The rising costs and lack of transparency on third-party classified listing platforms are becoming a significant concern for dealers. In a recent LinkedIn post, Andy Wright, managing partner at Vinart Dealerships, expressed his frustration over deceptive pricing practices and the platforms’ failure to enforce transparency. In today’s episode of Inside Automotive, Wright joins us to discuss the issue and why he believes it’s time for the industry to take action.
Wright highlights a growing problem in the automotive retail space: third-party classified listing platforms labeling vehicles as “good” or “great deals” based primarily on price, while ignoring hidden fees and misleading pricing tactics. Some dealers advertise vehicles at lower prices online but raise the cost by $1,500 or more if the buyer does not meet certain conditions, such as opting out of financing or trading in a vehicle. This misleads consumers and creates an uneven playing field for honest dealers.
He insists that the platforms must take responsibility for ensuring fair pricing transparency. He criticizes their passive approach of only addressing deceptive listings when flagged by users, calling for more proactive enforcement.
Beyond the consumer impact, deceptive pricing practices distort industry data. Many software tools used for vehicle appraisals and marketing rely on information scraped from these platforms—data that is compromised by misleading listings. The issue is further complicated by the fact that some of these software companies are owned by the same corporations that operate the classified listing sites.
While some may call for government intervention, Wright believes the industry itself should resolve the issue. He suggests potential solutions, such as a community-driven system similar to “community notes” on X, which would flag pricing discrepancies for consumers. He acknowledges the financial challenges platforms face in enforcing stricter policies, as de-platforming deceptive dealers could mean losing significant revenue. However, looking the other way is not a sustainable approach.
Shifting gears, Wright addresses broader market trends affecting vehicle pricing, including rising interest rates, increased MSRPs, and fluctuating incentives. He notes that leasing, which could provide some relief for consumers, has become more expensive due to higher money factors—effectively doubling the cost compared to three years ago.
On the topic of Hyundai’s partnership with Amazon for vehicle sales, he says results so far have been mixed. While some cars are selling through the platform, fully digital transactions remain a niche market. Data suggests that online buyers tend to be more subprime, with lower F&I engagement and fewer trade-ins, which are roughly 30% lower than industry averages. While the initiative is still in its early stages, he believes the long-term success of online car sales remains uncertain.
"They need to take responsibility and police their platforms to ensure the experience the consumer has is one rooted in transparency and efficiency." – Andy Wright
