FTC Is Cracking Down On Dealerships With Nonexistent 'Ghost Car' Listings

It's starting to feel like everything is a scam these days. Did I really drive over a bridge with a toll, or is a scammer about to steal my credit card info? Should I really text this person my password? Is this the actual bank calling me? Thankfully, at least when it comes to fraudulent car listings, Washington D.C.'s WUSA9 reports that what's left of the Federal Trade Commission may soon start forcing dealers to be a little more honest. 

We've already seen the FTC go after dealerships' love of hidden fees, but this time around the feds' fair business cops have reportedly decided that any time a dealer advertises a car for sale, the car should actually exist and already be in said dealer's possession. When the car doesn't exist in dealer inventory, consumer advocates refer to those ads as "ghost car listings." Not because the cars are trapped between this world and the next, but because the advertised cars are made up, as physically present as any other apparition.

The FTC has sent out letters to nearly 100 dealers, warning them to stop this practice. They're also expected to stop posting deceptive ads. What enforcement will actually look like still remains to be seen, but it certainly doesn't hurt to see the feds telling dealers that they're onto their games and expect them to knock it off. Even if no one goes to prison over a few ghost listings, the threat's still nice. 

So what exactly are we talking about when we refer to "ghost cars" and "ghost listings"? If you're confused, that could be because people use those terms to refer to a couple of different deceptive business practices. Here's how the CEO of a car shopping website explained it to WUSA9: 

"Ghost cars kind of reflect two things," said Zach Shefska, CEO of CarEdge. "One is an advertised vehicle that's maybe not actually there or at a price that's disingenuous to get you into the dealership, and then, 'You came in just late. We just sold that one.'"

In some cases, experts say dealerships are advertising vehicles that haven't even arrived on the lot yet and may only be available through a waiting list.

"If you're going to advertise and merchandise something for sale, it has to exist, which is a shocking concept," Shefska said.

If you've ever run into an issue with either, congratulations, you discovered a ghost listing. The good news is, while we wait to see whether the FTC will actually do anything about them, you can usually avoid wasting your time if you're vigilant. You call the dealership first to confirm that the car you're interested in is already physically on the lot and available for you to take for a test drive. Get a specific stock number of VIN from any online listing and be sure that matches the exact car you're looking for — instead of just describing a make and model. Email responses can be slower, but getting a price in writing for a specific vehicle will help you avoid ghost cars, too. 

In addition to calling first, go ahead and ignore any ad that doesn't include actual photos of the exact car being advertised. If all they show are stock images of a generic vehicle that's the same make and model, there's a good chance that dealer is advertising a car it doesn't even have yet. If you need a new car fast, it's better to wait for a listing that uses real photos, even if the price isn't quite as attractive. That way, you can at least be sure that the car you're shopping for actually exists.