Dealer Fraud

Are you afraid to buy a used car because you don’t want to become victim of dealer fraud? It is, in fact, possible to buy a used car and avoid all kinds of dealer tricks and scams. One of the most important thing to do when you buy a used car is to inspect it before you purchase. Here are some tips on how to inspect a used car:

• The first thing you should do when you buy a used car is to walk around it and check the body, tires, registration and then scan the interior.
• Never look at the vehicle in the dark.
• Never look at the car in the rain. Water can sometimes mask prior body damage.
• Try to see the car when it hasn’t been started for awhile so the engine is cool.
• If you buy a used car in an area that has really hot climates then you will need to check for blown head gaskets and cracked heads.
• Check the transmission fluid after the car is warmed up, on level ground and idling.
• Always get a vehicle history report before you buy a used car. This is an excellent get information about the car you intend to buy and can help you verify if it has been declared as a salvage vehicle or was flooded.

One mistake that car buyers make is buying a used car without knowing a used car history they purchase.

It is also important to provide a vehicle history report when you sell a vehicle. This will make the sale of your used car quicker and smoother.

When you buy a used car get a history report. It will reveal the information about a used car you’re interested in. The vehicle history report may include the following:

Flood History - Flood damaged cars are often moved to other states and sold to unsuspecting buyers.

Rebuilt cars – This means that the vehicle sustained damage and was rebuilt or reconstructed.

Odometer information – Each year odometer rollback fraud costs car buyers thousands. When you get a vehicle history report you can detect a potential odometer fraud before you purchase.

Accident information – The safety and resale value of a vehicle is affected by previous accident damage, so this is another information to look for.

Rental cars – These vehicles are driven by many people under often brutal driving conditions.

Today you can easily get a vehicle history report online. Always check the history of the vehicle before you purchase a car.

One of the easiest ways for car dealers to make high profits is adding to the consumer’s deal car accessories, SUV accessories and truck accessories. This is simply a car scam and you must be very careful to avoid it. In fact, you do have an alternative….

In other words, car accessories are options like custom wheels, special tires, high end car stereos, car dvd players and monitors, truck shells, custom seats, spoilers, fender flares & wings, special floor mats, pin stripes, alarm systems, etc. At the end of the deal your car dealer may offer you to add one or more of these options to the final agreement. Car dealer push these accessories very hard, as this is where they make higher profits, rather than most anything else they sell.

The best way to avoid the car accessory scam is to shop for accessories for your car before you even go to the dealership. Try to buy them on an aftermarket basis instead of through the new car dealer.

Buying a new car is sometimes a confusing process, so it is very important to learn how to buy a new car. One of the parts to effectively purchase a new car is knowing some terms commonly used by the dealer.

Base Price – the cost of the car without options. Base price usually includes the factory warranty and standard equipment. It should be shown on the Munroney sticker.

Invoice Price – the price the manufacturer has charged the car dealer for the vehicle. Taking into consideration the allowances, discounts, incentives and rebates, this is often a higher price than the dealers final cost.  Destination and delivery are also included in the invoice price. One of the most common dealer tricks is charging car buyers twice for delivery, so be careful.

Munroney Sticker Price (MSRP) - the sticker shown on the side window. The MSRP is required by federal law and includes the base price, manufacturer options, the cars EPA gas mileage and manufacturers transportation charge.

Dealer Sticker Price - the MSRP plus the suggested retail price of dealer installed options like, additional dealer profit (ADP), dealer preparation, undercoating, and additional dealer markup (ADM).

Of course car dealers are supposed to take care of their customers. However, the truth is they care more of themselves and their profit rather than their consumers. Here is the list of some things you should be aware of:

Loan Assistance: The car dealer will probably offer you to assist you if you are unable to pay off your loan. However, think twice before agreeing. The chances are big that you will pay higher. You might end up with a bad credit rating and will own the dealer rather than your bank.

Easier Payments: There is a big difference in paying the car for a lesser amount and paying less for a car loan. Car dealers sometimes try to make you pay higher by saying they are trying to make the car more affordable.

Added Security: Your car dealer may offer to add an etching on your car’s windshield to prevent theft. It should be noted that this is a very useful item, however, dealers may charge you more for VIN etching when you can purchase it online for only $30 or less.

If you decided to enter into a vehicle lease deal and want to avoid common lease scams, here are a few tips to help you:

1. The most important thing to keep in mind when you lease a car is that with a lease, you are not buying the car, but are renting it, for a longer period of time. The consumer should know that very often there may be hidden fees at lease end and the leasing may cost you more than buying. There are hidden fees for excess mileage and wear and tear to the vehicle.

2. Most consumer find out at the end of the lease that it is much more expensive than it seemed in the beginning. The consumer is, in fact, buying nothing other than the use of the vehicle for a period of time within certain mileage limits. Also, at the end of the lease end you will not have any ownership interest in the vehicle as well as any trade-in vehicle. Sometimes car dealers tell consumers that they will be able to purchase a car at lease end and receive credit. However, this is simply not true

3. If you have any outstanding obligation on the lease at the end of the agreement, then these are often rolled into your next vehicle purchase or lease. Always carefully read your lease agreement to get a fair deal on your next purchase or lease.

4. The best thing to do to avoid dealer tricks and lease fraud is to first take the lease or purchase contract home and read each line thoroughly. Discuss it with somebody well aware of car leasing. If you feel unsure about any point in the contract then simply walk away from the deal.

If you think that your car dealer cheated you on your lease contract contact an attorney specializing in fraud cases to help you resolve the situation.

In some cases car buyers purchase a vehicle to find out later that the vehicle they purchased has frame or other types of body damage. Pursuant to the law car dealers are required to disclose material facts regarding the vehicle to purchasers. The failure of the car dealer to disclose the consumer that the vehicle was damaged is considered a dealer fraud.

Keep in mind that damaged vehicles are valued at 25-80% of the price you have paid and possibly nothing if the prior damages were severe.

The cases when the consumer is sold a vehicle with previous frame damage are more common than you think.

If you believe that the vehicle you have purchases has been damaged before you bought it then you should contact a dealer fraud attorney in your state and start a claim against your car dealership.

When you purchase a used vehicle from a car dealer with an “As-Is” sticker in the window you are still legally entitled to certain “minimum” standards of operation for the vehicle. Below is the list with some of the most important things to ask the dealer when you intend to buy an As-Is vehicle. If one or several of the above mentioned points are missing them you probably didn’t get what you’re legally entitled to and may be a victim of a dealer fraud. Check and make sure that all the following is working properly:

• All headlamps (and high/low beams)
• Brake lights (including the middle-3rd light)
• Tail lights
• Side markers and turn signals
• The rear license plate illuminating light
• The backup lights (also check if they work automatically when the vehicle is placed in reverse)
• The proper voltage is getting to every light
• The parking brake
• Check the condition of all brakes
• The wipers should work properly
• The horn
• The fuel cap OEM or of a compatible grade
• Check all the seat belts (they should work and be in good condition)
• The tires should have “legal tread” of 1/32nd tread
• The odometer should work properly (avoid being a victim of odometer fraud)
• Make sure the vehicle has a theft deterrent system
• The vehicle should have two license plates

If you check and find out that some of the above listed does not work you should ask the dealer to fix it before you sign any documents. Most reputable dealers will make sure these items work prior to selling the vehicle.

If you believe that you have an issues you should first consult an experienced dealer fraud attorney, who will be able to evaluate your case and explain your legal rights.

Buying a new car today, does not necessarily mean, that is has not sustained any damage before. Many consumers who buy new cars later find out that their “new” car has been significantly damaged before they have purchased it.

Pursuant to the law in California a car dealer is not required to disclose ALL vehicle damage. Moreover, there are limits on what needs to be disclosed based on the nature of the damage and/or the cost of repair. So, for example if during the transportation of the car from the factory the truck driver drops a chain on the hood of the car and the car dealer repairs it for less than our $500, then the dealer is not required to disclose this damage to the consumer.

On the other hand the car dealer has to disclose anything that affects the “drivability” of the vehicle. If the vehicle was on a test drive and ran over a curb, which damaged the suspension, then even if the suspension was replaced using all-new suspension that would need to be disclosed.

If you have purchased a vehicle and think that the car dealer failed to disclose any damage regarding the vehicle you have bought you should contact an experienced dealer fraud attorney in your state, who will be able to review your case and discuss your right in case of undisclosed damage.

It is not a secret that most car dealers love leasing. One of the reasons for this is that they know that consumers will be back in a couple of years to lease a new car. Many leasing customers ask the dealer if they can “trade-in” their current vehicle for a new one. And this is when the vehicle leasing scam happens. This is a good opportunity for the car dealer to get you into a new lease, while hiding all the early termination fees and penalties in the new lease.

One thing that most consumers don’t know is that there is no such thing as “trading-in” with a lease (unless your lease contract specifically mentions trading-in your vehicle for a new one). To lease a new vehicle you will have to terminate your old contract and thus pay early termination fees, penalties, and unpaid depreciation that are mentioned in the contract. The dealer may promise to take care of your old lease, but he will simply add all that payments to your new contract.

You will be able to prevent the lease trade-in scam happening to you if you just don’t enter into a new contract until your current lease is over. This way you will be able to avoid the early termination fees and penalties on the current lease.