Tag Archives: automobile fraud

Often times we come across clients who have been defrauded by an automobile dealership and are eager to take matters into their own hands and rectify the wrongs.  From a layman’s perspective the idea of doing so appears harmless and in fact righteous.  However, when analyzed from a legal perspective the idea of taking self-help measures is riddled with pitfalls and negative effects on the consumer. Unfortunately, when an individual has been harmed financially and is hurt emotionally, he or she often does not see these pitfalls and when addressed by a consumer attorney starts to feel apprehensive, fearing that the dealer fraud attorney himself might mislead them.  It …

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Have you ever come to describe your car dealer as an honest and trustworthy person? I guess no, because dealer tricks are so called “treasures of their profession”. To avoid car dealer fraud you should first of all recognize those tricks which may seem quite kind and humanistic from the first sight. “I have got a car for you” You should know that there is a huge difference between buying a car and being sold a car. In the first case your purchase is on your terms, in the second case that sweet-talking man controls over every next step. To avoid this kind of dealer tricks you should take …

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Below is a list of auto dealer activities which may signal possible auto fraud in your automobile purchase or lease transaction of a vehicle in California. Switching the consumer from a sale to a lease without full disclosure The sale of a vehicle which was previously repurchased from a prior owner as a lemon without full disclosure to the consumer The sale of a vehicle that was previously salvaged as a total wreck without full disclosure to the consumer The sale of the trade-in vehicle and then later undoing the transaction Failing to provide the consumer with a written contract in the language in which the consumer negotiated the …

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You must be very careful if you consider buying a used car. According some research about 10 to 12% of the used cars sold have some kind of hidden damage. Moreover, it is estimated that approximately one million cars which have been totaled and rebuilt are sold each year as cars that had not sustained any damage. So if you are thinking about purchasing a used vehicle you should first have it inspected by a qualified mechanic. Make sure the mechanic is not related to the dealership from which you are buying the vehicle. Car dealers will disclose to you any damage history of the car telling that they …

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Kelly Blue Book has for a long time benn considered as the main source for defining the value of used vehicles. However, you should be aware that the book is published in two separate guides. One of the guides is published for the consumers and it lists retail prices of the vehicles. The other is published for the dealers and it lists the wholesale prices of the vehicles. This is the reason the price offered by the dealer may not always be accurate. It’s better if you choose to determine the value of your car based on advertisements in local newspapers. Look for cars similar to yours that are …

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On the greatest sources of income to dealerships is the markup on financing packages or loans that they provide to their customers. Basically, dealers first buy credit at a wholesale price and then sell it to their customers at the retail price. They add 1% or 2% markup on the moneys financed. The law does not require the dealer to disclose this information to the consumer. They simply charge consumers for a service that has been provided making significant profits. __________________________________________________ [ To Learn more our services and areas of practice, please visit our website at dealerfraud.org/our-blog]

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On the transaction, one of the biggest profit source for the dealer is considered to be the trade-in price being offered to you. Before trading in a vehicle consumers try to get information from the Kelly Blue Book and web sites to help them determine the price of the used vehicle. However, it is very difficult to to determine the value of the trade in vehicle and most consumer are willing to accept a lower trade-in than what the vehicle is actually worth. This is when the dealers use their tricks to scam the consumers. The dealer knows that when the consumer is tempted to buy that new car …

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Be aware of the dealer who claims that they have to charge a certain price because their lenders or the leasing company will not allow them to sell below a stated price. The truth is, lenders and leasing companies have have nothing to do with the car’s selling price. This is just another good excuse for the dealer to make profit. Also some dealers may state that you purchase the extended warranty or service contract. Remember that this is not mandatory and is not required by the lender or leasing company. This is simply another way for the dealer to earn more money by selling you extra items. __________________________________________________ …

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Actually, “holdback” is profitable for the dealer whereby the dealer pays from 1% to 3% less than the invoice price which may be shown to you by the sales manager. First the dealer buys the vehicle from the manufacturer at the stated price on the invoice. Later, when the dealer sells the car the manufacturer provides a rebate to the dealer for the costs of maintaining that vehicle in its inventory for a period of 90 days. Taking into consideration that most vehicles are sold more rapidly, i.e., within 90 days, some part of that rebate or reimbursement from the manufacture is the net profit for the dealer even …

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Car dealers make good profit from leasing, which is also an area of automobile fraud. Most often car leasing fraud may involve false terms of the lease, such as the amount exchanged for trade-in, down payments, or rebates. Car leasing fraud include higher capitalized costs than represented; manipulation of residual values; exorbitant early termination penalties; and even deception about whether the transaction is or is not a lease. If you feel confused about the terms of your car lease contact us. __________________________________________________ [ To Learn more our services and areas of practice, please visit our website at dealerfraud.org/our-blog]

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