By: Merilee Kern, MBA

A new public scorecard is pulling back the curtain on how car dealerships in America actually price their vehicles, and the picture it paints is not always flattering. CarEdge, the AI-powered car-buying platform led by Co-Founder & CEO Zach Shefska, has launched the “Dealer Transparency Index” (DTI), a publicly available resource that scores and grades U.S. car dealerships based entirely on verified pricing data from real transactions. The Index is available now at www.caredge.com/dealer-ratings. The most current statistics and results are maintained at www.caredge.com/reports/ai-negotiation-impact.

What sets this tool apart from anything currently on the market is the source of the data. Unlike review-based platforms that aggregate star ratings or rely on self-reported information, every score in the DTI is generated from CarEdge’s own AI negotiation agent. That agent contacts dealers on behalf of real consumers, requests itemized out-the-door pricing, and works to close deals, all while collecting and cataloguing the resulting data.

To date, the agent has sent a significant number of messages across numerous dealer outreach sessions, helping buyers save a substantial amount of money. The byproduct of all that activity is what CarEdge describes as a large verified pricing dataset in American auto retail. From that dataset, the company has built a scoring system that assigns every dealer a 0-to-100 transparency score and a letter grade from A through F.

The AI Flywheel

According to CarEdge, what makes the DTI structurally different from any existing dealer rating system is its self-reinforcing data model. Every deal the AI agent negotiates on behalf of a real consumer generates new verified pricing data. That data feeds the transparency scores. And those scores attract more consumers to the platform, generating still more data.

Shefska described the dynamic in a statement accompanying the launch:

“This isn’t a one-time study we published. Every deal our AI negotiates improves the Index’s accuracy. The dealers who play fair see their scores rise. The ones who don’t cannot hide behind a listing price anymore. For the first time, there’s a public, continuously updated record of how every dealer actually prices cars.”

An Industry in Desperate Need

The timing of the DTI launch is no accident. According to the 2026 CDK Friction Points Study, the buyer Net Promoter Score for car dealerships has fallen from +48 to +29 in a single year. Among consumers who shop exclusively online, that score has dropped to zero, a number CarEdge interprets as a total breakdown in digital trust.

Regulatory pressure is also mounting. The Federal Trade Commission has finalized enforcement orders against major dealer groups for what it describes as “payment packing,” the practice of adding undisclosed charges to deals. Meanwhile, one in five buyers now walks away from a dealership entirely after discovering that the advertised price does not match the final showroom price.

The platforms consumers typically use to compare dealers have largely failed to address this gap. Sites such as CarGurus, Autotrader, and Cars.com continue to award “Great Deal” badges based on listing prices that dealers routinely do not honor in practice.

Andrew Wright, Managing Partner of Vinart Dealerships, has been outspoken on this point. In a post on X, Wright stated that the major classified listings platforms are not only aware of the deceptive pricing problem but are actively rewarding it by placing “great deal” badges on cars with artificially low advertised prices.

What the Data Shows

CarEdge’s analysis of more than 40,000 verified out-the-door quotes reveals some striking patterns across the U.S. auto retail landscape:

The average documentation fee nationally sits at $417, though the figure varies widely by state. In California, where fees are capped by law, the average is $85. In Florida, which has no such cap, fees climb to nearly $1,000.

Only 25 percent of dealers charge zero add-ons. When add-ons do appear, they average more than $1,500 per transaction. These charges typically cover items such as nitrogen tire fills, paint protection, and LoJack systems that consumers rarely request or select.

On average, dealer markup runs 7 to 8 percent above listing price before tax and title are applied. That means a car advertised at $40,000 often carries a true out-the-door cost above $43,000. Thirty-six states currently have no legislated cap on documentation fees, leaving dealers free to charge whatever the local market allows.

One of the more notable cases in CarEdge’s data involved a vehicle advertised with a significant discount. However, the apparent savings were nearly offset by additional accessory charges, turning what seemed like a good deal into a higher cost.

How the Scoring Works

Every dealer in the DTI receives a score from 0 to 100, calculated across four components: documentation fee score, add-on score, price accuracy score, and a transparency bonus. Grades follow a standard scale: A for scores of 90 and above, B for 80 to 89, C for 70 to 79, D for 60 to 69, and F for anything below 60.

Notably, dealers cannot pay to influence their score. CarEdge states that the same formula applies to every dealership in the system, regardless of size, brand, or geographic location.

More Than a Database

The DTI is designed as a full consumer platform, not merely a lookup tool. It includes an interactive map with grade-colored pins for every scored dealer in the country, a proximity search feature that helps users locate transparent dealers nearby, and a side-by-side comparison tool for up to three dealers across fees, add-ons, and markup.

The platform also includes 50 state-level reports with local documentation-fee benchmarks, statewide rankings, and fee-cap information, as well as brand report cards for every major auto manufacturer. Users can also view negotiation histories showing the real savings consumers achieved through CarEdge’s AI agent. Dealers who earn an A or B grade can claim a badge to display on their websites.

State-level reports are available at www.caredge.com/reports/states, brand report cards at www.caredge.com/reports/brands, and the full methodology is also available.

What It Means for Honest Dealers

CarEdge is positioning the DTI not as an attack on the auto retail industry but as a tool that rewards the dealers already doing the right thing. Dealerships that earn A or B grades, charge reasonable fees, avoid loading vehicles with unwanted add-ons, and honor their advertised prices now have third-party verification of their practices grounded in actual transaction data rather than customer sentiment.

Shefska addressed this directly, noting the frustration among ethical dealers:

“Honest dealers have been telling us for years that they’re losing business to competitors who bait customers with fake low prices. Now they have proof. An A-grade on the Dealer Transparency Index means something that a five-star Google review never could, because our data comes from what the dealer actually charged, not what a customer felt.”

Whether the Dealer Transparency Index ultimately changes consumer behavior, pressures dealerships to clean up their pricing practices, or simply gives buyers one more data point before signing on the dotted line remains to be seen. What is clear is that the auto retail industry has long operated with a notable lack of pricing accountability, and for the first time, there is now a publicly available, continuously updated record that attempts to measure it. For consumers who have ever walked out of a dealership wondering how the final number got so far from the advertised one, that alone may be worth something.

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Entrepreneur Leadership Network member Merilee Kern, MBA, is a highly regarded brand strategist and analyst who reports on cultural shifts, trends, and notable industry leaders across both B2C and B2B sectors. Her work covers a broad range of categories, including field experts, thought leaders, brands, products, services, destinations, and events. As Founder, Executive Editor, and Producer of The Luxe List, Merilee is a respected voice in the business, lifestyle, travel, dining, and leisure industries. She stays attuned to the market, discovering innovative must-haves and unique experiences at all price points. Her work reaches millions worldwide through broadcast TV (including her own shows and numerous others on which she appears) as well as a variety of print and online publications. Connect with her at www.TheLuxeList.com / Instagram @MerileeKern / Twitter @MerileeKern / Facebook @MerileeKernOfficial / LinkedIn @MerileeKern.