Which Are the Most Common Dealer Fraud Practices?
Dealer fraud practices are becoming more and more widespread. And it is a good idea to see what a dealer can do to cheat a car shopper or to lure them into a tricky auto deal. With this information in your mind, you can easily avoid deception and fraud. Let us now look at the most common dealer fraud practices out there.
This dealer tactic is also known as Bait and Switch. Everything is quite simple here; the dealer may quote a price but it may not be the same as the one on the contract. Also, a dealer may put an advertisement of several low price vehicles in the local newspaper. However, as soon as you enter the dealership, they will claim they have sold the vehicles. Their next step will be offering you another car at a higher price.
In order to avoid such scams, you need to read the fine print of the advertisement. Usually, they mention exceptions here. Another way to avoid similar car dealer fraud practices is to call the dealership before you go there. You can call and ask them about the special offer they made in the newspaper advertisement to see whether there are vehicles available in the dealership or not. Note that the vehicle’s VIN should be included in the advertisement, if it is not you should ask about it during your call to the dealership.
The car financing trick: One among common dealer fraud practices
Dealerships gain a lot of profit through vehicle financing. They usually turn to finance companies and receive a certain amount of share from the deal. This is a common practice among auto dealerships. However, if the dealer tells you that you cannot finance your vehicle elsewhere, you can just leave the dealership because it’s a lie. Moreover, if the dealer tells you that you should finance the vehicle through the dealership to obtain a lower car price; you can simply turn to an auto dealer fraud lawyer.
Lying about the vehicle’s condition
This is another common dealer fraud practice. If the seller does not inform the potential buyer about such conditions as previous damage or flood, then they are conducting a fraud.
Usually, a vehicle that has undergone serious accidents is declared a total loss and gains the so-called salvage title. People usually sell such cars at salvage yards. So, it is not enough to just look at the vehicle and/or examine it from outside. You might need to inspect the vehicle properly to understand whether it has got any serious damage or not.
If you feel the dealer has sold you a wreck or a previously damaged vehicle you should contact an auto dealer fraud lawyer immediately. Dealer fraud lawyers know the ins and outs of such cases. An experienced lawyer can help you get rid of your wrecked vehicle. Call today at (818)-553-1000.