{"id":352633,"date":"2016-04-04T10:42:05","date_gmt":"2016-04-04T15:42:05","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/consumer\/lemon-law\/auto-dealer-fraud-faq.html"},"modified":"2024-04-29T08:22:08","modified_gmt":"2024-04-29T13:22:08","slug":"auto-dealer-fraud-faq","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud-faq.html","title":{"rendered":"Auto Dealer Fraud FAQ"},"content":{"rendered":"\n<div class=\"wp-container-core-columns-is-layout-9d6595d7 fl-sectionWithSidebar fl-container fl-flex fl-flex-wrap fl-gap30\">\n    \n    <div class=\"fl-page-articles fl-section-main fl-section-main-full-width\">\n        <h1 class=\"fl-no-margin-top\">Auto Dealer Fraud FAQ<\/h1>\n<section class=\"fl-gutenberg-byline\">\n    <div class=\"fl-gutenberg-byline-content\">\n                    By <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/natalie-moritz\/\">Natalie Moritz<\/a> | Legally reviewed by <a\n                href=\"https:\/\/www.findlaw.com\/company\/our-team\/melissa-bender-esq\/\">Melissa Bender, Esq.<\/a>\n                | Last updated\n        <time>\n                            April 29, 2024\n                    <\/time>\n    <\/div>\n\n    \n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-legally-reviewed\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Legally Reviewed\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>This article has been written and reviewed for legal accuracy, clarity, and style by <a href=\"https:\/\/www.findlaw.com\/company\/our-team.html\">FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with <a href=\"https:\/\/www.findlaw.com\/company\/company-history\/editorial-policy.html\">our editorial standards<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n\n    <details class=\"fl-gutenberg-byline-toggle fl-gutenberg-byline-fast-checked\">\n        <summary>\n            <i class=\"fl-gutenberg-byline-icon\" aria-hidden=\"true\"><\/i>\n            Fact-Checked\n        <\/summary>\n\n        <div class=\"fl-gutenberg-byline-toggle-content\">\n            <p><em>The last updated date refers to the last time this article was reviewed by FindLaw or one of our <a href=\"https:\/\/www.findlaw.com\/company\/our-team\/contributing-authors.html\">contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please <a href=\"https:\/\/lawyers.findlaw.com\/?fli=bylinelink\" target=\"_blank\" rel=\"noopener\">contact an attorney in your area<\/a>.<\/em><\/p>\n\n        <\/div>\n    <\/details>\n<\/section>\n<p>Consumer protection laws protect you from scams and other consumer fraud. There are specific protections for car buyers,&nbsp;including auto dealer fraud and&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law.html\">lemon laws<\/a>.<\/p>\r\n<p>This page answers common questions consumers have about&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud.html\">auto dealer fraud<\/a>. Learn about what qualifies as auto fraud, how to enforce your rights, and more.<\/p>\r\n<h2>What is auto dealer fraud?<\/h2>\r\n<p>Auto dealer fraud describes deceptive and unlawful practices used by automotive dealers at almost any stage of the&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/buying-or-leasing-a-car-general-tips.html\">vehicle purchase process<\/a>, from advertising to vehicle pricing negotiation and&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/payment-options-buying-a-car.html\">financing terms<\/a>.<\/p>\r\n<p>Examples of&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/types-of-auto-dealer-fraud.html\">auto dealer fraud<\/a>&nbsp;include:<\/p>\r\n<ul>\r\n<li>&quot;Bait and switch&quot;&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/car-ads-reading-between-the-lines.html\">advertising practices<\/a><\/li>\r\n<li>Deceptive inflation of vehicle prices<\/li>\r\n<li>Failure to disclose information about a new vehicle or used vehicle&#8217;s history<\/li>\r\n<li>Making false or misleading claims about&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/consumer-warranty-basics.html\">a vehicle&#8217;s warranty<\/a>, including extended warranties, implied warranties, and service contracts<\/li>\r\n<li>Misrepresentation of the vehicle&#8217;s condition or value<\/li>\r\n<\/ul>\r\n<h2>How does a bait and switch occur?<\/h2>\r\n<p><a href=\"https:\/\/dictionary.findlaw.com\/definition\/bait-and-switch.html\" target=\"_blank\" rel=\"noopener\">Bait and switch<\/a>&nbsp;is a form of false or deceptive advertising where a car dealer lures potential buyers by advertising a vehicle at a certain price. The dealer then&nbsp;tells the customer the particular vehicle is no longer available before using aggressive tactics to sell a more expensive car, or something similar to&nbsp;the original vehicle for higher than&nbsp;<a href=\"https:\/\/www.findlaw.com\/state\/consumer-laws\/details-on-state-deceptive-trade-practices.html\">the advertised price<\/a>.<\/p>\r\n<h2>What must used car dealers disclose about a used vehicle that is for sale?<\/h2>\r\n<p>In most states, car dealers must disclose whether&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/tips-for-buying-a-used-car.html\">a used vehicle<\/a>:<\/p>\r\n<ul>\r\n<li>Incurred significant damage in an accident<\/li>\r\n<li>Sustained damage by flood or fire<\/li>\r\n<li>Has been designated salvaged&nbsp;<a href=\"https:\/\/www.findlaw.com\/injury\/car-accidents\/vehicle-damage.html\">or totaled<\/a><\/li>\r\n<\/ul>\r\n<h2>What is a mileage rollback?<\/h2>\r\n<p>Mileage rollback, or&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/odometer-fraud.html\">odometer rollback<\/a>, is a form of auto dealer fraud. This occurs when someone alters or rolls back&nbsp;a used vehicle&#8217;s odometer,&nbsp;which indicates the total miles driven on the vehicle,&nbsp;to display a lower number than the vehicle&#8217;s actual mileage.<\/p>\r\n<h2>How do auto dealer fraud cases differ from lemon law cases?<\/h2>\r\n<p>Although both involve motor vehicles, auto dealer fraud cases differ&nbsp;from&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/how-the-new-car-lemon-law-can-help-you.html\">lemon law cases<\/a>. In auto dealer fraud cases, improper tactics used by a car dealer during the vehicle sale process are the focus. In contrast, lemon law cases arise from&nbsp;<a href=\"https:\/\/www.findlaw.com\/hirealawyer\/choosing-the-right-lawyer\/lemon-law.html\">problems or defects<\/a>&nbsp;with the vehicle itself.<\/p>\r\n<h2>What is the difference between a lemon and a lemon law?<\/h2>\r\n<p>In short, a \u201clemon&quot; is a&nbsp;<a href=\"https:\/\/www.findlaw.com\/injury\/product-liability\/your-rights-defects-repairs-and-lawsuits.html\">defective vehicle<\/a>. Most lemons are new cars, but some used cars, leased vehicles, and motorcycles can also be lemons.<\/p>\r\n<p><a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/lemon-laws-state-specific-information.html\">States set their own definitions<\/a>&nbsp;for what they consider a&nbsp;lemon, but&nbsp;a vehicle often&nbsp;meets the criteria for a lemon if both of the following apply:<\/p>\r\n<ul>\r\n<li>It has a substantial defect covered by an express warranty that occurs within a specific period after the purchase<\/li>\r\n<li>It continues to have the defect even after a reasonable number of&nbsp;attempts to repair the problem<\/li>\r\n<\/ul>\r\n<p>To qualify as a lemon, the defect has to affect the car&#8217;s use, value, or safety. For example, faulty steering or transmission that slips would qualify a car as a lemon.<\/p>\r\n<p>Lemon laws are a type of&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer.html\">consumer law<\/a>&nbsp;that upholds the consumer&#8217;s right to get fair value and use of the vehicle purchased. Most states&#8217; lemon laws require the manufacturer or dealership to issue a replacement vehicle or refund the consumer&#8217;s purchase.<\/p>\r\n<h2>Do lemon laws vary by state?<\/h2>\r\n<p>Yes, lemon laws&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/lemon-laws-state-specific-information.html\">differ by state<\/a>. Each state&#8217;s lemon law statutes vary in what they cover, vehicle criteria, and what constitutes a&nbsp;reasonable&nbsp;number of repairs.<\/p>\r\n<p>The&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/consumer-transactions\/warranty-laws-and-the-magnuson-moss-warranty-act-.html\">Magnuson-Moss Warranty Act<\/a>, which provides a basis for consumer rights&nbsp;including lemons, is considered the federal lemon law.<\/p>\r\n<h2>Should I contact the dealer if I think a salesperson committed fraud when I bought a car?<\/h2>\r\n<p>You may have to. In many states, either&nbsp;you&nbsp;or your attorney&nbsp;must contact the auto dealer and allow them to try to&nbsp;correct the problem to your satisfaction before taking any legal action for possible<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/auto-dealer-fraud-enforcing-your-rights.html\">&nbsp;auto dealer fraud<\/a>.<\/p>\r\n<p>Most car sales involve a contract. This&nbsp;contact should be in writing. It should allow you to clearly illustrate&nbsp;the problem\u2014for example, the dealer&#8217;s failure to disclose certain&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/understanding-vehicle-financing.html\">financing charges<\/a>. You must also state what steps you would like the dealer to take to resolve the problem, like a partial refund of the vehicle purchase price.<\/p>\r\n<h2>How do I file a complaint on a dealership for auto fraud?<\/h2>\r\n<p>First, contact the car dealership. Most states require you to report the issue and request a resolution before escalating the issue or pursuing legal action. Make all requests in writing and keep a detailed record of all&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/car-repairs-and-the-law.html\">repair attempts<\/a>&nbsp;and conversations.<\/p>\r\n<p>If the dealership does not resolve your issue, you can file a complaint with&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/credit-banking-finance\/what-consumer-protection-agencies-do.html\">your state&#8217;s consumer affairs agency<\/a>, which&nbsp;is often part of&nbsp;the attorney general&#8217;s office.<\/p>\r\n<p>You can also pursue a lawsuit with&nbsp;<a href=\"https:\/\/www.findlaw.com\/consumer\/lemon-law\/getting-an-attorney-s-help-lemon-laws-car-buyer-protections.html\">help from an attorney<\/a>.<\/p>\r\n<h2>Can I file a lawsuit for auto dealer fraud?<\/h2>\r\n<p>In most cases, yes. If you recently purchased a vehicle and suspect the dealer may have committed fraud in the sales process, you can speak with an experienced&nbsp;<a href=\"https:\/\/lawyers.findlaw.com\/consumer-protection\/?fli=dcta\" target=\"_blank\" rel=\"noopener\">consumer protection attorney<\/a>&nbsp;for legal advice. An attorney will evaluate all aspects of your case and explain all your options, including filing a lawsuit for damages. They will work with you to ensure the best possible outcome for your case.<\/p>\r\n<p>In some states, you must contact the dealer,&nbsp;ideally with a written notice,&nbsp;and allow them to correct the problem before you take legal action. Your attorney may also recommend&nbsp;<a href=\"https:\/\/www.findlaw.com\/adr\/arbitration\/what-is-arbitration-.html?\">arbitration<\/a>, or another informal dispute resolution process, before pursuing a lawsuit.<\/p>\r\n<div class=\"was-this-helpful\">\n    <div\n            class=\"was-this-helpful__question-container\"\n            aria-labelledby=\"was-this-helpful__question\"\n            role=\"group\"\n    >\n        <span\n                id=\"was-this-helpful__question\"\n                class=\"was-this-helpful__question fl-text-lg-bold\"\n        >Was this helpful?<\/span>\n        <button\n                class=\"was-this-helpful__button fl-text-sm\"\n                aria-label=\"Yes\"\n                value=\"yes\"\n        >\n            <span class=\"was-this-helpful__button-text fl-text-bold\">Yes<\/span>\n            <i class=\"was-this-helpful__button-icon\">\n                <svg width=\"22\" height=\"22\" viewBox=\"0 0 22 22\" fill=\"none\" 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12.01 18.67 12H16M9.00003 14V18C9.00003 18.7956 9.3161 19.5587 9.87871 20.1213C10.4413 20.6839 11.2044 21 12 21L16 12V0.999995H4.72003C4.2377 0.994543 3.76965 1.16359 3.40212 1.47599C3.0346 1.78839 2.79235 2.22309 2.72003 2.7L1.34003 11.7C1.29652 11.9866 1.31586 12.2793 1.39669 12.5577C1.47753 12.8362 1.61793 13.0937 1.80817 13.3125C1.99842 13.5313 2.23395 13.7061 2.49846 13.8248C2.76297 13.9435 3.05012 14.0033 3.34003 14H9.00003Z\"\n                              stroke=\"#666666\" stroke-width=\"2\" stroke-linecap=\"round\" stroke-linejoin=\"round\"\/>\n                    <\/g>\n                    <defs>\n                        <clipPath id=\"clip0_604_3423\">\n                            <rect width=\"22\" height=\"22\" fill=\"white\"\/>\n                        <\/clipPath>\n                    <\/defs>\n                <\/svg>\n            <\/i>\n        <\/button>\n    <\/div>\n    <span class=\"was-this-helpful__taken-action fl-text-sm-bold\"><\/span>\n    <div 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for=\"was-this-helpful__radio-button--solved-problem\"\n                        >Solved my problem<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"positive-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__feedback was-this-helpful__feedback--negative\">\n                <fieldset>\n                    <legend class=\"was-this-helpful__feedback-form-title\" tabindex=\"0\">Why was this not helpful?<\/legend>\n                    <div class=\"was-this-helpful__choose-option-message\" role=\"status\">\n                        <p class=\"was-this-helpful__choose-option-message-text\"><\/p>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--missing-info\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Missing Information\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--missing-info\"\n                        >Missing the information I need<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--complicated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Too complicated\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--complicated\"\n                        >Too complicated \/ too many steps<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--dated\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Out of date\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--dated\"\n                        >Out of date<\/label>\n                    <\/div>\n                    <div class=\"fl-radio-button-field fl-flex was-this-helpful__feedback-form-title\">\n                        <input\n                                id=\"was-this-helpful__radio-button--negative-other\"\n                                class=\"fl-radio-button-field-input\"\n                                type=\"radio\"\n                                name=\"negative-feedback\"\n                                value=\"Other\"\n                        >\n                        <label\n                                class=\"fl-radio-button-field-label fl-text-sm was-this-helpful__radio-label\"\n                                for=\"was-this-helpful__radio-button--negative-other\"\n                        >Other<\/label>\n                    <\/div>\n                <\/fieldset>\n            <\/div>\n            <div class=\"was-this-helpful__form-buttons-container\">\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--positive at-feedback-submit fl-button secondary\"\n                    type=\"submit\"\n                >\n                    <span class=\"fl-button-content\">Submit<\/span>\n                    <i\n                        class=\"fa fa-angle-right medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n                <button\n                    class=\"was-this-helpful__feedback-button was-this-helpful__feedback-button--cancel fl-button primary disabled\"\n                    type=\"reset\"\n                >\n                    <span class=\"fl-button-content\">Cancel<\/span>\n                    <i\n                        class=\"fa fa-times-circle medium\"\n                        aria-hidden=\"true\"\n                    ><\/i>\n                <\/button>\n            <\/div>\n        <\/form>\n    <\/div>\n    <div class=\"was-this-helpful__thank-you-message\" role=\"status\">\n        <i class=\"was-this-helpful__thank-you-message-icon fa fa-check\"><\/i>\n        <p class=\"was-this-helpful__thank-you-message-text\" aria-live=\"polite\"><\/p>\n    <\/div>\n<\/div>\n\n\n    <\/div>\n    \n    <div class=\"fl-section-sidebar\">\n        <div class=\"fl-editors-summary\" data-testid=\"fl-editors-summary\">\n    \n    <div class=\"fl-editors-summary-content\" data-testid=\"fl-editors-summary-content\">\n                    <h2>Can I Solve This on My Own or Do I Need an Attorney?<\/h2>\n                <div class=\"fl-editors-summary-content-main\" data-testid=\"fl-editors-summary-content-main\">\n            \n        <\/div>\n        <ul class=\"fl-list-style-none\">\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    Consumer legal issues typically need an attorney&#8217;s support\n\n                <\/li>\n                            <li data-testid=\"fl-editors-summary-content-item\">\n                    <i class=\"fa fa-check medium fl-editors-summary-content-item-icon\" aria-hidden=\"true\"><\/i>\n                    You can hire an attorney to enforce your rights for safe products, fair transactions, and legal credit, banking and related financial matters\n\n                <\/li>\n                    <\/ul>\n                    <div class=\"fl-editors-summary-content-description\" data-testid=\"fl-editors-summary-content-description\">\n                <p>Legal cases for identity theft, scams, or the Equal Credit Opportunity Act can be complicated and slow. 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<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>When buying a car, it&#8217;s important to be aware of deceptive trade practices and lemon laws. Learn about odometer rollback, bait and switch, vehicle warranties, and the answers to other frequently asked qiestions at FindLaw.com.<\/p>\n","protected":false},"author":41135,"featured_media":0,"parent":352630,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"app\/Http\/Controllers\/Templates\/ArticleWithBreadcrumbsController.php","meta":{"_acf_changed":false,"_stopmodifiedupdate":true,"_modified_date":"","_autodraft_ids":[],"_cloudinary_featured_overwrite":false,"_sb_is_suggestion_mode":false,"_sb_show_suggestion_boards":false,"_sb_show_comment_boards":false,"_sb_suggestion_history":"","_sb_update_block_changes":"","_is_real_time_mode":false,"_realtime_collaborators":"","footnotes":"","cf_checklist_status":[]},"categories":[2732],"tags":[],"state_laws_tags":[],"flmsa":[],"class_list":["post-352633","page","type-page","status-publish","hentry","category-consumer"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/352633","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/users\/41135"}],"replies":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/comments?post=352633"}],"version-history":[{"count":0,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/352633\/revisions"}],"up":[{"embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/pages\/352630"}],"wp:attachment":[{"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/media?parent=352633"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/categories?post=352633"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/tags?post=352633"},{"taxonomy":"state_laws_tags","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/state_laws_tags?post=352633"},{"taxonomy":"flmsa","embeddable":true,"href":"https:\/\/www.findlaw.com\/law-api\/wp-json\/wp\/v2\/flmsa?post=352633"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}