The Motor Vehicle Dealer Board met last month and the Board's advertising committee considered a series of
advertisements to discuss Board policy. The general, common theme of the advertisements was a representation to the public that a vehicle could be purchased for an amount after certain deductions. The Board considered these advertisements in light of the applicable statutes and applicable regulations. It concluded as follows:
1. A cash price determined after a downpayment or trade-in credit, even if the downpayment or trade-in credit is disclosed elsewhere, is not permitted by Virginia law. A dealer must advertise full delivered cash price not reduced by a down payment or trade credit.
2. A cash price net of incentives or rebates can be advertised provided the applicable incentives and rebates are clear and conspicuous and are available to customers.
3. All advertisements must be accurate and not deceptive.
Please review your advertisements to ensure that your advertised prices comply with these requirements.