Which approach can negatively impact a dealer's reputation?

Hidden fees in transactions can negatively impact a dealer's reputation because transparency is crucial in maintaining consumer trust. When customers encounter unexpected fees after they've made a deal or are in the process of purchasing a vehicle, it can lead to feelings of being misled or taken advantage of. This perceived lack of honesty can result in negative reviews, word-of-mouth criticism, and a tarnished reputation that can take time to repair.

In contrast, being open about vehicle conditions, providing warranties, and offering test drives are practices that typically build a dealer's reputation positively. These approaches signal to customers that the dealer values transparency, quality, and customer satisfaction, thereby fostering trust and encouraging repeat business and referrals.