Auto dealer fraud exists.
Familiarizing yourself with types of auto dealer fraud will make you a better consumer and protect you from buying a lemon, being overcharged, and being taken advantage of when purchasing a car.
Unfair tactics used by car dealers may be more common than you think. Here are some common types of auto dealer fraud:
Used car sales lots may manually alter the mileage on a car to conceal the vehicle’s actual mileage.
Vehicle Trade-In Price
Car dealers may undervalue and therefore underpay a car buyer for their trade-in vehicle.
“New” Dealer Returns
The car was advertised as “new,” but in fact was returned by the dealer because of a defect or a recurring mechanical problem.
Salvaged and Flood-Damaged Vehicles
Used car sales lots may not disclose that a car was salvaged from a car accident or has been flood-damaged.
Inflating a Vehicle’s Invoice Price
Car dealers may inflate the invoice amount that the dealer is charged for the vehicle from the manufacturer.
“Bait and Switch” Advertising
A car dealer may lure customers to the dealership by advertising a low priced vehicle, then tell the customers that that deal is no longer available in hopes of selling the customer a different, higher priced car.
If you believe that a car dealer has committed auto dealer fraud, there are several ways to enforce your rights. Many consumer law attorneys specialize in auto dealer fraud, lemon laws, and consumer protection.