Common Examples of Automotive Fraud
According to U.S. Department of Transportation, over 7 to 8 million new cars are sold yearly in the United States. So, we love to drive brand new cars and used ones as well! And do you know the number of automotive fraud cases yearly? I will not be mistaken if I say that nearly half of these 8 million cars are sold with the use of some type of an automotive fraud.
No one is going to prevent us from buying a “lemon” or a “lemon law buyback” or a majorly damaged car. We should educate ourselves by visiting websites and blogs about auto dealer fraud and reading articles which will help us avoid being cheated. This blog not only offers useful information on how to avoid automotive fraud and the rest, but it also helps those who have already been deceived by a dishonest auto dealer. Our experienced auto dealer fraud layer is ready to answer any of your questions and also to defend your rights as a consumer at court.
Now let’s examine some common examples of automotive fraud.
- One example of auto dealer fraud is the “bait and switch” practice. This kind of fraud has its various manifestations, for example, during one of them you may find an advertisement in one of your local magazines which tell that a car is being sold at a surprisingly low price. When you go to the dealership, the dealer will switch you onto another car saying that the one you wanted was already sold.
- Another scenario of “bait and switch” is that when you go to the dealership, negotiate the price of the car and when comes the time of signing the papers, you suddenly notice that the price has been inflated surprisingly. The dealer will, of course, tell you he has added additional items to your car (safety or luxury items) and you may believe to such a lie.
- Another common example of automotive fraud is offering you a previously owned wreck which has been rebuilt and painted to conceal its actual age and condition.
- The next type of auto dealer fraud is the so-called odometer fraud. This involves tampering the car odometer so that it wouldn’t show the car’s actual mileage.
- Automotive fraud involves financing fraud as well. This involves lying the car customer about his/her actual credit score. When a buyer doesn’t know his credit score, it is very easy to manipulate him into buying a car at a higher price and higher interest rates.
These were the examples of common automotive fraud. Be careful while shopping for a car independent of the fact whether it is a new or a used one, as auto dealer fraud may occur in both cases.