I was doing some comparison shopping on AutoTrader. One dealer listed a car at $7995 but when I called to see about the availability of that car, the saleman indicated that the actual price is $9495. "You have to read further down in the description to see that the listed price is after $1500 cash down or trade." BIG difference!
To me, this seems like false/deceptive advertising.
Are they simply posting with a lower purchase price to get more notices?
Is that deceptive advertising?
Any legal ramifications?

It's called the preacher's discount. They do it all the time. Have to watch out for used car dealers as they are worse than politicians.

Pay attention to details. I hate those small letter at the bottom of the page. But hey, important stuff are at those places. Especially where it involve money.