When car salesperson Kenny Rua of Racine, Wisconsin posted a TikTok video claiming he sold a single mom a car for $10,000 over its sticker price, he meant it as a joke — or so he and the dealership claimed after the fact. Rua posted the video as part of TikTok's "you look happier" trend [1].
Since then, he and the dealership received a world of backlash, so much so that Rua was terminated. The dealership, Ziegler Honda of Racine, issued a statement on the matter, stating that Rua's actions "do not represent the values we stand for as a dealership and a community of professionals.”
But while Rua’s so-called “sale” may have been nothing more than an insensitive joke gone wrong, it’s no secret that most consumers don’t have the insider knowledge or negotiating experience to go toe-to-toe with a car dealer. And it’s important to know how to avoid landing in that situation.
Americans are used to being mistreated when car shopping
For many people, a car is an unavoidable purchase. have earned a reputation for stacking the odds against buyers. Shoppers often walk in at a disadvantage, facing sales tactics designed to maximize profit rather than transparency. Some of the most common strategies include:
- Bait and switch advertising (advertising low-cost vehicles that aren't available)
- Giving lowball offers on trade-ins
- Pressuring buyers on the basis of limited inventory when that isn't the case
- Yo-yo financing, where dealers claim financing fell through and only higher-cost loans are available
- Hidden fees
In a 2024 survey by KPA [3], 76% of Americans said they don't trust car dealerships to be honest about pricing, and 84% said most car dealerships lack price transparency. Meanwhile, 30% of consumers uncovered hidden fees when they went to sign the paperwork to finalize their car purchases.
In 2022, American consumers filed more complaints about auto sales and repair services than any other industry, including home improvements and repairs and consumer debt and credit [4]. And 2024 data from iSeeCars [5] found that the average new vehicle was priced 7.2% above its MSRP that year.
Unfortunately for consumers, car dealers can mark up vehicles above their MSRPs. They can also upcharge for add-on features.
Car dealerships do have to follow certain rules, though. They're not allowed to make misrepresentations about a car's price, and they must give buyers clear monthly payment information. Dealerships also cannot charge for add-ons that don't offer an actual benefit [6]. These protections may help consumers, but only to a point.
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How to avoid getting taken for a ride
If you're in the market for a new (or used) vehicle, it's important to be on the lookout for shady tactics that could leave you paying more for your car. And it's equally important to take steps to protect yourself.
Start by doing your homework. If you know what specific car you're looking for, research prices using sites like Edmunds and Kelley Blue Book. Also shop around with different dealerships to compare prices.
Another thing to do is know what your current car is worth if you're doing a trade-in. Some dealerships may try to lowball you. Doing your research using the sources just mentioned could help ensure that you get a fair price.
Next, before you agree to a car purchase, make sure you understand exactly what it includes. You don't want to get duped into thinking you're getting certain features that cost extra. Ask for specifics, and be on the lookout for hidden fees your dealership might try to tack onto your purchase.
Another thing to do is make sure you understand both your car's total purchase price as well as the monthly payment you're looking at if you’ll be financing it. It's important to have both numbers so you have a clear grasp of what you're paying.
And if you're going to be financing your car, get preapproved for an auto loan on your own, or shop around for one rather than automatically going with the financing option your dealer offers. This should give you a good comparison so you can see if your dealership's financing offer is competitive or not.
Finally, when you go into a dealership, keep your budget to yourself. You don't want that to influence the price they give you. If your budget is higher, they may try to tack on extra costs thinking you won't protest if you can afford them.
Kenny Rua’s viral TikTok may have been brushed off as a bad joke, but it resonated because many buyers really do end up paying thousands more than they should thanks to dealership tactics. This is why doing your homework is critical so you don’t fall victim to a “joke” that could become a very real financial hit.
Article sources
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[1]. NBC Chicago. "Dealership fires salesman behind TikTok about car sale to single mom"
[2]. CBS 58. "'His claim is false': Racine County car salesman fired after viral TikTok video"
[3]. KPA. "KPA Car Dealership Trust Survey: While A Minority of Americans Experience Deceptive Selling At Dealerships, Most Still Distrust Them"
[4]. ConsumerFed. "Nation’s Top Ten Consumer Complaints"
[5]. iSeeCars. "20 New Cars Priced the Highest Over MSRP and 15 Priced Below MSRP"
[6]. FTC. "FTC Announces CARS Rule to Fight Scams in Vehicle Shopping"
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Maurie Backman has been writing professionally for well over a decade. Since becoming a full-time writer, she's produced thousands of articles on topics ranging from Social Security to investing to real estate.
