By Merilee Kern, MBA
Car buyers have long relied on online listings, star ratings, and “great deal” badges to determine where to shop. A newly launched national index is challenging whether those tools tell the full story.
CarEdge, the AI-powered car-buying platform, has introduced a public database ranking U.S. dealerships based on verified pricing behavior from real transactions. The Dealer Transparency Index, or DTI, analyzes more than 40,000 verified out-the-door quotes and grades over 4,900 dealerships nationwide on a 0 to 100 scale, assigning letter grades from A through F.
Unlike traditional review platforms that rely on customer sentiment or dealer-submitted data, the DTI is built from negotiations conducted by CarEdge’s own AI agent. The company reports that the agent has sent a large number of messages across numerous dealer outreach sessions, creating what is described as one of the most extensive verified pricing datasets in American auto retail. According to CarEdge, the tool has helped consumers save a significant amount of money.
“This isn’t a one-time study we published,” said Zach Shefska, CEO of CarEdge. “Every deal our AI negotiates makes the Index more accurate. 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.”
The Index is now publicly available at www.caredge.com/dealer-ratings, and the latest findings can also be accessed online for free at http://www.caredge.com/reports/ai-negotiation-impact.
Industry Backdrop
The Index arrives amid growing scrutiny of dealership pricing practices. The 2026 CDK Friction Points Study found that buyer Net Promoter Scores for dealerships dropped from +48 to +29 in a single year. Among online-only shoppers, the score fell to zero, signaling a breakdown in digital trust, as researchers described.
At the same time, the Federal Trade Commission has finalized enforcement orders against major dealer groups for “payment packing” and charging for undisclosed add-ons.
Andrew Wright, Managing Partner of Vinart Dealerships, has publicly criticized listing platforms for rewarding pricing tactics he believes are misleading. In a post on X, Wright wrote that major classified listing platforms “know that this is going on and they are doing NOTHING to stop it,” adding that they continue to affix “great deal” badges to vehicles with deceptively low pricing.
What the Data Reveals
CarEdge’s analysis of more than 40,000 verified quotes shows significant variation in fees and pricing practices nationwide.
The average documentation fee nationally is $417, according to the dataset. However, that number ranges from $85 in California, where doc fees are capped by law, to nearly $1,000 in Florida, which has no cap.
Only 25 percent of dealers charge zero add-ons. When add-ons are included, the average cost exceeds $1,500 for items such as nitrogen tire fills, paint protection, and vehicle tracking systems that consumers may not have requested.
CarEdge reports that the average dealer markup is 7 to 8 percent above the listing price before tax and title. A vehicle advertised at $40,000 can ultimately cost more than $43,000 out the door. In one documented example, a $13,150 advertised discount on a Chevrolet Suburban was offset by $9,600 in forced accessories.
Additionally, 36 states have no legislated cap on documentation fees, allowing dealers to set those charges at their discretion.
How Dealers Are Scored
Each dealership in the Index receives a score from 0 to 100 based on four weighted components derived from verified transaction data.
Dealers earning scores of 90 or higher receive an A grade, while those below 60 receive an F. CarEdge states that dealers cannot pay to influence their rating and that the same formula is applied across all brands and locations.
The Index includes an interactive map, side-by-side dealer comparisons, state-level reports detailing documentation fee benchmarks and fee caps, and brand report cards. It also features negotiation histories that show real savings achieved through the AI agent.
The AI Feedback Loop
Shefska emphasized that the Index is designed to update continuously as more negotiations occur.
“Honest dealers have been telling us for years that they’re losing business to competitors who bait customers with fake low prices,” he said. “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.”
Dealers that receive strong grades can claim their profile and embed a transparency badge on their own websites.
Beyond Ratings
CarEdge describes the Dealer Transparency Index as part of a broader platform aimed at increasing pricing clarity in automotive retail. Founded by father-and-son team Ray and Zach Shefska, the company’s AI negotiation agent contacts dealers on behalf of consumers, requests itemized pricing, and negotiates directly.
In addition to its AI agent, the company offers CarEdge Pro for real-time market intelligence and CarEdge Concierge, a white-glove service that connects buyers with a dedicated automotive expert.
With the launch of the Dealer Transparency Index, CarEdge is positioning itself not just as a negotiation tool but as a data-driven accountability layer in an industry facing heightened regulatory scrutiny and declining consumer trust.
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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.
