It is not the position of WCCSC’s that ALL automobile dealers commit fraud however if you are a victim of auto dealer fraud, WCCSC may be able to assist you with identifying the issues. WCCSC’s support automobile dealerships that conduct business fairly and honestly.
Auto Dealer Fraud Law refers to the many fraudulent, deceptive and unlawful practices used by automotive dealers during the advertising, pricing negotiation, and sales and financing of a vehicle. These fraudulent practices can occur during almost any stage of the vehicle purchasing process.
If you believe that you may be a victim of auto dealer fraud, there are steps you can take to enforce your legal rights and Wreck Check Car Scan can help.
The scams included in auto dealer fraud are many and varied; they include but are not limited to the following:
Bait and Switch is a form of false or deceptive advertising, where the dealer advertises a vehicle at an enticing price, but when the potential customer comes into the dealership, says the advertised vehicle or deal is no longer available and then pressures the customer to purchase a more expensive vehicle, or the same vehicle at a higher price
Add-On Concealment is where various optional add-ons are included in the final sales price without disclosure to the consumer
Vehicle Trade-In Undervaluation is where the dealer purposefully undervalues or underpays for a customer’s trade-in vehicle
Negative Equity/Vehicle Trade-In Overestimation is where the customer’s trade-in vehicle is worth less than the amount owed, but the dealer misrepresents the value, deceptively elevating it to the owed amount and often adds the difference to the new vehicle’s price
New Dealer Returns is where the dealer misrepresents and sells a vehicle as “new”, when it was actually returned to the dealership because of a defect or persistent mechanical problem
Failure to Disclose is where a used vehicle is sold to the customer without disclosing that the vehicle has incurred significant damage, been designated as a salvaged vehicle pursuant to a car accident, or incurred flood-damaged. Failure to disclose is related to vehicle title fraud
Odometer or Mileage Rollback is where a used vehicle has had its odometer altered to conceal the vehicle’s true mileage. Odometer or Mileage Rollbackis related to vehicle title fraud
Packing is where the dealer quotes the customer an inflated monthly payment, and after the customer accepts the agreement, adds optional accessories to attain the quoted monthly amount
Certified Used Vehicles is where certain manufacturers and dealerships implement certified used vehicle programs that are supposed to guarantee that the used vehicle is in good working order and free from major structural damage, but then label unqualified vehicles as “certified”
Rewritten Contracts/Backdating is where the customer does not qualify for the financing terms of the originally agreed upon contract, so the dealer has the customer return to sign a new contract with different terms but backdates the new contract with the date of the original contract
In many states, victims of auto dealer fraud are required to contact the auto dealer first to afford the dealer the opportunity to resolve the problem. before the victim can pursue legal action against the dealer. If the dealer fails to resolve your issue, you may then consult an attorney knowledgeable in auto dealer fraud to determine if you should proceed with a civil lawsuit.
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