Dealer Add-On Pricing Faces Closer Scrutiny

San Antonio car buyers should compare out-the-door prices and itemized add-on fees before signing any purchase agreement.

Updated on Nov. 4, 2026 in Buying/Selling

Dealer Add-On Pricing Faces Closer Scrutiny

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Do you trust dealership add-on products more now that car-buying prices must be disclosed?

Xpel reported third-quarter revenue of $137.8 million, up 9.9%, with net income rising 26.3% to $16.3 million, or 59 cents per share, for the three months ended Sept. 30. The San Antonio-headquartered maker of protective films saw its installation segment grow more than 9%, while its dealership segment was roughly flat.

Why it matters

Xpel's dealership segment, which sells protective products through car dealers, stalled in a quarter when it typically grows, and the company points to FTC scrutiny of dealer pricing and add-on practices as a source of uncertainty. For San Antonio buyers, that dealer-level friction is a sign that add-on pricing is under closer examination.

Xpel's second-quarter revenue reached a record $143.1 million, up 14.7%, and its third-quarter results showed growth in installation revenue of more than 9%. Car sales in China fell 20% compared with the third quarter of 2025, while Xpel India and Middle East revenue declined 16.6%.

The players

Xpel

San Antonio-based maker of paint protection film and related protective products sold through dealers and installers.

Federal Trade Commission

The federal consumer-protection agency that is scrutinizing dealer pricing and add-on practices that can affect car buyers.

The details

Xpel's growth came mainly from installations, while the dealership channel, where its products are sold alongside new vehicles, was flat in a quarter that usually adds to sales. California's Combating Auto Retail Scams Act took effect October 1 and requires overall pricing and fee disclosures, which adds to the scrutiny dealers already face. In China, the company's revenue rose even as car sales fell, and Xpel acquired a Chinese distributor in September 2025 to strengthen that position.

September 2025: Xpel acquired a Chinese distributor.
August 2026: New car sales in Saudi Arabia fell roughly 38.5%.
Sept. 30, 2026: Third quarter ended with a 9.9% revenue rise.
October 1, 2026: California's car-buying transparency law took effect.
Fourth quarter 2026: The dealership segment is expected to worsen.

The Home Front

The California law requires dealers to disclose overall pricing and fees, a rule that frames the dealer-level pressure on add-on products. Xpel's dealership flatness in the third quarter reflects that the sales channel is being examined as regulators look more closely at dealer pricing.

If you are shopping for a vehicle in San Antonio, compare the out-the-door price including fees and add-on products before you sign. Ask the dealer for the itemized pricing so you can see the full cost under the new California-style disclosure approach.

The takeaway

Dealer add-on products are drawing regulatory attention, so buyers should ask for an itemized out-the-door price before agreeing to any terms. Keep copies of all pricing documents and fee disclosures for your records.