Automotive Fraud: Dealer Fraud

dealer fraudWhat is automotive fraud?
There are different types of auto dealer fraud. If you purchase or lease a car and the car dealer does not properly disclose known defects or dangerous conditions with the vehicle, then he commits auto fraud.

There are various types of fraud:
What kinds of dealer fraud can the car dealer commit against a used car buyer? Some of the most common are;

  • forging your signature on a contract,
  • lemon laundering,
  • not properly disclosing the previous ownership history,
  • odometer rollback or tempering and
  • falsifying terms of lease.

Often car buyers become victims of lemon fraud. This happens when they are sold a used car which later turns out to have extensive presale collision damage. Car dealer fails to disclose any accident history of the vehicle before the sale. However, later when the owner of the vehicle discovers that the car had sustained major collision damage, the salesman rejects to having made such a statement.


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