The Most Common Types of Auto Dealer Fraud You should Beware of

types of auto dealer fraud

There are various types of dealer fraud since it can occur at different stages of the purchase process. The following are a few common types of dealer fraud that you should be aware of.

Salvage Title Fraud

A vehicle is ”salvaged” if it had been flooded or damaged considerably. The insurance company brand it as a ”total loss”. Such vehicles are rather difficult and costly to repair. Hence, vehicle yards sell them at rather low prices to be rebuilt by certain individuals. These individuals resell those vehicles to used car dealerships.

Sometimes a used car dealership sells a vehicle without disclosing the fact that the given vehicle is ”salvaged”. In this case, the buyer has got the right to sue the dealer for vehicle misrepresentation or the so-called ”salvage title” fraud.

”Bait and Switch”

This is another common type of auto dealer fraud practiced by some unscrupulous dealers. This is a form of false or deceptive advertising. It involves luring a potential car buyer into the dealership and shifting their attention from one vehicle onto the other.

”Bait and Switch” involves advertising one vehicle in a newspaper at a certain price and then telling the potential purchaser that the particular vehicle is no longer available. This is usually followed by aggressive tactics of persuading a buyer to purchase another vehicle at a higher price.

Inflating the Invoice Price of the Vehicle

The invoice price is the sum that the manufacturer charges from the auto dealer for the vehicle. Some dealers inflate the invoice price by including additional charges to the payment. In reality, the invoice already includes those charges.

Odometer Rollback

Odometer rollback or odometer tampering is another common type of dealer fraud. Odometer rollback is to conceal the vehicle’s actual mileage reading. If the dealer conceals known facts about the car mileage, then you can sue them for vehicle misrepresentation and dealer fraud.

Many fraudulent dealers practice some of the common types of dealer fraud. One advice to all car purchasers is to do a preliminary research on car prices, dealer tactics, car financing options and the rest in order to avoid being cheated.

If, however, you feel that the auto dealer has cheated you, then you can contact The Margarian Law Firm for legal help. We are a full-service law agency ready to provide you with a free case evaluation and further legal help. Call us at (818)-553-1000.