Car Ownership and Maintenance

Key takeaways:

• 84-month auto loans hit a record 19.8% of new-car financing in Q1 2025

• Affordability remains a top concern amid $1,000+ payments and high APRs

• Experts warn tariffs and limited 0% deals could worsen affordability crisis

Nearly one in five Americans who bought a new car in the first quarter of 2025 committed to an 84-month loan — the longest common auto financing term — signaling growing financial strain in the car market, according to a new report by Edmunds.

In its latest quarterly analysis, the automotive research firm revealed that 19.8% of new-vehicle buyers signed up for seven-year loans, up from 15.8% in Q1 2024 and 13.4% in 2019. The trend highlights a shift toward financial extremes as consumers either stretch out payments to lower monthly costs or shorten terms to take advantage of targeted incentives.

“The auto finance market showed signs of steadiness in Q1, but that stability doesn’t mean affordability has improved,” said Jessica Caldwell, head of insights at Edmunds. “When one in five new-car buyers are taking on seven-year loans, it’s clear how many consumers are still financially stretched.”

$1,000+ monthly payments are common

Despite slightly easing from Q4’s holiday-fueled luxury buying surge, 17.7% of new-car buyers in Q1 2025 agreed to monthly payments of $1,000 or more, a level that remains historically high. In Q1 2024, the number was 17.3%.

Meanwhile, the average amount financed was $41,473, only a modest decline from Q4’s $42,113, showing little relief for buyers.

Mid-ground financing shrinks

While long loans surge, short-term financing also saw some growth among creditworthy shoppers: 10.2% of buyers took loans of 48 months or less, up from 7.1% in 2019. However, traditional loan terms of 60 to 75 months are fading, now making up 67.4% of loans — down from nearly 78% six years ago.

This polarization reflects a market where buyers are increasingly making tough choices to afford their vehicles, whether through extended debt or selective short-term deals.

0% financing fades away

The once-popular 0% finance offer has nearly disappeared, accounting for only 1.0% of all new-car loans — a record low. These incentives made up 3.0% of loans just a year ago, but have vanished in today’s 7.1% average APR environment.

“The era of ‘free money’ car loans is over,” analysts noted.

Potential policy lifeline

In the face of tightening budgets, some relief may come from Washington. President Trump has floated a proposal to allow interest paid on loans for American-made vehicles to be tax deductible. While the policy’s details are still unclear, Edmunds estimates that the average new-car buyer in Q1 paid $9,231 in interest over the life of their loan.

“If implemented, a deduction could offer meaningful savings — the kind that covers a vacation or home upgrade,” said Caldwell. “But without specifics on how ‘American-made’ is defined or who qualifies, its true impact is hard to predict.”

Tariffs add uncertainty

Adding further tension to the market is the new round of auto tariffs, which officially went into effect on April 3. Caldwell warned these could “add fuel to the fire,” potentially making new vehicles even less affordable and further increasing reliance on ultra-long-term financing.

Bottom line: With both interest rates and vehicle prices remaining stubbornly high, affordability remains the defining challenge for new-car shoppers in 2025 — and it’s pushing more consumers to the financial edge.

Key takeaways:

• Sources indicate Volvo will cancel U.S. orders for the S90 next year, citing the low sales volume of the model in the American market.
• In response to the Trump administration's tariffs, Volvo is also reducing incentives on existing U.S. inventory and exploring increased production at its South Carolina plant.
• The decision highlights the growing impact of the escalating trade war on global automakers with production in China and underscores Volvo's strategic shift towards its higher-volume crossover models in the U.S.

If you've always dreamed of having a big, luxurious Volvo S90, dream on but you'll soon have to confine your shopping to the used-car lot. 

Volvo is reportedly planning to discontinue U.S. sales of the S90, which is manufactured in China, as trade tensions between the United States and China intensify and as the automaker grapples with newly imposed tariffs on Chinese goods, including vehicles.

​Automotive News quoted a person familiar with Volvo’s strategy, who wished to remain anonymous, as saying that the S90 is a "low-volume car for the U.S.," with only 1,364 units sold in 2024.

"Rather than deal with [the tariffs], they are just going to cut it out," the source explained. The company will reportedly focus on its more popular XC90, XC60, and XC40 crossover SUVs in the American market. A Volvo spokesperson declined to comment, Automotive News said.

President Trump on Wednesday significantly escalated trade tensions by slapping a 125 percent tariff on goods made in China, a fivefold increase from the 25 percent levy applied to vehicles from other countries on April 3rd. Those tariffs will remain in effect even after a temporary pause on reciprocal duties with most other nations.

A slow but steady retreat

Discontinuing the S90 would mark Volvo's further retreat from the shrinking U.S. sedan market. Last summer, the automaker ceased U.S. sales of the S60, which was produced in South Carolina.

Despite a 7.5 percent increase in U.S. sales during the first quarter, reaching 33,285 vehicles, Volvo's global deliveries saw a 5.7 percent decline, with slumps in key markets like Europe and China. The heavy reliance on imports – 96.8 percent of Volvo's U.S. sales in the first quarter were imported from Europe or China – exposes the company to significant risks from the Trump administration's aggressive trade policies.

In addition to the S90, Volvo's new EX30 subcompact crossover is also sourced from China, although production of that model is slated to expand to Ghent, Belgium, later this year.

Volvo said, however, that it is "ramping up" production of the electric EX90 crossover at its currently underutilized Ridgeville, S.C., assembly plant to boost volumes and reduce costs.

To deal with the increasing costs of importing vehicles into the U.S., Volvo is also adjusting its incentive strategy. While sticker prices are not expected to change for now, the automaker plans to implement "minor incentive changes," a company executive said. This includes reducing discounts on imported vehicles already in the U.S. before the tariffs took effect. The company intends to use these savings to offset the financial burden of future imports subject to the higher tariffs.

Key Points:

• Interest in electric vehicles (EVs) in the U.S. has dropped from 59% in 2023 to 51% in 2024, according to a new Gallup poll.

• Support for EVs declined most sharply among young adults and upper-income households, though it fell across party lines.

• Hybrid vehicles now show stronger consumer interest than EVs, with 65% of adults open to owning one.

American enthusiasm for electric vehicles has dimmed over the past year, with just over half of adults now saying they own or are open to owning an EV — a sharp decline from a high point in 2023, according to new data from Gallup’s annual Environment survey.

Only 3% of U.S. adults say they currently own an EV, while another 8% say they’re seriously considering a purchase. An additional 40% say they might consider one in the future. That brings total interest in electric vehicles to 51%, down from 59% last year, and marks a cooling trend that cuts across income levels, age groups, and political affiliations.

The percentage of Americans firmly opposed to buying an EV has remained steady at 47%, up from 41% in 2023. Meanwhile, the most enthusiastic supporters — those who either own or are seriously considering purchasing one — have dropped from 16% to just 11% over the past year.

Why the drop in interest?

While the exact reasons for the decline are unclear, Gallup notes that the survey period coincided with several developments that may have influenced public opinion.

Among them were protests and vandalism targeting Tesla — spurred by dissatisfaction with CEO Elon Musk’s controversial role as head of the Department of Government Efficiency — and former President Donald Trump’s purchase of a Tesla vehicle on March 11, a move that made headlines and reportedly boosted Tesla’s stock by $56 billion.

Hybrids offer a middle ground

At the same time, Gallup introduced a new question measuring consumer interest in hybrid vehicles, and the results suggest Americans may be pivoting toward options that combine gasoline and electric power.

A significant 65% of adults said they already own (8%), are seriously considering (10%), or might consider (47%) a hybrid vehicle — outpacing EV interest in every category. The preference for hybrids may reflect growing concerns about the charging infrastructure and reliability of fully electric cars.

Looking ahead

While EV adoption may still grow with policy support and technological improvements, the latest data highlight a cooling in consumer sentiment — and a need for automakers and policymakers to reassure the public about the convenience and sustainability of electric mobility. Meanwhile, hybrids appear to be gaining favor as a more flexible, less controversial alternative.

In brief ...

• 🚗 Consumer Reports names top 10 used vehicles under $20,000 offering safety, reliability, and fuel savings.

• 💰 Picks span sedans, SUVs, hybrids, and trucks, based on performance, owner satisfaction, and crash safety.

• 🛑 List aims to guide budget-conscious buyers who don’t want to sacrifice quality for affordability.

Details

Nonprofit Consumer Reports has released its 10 Top Picks for used cars in April 2025, highlighting reliable and safe pre-owned vehicles that offer strong performance without breaking the bank. With new car prices still historically high, and likely to go higher thanks to stiff new tariffs on imports, the report offers smart alternatives across various categories—from sedans to hybrids to pickups.

To qualify, each vehicle had to perform well in CR’s road tests when new, show multiple years of above-average reliability, and include electronic stability control. The picks focus on the newest model year available under each price cap.

Highlights:

• Under $10K: 2016 Mazda6 – sporty, efficient, and updated for better ride comfort.

• Under $15K: 2018 Toyota Corolla – roomy, reliable, and packed with standard safety tech.

• Hybrid under $20K: 2019 Toyota Camry Hybrid – an ultra-efficient sedan with 52 mpg and advanced safety features.

• SUVs under $20K: 2021 Kia Sportage, 2018 Mazda CX-5, and 2018 Toyota RAV4 Hybrid offer style, space, and value.

• Pickup: 2015 Toyota Tacoma – known for its off-road ability and rugged reliability.

• Sports Car: 2019 Mazda MX-5 Miata – fun to drive and newly boosted to 181 horsepower.

The full list offers something for every type of driver—without compromising on safety, longevity, or affordability.

Do you just love taking your car to the dealer for service? J.D. Power says consumer satisfactiong with service visits "remains strong for a second consecutive year."

But don't break out the champagne just yet, because it adds that "wait times for appointments, communication shortfalls and gaps in fixing vehicles correctly limit the industry’s progress." That's according to the J.D. Power 2025 U.S. Customer Service Index (CSI) Study, released today.

The survey found that dealers continue to battle with ongoing capacity challenges as the average number of days that customers must wait for an appointment is longer than was tracked from 2018 to 2022, and only nominally better than 2023 and 2024. Addressing this—and other opportunities—could improve service satisfaction and increase loyalty to dealerships.

“While it’s no surprise that customers gravitate to operations that serve them well, the study clearly shows that good service leads to loyal customers,” said John Tenerovich, director of automotive retail at J.D. Power. “This phenomenon proves true across all service types—oil changes, repair, tires and brakes.”

Gas is still king

The study finds that customer satisfaction with the service of electrified vehicles—both battery-electric (BEV) and plug-in hybrid (PHEV) vehicles—continues to trail satisfaction among owners of internal combustion engine (ICE) vehicles by a wide margin.

Satisfaction (on a 1,000-point scale) among mass market BEV owners is 51 points lower than among owners of mass market ICE vehicles, and satisfaction among premium BEV owners is 57 points below that of premium ICE vehicle owners. The ongoing lack of well-trained EV technicians and frontline personnel is a key factor in the shortfall.

Following are some other key findings of the 2025 study:

• Fixed right first time: Surprisingly, 12% of repairs are not completed correctly on the first visit. 
• Satisfaction improves when maintenance items are combined with recalls.
• Communication helps deliver satisfying service experience: Among the 10 most influential key performance indicators measured in the study, four are communication-related.
• Trust in service personnel and overall service varies by generation. While Boomers express a great deal of trust in dealer service, younger generations have progressively less.

Highest-Ranking Brands and Segments

Porsche ranks highest in satisfaction with dealer service among premium brands with a score of 912. Lexus (900) ranks second and Cadillac (888) ranks third.

Subaru ranks highest in satisfaction with dealer service among mass market brands with a score of 896. MINI (888) ranks second and Honda (881) ranks third.

Subaru (886) ranks highest in the mass market car segment, followed by Honda (879) and MINI (879).

Subaru ranks highest among mass market SUVs/minivans with a score of 897. Honda (884) ranks second and Buick (878) ranks third.

Porsche ranks highest in the premium car segment with a score of 906, followed by Lexus (891) and BMW (887).

Porsche ranks highest in the premium SUV segment with a score of 917. Lexus (902) ranks second and Cadillac (891) ranks third.

Chevrolet ranks highest in the truck segment with a score of 877. GMC (876) ranks second and Nissan (873) ranks third.

The U.S. Customer Service Index (CSI) Study is now in its 45th year and has been redesigned for 2025. Along with traditional Voice of the Customer survey data, the study index now includes, for the first time, repair data drawn from individual in-dealership repairs. This repair information, secured from individual dealership service transactions, allows the study to offer an unprecedented level of granularity of both service quality and customer retention.

The study measures satisfaction with service at franchised dealer and aftermarket service facilities for maintenance or repair work among owners and lessees of one- to three-year-old vehicles. It also provides a numerical index ranking of the highest-performing automotive brands sold in the United States, which is based on the combined scores of five measures comprising vehicle owner service experience data and actual repair data. These measures are (in order of importance): service quality; service advisor; vehicle pick-up; service facility; and service initiation. In 2023, model segment rankings were added to the study to differentiate between the service needs for cars, trucks, SUVs and minivans.

The 2025 study is based on responses from 55,210 verified registered owners and lessees of one- to three-year-old vehicles. J.D. Power goes to great lengths to ensure that survey respondents are true owners of the brand for which they are surveyed. The study was fielded from July through December 2024.

For more information about the U.S. Customer Service Index (CSI) Study, visit https://www.jdpower.com/business/us-customer-service-index-csi-study.

Hyundai and Kia models have acquired a reputation for being easy to steal, thanks to the "Kia Challenge," which enticed social media mavens to try their hand at grand larceny. But in fact, it's the No. 1-selling vehicle in the U.S. that is the most-often stolen.

Yes, we're talking about the Ford F-150 pickup truck. It's been the top-selling truck in the country for more than 47 years. And Ford cars and trucks have outsold every other brand for over 40 years, so with all those Fords out there, it's not surprising a few of them get nicked every year. 

How many? Well, it works out to 1,815 thefts per 100,000 F-150s. The Hyundai Elantra is second with 1,296. Another hefty pickup -- the Chevrolet Silverado -- is third at 1,207, according to Insurify.  

Hyundai-Kia models are still in the running but thanks to a quick fix of the feature that made the cars easy to steal, they now are more apt to stay put. If you look just at brands and not individual models, the Koreans still top the list.

How to prevent theft

Unfortunately, you can't completely prevent theft but there are steps you can take to reduce your risk. Here are some suggestions, admitedly pretty obvious ones, from the National Insurance Crime Bureau:

• Park in well-lit areas.
• Close and lock all windows and doors when you park.
• Hide valuables out of sight, such as in the glove box or trunk.
• Do not leave your keys in your vehicle.
• Do not leave the area while your vehicle is running.
• If your vehicle is stolen, call law enforcement and your insurer immediately because reporting a vehicle as soon as possible after it is stolen increases the chance of recovery.

When reporting your car stolen, you should be ready to provide the following information:

• The make/model of the vehicle, color, license plate number, as well as the vehicle’s VIN number.  (The VIN can be found on your insurance policy documentation or on the Proof of Insurance card.)
• The process for filing a stolen vehicle report to your insurer could be over the phone, online, or even directly to your insurance agent.

When you think of heat pumps -- which, admittedly you might not do very often -- you probably picture a large device that admits a roaring sound in backyards throughout the land.

But not all heat pumps are big and noisy. Some are small and quiet, and they're also mobile. Yep, they're maybe in your electric vehicle if you have a new model.

It's not really surprising. Heat pumps save a lot of energy in homes and they can do the same in EVs, making electric cars more practical in cold climates. They're replacing resistance heaters, which burn up a lot of energy in the process of warming the air in your car's cabin. 

Key Points

• Efficiency: Heat pumps can improve EV range in freezing temperatures by 8–10%, according to research from Recurrent. Tests showed EVs like Tesla’s 2021 Model 3 and Model S with heat pumps perform better in cold weather than older models without them.
• Performance: Heat pumps reduce range losses at 32°F to 11–13% for vehicles like the Tesla Model X and Audi E-Tron. However, their efficiency drops below 15°F.
• How They Work: Heat pumps transfer heat from the car’s electric motors or outside air to the cabin, operating like reverse air conditioning. This process is more energy-efficient than traditional resistive heating.

Adoption

Heat pumps are found in many newer EVs, including Tesla models since 2021, the Polestar 2, Rivian vehicles, and upcoming models like the 2025 Ford Mustang Mach-E.

Older EVs with smaller batteries and no heat pumps, like the 2017 Ford Focus Electric, experience significant range losses in freezing weather.

Tips for Winter EV Use

• Precondition your car while plugged in before driving.
• Regularly brush snow off your vehicle. It won’t melt as it does on gas-powered cars.

The Federal Trade Commission and Maryland Attorney General have charged Lindsay Automotive Group with systematically deceiving and overcharging car-buying consumers for years, costing them millions of dollars in junk fees and unwanted add-on products.

The agencies’ complaint also alleges that Lindsay advertised prices it refused to honor and falsely claimed consumers needed to obtain financing through Lindsay. The agencies’ complaint alleges that three Lindsay dealerships and their management company, along with the company’s part-owner and president Michael Lindsay, COO John Smallwood, and the dealerships’ former general manager Paul Smyth, engaged in pervasive unlawful conduct.

“Auto dealers who trick consumers with bait-and-switch advertising, financing sleights of hand, and unwanted add-ons should expect to hear from the FTC,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. “The FTC and its state partners will continue working to combat this illegal conduct.”

“Buying a car is a significant financial investment. Marylanders deserve to know upfront how much they will actually pay for a vehicle and should not be surprised by hidden charges that they did not budget for,” said Attorney General Anthony G. Brown. “Our Office will not let car dealerships profit from unfair and deceptive practices.”

Deceptive pricing

According to the complaint, Lindsay regularly advertises deceptive prices on its website and in its advertising, promoting vehicles for sale at a price that is not actually available to the vast majority of consumers. Lindsay employees continue the deception when consumers call, claiming the advertised price is real.

Only when consumers get to the dealership do they learn that the price is hundreds or even thousands more than advertised because they do not qualify for a raft of rebate programs, or because they must pay thousands of dollars in additional fees. One dealership manager cited in the complaint told a consumer that the price on the website “was not realistic” and that “no one would qualify for it because it was nearly impossible to qualify for all the rebates to get to that price.” In fact, Michael Lindsay told Smallwood and others, “we never deliver the vehicle anywhere near the stated price.”

The complaint cites numerous examples in which customers, who sometimes traveled significant time and distance, including booking flights from other states, to get to Lindsay dealerships based on the low advertised prices, were hit with supposedly mandatory fees of thousands of dollars. In other cases, dealership employees simply told consumers directly that the advertised price wasn’t true, according to the complaint.

A sample of Lindsay’s transactions shows that 88 percent of consumers who bought a car from the defendants’ dealerships from 2020 to 2023 paid more than the advertised price—on average over $2,000 more—according to the complaint.

Additionally, the complaint charges that Lindsay’s unlawful conduct didn’t stop at the vehicle’s purchase price. Instead, after consumers navigate the often arduous process of negotiating a price, they then face further challenges when Lindsay deceptively claims that they must finance their car through the dealership.

"Kickbacks"

Lindsay receives what it calls “kickbacks” from financing companies when consumers finance a car through the dealership, according to the complaint. Consumers who arrive at Lindsay dealerships looking to pay cash or with pre-approved financing from another financial institution are regularly told that the advertised price won’t be honored.

The complaint cites multiple instances in which consumers were directed to financing offers through Lindsay that charged higher interest than what they’d obtained on their own—and would cost them thousands more over the life of the loan. A survey cited in the complaint showed that more than a third of Lindsay shoppers were told that financing through the dealer was mandatory to purchase the car or to obtain the advertised price.

Finally, the complaint alleges that Lindsay systematically charged consumers for add-on products—such as extra service plans, tire and rim protection, and “guaranteed asset protection” coverage—they did not consent to purchase or falsely told consumers the add-ons are mandatory. In fact, a survey cited in the complaint shows 68% of consumers were charged for at least one add-on they did not agree to buy or were falsely told was required. These charges often amount to hundreds or thousands of dollars for each consumer.

The complaint charges that Lindsay Chevrolet of Woodbridge; Lindsay Ford of Wheaton; Lindsay Chrysler-Dodge-Jeep-Ram; Lindsay Management Company, LLC; and individual defendants Lindsay, Smallwood, and Smyth violated the FTC Act as well as Maryland’s Consumer Protection Act. The complaint asks the court to stop Lindsay’s unlawful actions and provide redress to the consumers harmed by those actions.

Starting January 1, 2025, California's "lemon law," which protects buyers of defective vehicles, will undergo changes that could confuse car buyers, especially those with faulty new or used cars.

The law has long allowed consumers to get a replacement or refund for a defective car. However, a new law signed by Governor Gavin Newsom this year will make it harder for consumers to take legal action, with shorter time frames and fewer rebates for defective cars.

Newsom signed the new law but said he expected the legislature to pass a new version quickly. 

The confusion stems from a law that could allow car companies to opt out of these changes, depending on further legislation. The law was passed to address a backlog of lemon law cases in California courts, but critics argue it weakens protections for consumers and mainly benefits U.S. automakers, who face more lawsuits than foreign car companies.

A recent California Supreme Court ruling also complicated the situation by stating that warranties on new cars do not apply once the car is resold as used. This leaves consumers who bought a used car with ongoing problems, without the same legal protections.

Lawmakers are working on new legislation to address these issues, but for now, car buyers will have fewer rights and protections regarding defective cars.

Many lawmakers say they were blindsided by the measure.

“There wasn’t a single person who represents the people of California who knew about this and was a part of those conversations – for months,” Democratic San Ramon Assemblymember Rebecca Bauer-Kahan told her colleagues on the Assembly Judiciary Committee on Aug. 30. “They dropped this in our lap, and they expect us to buy an argument related to the urgency that feels, to be honest, not real. And we’re supposed to move this in a week’s time.”

A group of 10 Illinois car dealerships are facing a $20 million fine, the largest ever levied against a car dealer by the Federal Trade Commission. The money will be used to make refunds to customers.

The dealer group, doing business as Leader Automotive Group and their parent company, AutoCanada, operate the following dealerships:

• North City Honda;
• Crystal Lake Chrysler Dodge Jeep Ram;
• Hyundai of Lincolnwood;
• Kia of Lincolnwood;
• Bloomington Normal Auto Mall (Mercedes-Benz of Bloomington, Lincoln of Normal, Volkswagen of Bloomington Normal, Volvo Cars Normal, Subaru of Bloomington Normal, and Audi Bloomington Normal);
• Autohaus Motors (Mercedes-Benz of Peoria, Porsche Peoria, Volkswagen of Peoria, and Audi Peoria);
• Chevrolet of Palatine;
• Hyundai of Palatine;
• Toyota of Lincoln Park; and
• Toyota of Lincolnwood.

The fine follows a lawsuit by the FTC and state of Illinois.

In addition to paying $20 million, which will be used to refund harmed consumers, the proposed settlement also would require the companies to make clear disclosures of a car’s offering price—the actual price any consumer can pay to get the car, excluding only required government charges—and get consent from buyers for any charges. 

“Working closely with the Illinois Attorney General, we are holding these dealerships accountable for unlawfully extracting millions of dollars from consumers through a textbook bait-and-switch scheme, and bolstering their poor reputation with fake reviews,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. 

“This dealership network engaged in bait-and-switch tactics by luring consumers into their dealerships with lower prices only to either require consumers to purchase allegedly pre-installed add-on products or charge consumers for those products without their knowledge or permission,” said Illinois Attorney General Kwame Raoul. 

Junk fees, fake reviews, Canadian cars

The agencies' complaint alleges the defendants have deceived consumers about the price and availability of vehicles, charged them for expensive add-ons without consent, tacked on unwanted junk fees to purchases, posted fake reviews, and failed to disclose that U.S. customers were buying cars imported from Canada, along with other unlawful conduct.

Leader has frequently advertised new and used cars online with low prices designed to entice consumers into their dealerships, but those prices are often false, according to the complaint.

When consumers arrive at a Leader dealership, salespeople often tell them the car has preinstalled add-ons like protective coatings (often under the name Xzilon) and theft protection (under the name LoJack) that cost thousands of dollars, and that these add-ons are required despite not being included in the advertised price of the car.

According to the complaint, the add-ons have been wildly profitable for Leader, with dealerships at one point reporting more than 99% profit on them. Leader salespeople have been paid a commission for these add-on products, in many cases making more from the sale of the add-ons than the commission they are paid for selling the car itself.

A survey of Leader customers showed that nearly 80% of them were charged for at least one add-on without authorization or because they were falsely told the add-on was required. The unwanted add-ons also included items tacked on in the financing process like guaranteed asset protection (GAP) coverage and service contracts.

Add-on charges 

The complaint charges that, even after learning that the FTC was investigating, Leader kept tacking on add-on charges, resulting in consumers paying thousands more than the advertised price. Leader allegedly required the Xzilon add-on for all new and used cars they sold starting in 2021.

According to the complaint, Leader has also regularly failed to actually install or apply the add-on products for which they charged consumers without their consent.

Leader’s low-price advertising was designed to “get [customers] through the door,” according to a message from a company executive cited in the complaint. In many cases, however, Leader has advertised cars that have already been sold.

When consumers arrived at the dealership, they were directed to more expensive cars, often ones with junk fees and surprise “market adjustments” added to the price. The complaint cites another message Douvas sent to employees saying that once consumers get to the store, “they’re not leaving” without buying a car.

Leader has also regularly advertised cars as being “certified pre-owned,” and available at a specific price but then charged consumers hundreds or even thousands of dollars in additional “certification fees.”

In many cases, despite advertising the cars as being certified and charging consumers undisclosed fees for that certification, Leader has failed to actually do the certification work required by the manufacturer of the car, leaving consumers without the extended warranty that makes certified pre-owned cars attractive in the first place.

Even on non-certified used cars, Leader has charged exorbitant “reconditioning” fees, which one former sales manager described as “fake fees,” according to the complaint.

Canadian cars, bogus reviews

Leader also has sold cars in its U.S. dealerships that were manufactured for the Canadian market without disclosing that to consumers, according to the complaint. Even when done legally, importing these cars into the U.S. typically voids their manufacturer’s original warranty. Leader still deceptively advertised many of these cars as being covered by those warranties.

In addition, the complaint alleges that employees were required by management to post fake positive reviews about their dealerships on Google and other review sites.

Managers have threatened to withhold bonuses and other compensation from employees who don’t post fake reviews, and have paid employees bonuses for posting fake reviews, according to the complaint.

One email from a manager encouraging more reviews said: “Those of you with a low review score and low volume of reviews its [sic] an easy fix. If you have 10 employees and they have 5 family members or friends you can have 50 reviews right away.”

The complaint also alleges that dealerships have bullied and pressured consumers into posting five-star reviews, citing one instance in which a dealership refused to give a consumer the keys to a car she purchased until she posted a positive review.