Dealer Fraud

Many manufacturers and dealerships advertise used vehicles as “certified pre-owned,” supposedly guaranteeing to the customer that the vehicle is in good working order and free from major structural damage, including previous accidents. Often times, however, dealerships misrepresent used vehicles that have suffered previous accidents, structural damage (or other conditions that would preclude certification under the dealership’s advertised standards) as “certified” vehicles – misleading customers into paying a premium price for a damaged product.

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

Consumers will typically begin to notice problems in the appearance or performance of their vehicle that may be tell-tale signs of a previous accident. Common examples of appearance items include: over-spray paint on portions of the vehicle, panels that don’t line up or fit correctly, and doors or trunk lids that don’t close properly. Common performance-related signs include accelerated or uneven tire wear and front-end pulling.

The best way to tell if your car was damaged is to have it inspected by a body shop. Signs of damage are usually fairly easy to detect, although a frame check may be required if structural damage is suspected. We routinely have clients’ vehicles inspected by a nearby, reputable shop.

You should be aware that Car Fax vehicle history reports often fail to reveal prior accidents or damage – and that car dealers sometimes use these (often incomplete) reports to “prove” that a vehicle hasn’t been damaged.

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

Few things are more aggravating in the purchase of a vehicle than to find out that it has sustained prior material accident damage. It is illegal to sell a new vehicle with any unrepaired damage, any structural damage or even if repairs were made costing more than 3% of the vehicle’s value. Vehicles sold as Certified Pre-Owned vehicles, meanwhile, must live up to the dealership’s advertised certification standards. It is always illegal to sell an unsafe vehicle, and if you asked specific questions about a vehicle, new or used, the dealer is obligated to provide truthful responses (to the best of his knowledge).

So, for example, if you ask a car dealer whether a vehicle has been in a prior accident and the dealer, that misrepresentation can be auto fraud. Likewise, if a dealership fails to disclose material damage, even if previously “repaired,” this can also be fraud.

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