How should a dealer handle incentives and discounts disclosed in advertising?

• A. Hide terms and only show the discount.
• B. Ensure they reflect real offers, disclose all terms, and avoid misrepresenting the deal's true cost.
• C. Offer only to VIP customers.
• D. Cancel all discounts after sale.

Answer: (B)

The main idea is that advertising incentives and discounts must be honest, real, and clearly disclosed so customers understand the true cost. When a dealer promotes a price reduction, the incentive should be a genuine offer that can be claimed, and all terms needed to take advantage of it must be stated plainly. This includes the total amount the buyer will pay, not just the discount—price, any required down payment, financing terms, taxes, fees, and any conditions like geographic limits, eligibility, or expiration dates. If terms are hidden or ambiguous, the buyer can be misled about what they’ll actually pay, which undermines trust and may run afoul of advertising laws. The idea is transparency so customers can compare true costs rather than being steered by partial or misleading information. Discounts should not be restricted to a privileged group, nor canceled after sale, as that would misrepresent the offer.