California Dealer Fraud: What should I watch out for? (3)
Types of dealer fraud in California are so numerous that we still continue telling you about the most common ones of them. Knowing all the details about dealer fraud will help you avoid it when you appear in a dealership or a showroom.
One more type of dealer fraud that frequently occurs in the state of California is the “title washing” fraud. Title washing involves hiding the history of a previously flooded or salvaged vehicle and trying to sell it without proper disclosure. Title washing usually involves taking a flooded or a salvaged vehicle to another state and reregistering it there as a vehicle having no title.
One can avoid becoming a victim of this type of fraud by just using the services of certain vehicle history reporting websites, such as; the CarFax or the Autocheck.
Selling Unnecessary Add-ons
Some dealers usually charge buyers for unnecessary add-ons. Such add-ons may involve extended warranties, service contracts, alarm system, fabric protection, gap insurance, and paint protection. The dealerusually includes charges for these services in the monthly payments so that the car shopper does not feel much difference.
The main way to avoid becoming a victim of this fraud is to never negotiate based on the monthly payments. Ask to know the car’s price and then calculate the monthly payments according to the price.
Odometer Rollback Fraud
Fraudsters can tamper both mechanical and digital odometers. By doing this, they make the car seem younger and with less mileage; this certainly affects the car’s price, making it cost more. However, odometer rollback is an illegal practice that is punishable by the law. If you think you have been a victim of odometer rollback fraud, you should contact a dealer fraud lawyer immediately.
Curbstoning Car Scam
Curbstoning is another common type of dealer fraud in California. Curbstoners are those dealers who pretend to be private sellers selling cars in local yards. These cars are mostly previously damaged or flooded vehicles that have serious safety problems and that cannot be sold in a dealership.
In order to avoid this scam, you should acquire the vehicle history report and find out information about the vehicle’s past life. Besides, you can ask to see the driver’s license of the seller. If the names do not match, then you should be careful.
These are some more examples of dealer fraud in California. If you want to add something new to this, you are free to comment below.