Add-on Concealment: What It Means for Auto Buyers and Sellers

Definition & Meaning

Add-on concealment refers to a deceptive practice in the auto sales industry where certain optional features or services, known as add-ons, are not disclosed during negotiations. Although these add-ons are included in the final price of the vehicle, the buyer is often unaware of their existence or cost until after the sale is completed. This practice can lead to buyers paying more than they anticipated for a vehicle.

Table of content

Real-world examples

Here are a couple of examples of abatement:

Example 1: A customer negotiates the price of a car but is not informed that the dealership has added a $2,000 extended warranty to the final price. The customer only discovers this after reviewing the purchase agreement.

Example 2: A buyer agrees on a vehicle price but later finds out that a paint protection package was included without their knowledge, increasing the total cost significantly. (hypothetical example)

State-by-state differences

State Legal Stance on Add-On Concealment
California Strict consumer protection laws; dealerships must disclose all fees.
Texas Less stringent regulations; consumers may have a harder time proving concealment.
Florida Strong consumer protection laws; buyers can file complaints with the state.

This is not a complete list. State laws vary, and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Key Difference
Add-on concealment Failure to disclose optional add-ons in auto sales. Specifically involves non-disclosure during negotiations.
Auto fraud General term for deceptive practices in auto sales. Add-on concealment is a specific type of auto fraud.
Deceptive trade practices Broad category of unfair business practices. Add-on concealment is a subset of deceptive trade practices.

What to do if this term applies to you

If you suspect you have been a victim of add-on concealment, consider the following steps:

  • Review your purchase agreement carefully to identify any undisclosed add-ons.
  • Contact the dealership to discuss your concerns and seek clarification.
  • Consider filing a complaint with your state's consumer protection agency.
  • Explore US Legal Forms for templates that can assist you in drafting a complaint or legal notice.
  • If the issue is complex, consult a legal professional for tailored advice.

Quick facts

  • Commonly involves undisclosed fees or services.
  • Can lead to legal action against dealerships.
  • Buyers should always ask for a detailed breakdown of costs.

Key takeaways

Frequently asked questions

Review your purchase agreement, contact the dealership, and consider filing a complaint with your state’s consumer protection agency.