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.

It is not a secret that daily rental drivers don’t treat rental cars and trucks like their own. Over a short period of time a lot of small defects add up to rental vehicles. Some of the common problems of Prior Daily Rentals are rust and corrosion. Also many rental cars and trucks have been in serious accidents involving body and frame damage.

The worst thing about these rental cars is that after between 15,000 and 30,000 miles on the odometer they are shipped throughout the 50 states and end-up in dealership lots. Pursuant to California consumer protection laws car dealers are required to disclose any Prior Daily Rental history to the car buyer. It constitutes a violation of law if the dealer knowingly fails to disclose a vehicle’s history as a prior rental. However not all car dealers honestly disclose prior rental history to car buyers. The reason for this is that car dealers know that this fact is important for car buyers and it may influence the buyer’s decision and the price someone would pay. According to some inquiries made most of the consumers would not buy a Prior Daily Rental (PDR) at any price.

You can protect yourself against this dealer fraud if before purchasing a used car you order a vehicle history report. Also have the vehicle inspected by a trusted mechanic. If you believe that the car you purchased is a prior rental and the car dealer failed to disclose this contact a dealer fraud attorney in your state.

After the recent hurricanes in the southern part of the United States a lot of vehicles were damaged. Though insurance companies have declared these vehicles to be salvage, many flood vehicles appeared in dealership lots. These salvaged vehicles have extensive water damage, but there are steps you can take to protect yourself from buying them.

Flood vehicles are usually sold to consumers “as is” and the buyer finds out that the vehicle is salvaged only when he/she take it to get insured. This is when they realize that their agent can’t even issue them an insurance rate quote because of the salvage title on the vehicle. In cases like this most buyers have to go through a length inspection process with the state motor vehicle bureau that is required for a vehicle with a salvaged title.

One of the best ways to protect you from buying a flood vehicle is to get a vehicle history report from CARFAX or other organization which tracks flood vehicles and other types of damage. You can take the vehicle to a qualified mechanic to be inspected or inspect it yourself. Some signs of high water levels and tale water mark signs may be seen if you look inside the engine compartment. Also check under carpeting to see if there is mold or any presence of water staining. It is important that you thoroughly inspect the electrical system, as this is where the most water problems show up first.

Soon after the purchase of a vehicle the buyer starts to notice some problems in the appearance as well as performance of their vehicle. These may be typical signs of a previous accident.
Some of the common signs of previous accident in the appearance of the vehicle may 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 signs in the performance of the car may include accelerated or uneven tire wear and front-end pulling.
You can avoid purchasing a damaged vehicle if you have it inspected by a body shop. An experienced mechanic can easily detect signs of damage, although a frame check may be required if structural damage is suspected.
You can also get a vehicle history report. However, remember that these vehicle history reports often fail to reveal prior accidents or damage.

This popular scam occurs when the dealership sells you a previously wrecked car. Of course, some car dealers may not know that the car is a wreck however some know and simply try to cheat you. When you buy this type of vehicle it will have a sticker on it that says “as is” and the car dealer will ask you to sign papers that will state the condition of the car and that you agree to buy it “As Is”. This is a real problem for a consumer as no warranty is included with your purchase. In case something happens you are assuming all risks for the car and the dealer has no responsibility.

The best way to avoid this scam is to get a vehicle history report for the car you intend to buy. Try to get as much information about the car as you can. Another good option to check the condition of the car is to take it to a qualified mechanic and have it inspected.

One of the most important factors to consider when you are shopping for a used car is whether the car you intend to buy is really worth its price. Even though the car may look like it’s in a good condition there is still a possibility for you to become a victim of auto dealer fraud. Following are a few tips to help you estimate the real value of a used car.

1. First of all, do a little research on the car you consider to purchase. Find out how much that car costs if it were brand new. Check if the car is still in production and if its parts are still available. If you find out that the price of the car is too low it may have more problems than you think.

2. One of the most comprehensive used car value listings can be found in Kelly Blue Book.

3. Remember that brand new cars generally lose up to 30% in their value in 3 years. By the time the car is 5 years old, it may have lost up to 65%. So the older the car the cheaper it should become.

4. Another good idea would be to take a qualified mechanic along with you. The mechanic will be able to whether the car really is worth the used dealer’s tag price.

5. Get some information about the used car history. You can obtain a detailed vehicle history report on CarFax and other sites on the internet. The vehicle history should include any accident history and insurance data.

Keep in mind that some used car dealers will offer you defective cars, so try to look for a reputable dealer if you want to avoid all kinds of car scams.

Not long after flooding, cars damaged by water appear on the market. It is common practice private sellers, auto auctions and some car dealerships to sell flood-damaged cars after the vehicles dry. Many consumers may not notice the flood signs without close examination by an experienced eye. In many states, individuals and car dealers are legally obligated to disclose that the car they’re selling has previous flood history. The problems of a flooded car may include rust and damage to major mechanical parts as well as damage to sensitive electrical systems.
Here are several tips to help consumers spot flood-damaged vehicles:

• If you consider purchasing a used car, first have it inspected by a qualified mechanic.
• Check if the vehicle comes from a state ravaged by floods and ask to see the title of the used car you intend to buy. Walk away from the deal if “salvage” is stamped on the title.
• Always get a vehicle history report from an online service such as CarFax or Autocheck. These is the best way to find out where a vehicle’s been and what’s happened to it.
• Check for signs of water.
• Test everything related to the car’s electrical system, for example the lights, windshield wipers, turn signals, heater, air conditioner, and cigarette lighter several times to make sure they all work.
• Look for signs of mud, rust or water damage in the under the seats, trunk, and glove compartment.

Buying a used car isn’t easy because it may entail a series of future problems and financial headaches. That’s why a free vehicle history report is an excellent choice for anyone who is  buying a used car. Why? Because it will give you the peace of mind to go ahead with your purchase. For instance, if the car is in such bad shape it’s been given a salvage title, it would be far better to know that before you sign on the dotted line.

Unfortunately, there are many unscrupulous people ready to misrepresent the condition and value of the cars they are offering for sale. The most common of the various used car scams is the odometer rollback. The odometer is a device inside the car which indicates the distance that the vehicle has traveled. You may have seen it as a row of numbers inside the speedometer. One of the main variables in determining the price of a car is mileage.

An average car in the United States travels approximately 15,000 miles per year. So, if you want to buy a used car that was made in the year 2000, you should expect to see about 90,000 miles on the odometer. If it reads 150,000, the car has received heavy usage and may not be worth as much since maintenance costs may be high. But what if the odometer reads only 50,000 miles? In that case, you need to be suspicious. Unless it was owned by an old lady who used it for short neighborhood errands, the odometer may have been tampered with.

Don’t be fooled into thinking that a newer, digital odometer is more impervious to such alterations. All that is required is a laptop computer, the software, some cables and a basic set of instructions. Need an example? Just enter some basic keywords in any Internet search engine like “how to reset odometer” or “unhooking odometer.” You will find that there are dozens of pages with the required information.

Of course it is difficult to detect when a vehicle’s odometer has been altered, but it is not impossible. Following are some tips to help used car buyers detect odometer fraud:

• Ask the dealer to show you the title and compare the mileage on it with the vehicle’s odometer. Make sure to closely examine the title especially if the mileage notation seems obscured or is not easy to read.
• Always compare the mileage on the odometer with the mileage indicated on the vehicle’s maintenance or inspection records. Also, search windows or door frames, in the glove box or under the hood for oil-change and maintenance stickers.
• Request a Vehicle History Report for the vehicle you intend to buy to check for odometer discrepancies in the vehicle’s history. If the car dealer or seller doesn’t have a vehicle history report, you should order a vehicle history report online using the car’s VIN.
• Check that the numbers on the odometer gauge are aligned correctly. If they’re crooked, contain gaps or jiggle when you bang on the dash with your hand, simply walk away.
• Also, examine the tires. The vehicle should have the original tires if the odometer on your car shows 20,000 or less.
• Look at the wear and tear on the vehicle-especially the gas, brake and clutch pedals-to be sure it seems consistent with and appropriate for the number of miles displayed on the odometer.

One of the oldest and most common forms of auto fraud is odometer fraud. Typically consumers are willing to pay more for vehicles with lower mileage and this creates an incentive for dealers to rollback the mileage on odometers. There are a number of ways that odometer fraud can be accomplished in: physically repositioning the numbers, changing the mileage reading electronically, replacing the entire odometer, and/or disconnecting the odometer. Often dealers orally misrepresent the mileage and put the odometer reading on the trip meter.

If you want to avoid this car scam, you should closely read the odometer. The average person drives approximately 12,000 miles per year. If the mileage on the vehicle is below the average ask the dealer to explain why. Another good idea will be getting a vehicle history report. You can get summary title reports from service providers such as: Carfax (www.carfax.com), AutoCheck (www.autocheck.com), and CarFraud.com (www.carfraud.com). The vehicle history reports usually include information on vehicle mileage. A major discrepancy between the mileage reported and the actual mileage could signify fraud (especially if the actual mileage is lower than previously reported).

If you believe that you have been a victim of odometer fraud, you should contact the DMV and/or consult with a dealer fraud attorney.