Dealer Fraud

California Law provides a myriad of reasons to justify rescinding a contract to purchase or lease a new or used automobile. Basically, California allows an automobile purchase or lease agreement to be rescinded if it is based upon dealer fraud, mistake, or significant non-disclosure or concealment. The basic concept is that there must be a "meeting of the minds" in order for a contract to be valid.
A contract that is put in writing tends to eliminate significant "he said-she said" arguments over what exactly was agreed to, since the significant terms of the contract are usually contained in the writing. California law requires that the contract have no blank spaces when signed, and that the consumer receive a copy of any contract after signing.
However, California provides consumers with vast protections against misrepresentations that are made during the negotiations for the purchase or lease of goods or services. Further, there is no requirement that the salesperson intended to make a misrepresentation; the fact that a representation was made during the negotiations which in fact is not true is all that is required.

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[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

There are a number of federal and state laws designed to protect consumers from the many deceptive and unsavory practices used in connection with purchasing and financing an automobile. Automotive fraud is a very broad area. There are many different types of auto fraud, and the defendants include: insurance companies, car dealers and manufacturers, extended warranty companies, service contract companies and car finance companies.
Examples of auto fraud include sales of salvage, flood and former rental cars without disclosure of their past history. It is illegal to sell a vehicle with a rolled back odometer with disclosure of the true mileage. It is illegal to sell an unsafe vehicle.
California law provides that if the consumer negotiated the lease or purchase of a vehicle primarily in the Spanish, Chinese, Tagalog, Vietnamese or Korean languages, the dealer must give the consumer a translation of the filled out lease or purchase contract in the applicable language. This must be done before the consumer signs the lease or purchase.
If the dealer fails to comply with this law, the consumer may undo the purchase or lease and get his or her money back. If you think you have been deceived in any way in conjunction with the purchase, finance, or lease of your car or truck, or if you purchased a vehicle from a California dealer with an inaccurate odometer and the dealer did not disclose that fact contact us .

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[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

Have you purchased a Late Model Used Car with Mechanical Problems or Prior Accident Damage?

Many unsuspecting consumers purchase from car dealers used vehicles that are represented to be one owner vehicles but are in fact prior daily rental vehicle, (cars used as rental cars by car rental firms). Many of these cars have prior accident damage or mechanical problems.

Under California Law an auto dealer has the legal obligation to identify and disclose former taxi cabs, rental vehicles, publicly owned vehicles, insurance salvage vehicles and revived salvage vehicles at the time of and prior to sale. Additionally, many consumers are unaware at the time of purchase that many used cars have significant prior collision damage. Under California Law a dealer has and obligation to perform a legal sufficient safety inspection of all used cars offer for sale and must perform repairs or disclose collision damage revealed by the inspection. Unfortunately there are Auto Dealers who ignore the Law. Contact our firm if you believe that you have been the victim of non-disclosure in a vehicle sale or have purchased a vehicle with a history of prior collision damage.

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[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

California law allows cars dealers to add a so-called document fee of $55 to each auto purchase contract. There is no good reason the law should allow dealers to add this fee because document preparation is just part of the cost of doing business. Not satisfied with the $55 fee, this year, the car dealers sponsored a bill in the California Legislature to raise the fees to $65, which we estimate would cost California car buyers an additional $40 million per year.
The Assembly passed the bill, but this week the author of the bill withdrew the bill in the face of opposition from key senators, including Senator Ellen Corbett, who chairs the Senate Judiciary Committee. Opposition to the bill was led by Rosemary Shahan, who is head of the consumer advocacy group, Cars for Auto Reliability & Safety. Consumers have Rosemary to thank for saving them $40 million!

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[ To Learn more our services and areas of practice, please visit our website at www.DealerFraud.org]

Under California law, if you have been sold a previously wrecked vehicle, a auto fraud attorney will help you recover a full refund and you may also be entitled to recover punitive damages and attorneys’ fees and costs from the fraudulent party.

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[ To Learn more our services and areas of practice, please visit our website at

www.DealerFraud.org]

A new California law prohibits car dealers from selling used cars as “certified” if they had been wrecked or in a flood unless properly repaired or the odometer was rolled back. Certified cars may not be sold “as is.”Under the new law, cars damaged in a wreck or flood and not properly repaired cannot be sold as certified. If the repairs did not make the car safe or if the accident or flood damage, in spite of the repairs, substantially impaired the use of the vehicle, it cannot be sold as certified. Previously, wrecked and poorly repaired cars were sometimes sold as “certified.”

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[ To Learn more our services and areas of practice, please visit our website at

www.DealerFraud.org]