Auto Dealer Fraud: Contract Fraud

Auto Dealer Fraud Contract FraudAs a law office dealing with auto dealer fraud cases me very often have a chance to review car purchase or lease documents, which our clients provide for a potential case. Investigating this documents we discover different types of dealer contract fraud. The alleged fraud can be found in both purchase and lease contracts provided for customer signature to “finalize” the sale or lease of the new or used motor vehicle.

Some of the “lemon law” claims may contain auto dealer fraud, depending on the elements contained in the purchase or lease contract. Some examples of contract fraud can be:

  • Improper or non-disclosure of “negative equity” on a trade-in.
  • Car dealer failure to provide a Spanish language contract for customers that only read and write in Spanish.
  • Contracts that cannot be financed by the lender and improper “new” contracts are drawn up for signature that supersedes the first contract.
  • Sales in which customers are “required” to buy certain accessories in order to “qualify” for “special” financing, or “qualify” for a particular interest rate.
  • The dealer does not list the trade-in on the contract at all, resulting in the customer losing the monetary value of the trade-in.
  • Dealership selling a car “guaranteeing” it has not been in a major accident by virtue of a “clean” title history report given to the customer as “assurance” at time of sale.

There are many other types of auto dealer fraud. If you believe you are a victim of dealership contract , sale, or lease fraud contact a dealer fraud attorney for consultation.

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