List of Most Common Auto Frauds

auto fraudsIf you are thinking about buying a new vehicle you should be aware that car dealers and finance companies defraud the consumers in many ways. Below is the list of most commonly used tactics.

Remember, that not all of these are considered to be auto frauds.

  • Phony contests or “specials”
  • False advertising
  • Being charged more than the advertised price
  • “Yo-yo” deals, in which the dealer requires a second loan agreement
  • Bait & Switch – on price, year, model, new versus used, or finance terms
  • Switch from sales to lease financing
  • Auto Frauds concerning negative equity in the trade-in
  • “Stealth credit check” during the test-drive
  • Failure to properly value or credit the trade-in
  • Keeping customers captive in the finance department
  • Misrepresentation of title
  • Misrepresentation of vehicle history
  • Selling prior lemons without disclosure
  • Premature sale of the trade-in
  • Selling prior salvage vehicles (wrecks) without disclosure
  • Due bill fraud
  • Selling gray market vehicles without disclosure
  • Dealer kickbacks from lenders based on interest rates
  • Selling prior daily rental vehicles without disclosure
  • Negotiating contracts primarily in Spanish, Vietnamese, and certain other languages, without providing a written contract in the primary language.
  • Failure to make certain finance disclosures in auto leasing
  • Loan packing (adding unwanted products to bump monthly payments)

If you believe you are a victim of any of the above mentioned contact us.

 

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