicle purchasing process. This additional time is divided between the sales process and the review of financial disclosures and documentation.
The study further estimates a net cost to consumers and dealers of $24.1 billion over ten years. Each dealership location would face average upfront compliance costs of $31,450 and average recurring annual costs of $39,862.
Initially set to take effect on July 30, 2024, for dealer compliance, the FTC delayed the rule’s implementation by granting a stay order on January 18, 2024. The National Automobile Dealers Association (NADA) continues to challenge the rule in court and supports federal legislation that would prevent its implementation or enforcement.
The full CAR study is available for further details.