N.M. Admin. Code § 12.2.4.10

Current through Register Vol. 35, No. 23, December 10, 2024

Section 12.2.4.10 - DISCOUNTS

A. Manufacturers are required by federal law to label new automobiles with a suggested retail price. See 15 USC 1232. Automobiles as defined by federal law include passenger cars and station wagons. Federal law does not require similar labeling for other vehicles.

B. It is an unfair or deceptive trade practice to advertise a discount price or price savings for a new motor vehicle unless the discount or savings claim is made in reference to a reference price that is objectively verifiable using data not solely subject to the dealer's control, such as the manufacturer's suggested retail price or the invoice price, and:

(1) the claim is not deceptive;

(2) the dollar amount of the reference price meets any applicable requirement such as Section 15 [now 12.2.4.15 NMAC]; and

(3) the resulting price meets the requirements of these regulations.

C. It is an unfair or deceptive trade practice for a dealer to raise any price of a vehicle to increase or create any discount, savings or rebate for the period of a sale and then decrease the price after the sale.

D. It is an unfair or deceptive trade practice for a dealer to use a reference price as the basis for a discount price or price savings claim unless the dealer clearly and conspicuously discloses:

(1) the source of the reference price, such as manufacturer's suggested retail price or invoice price; and

(2) the amount of the reference price.

E. It is an unfair or deceptive trade practice for a dealer to use a reference price greater than the manufacturer's suggested retail price as a basis for a discount or savings claim unless the dealer clearly and conspicuously discloses that:

(1) the reference price is greater than the manufacturer's suggested retail price; and

(2) the amount by which the reference price exceeds the manufacturer's suggested retail price.

N.M. Admin. Code § 12.2.4.10

5-1-98; Recompiled 10/15/01