Car Dealer Fraud Basics

The car dealer fraud is  not a new phenomenon. A lot of car buyers easily get tricked. This car dealer scam is in fact not illegal. The deceptive and unlawful practices used by car dealers during the vehicle purchase process, including advertising, negotiations, vehicle pricing and financing terms, are described as auto dealer fraud. There are a number of car dealer scams. Here are some of the most common of them:

• Bait and Switch.
• “Add-On” Concealment.
• Rolling back the odometer.
• Vehicle Trade-Ins.
• Not disclosing that the car is a “lemon buyback” that the original owner returned for a refund.
• Not disclosing that the vehicle has a “salvage title.”
• Not disclosing that the vehicle used to be a rental, a demonstrator or was previously sold and returned.
• Quoting a lower price than the one on the contract, or charging you for features you were told were free.

In most states the car buyer is protected by law in case he/she believes has become a victim of auto dealer fraud. You may be a victim of car dealer fraud if you have purchased a new or used vehicle in the last three years and the dealer has committed one of the above mentioned scams. If you think that the car dealer has cheated, then there are a number of steps you should take to enforce your legal rights.