Is a dealer group is allowed to advertise cars for sale on its website that is not located at its lot?
by Brian Nieves about 4 months ago

I need some help. I was asked a question today that I did not know the answer. We are in Virginia.

Do you know if a dealer group is allowed to advertise cars for sale on its website that is not located at its lot?
Thanks

Brian Nieves

Tri-State Nissan

Winchester, VA 22602

by Steve Devereaux about 4 months ago

Why wouldn't you be allowed? I never heard of any laws about that.

by Jim Radogna about 4 months ago

Hi Brian,

Here's a passage from the Virginia Motor Vehicle Dealer Board's "MOTOR VEHICLE DEALER ADVERTISING PRACTICES AND ENFORCEMENT REGULATIONS":
"If a specific vehicle is advertised, the seller shall be in possession of a reasonable supply of said vehicles and they shall be available at the advertised price. If the advertised vehicle is available only in limited numbers or only by order, that shall be stated in the advertisement."

So, it would seem that if the vehicles are available by order only or are located elsewhere, these facts would need to be disclosed in the advertisement.

If the advertised vehicles are not actually available for sale, it would likely be considered "bait advertising", which is illegal under both Virginia and federal laws.

Hope this is helpful.

by Brian Nieves about 4 months ago

Thanks. Do you know if this applies to print or online or both

"If a specific vehicle is advertised, the seller shall be in possession of a reasonable supply of said vehicles and they shall be available at the advertised price. If the advertised vehicle is available only in limited numbers or only by order, that shall be stated in the advertisement."

by Jim Radogna about 4 months ago

All advertising regulations are pertinent to all forms of media: print, online, radio, TV, etc. With online, you can usually supply a link to the necessary disclosures, as long as the link is clear and conspicuous (i.e., not hidden in a place where consumers are not likely to look).

by Chris Kivi about 4 months ago

Jim said it, "Otherwise stated" is the obvious answer to your question, unless Virginia business law prevents such actions. So if for instance, you are marketing a car for a customer via consignment, then you would want to specify and disclose that inside the ad, clearly. Also for new cars, If for example you are advertising a base car, which you clearly would sell the second they arrived on the lot because they are so cheap and such a great deal; you would want to say "subject to actual availability, may require factory order, color ad equipment may vary, and so forth". It's been my experience, the best results happen when honesty is the best policy. Still way too many dealers pissing off the general public, and I ******* hate that! If you can't be honest selling cars, this is the wrong business to work in, especially now. Aside from that, sounds like you've got some plans to expose your product and yourself to the masses. Good Selling!

by Dan Ferguson about 4 months ago

amen, chis. Preach!

by Brian Nieves about 4 months ago

Thanks for the input. We have had a number of local customers in the past couple of months, shop at another dealer because they are advertising certain vehicle in inventory. However when they arrive the vehicles were almost always at another location.

I try my hardest to keep our invnetory up to date. We post cars online as soon as they come as and delete them soon after a sale and I just do not think that it is fair to advertise something you do not have.

by Jim Bell about 4 months ago

I think if you advertise something that isn't on your lot or in transit from the factory, you may be walking on eggshells. Not only that, if the customer comes in and you don't have access to that vehicle, you are likely to tick that customer off. I wouldn't recommend it unless you have it there or is in transit to you. Your dealership's reputation is on the line.

by Steve Devereaux about 4 months ago

I'm not sure why you are asking this question, BUT we have done it on several instances. We have sold some classic cars that we sell for a classic car collector. We have advertised it without the vehicle being here. You simply write 'appointment needed to see this vehicle' in the description. Now, if you want to try to trick people into coming to see a vehicle that isn't there... Not a good idea, let's leave it at that.

by Brian Nieves about 4 months ago

I am not trying to trick anyone. It just have been the case where some local customer have gone to a different dealer because of vehicles they advertise. And in most cases some of these vehicle are almost always at a different location.

by will kenebrew about 4 months ago

Why don't you get a copy of the AD if in print,,,,, and read the fine print that located under these symbols * or this #
On Tv or Radio record it. on line down load it to see what exactly the advertising is all about.. why not?