Trading in your old vehicle is usually part of buying a new one. Dealerships know this and often use trade-in offers in their advertisements. You might see ads promising high trade-in values or guaranteed minimum amounts. But under Utah law, many of these promises can be considered as illegal. Utah Administrative Code Rule R877-23V limits what dealers can say about trade-ins. The Motor Vehicle Enforcement Division of the Utah State Tax Commission enforces that rule. Here is what it prohibits and what it means for you.
The Ban on Specific Trade-In Amounts
Utah law limits how dealers advertise trade-in values. Under Rule R877-23V-7, dealers cannot advertise a set minimum value for your old car. The law explicitly states, “A specific trade-in amount or range of trade-in amounts may not be used in advertising.” This means an ad cannot promise “at least $3,000 for your trade.” Each used car differs in condition and value. A dealer cannot guarantee a price without physically inspecting your specific vehicle.
Prohibited Trade-In Promises
The law also bans dealers from making sweeping, unprovable claims about trade-in values. Dealers cannot claim they will beat any other offer without proof. The rule states, “Statements representing that no other dealer grants greater allowances for trade-ins may not be used.” Dealers also cannot promise to pay off your existing loan regardless of the balance. Rule R877-23V-7 dictates, “An advertiser may not assert that a trade-in will be paid off regardless of what is owed on the vehicle.” These rules keep the offer tied to an actual appraisal of your car.
What Counts as an Advertisement
Rule R877-23V-7 defines an advertisement broadly. It covers newspaper, magazine, radio, television, and online listings. It also covers signs, banners, window stickers, price tags, and mailers. Oral statements count as well. A salesperson who promises a minimum trade-in figure out loud is still subject to the rule. The definition excludes handwritten negotiation sheets between you and the dealer.
What This Means for Your Negotiation
Because dealers cannot advertise specific amounts, your leverage comes from your own research. Know your vehicle’s market value before you arrive. You should not assume an advertised trade-in promotion guarantees you a high price. The dealership must evaluate your car based on its true condition and market value. The rule also requires accuracy. Statements about a trade-in allowance must be clearly set forth and based on facts. Ask the dealer to put the trade-in figure in writing once the appraisal is done. If a dealer tries to use an illegal advertisement to control the negotiation, push back. You are entitled to an assessment based on your car’s condition, not an ad.
Enforcement and Penalties
A violation of Rule R877-23V-7 is also a violation of Utah Code Section 41-3-210, which sets dealer licensing requirements. Penalties are $250 for a first offense and $1,000 for a second. A third or later offense within twelve months carries a $5,000 penalty.
Protect Your Rights with Head Law
Buying a car should be an honest and transparent process. Save a screenshot or copy of the advertisement. Keep careful notes of your conversation with the dealership staff. If a dealer refuses to follow the law, you can take action. At Head Law, we focus on protecting consumers from deceptive business practices. If you believe a dealer used illegal trade-in advertising, contact Head Law today. We will review the facts of your case. We can help hold the dealership accountable and protect your rights as a Utah consumer.