Motor Vehicle Dealers Trade Regulation Rule
The FTC proposes a new Motor Vehicle Dealers Trade Regulation Rule (CARS Rule) that would ban deceptive practices in vehicle sales, financing, and leasing, including misrepresentations about add-on products, financing terms, and yo-yo sales. The rule would require clear disclosures and prohibit certain fees.
Aforeworn detected this change in the Auto Dealer F&I Compliance space on July 6, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated High urgency. All motor vehicle dealers (franchise, independent, BHPH) and F&I managers should confirm how it applies to their specific situation before acting. There is a time constraint attached: Comment period ends September 12, 2022 (60 days from publication on July 13, 2022).. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Auto Dealer F&I Compliance continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
FTC proposes new rule prohibiting deceptive practices and requiring specific disclosures in vehicle sales, financing, and leasing.
Who it affects
All motor vehicle dealers (franchise, independent, BHPH) and F&I managers
What you must do
Review and comment on the proposed rule by the deadline; prepare for compliance if rule is finalized.
Deadline
Comment period ends September 12, 2022 (60 days from publication on July 13, 2022).
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