Auto Dealer Fraud
AUTO FRAUD
In California, if you have experienced auto fraud, there is good news: the laws in the State of California are some of the strongest in place to protect you.
WHAT ARE SOME EXAMPLES OF AUTO FRAUD?
Examples of Auto Fraud can include, but are not limited to:
- Misrepresenting a vehicle's accident history
- Concealing a vehicle's accident history
- Concealing a vehicle's known poor mechanical condition
- Misrepresentations about allegedly “certified” vehicles
- Failing to deliver title so you can register your vehicle
- Overcharging vehicle license fees due to the DMV
- Failing to disclose on your contract the schedule for your down payment
- Violation of California's single-document rule, which requires all of your agreements about paying for your vehicle to be in your contract (did you sign a separate promissory note?)
- Monroney sticker violations (charging you over the sticker price)
- “Yo-yo” financing/10-day rule violations (calling you back to the dealership to sign a new contract because the dealer said it can't get you financed)
- Failure to provide a federally-mandated Buyers Guide
- Failing to disclose a vehicle's prior rental history
- Failing to provide foreign-language contracts for deals not negotiated in English
- Failing to disclose negative equity on your trade-in (you owed more than they gave you, but your contract doesn't show that)
- Charging tire fees when your car doesn't have new tires
- “True Mileage Unknown”/odometer fraud
- Failing to provide required paperwork
- Falsifying credit applications, paycheck stubs, etc., to get you financed
- Forging sales documents submitted to the DMV and/or financing companies
Buying a car can be a very satisfying and exciting experience if done properly, or it can be one of the most stressful experiences. In the car buying process, the buyer is rarely as prepared and knowledgeable as the dealership. Car dealerships are out to make money from car buyers and often take advantage of buyers. There are many ways car dealerships defraud and take advantage of California car buyers.
WHAT ARE MY RIGHTS TO FIGHT AGAINST AUTO FRAUD?
1. The California Lemon Law: This law offers recourse to consumers who have purchased a “lemon”—a vehicle that is plagued by recurring mechanical issues, safety hazards, and other defects.
2. The Consumer Legal Remedies Act (CLRA): Under the CLRA, consumers have the right to take legal action against unfair and deceptive practices.
3. The Federal Trade Commission's Used Car Rule: This rule requires deals to display a buyer's guide on the vehicle at all times.
4. The Truth in Lending Act (TILA): TILA requires creditors to disclose key credit terms, including the annual percentage rate and the total finance charge.
5. Vehicle Code & Civil Code: These codes protect consumers from odometer tampering, title washing, and more.
6. Right to Cancel: In some cases, like when sellers engage in yo-yo financing, consumers may have the right to cancel a vehicle purchase within a set period of time.
While most used car dealers operate their businesses with integrity, unfortunately, some are not transparent about the fine print in financing contracts and the condition of the vehicles they sell.
EXAMPLE OF THE DIFFERENCE BETWEEN LEMON LAW AND AUTO DEALER FRAUD CASES
A. LEMON LAW CASES
(1) Arise because of manufacturer defects
(2) Lawsuits against the manufacturer
(3) New Vehicles
(4) Vehicles under the original warranty of the manufacturer
(5) Breach of contract case
(6) Problems or defects that arise after ownership
B. DEALER FRAUD CASES
(1) Arise because of the dealer's unlawful action
(2) Lawsuit against auto dealer
(3) Mostly used vehicles
(4) Any vehicle regardless of warranty
(5) Mostly used vehicle cases
(6) No problems or defects needed
TYPES OF AUTO DEALER FRAUD CASES LAW OFFICES OF CHRISTIAN L. WOODS, APC TAKES:
(1) New cars, boats, RVs, ATVs, and motorcycles with serious defects, still under warranty.
(2) Car purchases or leases from major dealerships (not small independent ones).
(3) Newer cars (not more than 5 years old).
(4) Cars with a purchase price of $12,500 or more.
(5) Cars covered by a dealer or manufacturer warranty.
(6) Finance fraud cases where dealerships falsify credit applications or misrepresent financial terms.
(7) Cases involving undisclosed serious collision damage.
(8) Undisclosed buyback vehicles (vehicles preivously returned under Lemon Law).
TYPES OF AUTO DEALER FRAUD CASES LAW OFFICES OF CHRISTIAN L. WOODS, APC DOES NOT TAKE:
(1) Cars purchased from small independent dealerships, not affiliated with major manufacturers.
(2) As-Is sales (where the buyer accepts the vehicle in its current condition without warranties).
(3) Cars with a purchase price of $12,499.00 or less.
(4) Private party transactions (between individuals, not through a dealership).
Contact an Advocate Today for Your California Lemon Law Auto Dealer Fraud Case
If your vehicle is defective or you feel you've been taken advantage of during the purchasing process, Christian L. Woods, Esq., of Law Offices of Christian L. Woods, APC., will help you resolve your dealer fraud case . Our hands-on legal expertise will ensure you recover the maximum compensation you deserve, including attorney's fees, so you won't pay anything up front. Contact us today for your free case review or give us a call at 626-558-6134 to learn about your legal options. We will listen to your story, gather the facts and documents needed to make a determination, and help you sue the car dealership if warranted. Call now.