The Auto Market Brief, powered by Cox Automotive, breaks down the latest trends and forecasts shaping the automotive industry. The show is hosted by Cox Automotive Executive Analyst Erin Keating, coupling years of experience translating data and trends with the data and industry insights of the largest automotive services and technology provider.
Joined by other Cox Automotive experts and outside guests, you’ll get data-driven insights and industry outlooks from some of the industry’s leading voices.
Welcome to The Auto Market Brief from Cox Automotive. Each episode, our experts and special guests break down the latest trends, insights, and news shaping the automotive market. We'll give you the information that truly matters so you can make smarter decisions and drive your business forward. Hello. Welcome back to The Auto Market Brief.
Erin Keating:I'm Erin Keating, your host and industry executive analyst here at Cox Automotive. Today, we're talking about vehicle pricing transparency and the renewed attention around how mandatory dealer fees show up in the advertised price. We know this has been a big headline in the industry, the FTC may be really driving that headline, but I think the larger story is about trust, affordability, and whether the price a shopper sees early in the process really holds together as the transaction moves forward. I'm So so delighted to be joined today by my colleague, Erin Lomax, Vice President of Operations for Consumer Marketplaces at Cox Automotive. Erin is close to both the shopper experience and the operational realities dealers are facing with these expectations around pricing and as they continue to evolve.
Erin Keating:So welcome Erin to the show.
Erin Lomax:Erin Lomax you for having me. I'm super excited to talk about this incredibly important and timely topic today.
Erin Keating:Absolutely And I always love it when there's like a power twins activate. The two Erin's coming at you today, everybody. Exactly. Here we go. So before we really get into how the marketplaces or dealers are actually responding, because this really has been in the conversation probably for over a year now, but the FTC letters were specifically sent out a few months back, and in May, it really seemed to gather some steam there.
Erin Keating:I wanted to separate sort of the signal from the noise. This is not simply a story about a new rule arriving overnight, right? I think we both know that the FTC has reinforced total price transparency as an enforcement priority, while state requirements and dealer obligations still matter. The practical effect is more scrutiny on whether the advertised price is really the price a shopper can expect. So we know that this has been in the conversation.
Erin Keating:There have been other regulations. It's nothing new. But really in plain English, Erin, maybe if you could just break it down for us, like, does all in pricing mean? What has the FTC really tried to enforce here?
Erin Lomax:Yes. And I think that it's such an important question because I think there's so many misnomers out there. But all in pricing, at the end of the day, is making sure that the advertised price already includes mandatory and dealer imposed fees. This typically does not include taxes depending on the state. Government taxes are typically excluded where permitted, and there's some different nuances there.
Erin Lomax:But it's just what the shopper sees online should be what they expect to pay at the time of the transaction for the vehicle. And this isn't a new concept either. Shoppers have always wanted a real number. The level of scrutiny on if the advertised price and the expected transaction price matches is is what's new here. And I think the industry has been moving towards this to some degree for a while.
Erin Lomax:The FTC attention is certainly accelerating something that was already happening, but this is something consumers have been seeking for a really long time.
Erin Keating:Right. I know that some colleagues and I have discussed that this is even I mean, we knew that the airline industry went through this a while back as well, right? It's like they just consumer
Erin Lomax:wants The hear hotel right?
Erin Keating:Hotel industry, right? Yes. Resort fees have to be upfront, right? Baggage fees and all these types of things, or at least be explicitly called out so that you know what you might expect. And I think that's sort of at the heart of the matter, right?
Erin Keating:A fee, any kind of fee that appears late, does more than just change the final number. It changes the payment. It disrupts the comparison a shopper thought they might have made. It might create doubt about the rest of the transaction. And for sure, right now, we're in this affordability constrained market where people are really leveraging everything at their hand to make sure that they're looking for the best deal on the market.
Erin Keating:So the gap between an advertised price and expected transaction price really carries more weight. Right? You know? So what are you what have you been seeing in shopper behavior when the advertised price is more complete?
Erin Lomax:Yeah. It's really interesting because, you know, one of the things we've been looking across our consumer platforms and at all of our data, and we're seeing that shoppers, they're not just price sorting. Right? They're rewarding confidence in the price that they actually see. And that's really important because that complete price upfront, as you said before, it really helps that there's not surprises later.
Erin Lomax:And we're seeing, right, that dealers that are showing all in pricing and are being transparent are getting rewarded with more leads, more VDP views, deeper value actions, and more sales at the end of the day. So their funnel is actually getting healthier, which is which is a really important thing, and they're differentiated as consumers become more and more aware of all in pricing and that, oh, what they see online might actually match what they pay out the door. And it's it's really, you know, that clarity early on is really important as it relates to meeting the consumer where they're at, giving them trust in, you know, not only the car that they're purchasing, but that dealership and the full lifetime value of that consumer as well is really important in today's world.
Erin Keating:Exactly. I mean, again, you know, we know that a lot of people are doing a lot more shopping and research online. And we we've known this for a while. They did it around, you know, what can I see that's on the car? What kind of safety features?
Erin Keating:What kind of ratings? You know, this is what KBB is really well known for is giving confidence to the consumer about, you know, the actual product that you're buying. What this is really helping is putting that framework around what does it cost me. Right?
Erin Lomax:Yes. Yeah. That's exactly. And and, yeah, yes, consumers wanna make sure they're getting a fair deal. Right?
Erin Lomax:It it's most consumers just wanna know at the end of the day that they're not getting ripped off. Yes. There are very price sensitive consumers that want the absolute lowest price. Right? Like, there is a segment, but most consumers just want what is a fair price, and they wanna see that upfront so that there isn't surprises throughout.
Erin Lomax:Yeah.
Erin Keating:I think that's a great point because, you know, I know that we'll get into the meat of some of the things that we're actually doing at Auto Trader and Kelley Blue Book for this. But, you know, we in the industry, we're talking about all of these things. This is really face forward for us. But when you think about the broader audience out there of consumers that are shopping, you know, there are some that are very sensitive to, wait a minute, are all the fees in here? But broadly, to your perspective, your point, fair price is just what they're looking for.
Erin Keating:And so maybe at first it might seem odd to have labels attached to new pricing or seeing this whole new behavior of seeing all in pricing. Again, we saw this in the airline industry. We saw this in the hotel industry. There's a period of adoption of seeing like, Oh, that's the whole nut right there I'm looking at, right? But it does ultimately seep through and then it becomes an expectation.
Erin Keating:So we're probably in that point right now where people are sort of pulling it, what do they say, like seeing the rat through the boa constrictor, right? Like as it's coming But what I did see was like, so I saw some statistics from our team, you know, fee inclusive listings in the May 2026 comparison recorded that there were, your point, 15% more leads, 12% more vehicle detail page views, 23% more value events than listings without fee inclusive pricing. Individual dealers, you know, their results might vary depending on what market they're in. But what does that suggest shoppers are, know Does that suggest, excuse me, that shoppers are rewarding clarity rather than simply soaring for the lowest displayed numbers? I feel like you just touched on that.
Erin Keating:It's not always about the cheapest price, but like, are they actually rewarding seeing all in pricing, that trust?
Erin Lomax:That's exactly what we're seeing in the data that you know, of consumers that right? They're they're finding their car. They're seeing that, okay. This is the all in pricing, and they are more likely to transact, and they're having higher engagement with those cars in comparison to cars that do not have all in pricing.
Erin Keating:Right.
Erin Lomax:And, yes, there is this adjustment period. It was an interesting analogy you used with the boa constrictor. But but it is. It's and it's a tough adjustment for, you know, the industry overall. You know, it's a big one.
Erin Lomax:However, that, you know, it's consumers have been dissatisfied for so long, and it comes down to that price and that all in price. And they've looked for so many ways to get closer to that all in price in the past. And, you know, this is the FTC following up and acting on the consumer's behalf, and we're here to help our partners and dealers through this at the end of the day and ensure that we have the right tools to enable them to be successful in today's market given these new parameters that we're working on.
Erin Keating:Exactly. Or even just dynamics, right? Mean, so let's get into the dealer operating reality here. So the economic incentive, I think, is fairly clear. A complete price can really build confidence and improve your engagement.
Erin Keating:But like the harder part is operational. A dealership may be managing pricing across a lot of inventory systems, marketplace listings, its own website, digital retailing tools. These are things we certainly provide in the industry, but a dealer could be using several different, you know, solution sets. Every handoff creates another place for that fee story to drift or even just innocent mistakes. So where do pricing and fee inconsistencies most often enter the workflow from your perspective?
Erin Lomax:Yeah. And I mean, that's the challenge with, I think, where the industry is today versus where we're going is this even how you disclose fees and how they visually show up on an advertisement or on a dealer's website. A lot of those mechanisms are new and not necessarily consistent. This is something as an industry we're working to get better off at. But every handoff between one of those systems is a place a fee story could drift.
Erin Lomax:Right? And that could potentially show inconsistent fees. And and so that's one of the key things. If you think about you just listed a couple of things. Like, every a dealer has to go through their inventory management system, right, what marketplaces they're on, their website, their digital retailing tools.
Erin Lomax:And it's so important that they're ensuring that the fees are showing up accurately in all of those. And it's not a bad intent problem. It's a fragmented data problem. And the industry as a whole didn't have tech stacks built for that, at the end of the day. And that's been one of the fastest, you know, progressions that we've seen in 2026 is evolving towards that so that, you know, everyone, not only Cox Automotive, but everybody's meeting the moment and ensuring that we have what, you know, we need for consumers consumers and and dealers.
Erin Lomax:Dealers. Right. It's a systems and process issue, not necessarily like, my belief is a lot of a lot of dealers that aren't yet, you know, disclosing fees, they're still aligning on what is their strategy, how do they operate, how do they do, you know, it's a little bit of a new world. And how can they technically do it and make sure it's easy on them and they're not spending all their time updating their fees and checking them?
Erin Keating:Right. Right. Exactly. Yeah. And I mean, I know that it certainly came into play even just social media.
Erin Keating:If they've got a salesperson that's on TikTok that happens to use that as a medium to reach out to customers, like these are things that are just even outside the normal channels, quote unquote, of digital retailing, right? They've got individual salespeople who are out there cultivating audiences, cultivating clients, and right there is where your fee story could shift because a salesperson could just simply forget to mention that, hey, there's a few other things you might need to remember you know, after I'm finished showing you this really great car. And I know that, you know, certainly there was a lot of discussion around compliance managers, you know, do dealerships need to start thinking about compliance managers because of sheer just vast amount of places where you might find information out about a car and all of its subsequent prices?
Erin Lomax:Yeah. I mean, let's be real. Dealers are managing incredibly large, fast moving swaths of inventory today and making a price change on a daily basis as a lot of dealers do to ensure there's, you know, pricing based on supply and demand. And the industry is moving incredibly quickly. And so it's really, really important that they have the ability to keep the price current everywhere.
Erin Lomax:Right? And Right. Not have it disjointed across the board. There's so many you know, there's a lot at stake if if they're unable to do that.
Erin Keating:Right. And, again, like, if we think about we're we're speaking to the dealer audience and the automaker audience. So, we're talking within the group of people that mostly understand this, but something that I think helps our dealer partners and our automaker partners, you know, the clients ultimately don't necessarily hear these discussions. Helping them to even better understand what is the complexity there. Mean, dealers are given incentive notices every month.
Erin Keating:They change. So even discounting on vehicles changes, keeping up with that, what's the manufacturer offering versus maybe what the lenders offering versus maybe what happens in the F and I process, right? So it's just really trying to be, I know certainly from a Cox Automotive perspective, trying to be a good partner to our partners to help better educate the consumers on what they're what they're seeing. Right? And then to your point, the large amount of inventory that's across if if it's a one rooftop or if it's a 200 rooftop business, I think it's yeah.
Erin Keating:So, know, what is what is a better industry response really look like? You know, we can't be an, you know, at continually adding like all of these disclosure layers on an already complicated process without understanding that that's going to make things a little bit more difficult. So how have you seen, you know, what good fee management looks like? What how does it make it easier for the dealer? What makes it clearer for the shopper?
Erin Lomax:Yeah. So I I would say for the dealer, first and foremost, they want to be able to set their fee strategy once in a place that they already work in every single day and make sure that carries through to all of their systems to where they don't have to reenter anything system by system. And that they can trust that it's gonna be accurate. That is so, so critical. And then when you think about the consumer, right, our customer's customer, at the end of the day, they wanna see consistent fees wherever they encounter the vehicle.
Erin Lomax:Like, it's confusing to them if there's different fees or if they see the same vehicle from the same dealer, one without fees, one with fees. They don't know. You know? It it almost gives them less confidence in that dealer because of the lack of transparency and consistency. So they wanna be able to, whether they're in search on a VDP on a marketplace, on the dealer website, you know, that the price doesn't shift as they move through the journey and that it is consistent and they're getting their all in price.
Erin Lomax:And the last thing I would say is, right, you've got obviously the dealer and the consumer that we just talked about. But, you know, in order for dealers to meet consumers where they at, they need to be able to control their own fees and and labels for that and not have to, as I said earlier, update all of the different channels. And they need simplicity at the end of the day, and they need partners who are easy to work with to deliver that simplicity and consistency for them.
Erin Keating:It's a really good point. I mean, you know, obviously not to turn it into a product tour, but we are. You know, we have two of the largest automotive marketplaces with Autotrader and Kelley Blue Book, as well as we carry tools and solutions that really service the tip to tail, if you will, of digital retailing processes. So I know that we have unified fee management. I'm just curious if you could maybe talk us through, like, what is that intended to solve and how have we been able to bring that to market?
Erin Lomax:Yeah. And I I also I think it's important to say because this isn't a product that we have, right, to say. It is it's a capability that Right. Yes. Dealers have because they do business with us at the end of the day.
Erin Lomax:Like, we're not expecting them to buy a stand alone product or anything like It's that. We We just we would we just wanna enable them so that it is easy for them. But but we've been working really hard on a connected integration across all the Cox Automotive properties that really connects the fee and data workflows. So when you think about Auto Trader and Kelley Blue Book and dealers that subscribe there, as well as dealer.com, vAuto, HomeNet. Right?
Erin Lomax:Like, we touch a lot of dealers with different properties and ensuring that, you know, hey. If you have only Auto Trader or if you have only vAuto, you still get access to one consistent fee manager. And so that's really, really important as it goes back to, right, helping dealers make sure that they're only setting their fee strategy once and that that information is flowing consistently across our experiences and then across experiences that we power and syndicate to where consumers are going to encounter that vehicle. And we take that obligation really seriously.
Erin Keating:Yeah, absolutely. And I think, you know, one of the things that this is sort of making me think about is when we talk about cybersecurity. You know, every company has their training, and they're taught, you know, here's all the phishing and phishing and all these other things. But really, we talk about a firewall, right? There are platforms.
Erin Keating:Let's just call us the firewall the systems that are in place to protect the process or protect the fee management listing or whatnot. And then we always talk about there's the human firewall. And so cybersecurity experts everywhere are always saying, your people are going to be your biggest challenge to really wrangle and get working in the right way. In relation to this, using that as sort of a metaphor, we do have this platform. We do have these capabilities and services and abilities for dealers to really successfully accomplish what the FTC is looking for.
Erin Keating:But where does that end, and sort of where does that human, quote unquote, responsibility, the dealers responsibility begin?
Erin Lomax:Yeah. I mean, I think at the end of the day, we equip dealers with the right tools. They decide on their pricing strategies. Right? We can give them data to inform that pricing strategy based on the market, but they own that.
Erin Lomax:Right? So our platforms are designed to give accurate, non misleading pricing and help dealers display pricing clearly. And dealers that choose to do that have the ability to through our platforms, and and that is our role in it. Right? They own their pricing strategy.
Erin Lomax:We are the connected capability that helps them make sure that those decisions that they're making are carrying through consistently at the end of the day.
Erin Keating:That's great. So bringing up capabilities. So what's live today, and what is the next meaningful step we're we're looking at in connecting the pricing workflow?
Erin Lomax:Yeah. So live today and out in the market is the fee manager for dealer.com, and it is live for all of our dealer.com website customers through our control center platform with dedicated fee fields, auto calculated totals, and self-service management. So that's that and this is what we'll see to compound that will start compounding across all of our products so that Cox Automotive dealers only have one place to enter their fees. What's also live is we have all in pricing and fee inclusive badging across Auto Trader, Kelly across Auto Trader. I was gonna say kbb.com, but Kelly Blue Book.
Erin Lomax:And then other marketplaces that we power listings on, like car and driver as an example. So so that's live today. Right? We ensure that we are designating which cars and which prices are all in, and we reward dealers with all in pricing with good and great badges on our sites, which is is a healthy thing to do because that that's what's right for the consumer at the end of the day. So we also have we talked earlier about the fee manager for dealer.com that's live now, and we're working on activation across all of the marketplaces that I just mentioned as well as The Auto and ensuring that the fee syndications that The Auto provides to other marketplaces is also fueled by this.
Erin Lomax:So it's, you know, it's a really important thing, and, you know, there's gonna be a continued you know, we're gonna have momentum continue against this to make sure that we are as I I think I've said this several times, but we make it easy for dealers to enter at once and make sure that it shows up consistently across all of their platforms where they would engage with the consumer.
Erin Keating:So what's the kind of signal that you'll be looking at that will tell you that the industry is actually making some real progress here? You know, is it is it the fact that we'll have fewer price discrepancies, you know, stronger shopper engagement? Again, we mentioned a couple of stats we've seen, simpler dealer work workflows, something else. Like, what are you looking for personally?
Erin Lomax:Yeah. So we're already seeing that the fee inclusive listings are outperforming on leads and engagements in comparison with the listings that don't have fees. The the next thing I would wanna see is how that starts to hold up when we do direct comparisons, right, where we start to see examples and large swaths where a consumer is actually picking the highest, most honest number Yeah. Over a lower one. And so I think that's when we'll know that transparency becomes a competitive advantage, not just a compliance response at the end of the day.
Erin Lomax:You know, we're in this interesting market right now where affordability is a challenge, and there's so many payment sensitive shoppers that they might be more willing to trade a highly a higher displayed price for certainty. Because getting that surprise fee later can disrupt their whole monthly budget, which doesn't help the affordability challenge right now.
Erin Keating:Right.
Erin Lomax:And so I think as consumers become more and more aware, right, that they actually, you know, can understand what their out the door price is, there's gonna be more and more, you know, consumers self selecting into that beyond what we're already seeing.
Erin Keating:Right, right. Yeah, and it's not something to be feared because again, like we talked about in the beginning, you know, we're not going first as an industry, right? Again, I always come back. I mean, I fly a lot, you fly a lot. We know what it's like to have to shop for airline tickets.
Erin Keating:We're frequently looking at those things, and we're seeing that comparison. But I'll tell you, my twin brother hardly ever travels, he's a school teacher, and he came to visit me, and they give you the good, better, best when you're looking at the seats. And he gets to airport, and you're like, wait, they're charging me $35 for my bags. And it's like you realize, well, I could have just paid this price all in one if I just bought the comfort seat. And so customers are getting a little bit more used to seeing it across.
Erin Keating:We're not the first. We need to probably not be so worried that customers are going to be blown away. I agree with you. I think we're going to see the signal be that more people are willing to go ahead and select the thing they have the most trust in and feel the most they're not going to have to second guess. Like, I thought I was going to get a $300 payment.
Erin Keating:Now I'm going to have a $400 one. Wait. What happened here? So Yeah. Think about it
Erin Lomax:when you shop on Amazon with Prime. Right? Right. Can I can sometimes look at the same thing, and even if it's $5 less for when it's a non Prime item Right? I'm willing to check the Prime one because I know I can take it to Whole Foods to return it.
Erin Keating:Right. And pay more for it.
Erin Lomax:Yeah. And it's that trust and confidence. I you know, obviously, a car is a much bigger purchase, but the dollars at risk for the consumer are a lot higher too. Exactly. And so that behavior, I think, will be very prevalent.
Erin Keating:Yeah, absolutely. Well, just to kind of wrap it up, I mean, what is what is one thing that you think you'd like dealers and shoppers to best understand about this issue that tends to get lost in the FTC headlines? Because Lord knows we all live on with our heads on a swivel around headlines. Yes. And FTC has certainly been loud in our ears here.
Erin Keating:So what do you think is getting lost or maybe that they should really think and understand about the issue?
Erin Lomax:Absolutely. Because it's been, like, it's a good, like, it's been such a wild year, right, as we've all been observing and reacting to to the changes. But when you take a step back, the market was already shifting towards clearer pricing before this FTC attention that we're getting. And so I really think this is just sharpening the conversation that shoppers were already having and asking of this industry. And the opportunity for dealers is to treat this as a trust and engagement layer, not just a compliance box that they have to check at the end of the And and that's the bigger opportunity is the win win for everybody in it and how they use this, you know, flip flip flip this to their offensive strategy.
Erin Keating:Yeah. Absolutely. A 100% agree with you. And there's so many good actors out there that I think really what this comes down to it is is perhaps there's just been a few mistakes, honest mistakes, and maybe some small bad actors here and there that can really ruin it for everybody else. But truly to your point, we've always been working towards this.
Erin Keating:We've always been engaged in wanting to help dealers and consumers see the value of what they're getting. And I think you're right. It's a win win situation for sure.
Erin Lomax:Yeah. And I would actually, you know, just commend all of the dealer partners that I've spoken to with directly and partnered with throughout the shift that we've seen is the like, every dealer I've spoken to wants to make sure they're compliant and make sure this is easy to abide by. So, you know, while I think there there might be resistance and noise out there, I think the majority actually are all in on this, and and they're trying to do the right thing at the end of the day because they understand their customer's customer at the end of the day, and the happy customer, right, is is happier. It ends up being more revenue for them anyways.
Erin Keating:Agreed. A 100%. Well, Erin, thanks for joining me. I mean, if I think back on this this this FTC, it might be sharpening the conversation like you said, but the market, we were already moving here, and I think that shoppers are going to continue to reward the the transparency. And we're just appreciating having this conversation.
Erin Keating:This has been great and uncovering or at least demystifying some of this for those that maybe haven't come around or sharpened their pencils or are just still curious, like, what does this really mean for customers? But again, win win is what I'm hearing from you, I really appreciate you coming on to share your perspective.
Erin Lomax:Thank you for having me.
Erin Keating:Of course. And thanks to all of you for listening to The Auto Market Brief. Be sure to like, subscribe, and share the show with your friends and colleagues. As always, remember to check out all of our insights and updates at coxautoinc.com and stay tuned to the Auto Market Brief for the high notes in our economy, the headlines that matter across the industry, and more conversations just like this to help make sense of the market. Thanks for joining us on this episode of the Auto Market Brief.
Erin Keating:To stay up to date with all the latest news and perspectives from our team of experts, be sure to visit our insights hub at coxautoinc.com.