Dealer Fraud

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.

According to some statistics 2.5 million cars are wrecked annually. One million of these vehicles end up back on the road again. Reading this article you can find several very useful tips on how to buy a used car and avoid most common dealer frauds.
Always use Vehicle History Reports to negotiate a lower price, check salvaged, wrecked and odometer fraud cars. Print out questions for you to ask the dealer. If you are buying a used car, make sure to get an AutoCheck Vehicle History Report on the Vehicle Identification Number (VIN). Also have a mechanic inspect the car on a lift. Your mechanic can put the car on a lift and instantly spot hidden frame damage, corrosion, previous crash damage, and fluid leaks. However you should know that your mechanic can’t tell you if your car title has been branded as a flooded vehicle, salvaged, rebuilt, stolen, junked, or passed through a salvage auction.

There are cases, you may not be able to know for sure whether the car has been title washed or not. But following are some tips you can use:

• First of all check the title of the vehicle. If the car is an out-of-state vehicle make sure it does not say “salvaged“. If the title doesn’t say the car is salvaged then:
• Make sure the paint on the outside of the car matches the paint inside the door frame.
• Check to see if that the parts of the car line up with each other. Also make sure that the gaps between the doors and around the hood and trunk are straight and even.
• Take the car to a mechanic. Ask him to check underneath for evidence of welding of the frame or unibody.
• Look for evidence of flood damage. Check under the mat for mud or dirt. Look for watermarks on the inside of the doors, and for moisture inside the trunk and under the seats.

Very often used cars may be wrecked, re-built and then legally re-sold to unsuspecting car buyers. The used car seller can even get a clean title and bill of health and the used car buyer may never know the car had been wrecked and/or “totaled” in an accident!

However, you can still find out the car’s true condition if before the purchase you have it inspected by an independent mechanic.

The car that has been caught in a flood and later salvaged and cleaned up for re-sale to unsuspecting car buyers is known as a flood car. According to the law the title of a flood car is supposed to state that the car has been under water, but you can’t be sure that the title held by the used car dealer is legitimate.

The used car dealer may not know the car has been flooded so the only thing you can do to make sure is to inspect used vehicles thoroughly yourself or have a good mechanic do it. It is a good idea to check under the hood for corrosion and look for water lines indicating how high the water level may have reached during a flood. Also, check under the dashboard, seats and floor mats for signs of dirt and/or sand.

Dealers and individuals use title washing to remove salvage branding from car titles and to minimize their losses. Typically they transfer a salvaged vehicle to a state that doesn’t recognize the brand and the titles are washed. You can never know that the vehicle had been salvaged after the state issues a new title. Another way is moving the vehicle from state to state until the branding is gone. When it is, the vehicle’s history will have been “washed” clean.

Below is a list of auto dealer activities which may signal possible auto fraud in your automobile purchase or lease transaction of a vehicle in California.

• Switching the consumer from a sale to a lease without full disclosure
• The sale of a vehicle which was previously repurchased from a prior owner as a lemon without full disclosure to the consumer
• The sale of a vehicle that was previously salvaged as a total wreck without full disclosure to the consumer
• The sale of the trade-in vehicle and then later undoing the transaction
• Failing to provide the consumer with a written contract in the language in which the consumer negotiated the transaction (in Spanish, Vietnamese or Tagalog as well as certain other languages)
• Improper calculation of the negative equity on the trade-in vehicle
• Failing to disclose to the consumer the vehicle history including records of all substantial accidents causing considerable damage
• The sale of a vehicle that was previously used as a rental vehicle without full disclosure to the consumer
• Charging more than the advertised price for the vehicle

The dealer may commit many other improper acts that may not constitute fraud by themselves. At all events, if one or more of these types of behaviors occur the dealer may indicate that there is something improper about the transaction. That’s why the consumer should be very wary about signing any documents without further review and understanding of the transaction.

It is common for dealerships to sell cars without disclosing that they were previously wrecked or salvaged. In case you have recently purchased a vehicle and you suspect it may have been in a serious accident before you bought it, you should take the following steps. First, have your car inspected by a qualified mechanic and ask for a complete report. If the inspection reveals that the frame is bent or the vehicle has safety-related problems, then you may have a possible case against your car dealer.
If the vehicles have been in an accident and the insurance company or leasing company “totaled” the vehicle, then the vehicles should be repaired at licensed repairers and then checked for safety. These vehicles may be with full disclosure of their salvage status sold if they pass the safety inspection. The vehicle must be titled as “salvage” by the insurance company that totaled it. If at the time of the purchase the car dealer failed to disclose that the vehicle you intend to buy is a salvage vehicle, consult a dealer fraud attorney.

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

www.DealerFraud.org]

There is specific information that the car dealer is responsible to reveal to the car buyer before the purchase of the vehicle. In most states, car dealers must disclose whether a used vehicle has incurred significant damage in a previous accident, has been designated “salvaged”, or has been flood-damaged.

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

www.DealerFraud.org]

Buying a used car can be a terrific choice in so many ways. Owning a used car you save not only on purchase costs, but on ownership costs as well.

Used Car Dealers Pass the Savings on to You
• Some used car dealers get their profit from trade-ins, others from purchases, auctions or some combination. Eventually, the dealer’s cost in obtaining the vehicle is lower than it would be for a new because the inventory is usually from local sources car and transportation is not a factor.
• The dealer spends less money to acquire the vehicle and make it available for sale. And this is another reason why buying a used car saves you money.

Ownership is Usually Less Expensive
• The vehicles that are approximately 3 to 5 years are usually sold for around 50 percent of their original MSRP (manufacturer’s suggested retail price). The bonus – the used car has five to seven reliable driving years and:
o Your insurance and registration costs will be less expensive than for a new car.
o You can still purchase an extended warranty to offset any repairs. However make sure to work with a reputable car dealer and carefully review the terms of your agreement before you sign any document.

There is always a possibility that problems may arise after the sale. That is why before signing the final paperwork and purchasing a car or truck from a used car dealership ask about any guarantees or services available. For example:
• Ask the dealer about the return policies available. If you change your mind about the vehicle and decide to return it to the dealership will the dealership offer any money back guarantee?
• Some used car dealerships may offer warranties of 30 to 60 days after the sale.

Look for a Used Car Dealership that Provides a Certified Inspection
• Certified inspections can help a used car feel new again.
• They can also reduce or eliminate many of the troubles formerly associated with buying used cars.

Look for a Used Car Dealer that Researches and Guarantees Your Used Car Title
Remember that reputable car dealer should not knowingly sell you a car that has been previously flooded, salvaged or has an inaccurate odometer reading. If after the sale of the vehicle the cur buyer discovers any of the above mentioned he/she is considered a victim of dealer fraud and may claim a refund.

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

www.DealerFraud.org]