DEALER FRAUD
Why Car Dealer Fraud Is So Common
A large percentage of car sales involve fraud. Dealer fraud is common for a number of reaasons. The volume of car sales expenditures is hundreds of billions of dollars a year. In addition, whether by necessity or dealer ingenuity, car purchases are complex. In most cases, the sales transaction involves compliance with state titling and registration laws, often involves trade-ins, financing, (which triggers state and federal Truth-in-Lending laws) leasing, physical damage and liability insurance, credit insurance, service contracts, options, warranties, dealer charges, and other fees. This complexity provides ample opportunity for deception of the consumer. The most common and actionable forms of dealer fraud are described below.
Odometer Fraud
Odometer fraud involves tampering with an odometer so that it shows less than the car's actual mileage. Other odometer fraud is the dealer's failure to disclose that an odometer has exceeded its mechanical limits, e.g., where the car has really traveled 175,000, not the 75,000 shown on the five-digit odometer (most newer cars have six digit odometers). A dealer's failure to make the federally mandated disclosures is a form of fraud and something that we have experience litigating. If your vehicle was sold to you with an inaccurate odometer reading, or if you were not put on notice of the vehicle's actual mileage, you should contact us.
Wrecked & Salvaged Autos
Often dealers sell cars that were previously wrecked or salvaged without disclosing this to the consumer. If you purchased a vehicle that you believe may have been in a serious accident before you bought it, you should have the vehcile inspected fro safety concerns and contact us to discuss your possible claim against the dealer. Salvage vehicles have been in such a severe accident that the insurance company or leasing company "totaled" the vehicle (usually the value of the repairs exceed the value of the auto). If the vehicle is properly repaired at licensed repairers, then checked for safety, and they passes the safety inspection, they may be sold with disclosure of their salvage status and the title must be branded with the word "salvage." If you were sold a salvage vehicle, and did not know it to be salvage at the time of purchase, you should contact us.
Fraudulent Misrepresentation
Most dealer fraud involves salesmen misrepresenting the cars they sell (e.g., "one owner", "never been wrecked"). The truth is that the salesmen usually don't know the history of the cars—the dealers for whom they are selling cars tell them nothing about the cars they. Frequently the salesmen make the misrepresentations in order to induce you into purchasing a vehicle. They have quotas to meet, draws to repay, cars to sell, and, sadly, they have to say what ever they think you will beieve in order to sell you a car. There is a line as to what may be "puffery" by a dealer and fraud. If you believe that a dealer has misrepresented the vehicle's history and/or condition, you should contact us.
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