I CAUGHT a Mazda Dealer BREAKING FTC RULES and He DENIES It!
About this episode
The hosts walk through a Mazda CX-5 shopping and negotiation call, starting with how prices are anchored (MSRP vs what’s actually charged) and what goes into the final deal (car price, trade, add-ons, accessories). The dealer says the vehicle isn’t in inventory yet because it’s “on water,” then the discussion turns to dock fees and FTC advertising rules. The host argues the online price excludes required fees in fine print, recommends reporting the recording, and pushes for a true out-the-door breakdown.
In this video I am negotiating a 2026 Mazda CX5 Preferred for a client in Tennessee, a birthday present, and on my very first call I catch a Mazda dealer advertising the car without including the doc fee in the price. When I call it out and reference the FTC rules directly, he argues back and tells me the fine print disclosure is good enough. It is not. So I moved on, found a dealer whose GM had already told his team to watch my stream and be ready to make a deal, and closed at 10% off MSRP on the spot.
MSRP
"Why is 39,000 the MSRP? The one I was looking at was 36810."
MSRP is the official list price for a new car that the manufacturer sets. Dealers can sell for more or less than that number, especially after adding fees.
MSRP (Manufacturer’s Suggested Retail Price) is the sticker price a manufacturer recommends for a new car. In negotiations, dealers may discount below MSRP or add fees that effectively raise the out-the-door price.
Mazda Cx5
"Okay, so we are going to a Mazda CX-5. Preferred. They need a car ASAP."
The Mazda CX-5 is a popular small SUV. It’s the exact car they’re trying to find and buy quickly, with the right color and the best deal.
The Mazda CX-5 is a compact crossover SUV known for its practical size, comfortable ride, and efficient, everyday-friendly powertrains. In this segment, it’s the specific vehicle the hosts are shopping for, including availability and deal terms.
Tennessee
"And we are looking for them in Tennessee. There's not many options. Starting in Knoxville."
They’re looking for the car in Tennessee. That helps narrow down which dealers have the right options and color.
Tennessee is the state the hosts are filtering listings in while shopping for the Mazda CX-5. Regional inventory matters because availability and pricing can vary by dealer and local demand.
Knoxville
"I mean, there's some options in Tennessee. Starting in Knoxville. If you guys don't know who I am, hi."
Knoxville is the city they start with in Tennessee to find cars. It’s just a way to narrow the search to nearby dealers.
Knoxville is the specific Tennessee starting point they mention for finding inventory. When shopping by location, starting with a city can reduce search time and improve the odds of finding the exact color/options quickly.
add-ons
"The price of the car, the trade, the add-ons, accessories."
“Add-ons” are extra extras the dealer tries to add to the sale price. They can make the final total higher than you expected.
“Add-ons” are extra items a dealer may bundle onto a car purchase after the base price—often things like protection packages, electronics, or service-related products. They can meaningfully increase the out-the-door cost even when the advertised car price looks good.
accessories
"The price of the car, the trade, the add-ons, accessories."
“Accessories” are extra items you can add to a car, like mats or other add-ons. They usually cost extra and can raise the final price.
“Accessories” are aftermarket or dealer-installed extras—such as floor mats, cargo organizers, or convenience items—added to the vehicle. Like add-ons, they’re often priced separately and can inflate the total purchase cost.
trade
"The price of the car, the trade, the add-ons, accessories."
A “trade” is when you turn in your current car to help pay for the new one. The value of your trade can change how much you end up paying.
A “trade” refers to trading in your current vehicle as part of the deal. The trade-in value affects the overall transaction math, but dealers may also use it to offset discounts elsewhere.
all-wheel drive
"[182.6s] 2026 Mazda CX-5, 2.5 S preferred all-wheel drive. [186.5s] What color is it? [187.4s] Red, soul red, like my soul."
All-wheel drive means power goes to all four tires. That usually helps the car grip better in rain, snow, or bad road conditions.
All-wheel drive (AWD) sends power to all four wheels, improving traction when roads are slippery or uneven. On a CX-5, AWD is a major spec choice because it can change how the vehicle feels in rain/snow and how it’s priced.
soul red
"[186.5s] What color is it? [187.4s] Red, soul red, like my soul. [189.5s] Okay, let me go into another one,"
“Soul Red” is Mazda’s special red paint color. It’s not just any red—dealers use the exact color name so you can match the car you want.
“Soul Red” is Mazda’s branded paint color name, used on some CX-5 models. It’s a specific factory color (not just “red”), and it can matter for how the car is identified in inventory listings and how it’s priced.
on water
"[215.5s] until the first week of June. [217.2s] It's on water. [218.5s] Oh, it's on water. [219.5s] That's probably not good."
“On water” means the vehicle is currently being transported by ship and hasn’t arrived at the dealership’s region yet. That’s why it may not show up in local inventory systems even though it’s already assigned to a buyer or listed on a dealer website.
incentives
"Mazda doesn't have that, to be honest with you. Unfortunately, there's no incentives on there. There's no rebates or anything else on there."
Incentives are discounts or money-off offers that can make a car cheaper. Here, they’re saying Mazda isn’t offering any extra deals right now.
Incentives are manufacturer- or dealer-backed financial offers that reduce the effective price of a car. In this segment, the host is saying Mazda doesn’t have incentives available, meaning the buyer can’t rely on rebates or special programs to lower the cost.
rebates
"Unfortunately, there's no incentives on there. There's no rebates or anything else on there."
Rebates are like a cash discount you get back after buying the car. They’re saying there aren’t any cash-back offers on this one.
Rebates are cash-back offers (often from the manufacturer) that reduce what you pay for a vehicle after purchase. The speaker groups rebates with other incentives, implying there’s no manufacturer cash-back available for this Mazda deal.
profit margin
"because usually they have a profit margin somewhere around probably a lot. $800 to $900, and what you're asking for,"
Profit margin is how much money the dealer makes on the deal. The host is saying there’s usually some room for negotiation because the dealer isn’t selling at zero profit.
Profit margin is the dealer’s markup/earnings relative to the vehicle’s cost. The host claims dealers typically have a profit margin (here, roughly $800 to $900), which is why they can sometimes negotiate a lower out-the-door price.
invoice
"[328.9s] So you can go below your invoice then? [330.7s] No. [331.0s] You just said your invoice is 800 bucks. [333.6s] I mean, I'll give it to you for invoice."
The “invoice” is basically what the dealer pays the manufacturer for the car (before their profit). People use it as a benchmark to judge whether a deal is truly “cheap.”
In car sales, the “invoice” is the dealer’s cost figure from the manufacturer (often called the dealer invoice). Negotiations often revolve around whether the dealer can sell at or near invoice once holdback and manufacturer incentives are considered.
secret money
"[337.0s] Oh yeah, no, I know Mazda gives you all that secret money [340.9s] in the background under the table. [343.4s] I understand the invoice is just a number, you know?"
“Secret money” is the idea that the manufacturer sometimes pays the dealer extra incentives. That extra money can make it easier for the dealer to offer a bigger discount.
“Secret money” here is a lay description of manufacturer incentives paid to dealers (such as marketing support, volume bonuses, or other dealer cash). Those incentives can effectively lower the dealer’s net cost or increase their ability to discount beyond what invoice alone suggests.
dealer fees
"[567.1s] Advertise prices excludes tax, [569.1s] title, license, dealer fees, dealer installed accessories,"
Dealer fees are extra charges added by the dealership. They can increase what you actually pay compared with the sticker price you first see.
Dealer fees are charges the dealership adds for administrative or processing work (and sometimes other handling costs). They’re frequently excluded from “advertised price” figures, so they must be included when comparing offers or calculating the true total cost.
dealer dock fee
"[567.1s] Advertise prices excludes tax, [569.1s] title, license, dealer fees, dealer installed accessories, [572.1s] and a $699 dealer dock fee."
A dealer dock fee is an extra charge the dealership adds on top of the car’s advertised price. It can make the total cost higher than what you first see.
A dealer dock fee is an extra charge a dealership adds to cover costs tied to getting the vehicle to the dealership (often described as “docking” or handling). It’s important because it can materially change the real out-the-door price compared with the headline advertised price.
financing through dealer approved lender
"[578.2s] may require financing through dealer approved lender, [581.2s] residential restrictions may apply available"
This means the deal only works if you finance the car through lenders the dealership approves. Your total cost can change based on the loan you end up getting.
“Financing through dealer approved lender” means the offer’s terms (like a discount or special rate) only apply if you use a specific set of lenders the dealership has relationships with. This can limit your options and affect the final cost depending on the loan terms you qualify for.
FTC
"[589.2s] it's called ftc.gov, [592.4s] which 97 dealership groups get warned [595.1s] of illegal pricing practices,"
The FTC is a U.S. government agency that protects consumers. Here it’s being used to argue that dealerships must clearly disclose the full pricing and fees.
The FTC (Federal Trade Commission) is the U.S. agency that enforces consumer protection rules, including requirements around how pricing and disclosures are presented in advertising. In this segment, the FTC is referenced to argue that all fees should be advertised clearly in the pricing.
illegal pricing practices
"[592.4s] which 97 dealership groups get warned [595.1s] of illegal pricing practices, [596.5s] which means all prices need to have all fees advertised,"
“Illegal pricing practices” means advertising that’s misleading about what the car will really cost. The concern is that important fees might be hidden or not shown upfront.
“Illegal pricing practices” refers to deceptive or non-compliant advertising behavior—like advertising a low price while omitting required fees from the headline number. The key issue is whether shoppers are given a clear, complete picture of the total cost.
title, license
"So if you use the advertised price, excludes, packs, title, license, dealer fees, dealer installed accessories, and a 699 dealer dock fee."
Title and license are the paperwork and registration costs to get the car legally registered and plated. The host is pointing out that these are often excluded from the advertised price and added later.
“Title” and “license” are government-related costs tied to registering a vehicle—title paperwork and registration/plate fees. The segment treats them as items excluded from the advertised price, which matters because they can change the true out-the-door cost.
lug nuts
"So if we decided that we're gonna put, so if you decided that you wanted to add or you wanted to add all weather fees in that, you wanted to add lug nuts."
Lug nuts are the bolts that hold your wheel onto the car. Here they’re being used as an example of an add-on the dealer might charge for separately.
Lug nuts are the fasteners that secure each wheel to the hub. In this segment they’re mentioned as an example of a dealer-added “accessory” or add-on that could be priced separately from the advertised vehicle price.
cargo cover
"You wanted to add a cargo cover. You wanted to add a cargo tray."
A cargo cover is a panel that covers things in the trunk so they’re less visible and sometimes more protected. It’s mentioned as an example of a dealer add-on that could cost extra.
A cargo cover is a removable or retractable panel that helps cover items in the trunk or cargo area. It’s the kind of practical accessory dealers may list as a separate add-on when discussing what’s excluded from the advertised price.
cargo tray
"You wanted to add a cargo tray. You guys just had the dealer fees listed twice"
A cargo tray is a protective insert for the trunk floor. It’s mentioned as another example of an add-on the dealer might charge for separately.
A cargo tray is a fitted liner or protective insert for the trunk/cargo floor that helps prevent spills, dirt, and scuffs. In this segment it’s used as an example of a dealer-installed accessory that may be excluded from the advertised price.
finance
"[807.5s] Okay, perfect, and I can't combine it with any offers, [810.6s] may require, do I have to finance to get this deal? [813.2s] Just read your fine print."
In dealer pricing, “finance” often means the deal price is conditional on using the dealer’s financing (or meeting a financing requirement). That can change the effective cost because the advertised discount may only apply if you take a specific loan or meet approval terms.
out the door breakdown
"[814.4s] The $900, you guys won't send me an out the door breakdown, [817.7s] but I can do, you're telling me that I can do the math"
“Out the door” means the final total you pay to get the car legally registered. A breakdown shows how that final number is made up (price + taxes + fees).
An out-the-door breakdown is the full total price a buyer pays, including the base vehicle price plus taxes, title, registration, and any dealer fees. It’s the number you should compare across dealers because it reflects the real checkout total rather than just the advertised price.
marketing money
"but they give an extreme amount back in marketing money if they hit their quotas. So if a dealership hits their quotas and has good CSI, they can get five to 6% of the MSRP back in marketing money"
“Marketing money” is extra money the car company gives the dealer to help with advertising and sales goals. It can make the dealer able to sell the car cheaper and still make money.
“Marketing money” here refers to manufacturer incentives paid to the dealer for advertising and sales performance. Even if the dealer sells near invoice, these payments can make the overall deal profitable, which is why some dealers can offer aggressive pricing.
quotas
"if they hit their quotas. So if a dealership hits their quotas and has good CSI, they can get five to 6% of the MSRP back in marketing money"
“Quotas” are sales goals the dealer has to hit. If they hit them, they may get extra money from the manufacturer; if they miss, they may not.
In dealer incentive programs, “quotas” are sales-performance targets the dealer must hit to unlock additional manufacturer payments. Missing quotas can reduce or eliminate those incentives, which affects how low a dealer can price a car.
CSI
"So if a dealership hits their quotas and has good CSI, they can get five to 6% of the MSRP back in marketing money"
CSI is a score based on how happy customers are with the dealer’s service and sales experience. If the dealer’s CSI is high, they may qualify for extra incentives from the manufacturer.
CSI typically means Customer Satisfaction Index, a manufacturer score based on customer feedback and service experience. Dealers often need a strong CSI rating to qualify for certain incentive payments, which can indirectly influence pricing and deal structure.
military rebate
"Is there like, can I get them a military rebate? [1138.0s] Can I get them a military rebate?"
A military rebate is a discount incentive offered to active-duty service members and/or veterans, typically through the automaker or dealer network. It’s separate from normal negotiation and can affect the final out-the-door price by reducing the amount you pay.
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