Dealer Fraud

Car-dealer fraud is plaguing our country. The tactics being used are so sly that even informed consumers who do their homework are being taken for hundreds, and often thousands, of dollars.

These scams add many millions of dollars each year to the profits of car dealers at the expense of consumers. While some profit is necessary, consumers are being ripped off beyond reasonable need through the sale of useless add-on products and services, the unnecessary markup of vehicle prices, the hidden inflation of loan terms and by other means described in our report.

Evidence from recent litigation, industry insiders and consumer complaints show that these practices are not restricted to a few areas or dealerships. Further, it is very likely that deceitful trends are spreading as more and more dealerships become part of major conglomerates.

Public Citizen does not believe that graft is necessary for auto dealers, as an industry, to remain economically viable. We also do not believe that that all — or even most — dealerships are corrupt. Dealers should work with law enforcement to root out corruption where it exists and should commit to creating a transparent, accountable and consumer-friendly sales and financing process.
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