FTC Takes Action To Stop Deceptive Car Dealership Ads
FTC Alleges Dealers Falsely Promised To Pay Off Trade-ins, No Matter What Consumers Owed
Five car dealers around the country have agreed to Federal Trade Commission settlement orders that require them to stop running ads in which they promise to pay off a consumer's trade-in no matter what the consumer owes on the vehicle.

The FTC charged that the ads, which ran on the dealers' websites and on sites such as YouTube.com, deceived consumers into thinking they would no longer be responsible for paying off the loan balance on their trade-in, even if it exceeded the trade-in's value (i.e., the trade-in had "negative equity"). Instead, the dealers rolled the negative equity into the consumer's new vehicle loan or, in the case of one dealer, required consumers to pay it out of pocket.


http://www.ftc.gov/opa/2012/03/autoloans.shtm