Auto Dealer Fraud

Think A Car Dealer Misled You? You Have Options

Buying a car should be exciting, uncomplicated, and get you behind the wheel of something safe, reliable, and worth your money. But unfortunately, not every dealership in California is honest. If you’re concerned that you may have been misled or lied to by a dealer, you have legal options and rights in California.

Auto fraud lawyer Raphael Davis can help investigate your claim, determine if California law has been broken, and help you recover for your losses and damages.

What Is Auto Dealer Fraud?

First, it’s important to understand how and why dealer fraud is distinct from a lemon law case.

Lemon laws cover defects in the vehicle for which the manufacturer is responsible (such as a faulty electrical system). In other words, lemon laws are factory-related issues that defy repair.

Dealer fraud, however, occurs when a vehicle dealership conceals information about a vehicle or engages in deceptive financial practices that lead you to pay more than you need to. In other words, the persons selling you the vehicle have misled you about the vehicle’s condition or status or have misled you about the fees linked to the purchase of your vehicle.

Common Types Of Dealer Fraud

Odometer Rollback: This occurs when dealers tamper with the vehicle’s odometer, making it seem as though it has done fewer miles (and sustained less wear and tear) than it truly has.

Undisclosed Accident or Damage: This occurs when a dealer fails to disclose damage or past accidents that have been repaired. This hidden damage can impact vehicle safety, ride quality, and can lead to further expenses.

Undisclosed Salvage Title: This happens when a dealer fails to disclose that an insurance company has previously declared a vehicle to be a “total loss”, something that happens when the cost to repair after an accident is higher than the vehicle’s actual cash value. This translates to undisclosed, serious past damage to one or more parts of your car, truck, or SUV.

Misrepresented “Certified Pre-Owned”: To be declared “Certified Pre-Owned”, a used vehicle must pass an intense, multi-part inspection and include a factory warranty. If a vehicle doesn’t meet those standards, a dealer is committing fraud if they describe it as being “Certified”.

Bait-and-Switch Ads: This happens when a dealer lures you in with an excellent bargain, but the vehicle is not on their lot as advertised or is not for sale, as it is supposedly now “unsafe”. Once the advertised bargain is off the table, the dealer will then try to persuade you to buy a significantly more expensive vehicle instead.

Hidden Fees & Add-Ons: This happens when you were promised a vehicle for a set price, out the door. At the time of sale, however, extra fees that were not disclosed or advertised are piled on, making the vehicle significantly more expensive.

Selling A Prior Buyback Or Lemon Without Disclosure: Dealers must disclose if the vehicle they are selling you is a buyback (this usually happens when there are significant issues with the vehicle) or a lemon. When they fail to explain this, they have committed fraud.

Auto Financing Fraud

Auto financing is another area where fraud frequently occurs. It’s not uncommon for dealers to misrepresent the terms of a loan, add extra percentage points to the loan’s interest rate, call you back to the dealership to re-do the deal, or add extra products you didn’t ask for into the loan amount.

All of these practices are fraud in California. As a result, it’s important to be sure to keep a record of all paperwork, offers, and documentation related to the financing of your vehicle. You should also save all text messages, emails, and voicemails related to financing, interest rates, and loan terms. If something doesn’t seem consistent or accurate, reach out for legal help.

California & Federal Laws That Protect Car Buyers

The good news is that California law protects consumers like you from auto dealer fraud.

The Consumer Legal Remedies Act of 1970 forbids sellers of goods from misrepresenting their goods as new if they are used, advertising goods as “in stock” when they are not, and offering rebates that have hidden conditions.

The Automobile Sales and Finance Act of 2011 requires dealers to disclose and itemize all fees, taxes, and charges that are applied to the final price of a vehicle before a contract is signed.

The Federal Odometer Act of 1972 makes it illegal for a dealer to tamper with a motor vehicle’s odometer.

What You May Be Able To Recover

If you’ve been the victim of dealer fraud, you may be able to recover some of your expenses and damages. With legal help, you could be awarded…

• Money back for your vehicle purchase
• Money back for repair costs linked to the fraud
• Attorney’s fees
• The ability to cancel the contract

California has some unique consumer protection laws in place, meaning you can feel freer to seek legal help and damages for the losses you’ve endured due to dealer fraud. But for the best results possible, you’ll need experienced, diligent legal help.

How Raphael Davis Can Help

Raphael Davis will meet with you for a free initial consultation, helping you compile evidence of possible dealer fraud, including documents related to the sale, vehicle history, and later repairs.

If fraud is evident, he’ll then move to negotiate with the dealership, helping you recover damages for your losses, holding the dealer accountable, and taking your case to court if necessary. Attorney fees can be collected from the damages you’re awarded, meaning you’ll pay nothing for the help you need to seek justice.

About Attorney Raphael Davis

Since 2017, attorney Raphael Davis has helped consumers protect their rights, understand the law, and settle disputes. A former firefighter and coach, he’s proud to bring his diverse background, skill sets, and commitment to his clients to every legal issue they face.

If you need help protecting yourself from consumer fraud, allow Raphael Davis to help you get started by booking a free initial consultation today.

Frequently Asked Questions

Are You A Victim Of Dealer Fraud? Call Raphael Davis Today

Do you suspect that a dealer has tampered with an odometer, hidden past damage or vehicle history, or added illegal, hidden fees to your purchase price or loan rate?

Reach out to auto dealer fraud attorney Raphael Davis for a free initial consultation today!