DARRELL STEED / January 17, 2025

Transparency in the Automotive Industry: A Double-Edged Sword

For over 50 years, the automotive industry thrived on a foundation of deception and manipulation. Deals were closed through tactics that left customers blindsided and distrustful, creating a legacy that has haunted dealerships for decades. While customers were once disadvantaged due to limited access to information, the digital age has changed the landscape entirely. Consumers now enter dealerships armed with data, reviews, and competitive pricing—demanding transparency in every interaction.

Yet, despite this demand, transparency in the automotive world often feels like an illusion. Dealers and vendors have adopted the language of openness while simultaneously developing systems to manipulate it. As a result, transparency becomes a tool for deception rather than a principle for honest business.


The Rise of "Transparency" as a Marketing Tool


By definition, transparency in business means being open and honest with all stakeholders—employees, customers, and investors. It’s about disclosing relevant information, allowing informed decision-making based on facts rather than hidden agendas. Yet, in practice, the automotive industry has redefined transparency to serve its ends.


Vehicle evaluation tools such as Trade Pending, Auto Hub, and Car Gurus are prime examples. These tools are marketed as consumer-friendly platforms that use market-based value algorithms to provide objective data. In theory, they empower customers with accurate information about trade-in values. However, many of these tools include "dials" or "valves" that allow dealerships to adjust the numbers—altering market data to benefit the dealer while maintaining the appearance of transparency.


As Cox Automotive’s Kelley Blue Book states: "Transparency builds trust with customers and is critical for long-term success. Manipulating data or withholding facts undermines this trust and the reputation of our industry as a whole."


Yet manipulation persists. Dealers often withhold the full picture, presenting numbers selectively or framing data in ways that mislead customers. Instead of investing in training employees to communicate transparently and educate consumers, the focus shifts to maintaining control over information. While this strategy is profitable in the short term, it erodes long-term trust and brand equity.


The Smarter Consumer


Today’s consumers are no longer passive participants in the car-buying process. Platforms like Cars.com and Edmunds have made it easier for customers to research vehicle values, compare pricing, and read reviews. A study by Cars.com found that 77% of car buyers spend significant time online researching before stepping into a dealership.

Consumers now expect:

Clarity in pricing and trade-in values.

Consistency between online information and in-person interactions.

Education about how valuations and processes work.


When these expectations aren’t met, consumers notice. They are quick to leave negative reviews, share experiences online, and avoid dealerships they perceive as dishonest. Conversely, dealerships that commit to genuine transparency see increased loyalty, stronger word-of-mouth marketing, and higher customer retention.


Transparency Done Right


Some companies are leading by example. For instance, Kelley Blue Book’s Instant Cash Offer tool does not allow manipulation of market data. Customers receive an offer based on real-time market conditions, ensuring honesty in every transaction. Similarly, Cars.com advocates for transparency as a core value, stating: "Honesty is the foundation of trust. Dealerships that embrace transparency build lasting relationships with customers and create advocates for their brand."

These examples highlight what the industry could achieve if it prioritized training and education over manipulation. Transparency doesn’t mean forfeiting profitability; it means building trust that leads to sustained success.


The Path Forward: Training, Not Tricks


The problem lies not in the tools themselves but in how they are used. By investing in training programs, dealerships can equip employees with the skills to have honest conversations, explain market data, and address customer concerns openly. Transparency is not about perfection—it’s about authenticity and accountability.


At SmartWolf Consulting LLC and the Street Smarts Academy, we specialize in helping dealerships transform their approach to transparency. Through comprehensive training programs, we teach dealerships how to:

Communicate effectively with customers.

Use tools and data ethically.

Build trust that lasts long after the deal is done.


A Call to Action


The automotive industry has a choice: continue the cycle of manipulation or embrace true transparency to build a better future. Customers are more intelligent, savvier, and more demanding than ever. Meeting their expectations requires a commitment to honesty, integrity, and education.


If you’re ready to make that commitment, visit SmartWolfConsulting.com and AutoStreetSmarts.com. Let us help you implement training solutions that rebuild trust, drive profitability, and create a customer experience that sets your dealership apart.


Transparency isn’t just a buzzword—it’s the foundation of success in today’s automotive industry. The question is: will your dealership lead the way?

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