When Can Auto Fraud Occur?

auto fraud.In any stage of the vehicle purchase process, from advertising to signing the purchase contract, the consumer may become a victim of auto fraud. Following are some common situations that may be considered to be auto fraud.

Bait and Switch is a form of false or deceptive advertising, when the dealer sells the advertised vehicle at a price higher than the advertised price.

Improper inflation of the vehicle’s invoice price happens when the dealer makes additions to the invoice figure, when those charges were originally included in the invoice price (i.e. destination charges).

One of the most common auto frauds is the new dealer returns. This scam occurs when the dealer sells a vehicle returned to the dealer because of a defect or persistent mechanical problem or a car returned shortly after purchase for some other reason as a new vehicle.

Consumers may become a victim of vehicle trade-in scam when the dealer undervalues and underpays for a car buyer’s trade-in vehicle.

One of the most profitable scams for the dealer is concealing the inclusion of certain optional “add-ons” during the negotiation process, or the costs of those add-ons, but including those add-ons in the final vehicle price.

 

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