Dealers across the country are under increasing pressure to maintain compliance with Federal Trade Commission (FTC) guidelines while remaining competitive in pricing and sales strategies. Namu Keys, Senior Product Marketer for CDK Modern Retail, joins us on the latest episode of Inside Automotive to share strategies for navigating these challenges.
According to Keys, many dealers are managing fragmented pricing systems across in-store and third-party platforms, making it difficult to maintain consistent “all-in” pricing. Conditional incentives, if not clearly separated, can further complicate compliance. CDK’s digital retailing tools provide a solution that allows dealers to display accurate pricing while properly isolating conditional incentives for eligible customers.
“From our latest friction point study, you know, the top two customer frustrations typically ends in negotiation and fees.”
Additionally, transparency in add-ons and F&I products is also a critical factor in building customer trust. Keys highlighted that clear disclosure of add-ons and F&I options allows buyers to evaluate protections without feeling pressured during in-person negotiations. This transparency addresses common customer frustrations related to hidden fees and unclear negotiations, ultimately improving conversion rates.
Keeping inventory data up to date is another key compliance consideration, as real-time status updates on vehicle availability prevent errors and help ensure consistent pricing visibility throughout the customer journey. Keys alludes that workflow integration from CRM to F&I, combined with AI adoption, further strengthens compliance. Therefore, AI tools help maintain accurate descriptions and pricing, supporting both regulatory requirements and online visibility for potential buyers.
Keys emphasized that as regulatory scrutiny intensifies, dealerships must prioritize compliance while leveraging technology to remain competitive. Proper pricing, clear disclosures, real-time inventory updates, and AI integration position dealers to meet FTC guidelines and customer expectations.
