Paul and Michael recently highlighted something that deserves attention: CarEdge has launched a public Dealer Transparency Index, and your store is likely listed.
Their takeaway was simple. This is now “out in the wild.” Shoppers can search dealers and see an A–F transparency grade tied directly to pricing behavior. And if you are uncomfortable with your grade, don’t get defensive; start evaluating.
We went deeper into the research to understand what this index is actually measuring and what it signals about retail auto right now.
Sources
Automotive State of the Union Podcast – Paul Daly and Michael Cirillo discussion on the Dealer Transparency Index and retail pricing transparency.
Auto Remarketing – Coverage of CarEdge’s launch of the Dealer Transparency Index, including methodology and dealer grade distribution.
CarEdge: State of Dealer Fees 2026 – Analysis of 35,956 verified out-the-door quotes across 9,202 U.S. dealers.
CarEdge Dealer Transparency Index (DTI) – Public dealer scoring platform outlining grading formula and transparency metrics.
How the Dealer Transparency Index Works
Built From Verified Out-The-Door Quotes
CarEdge’s Dealer Transparency Index assigns a 0–100 score that translates into an A–F grade. The scores are built from more than 40,000 verified out-the-door quotes collected through CarEdge’s AI negotiation platform.
Dealers cannot pay to improve their grade.
The formula weighs:
Doc fees (30%)
Add-ons (30%)
Dealer markups above listed price (30%)
Quote data quality and completeness (10%)
CarEdge lists 4,957 dealers in its search tool. Of those, 2,403 are graded A. 306 are graded F. The rest fall in between.
That distribution is important. Nearly half earning an A suggests strong operators exist in every market. A few hundred F grades suggest inconsistency remains visible.
What the Data Says About Pricing Today
CarEdge’s broader “State of Dealer Fees 2026” report analyzed 35,956 verified OTD quotes from 9,202 dealers across the country. A few data points stand out.
Doc Fees Vary Dramatically
The national average doc fee sits around $420. But variance is wide. Some states cap fees. Many do not. Even within the same state, doc fees can range from modest to well over $1,000.
Buyers may not understand the regulatory nuance. They simply see a number.
Add-Ons Are the Swing Factor
According to the report, 52% of dealers include add-ons in verified quotes. When present, those add-ons average $2,152.
At the same time, 48% show no add-ons at all.
That gap creates dramatically different buying experiences before a customer ever steps into the showroom.
The Listing vs. Signing Gap Still Exists
CarEdge reports the average listing-to-out-the-door markup runs 7% to 8% before tax and title. A vehicle listed at $40,000 commonly crosses $43,000 before government fees.
Some buyers expect that. Others do not.
Either way, it shapes trust.
Why This Moment Matters
Third-party scoring does not create the underlying behavior. It makes it searchable.
And in a market where shoppers already research everything, searchable reputation carries weight.
Paul described it well. This is not anti-dealer. It is accountability at scale. If your operation is strong, this becomes proof. If it is uneven, this becomes clarity.
Either way, the mirror is now public.
Transparency Check-Up: Practical Tools for Operators
This is not a reset. It is a review.
Use this as a leadership check-in, not a compliance scramble.
1. The OTD Consistency Audit
Run this internally this week.
Checklist:
Pull 20 recent pencil sheets or emailed OTD quotes.
Compare listed price vs final OTD before government fees.
Identify patterns in add-on presentation.
Review doc fee positioning across every salesperson.
Confirm whether online pricing language matches in-store execution.
Leadership Question:
“If I were a first-time buyer, would I feel fully prepared before stepping into my own showroom?”
2. Sales Team Script Calibration
This is not about removing products. It is about removing ambiguity.
Before Add-On Discussion Script Example:
“Before we talk about options, I want you to see the full out-the-door number exactly as it stands. Then we can decide together what adds value for you.”
Doc Fee Framing Prompt:
“Here is our documentation fee. It is applied to every vehicle consistently. If you have questions about what it covers, I will walk through it.”
Clear. Direct. No hedging language.
3. Manager-Level Transparency Prompt
Ask your desk managers:
“Are we ever surprised by our own OTD math?”
“Are we consistent across every rep?”
“Do we have any add-ons that customers routinely push back on?”
If the same objection shows up weekly, it is not a customer problem. It is a clarity problem.
4. Website and Digital Review
Pull up your own VDPs.
Check for:
“Plus fees” language with no explanation.
Payment estimates that exclude common additions.
Inconsistent disclaimers.
Missing itemization examples.
If a transparency score tool crawled your site tomorrow, would it see alignment?
5. Reputation Simulation Exercise
Have a team member search your store the way a shopper would.
Look at:
Review themes around pricing.
Language customers use.
Any reference to “surprises” or “fees I didn’t expect.”
That language often predicts where scoring tools land.
6. Executive-Level Question
If your store earned an A publicly tomorrow, would you promote it?
If the answer is yes, you are likely close already.
If the answer is “not yet,” you now know where to focus.
Transparency is not about perfection. It is about predictability.
The dealers who win long-term are not the ones who never face scrutiny. They are the ones who respond to it early, tighten their process, and move forward with clarity.
The scoreboard exists.
Now the question is simple:
What do you want your number to say next quarter?
