Auto Dealer Fraud FAQs

auto dealer fraud faqs

What is auto dealer fraud?

Auto dealer fraud is a tricky and unlawful practice used by some auto dealers in order to make extra money on a vehicle deal. Independent of the fact whether it is a car lease deal or a purchase deal, some dealers may practice various cheating techniques to be able to rip off unsuspecting buyers. Dealer fraud may be practiced in any stage of a vehicle lease or purchase process. Auto dealer fraud may take various forms and may result in the loss of huge money on the part of the car shopper.

What is odometer fraud?

Odometer fraud also known as mileage fraud or odometer rollback fraud is a type of auto dealer fraud. It is one of the most practiced fraud types in the book. Odometer rollback involved tampering an odometer so that it shows less mileage than it actually has. Used vehicles with higher mileage readings are more difficult to sold, so fraudsters roll back an odometer to make it seem as if the car has not been used much. You can learn more about this type of fraud by reading our article Odometer Rollback Fraud.

What is “Bait and Switch”?

Bait and Switch is a type of deceptive advertisement where the dealer lures potential buyers with a stunning offer but then switches them onto another variant with a higher price and less quality. You can learn more about Bait and Switch by visiting here.

What should be disclosed to a used car buyer about the used car?

In most states a used car dealer must disclose the following information to the potential buyer;

  • Whether the vehicle has undergone any accident
  • Whether it has suffered any significant damage
  • Whether it has been flooded, wrecked or totaled
  • Whether it has been bought back as a “lemon vehicle”
  • Whether it has been a previous taxi or demo vehicle

What is the difference between auto dealer fraud and Lemon Law cases?

The thing is that both cases involve motor vehicles, but the two are rather different from each other. In dealer fraud cases, it is the dealer who is to be blamed for dishonest sales tactics. As for the Lemon Law cases, the dealers have nothing to do with the problems occurring with the vehicles, as the vehicles originally come with certain faults and defects.

What can I do if I think I have been a victim of auto dealer fraud?

If you think the dealer has cheated you, you can contact a dealer fraud attorney for legal help. If you reside in the state of California, then you can contact The Margarian Law Firm for legal help. Mr. Margarian is an experienced lawyer who has handled thousands of dealer fraud and Lemon Law cases and is very familiar with the specifics of both of them. Contact Mr. Margarian today at (818) 553-1000.