Aug
31

Automobile Fraud Warning Indicators

Below is a list of auto dealer activities which may signal possible auto fraud in your automobile purchase or lease transaction of a vehicle in California.

  • Switching the consumer from a sale to a lease without full disclosure
  • The sale of a vehicle which was previously repurchased from a prior owner as a lemon without full disclosure to the consumer
  • The sale of a vehicle that was previously salvaged as a total wreck without full disclosure to the consumer
  • The sale of the trade-in vehicle and then later undoing the transaction
  • Failing to provide the consumer with a written contract in the language in which the consumer negotiated the transaction (in Spanish, Vietnamese or Tagalog as well as certain other languages)
  • Improper calculation of the negative equity on the trade-in vehicle
  • Failing to disclose to the consumer the vehicle history including records of all substantial accidents causing considerable damage
  • The sale of a vehicle that was previously used as a rental vehicle without full disclosure to the consumer
  • Charging more than the advertised price for the vehicle


The dealer may commit many other improper acts that may not constitute fraud by themselves. At all events, if one or more of these types of behaviors occur the dealer may indicate that there is something improper about the transaction. That’s why the consumer should be very wary about signing any documents without further review and understanding of the transaction.

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