Auto fraud can be reported to consumer protection agencies if there are laws governing auto sales. Fraud can occur in areas such as vehicle price, financing terms, warranties, and advertising. Used car dealerships must disclose information about the vehicle’s history, and certification means no defects have been found. Financing laws aim to protect customers from unscrupulous dealerships.
Consumer protection agencies typically accept auto fraud claims where there are laws governing auto sales. In some areas, auto fraud cannot be reported unless the customer contacts the dealership where the vehicle was purchased and attempts to resolve the dispute before filing a complaint. He or she should address the problem in writing and clearly explain what action could correct the problem. If a satisfactory solution is not found, you can file a complaint. An auto fraud attorney may be sought for advice on lawsuits.
Vehicle fraud covers a vehicle’s advertised price, financing terms, warranties, and used car disclosure laws, which typically cause the majority of claims. Used car dealerships typically must notify a customer if the vehicle has been involved in an accident that has caused substantial damage. Disclosure laws commonly require disclosure of automobiles used as rentals and information about any odometer alterations.
Used car fraud could be reported if a dealership fails to notify the customer of an acknowledged manufacturer defect or that the car was used for demonstration purposes. Used demo cars generally have to be sold as used vehicles. Some used car laws also apply to any new vehicle returned by a customer who was unable to obtain financing or for any other reason.
Claims can be filed if a used vehicle is certified as safe and in good mechanical condition, but does not meet the used car industry’s minimum standards. When a used car receives certification, it means that no defects have been found and the car has not sustained major damage in an accident. A dealer who falsely claims that a vehicle is certified could be the subject of an auto fraud claim.
Advertising is another area where fraud could occur. A retailer generally has to honor an advertised price, including the sticker amount. Some cases of auto fraud occur when a seller adds the cost of standard factory equipment to the selling price. These tactics fraudulently add to the cost of funding, taxes, and licensing fees. If a dealership fails to tell a customer about manufacturer rebates and pockets the rebate, it usually indicates auto fraud.
Financing laws aim to protect customers from car fraud by unscrupulous dealerships. Laws in some regions require a document that covers all aspects of the purchase and financial terms. This form should outline all of the buyer’s and seller’s obligations, including the down payment, trade-in vehicle value, and financing rate.
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