Dealer Fraud

Remember that you may be able to get a much higher price by selling your current vehicle yourself rather than trade-in. Most often when you trade in your old vehicle at a dealership you get below wholesale Blue Book for your old car. Which is even worse the car dealer could confuse you about exactly what you are getting. For example, you may bargain with a dealer to get a higher price for your trade-in vehicle, but not realize that the purchase price of the new vehicle is also being raised.

Car manufacturers nationwide, including Chrysler, GM, Ford, Toyota and others have certified used car programs. Car dealers pay extra money to provide a manufacturer backed used car certification to customers. Some of the features provided by the certified use car programs are an extended warrantee and a promise that the car has passed a detailed inspection and is in excellent working order and has body integrity and no major problems.

However, manufacturers sometimes inspect the “certified” used cars improperly. They certify the car even though it should not have been certified. There are cases when the “certified” used cars sold to consumers are in fact re-built wrecks with substantial permanent frame damages, and are worth far less then the purchase price and unsafe to drive.

Pursuant to the law consumers who have purchased improperly “certified” used cars have the right to sue for their damages or to return the car and get their money back.

If you believe you have been victimized by car dealer fraud in the purchase of your new vehicle, you should contact a dealer fraud attorney in your state to get legal help and more information regarding fraudulent or negligent certification of used cars.

Pursuant to the California law a seller or lessor of a vehicle, who negotiates the deal in Spanish, is required to provide the car buyer or lessee with a Spanish translation of the same document before they are asked to sign the English version. If the car dealer fails to do so it constitutes a statutory violation or dealer fraud.

If you have negotiated your car purchase deal in Spanish and the car dealer didn’t provide you with a written Spanish translation of the final contract than you may be entitling to cancel the contract and obtain a refund.

Very often dealerships sell cars that were previously wrecked, salvaged or have been declared a total loss without disclosing this fact to the consumer. After they have purchased the vehicle customers notice that the vehicle has persistent mechanical problems. This could be a sign that your car may have been in an accident before you bought it.

If your vehicle was in a prior accident, and the car dealer failed to disclose this fact to you, you may have a chance to cancel your purchase contract and seek damages. Contact and experienced dealer fraud attorney for legal help.

Thoroughly test drive the car you intend to buy and have it checked out by your own mechanic. Very often defective cars are sold at dealerships or public auction where car buyers forgot that the sale car has not been test driven.

Remember that if the car was in previous accident damage it seriously depreciates its value and safety. Look for a kitchen magnet that will not stick to a fender (may indicate bondo), a plastic filler used in body repair. Always do a visual inspection of the car. Check for paint overspray in the door jambs, strange weld marks under the carpeting in the trunk, door and windows that are not air tight, wrinkles or color fading, unevenly worn tires, steering wheel drift or uneven gaps in the body seams. Even some new cars have been sold damaged.

Car dealers know that the average consumer will not read most of a pre-printed document and most of the time they take advantage of this to make more profit. It is common for dealers to promise consumers to help arrange the financing with a third party lender. This is because financing is complex and confusinf and dealers routine hold themselves out as experts in auto finance. Car buyers prefer all the terms explained by the dealer rather than read all documents themselves. This is when the car dealers scam you.

Never sign the deal on the first day. Take some time to think it over. Ask the dealer for a copy of all documents; take home and read each line carefully. Never trust the dealer to do calculations for you, otherwise you may be a victim of dealer fraud.

Often lemon cars that manufacturers buy back end up in the dealership lots. These lemon buy backs or repurchased cars often are referred to as “laundered lemons.”

Pursuant to the California law requirements car dealers are obligated to disclose to car buyer that the vehicle was repurchased under the Lemon Law. However some dealers fail to disclose this fact. This action of the dealer is viewed as dealer fraud.

You can avoid this car scam if you purchase a vehicle history report before you purchase a car. If you believe the vehicle you have bought is a laundered lemon you should contact a dealer fraud attorney immediately.

The “spot delivery” is a dealer trick used to get you to take delivery of a vehicle immediately after you agree on a car deal. However you should know that even though you pay down payment and drove away from the dealership with a new vehicle doesn’t mean you’ll get to keep it. Dealers know that most car buyers are in a hurry to sign the paperwork and to leave in their new vehicle.

The scam happens when you allow the dealership to handle the financing. You first sign some paperwork which the finance manager should try to get approved with the bank. If he can’t get the deal put together with the bank whose paperwork you signed, he then has to go to another bank. The finance manager will probably call you to let you know you have to sign new documents. Moreover, at the dealership the buyer will be informed that he/she has to return the vehicle or sign a deal at a very high interest rate per year.

Often, the people with low credit or low income become victims of spot delivery schemes. The best way to avoid this car dealer scam is to be informed and not let the dealer rip you off. If you believe that your car dealer tried to scam you contact an experienced dealer fraud attorney.

When you think of buying a used car you should try to avoid the most common scams in the industry. The best way to avoid dealer fraud is to get as much information about the vehicle as possible. Here are some tips:

• Test drive the car – Drive in different road conditions for example on hills, highways, and in stop-and-go traffic.
• Always inspect the car - use an inspection checklist, which you can find in most of the magazine articles, books and Internet sites that deal with buying a used car.
• Have the vehicle inspected by a qualified mechanic independent from the dealer.
• Car’s maintenance record - Ask the dealer or the repair shop to give you the car’s maintenance record.

1. If you consider buying a new car the best time to do it is around Christmas time because with not many of people are looking to buy a new car, and it forces dealerships to up their sales strategies. It’s easier to get a good deal when car sales are down and dealers want to make profit.

2. Never bring your old car to the dealership as a trade-in. The dealership often fails to make payments for the loan of your trade-in vehicle on time. You may become a victim of dealer fraud and be responsible for a great deal of late fees to the bank. If you do decide to bring a car in that you owe money on, get it in writing from the dealership that they will pay the balance on the car within 10 days.

3. Research on the internet new car prices, dealer incentives, and the best rebate offers before going to the dealer. The more you know the hard it will be for dealer to scam you.

4. Always have a copy of your credit report when going into a dealership. It will help you to get lower interest rates on your car loan, as well as prevent credit score scam.