Common Examples of Car Dealer Fraud

Purchasing a car is an exciting process which can sometimes become a daunting task, especially if you are buying a used car. Finding an honest and trusted dealer is a great fortune, as it will make your car-buying experience a positive one. However, auto dealer fraud cases are common and can occur at almost every stage of the car purchase process. Whether you are dealing with a car dealership or a private party, you can be at the risk for scams.  Here are some common examples of car dealer fraud cases a car buyer can encounter:


Title Washing Car Dealer Fraud

Title washing or hiding past damages is the most frequently met form of car dealer fraud. It helps car dealers remove the vehicle’s “salvaged” or “flood-damaged” branding. It is done in two ways. First, car dealers trick consumers and make them believe that the car is in a better shape than it is actually is. The fraud dealer hides the fact that the car has been through any sort of damage, such as flood or an accident.  

Second, the dealer illegally files paperwork in other states to get a duplicate title for the car. The duplicate title does not contain any information on the prior damage. The fraud dealer gives customers the duplicate one instead of the true one.

If you suspect that a car dealer is committing fraud by knowingly selling a salvaged vehicle as a good condition used car, contact the attorneys at the Margarian Law Firm who have long experience in dealing with car dealer fraud cases and can provide you with effective legal advice.


Bait and Switch

Bait and switch sales tactics is another well-known example of Car Dealer Fraud. The concept of this type of fraud lies in false or deceptive advertising. The car dealer advertises a car at a great price and then tries to sell more expensive cars when consumers contact the dealership by saying that the particular car is not available anymore. The whole point of a bait-and-switch sales tactics is to get you to the showroom and convince you to buy some other more expensive cars.


Odometer Rollback Car Dealer Fraud

Odometer fraud is another frequently encountered car dealer fraud example. It basically happens during used car sales. The odometer “rollbacks” are intended to hide a used car’s actual mileage. The odometer fraud practices include altering the numbers, resetting the odometer in any way, replacing the odometer from a vehicle without any notice and the disconnection of the odometer. Note that odometer fraud cases are liable for criminal prosecution and civil claims. If you think you are a victim of odometer rollback fraud, it will be wise to apply for legal help.

The attorneys at the Margarian Law firm will help you to disclose any auto dealer fraud case, including odometer rollbacks, as they have a wide range of successful experience in cases connected with an automotive industry.


Escrow Scams

When a fraudster pulls an escrow scam, he will suggest you deposit money into his fake escrow account. As soon as the money is placed on the account, the fraudster and the car disappear. It is mainly practiced in online purchasing cases. This is why, eBay Motors and other car-selling websites warn consumers to be careful when buying a car over the phone or Internet.


Contract Violations

Some dealers may “pack” a contract with service contracts, warranties, options and accessories that you did not ask for. This will lead to the appearance of extra costs. As the contract is a legal document, it’s in your best interest to consult an experienced auto fraud attorney before signing it. The attorneys at the Margarian Law Firm will investigate, evaluate and take legal actions if any fraudulent evidence is found.