More automakers are preventing their dealers from publicly competing on price-in the name of consumer transparency. Starting next month, Jeep parent Stellantis will be the latest U.S. automaker to adopt "minimum advertised pricing" for its dealers, a rule that sets a floor for the lowest price dealers can advertise a vehicle. General Motors, Mazda, Toyota, Kia and Hyundai already mandate how low their dealers' advertised prices can go, among others.
In theory, the practice means dealers can't set deceptively low prices and then hike them when buyers show up. But it also means buyers won't know the best price they can get on a car until they get it directly from the dealership.
If they want to price-shop, they need to go to each dealership or contact them independently.
"There is no question it makes price discovery for consumers harder," said Scott Painter, founder and chief executive of car-buying platform TrueCar.
Stellantis vehicles are currently discounted more than three times as deeply from their sticker price as the average car, according to car-shopping aide CarEdge. The automaker is now looking to shore up its "brand integrity," according to documents reviewed by The Wall Street Journal, and to keep dealers from cheapening the image of Jeep, Dodge, Ram and Chrysler with fire-sale tactics.
A Stellantis spokeswoman said the automaker recognized "the need for a more consistent customer experience and a framework for sustainable growth for our retail network." The changes come as Stellantis seeks to expand its lineup with an onslaught of new vehicles by 2030, she said.
Automakers and many dealers contend that keeping their advertised prices from going too low makes things more transparent for car buyers, not less. They say the real effect is to rein in deceptive car dealers who "bait and switch" shoppers with deals that are too good to be true.
"Typically, the cheapest price that you find on the internet is not going to end up being your best overall deal," said Jared Glover, who runs a Jeep-Ram store in the Tulsa, Okla., area. "Something is going to change. There's a reason why that price is so cheap."
GM, in its 2026 document laying out advertising standards for Chevrolet, Buick and GMC, said, "No customer wants to arrive at the dealership only to learn that they will need to pay something different than what they expected (typically more)." The automaker said it maintains standards to ensure price transparency in advertising.
Yet the rules underscore how opaque, and even confusing, the traditional car-buying experience can be.
State laws ensure only franchised dealers can sell new vehicles, and in most cases, prices are negotiable instead of fixed by the manufacturer. The exceptions are electric-vehicle newcomers like Tesla and Rivian, which have always sold cars directly to consumers at fixed prices. Used car giant Carvana is also using the fixed-price model as it branches into selling new Stellantis vehicles.
Starting with the 2027 model year, ads for Stellantis vehicles generally cannot go below the "invoice" price, which is the amount that the dealer pays the automaker for the car, according to documents reviewed by the Journal. Invoice prices, which aren't publicized, are typically a little less than the sticker price.
The new rules limit words dealers can use to signal that the price they are advertising isn't the lowest they are willing to go. Phrases like "Unlock additional price," "Click here for lower price," and "Ask about additional discounts" aren't allowed. Prompts like "Get this price" and "Pick my payment," are OK, according to a Stellantis presentation to dealers.
The Federal Trade Commission has been cracking down on longtime car-dealer tactics like advertising prices that fail to disclose mandatory fees and add-ons, with dealers and third-party sites like Cars.com and Autotrader.com scrambling to comply.
Many Jeep-Ram dealers are on board with Stellantis's new rules, believing they will curb runaway discounting and allow them to sell cars at higher prices.
Fort Lauderdale, Fla.-area dealer GianMarco Taverna typically advertises discounts of 20% or more off the sticker price. He feels he has no choice but to keep up with other dealers in his area, even if his competitors are obscuring fees and add-ons, he said.
"My negotiating start price is higher, so it will allow us to sell cars for more gross profit," Taverna said. "And if everybody plays by the rules, it'll be a better experience for the customer."
Some dealers said they see the move as a step toward moving toward a no-haggle sales model like at Tesla or Carvana, especially as more buyers balk at haggling and other traditional dealer tactics.
"It says a lot about what the customer wants," said Ronnie Flowers, general manager of Friendship Chrysler Dodge Jeep Ram in Johnson City, Tenn. "Customers want transparency. They don't want it to be long and tumultuous, and have to negotiate."
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