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When car salesperson Kenny Rua of Racine, Wisconsin posted a TikTok video claiming he sold a car to a single mom 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], which encourages users to post videos of what makes them happy. Since then, he and the dealership received a world of backlash, so much so that Rua was fired.
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The dealership, Ziegler Honda of Racine, issued a statement that Rua’s actions “do not represent the values we stand for as a dealership and a community of professionals.”
While Rua’s so-called “sale” may have simply been an insensitive joke gone wrong, it’s no secret that most consumers don’t have the insider knowledge needed to go toe-to-toe with a car dealer. And it’s worth knowing how to avoid that situation.
Americans are used to being mistreated when car shopping
For many Americans, buying a car is an unavoidable purchase. But the process has 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
- Hidden fees
- Pressuring buyers based on limited inventory when that isn’t the case
- Yo-yo financing, where dealers claim financing fell through, and only higher-cost loans are available
In a 2024 survey by KPA [2], 76% of Americans said they don’t trust car dealerships to be honest about pricing, and 84% said most car dealerships lack price transparency. In 2022, American consumers filed more complaints about auto sales and repair services than any other industry, based on the Consumer Federation of America’s 2024 survey of consumer complaints [3].
Yet, car dealerships do have to follow certain rules.
They’re not allowed to make misrepresentations about a car’s price, and they must give buyers clear monthly payment information. Effective July 30, 2024, dealerships also cannot charge for add-ons that don’t offer an actual benefit, based on the FTC’s Combating Auto Retail Scams Trade Regulation Rule [4]. These protections may help consumers, but only to a point.
After all, it’s often better to sidestep a scam entirely by paying attention to the details.
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Stay in the driver’s seat when negotiating
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.
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.
You should also research your current car’s worth for a trade-in. Some dealerships may try to lowball you.
Next, before you agree to anything verbally or in writing, make sure you understand what is included. You don’t want to get duped into thinking you’re getting certain features that cost extra. Ask for specifics, and look out for hidden fees.
Car loans, especially those secured through dealerships, can have fees that are tucked away in the fine print, increasing your total monthly costs. Don’t lock in a loan until you’ve taken the time to shop around and compare rates to find the best one for your circumstances.
LendingTree lets you compare auto loan rates offered by lenders near you, getting you qualified offers in just minutes.
With rates as low as 5.03% APR, LendingTree’s nationwide lender network makes car financing easy. Here’s how it works: just answer a few simple questions about yourself, how much your down payment is, the vehicle price you’re targeting — and LendingTree will connect you with two to five lenders from their network of more than 300 lenders.
How to avoid getting taken for a ride
Once you have your financing sorted, you will want to figure out your car insurance. Before signing your final loan paperwork or taking delivery of your car, you need to show proof of insurance.
Many people overpay for insurance without realizing it. According to Forbes [5], the national average cost for full-coverage car insurance in 2024 was $2,149 per year (or $179 per month). However, rates can vary widely depending on your state, driving history and vehicle type. For instance, Louisiana had one of the highest full coverage rates at $3,718 per year with Florida a close second at $3,536.
By using OfficialCarInsurance.com, you can easily compare quotes from multiple insurers, such as Progressive, Allstate and GEICO, to help find the best deal for you.
In just two minutes, you could find rates as low as $29 per month. Keep in mind that, in most cases, you can change your insurance policy before it’s up for renewal — just watch out for any early cancellation fees.
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. Doing your homework is critical to avoid falling victim and taking a very real financial hit.
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Article sources
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[1]. NBC Chicago. "Dealership fires salesman behind TikTok about car sale to single mom"
[2]. KPA. "KPA Car Dealership Trust Survey: While A Minority of Americans Experience Deceptive Selling At Dealerships, Most Still Distrust Them"
[3]. ConsumerFed. "Nation’s Top Ten Consumer Complaints"
[4]. FTC. "FTC Announces CARS Rule to Fight Scams in Vehicle Shopping"
[5]. Forbes. “Car Insurance Rates By State For 2025”
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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