Dealer Fraud and Lemon Law: Really Different Cases

Dealer Fraud and Lemon Law: Really Different Cases

As you already know, the Law Offices of Hovanes Margarian deal both with auto dealer fraud and Lemon Law cases.However, these two are quite different from each other. The main differentiating feature of auto dealer fraud cases is that a car dealer uses all possible unlawful tactics to sell a vehicle. As for the Lemon Law cases, they concentrate on the defects and problems of the vehicle itself. Now, let’s go into details and see all the characteristic features of both cases.

Auto Dealer Fraud Law refers to those unlawful and deceptive practices on the part of the dealer which occur at any stage of car buying process (advertising, financing, negotiating etc.). The scams included in auto dealer fraud are many. Here are four of the most frequently practiced ones;

  • Odometer or mileage rollback, where the odometer of a used vehicle is tampered to conceal its actual mileage.
  • Packing, where the dealer offers the customer an inflated monthly payment, and after the customer accepts it, adds optional accessories to attain that monthly amount.
  • Yo-Yo financing, where the customer’s credit score is not enough to get the vehicle but the dealer tells him the opposite. Later on, when the car is already obtained, the dealer calls the car buyer back to inform him he didn’t qualify for the loan and has to sign a new contract with new terms and higher interest rate.
  • Bait and Switch, a form of deceptive advertising, where the dealer advertises a vehicle at an unbelievingly low price, but when the potential customer comes into the dealership, says the advertised vehicle is no longer available and then forces the customer to purchase a more expensive vehicle.

Now, let’s turn to Lemon Law cases. Lemon Law is an American state law designed to protect the rights of those car buyers whose cars repeatedly fail to meet standards of quality and performance. These cars are called “lemons.” Lemon Laws differ from state to state, however their main goal is the same. California Lemon Law works for those car buyers whose cars have undergone several repairs at leastfor 30 days within 18 months (or 18,000 miles) after purchase. It should be noted that California Lemon Law covers any kind of new vehicle except motorcycles. All kinds of Lemon Laws deal only with those cars which have warranties with them. If you have bought your car on an “as is” basis, you should not expect any coverage.

Remember, Lemon Law deals with faulty and defective cars only; it doesn’t deal with auto dealer deceptions.

Thus, if you think your car is a “lemon”, or you believe you have been cheated by an auto dealer, contact us. Our experienced auto dealer fraud attorneys will evaluate your case and give you useful advice.