There are many cases of automotive fraud that can occur during a car purchase in any state in the USA. Some of those cases include the following:
• Non-disclosure of salvage title
If a car has undergone a severe accident and/or flood, it gets a salvage title. Such cars are considered to be wrecks and very often, they are even hazardous for human life. Selling these cars without disclosing the fact that they are wrecks or that they have salvage titles is illegal and it is a type of automotive fraud.
Usually, unsuspecting car buyers look only at the appearance of the car which is quite bearable. However, these cars usually have steering problems, engine defects, bad handling issues, faulty brakes, and defective airbags.
• Odometer Rollback
Odometer Rollback or odometer tampering is another common case of auto fraud. When a used car owner wants to sell the car in a higher price he just rolls the odometer readings back to conceal the car’s real mileage.
• Non-disclosure of previous damage
All the car buyers have the right to know everything about their car’s past life. A buyer must know whether the car he is going to buy has undergone frame damage or not, or whether it is flooded or not, or if it is a stolen car or not. If the dealer or the salesman refuses to provide you with this information, then he is violating consumer protection laws. Thus, non-disclosure of previous damage or more generally, non-disclosure of car-related information is another case of auto fraud.
• Non-disclosure of previous taxi or rental car
A car buyer wants his car to be in a perfect condition even if it a used car. However, in many cases people are sold previous rental cars without even knowing that. The problem with these cars is that they have excessive wear and tear on them because so many people have driven them. Later on other problems will occur connected with the excessive wear and tear.
• Bait and Switch
This is one of the most common types of auto fraud. Bait and Switch involves advertising what really doesn’t exist. In this case of auto dealer fraud a dream car is usually advertised in the local newspaper at a very low price. This first stage of advertising is the “bait”, as soon as the car buyer enters the dealership; he is told that the car has just been sold. Instead, he is offered another car at a higher price: this is already the “switch” part of the fraud. I most cases unsuspecting car buyers fall for this and get ripped off.