Aug 31 2008
Automobile Fraud: Fraud Warning Indicators
The following is a list of auto dealer activities which may signal possible auto fraud in your automobile transaction for either purchase or lease of a vehicle in California.
- Selling you a vehicle that was previously repurchased from a prior owner as a lemon without full disclosure to you
- Selling you a vehicle that was previously salvaged as a total wreck without full disclosure to you
- Selling you a vehicle that had previously been used as a rental vehicle without full disclosure to you
- Failing to provide you with a written contract in the language in which you negotiated the transaction, specifically in Spanish, Vietnamese or Tagalog as well as certain other languages specific,
- Prematurely selling your trade-in vehicle and then later trying to undo the transaction
- Improperly calculating the negative equity on your trade-in
- Switching you from a sale to a lease without full disclosure
- Charging more than the advertised price for the vehicle
- Failing to disclose to you the vehicle history including records of all substantial accidents causing considerable damage
There may be many other improper acts committed by the dealer, which may not constitute fraud by themselves. Nevertheless, if one or more of these types of behaviors occur they may indicate that there is something improper about the transaction and you should be very wary about signing any documents without further review and understanding of the transaction





