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Withholding any other material information about a new or used vehicle.Misrepresenting the total mileage on a used vehicle through an odometer “rollback”.Failing to disclose past damage from an accident, flood, or fire in a used car sale.Claiming that a warranty offers protections that it does not offer, or falsely representing an extended service contract as an extended warranty.Representing that a new or used vehicle has features or options that it does not have.
Falsely representing a used vehicle, including one originally purchased from the dealership and then returned, as “new”. Undervaluing or underpaying for a consumer’s trade-in vehicle. Advertising a vehicle for a certain price and then telling consumers that the advertised deal is no longer available and attempting to sell them the same vehicle at a higher price, often known as a “bait and switch” scheme. Falsely stating that optional features are required. Inflating the total purchase price above the invoice or sticker price, such as by concealing options the consumer did not request, or by including other unapproved and undisclosed fees. Auto dealer fraud falls under the jurisdiction of laws prohibiting fraudulent or deceptive trade practices.Ĭommon forms of auto dealer fraud include: Federal and state products liability laws and state lemon laws deal with automobiles that are not fit for sale to the public. Consumer protection statutes address many of these concerns, but consumers should also take steps to educate and protect themselves.Īuto Dealer Fraud Versus Defective AutomobilesĪuto dealer fraud presents different legal issues than those involved in dangerous or defective vehicles and vehicles that do not meet the implied warranties of merchantability or fitness. Financing all or part of the purchase price, when necessary, brings up a whole different set of concerns regarding consumer rights. Any vehicle purchase requires a healthy amount of skepticism about the trustworthiness of the dealer. Used cars require a considerable amount of due diligence into the condition of the vehicle and the terms of the sale. The purchase of a new vehicle requires extensive research before ever setting foot on an auto lot, while looking at and test-driving new cars, and most importantly, before signing a sales contract. These fees and commissions do not influence the amount a customer pays.Purchasing an automobile is a major investment, which consumers should not take lightly. Auto Trader receives a fee from retailers advertising finance and may receive a commission from commercial partners for introducing customers to finance products.
Representative finance examples are for illustrative purposes only.
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