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Common Examples of Auto Dealer Fraud

Please contact us for a free consultation if you think you have been the victim of Car Dealer Fraud.

Have you purchased a Late Model Used Car with Mechanical Problems or Prior Accident Damage?

Many unsuspecting consumers purchase from car dealers used vehicles that are represented to be one owner vehicles but are in fact prior daily rental vehicle, (cars used as rental cars by car rental firms). Many of these cars have prior accident damage or mechanical problems.

Under California Law an auto dealer has the legal obligation to identify and disclose former taxi cabs, rental vehicles, publicly owned vehicles, insurance salvage vehicles and revived salvage vehicles at the time of and prior to sale. Additionally, many consumers are unaware at the time of purchase that many used cars have significant prior collision damage. Under California Law a dealer has and obligation to perform a legal sufficient safety inspection of all used cars offer for sale and must perform repairs or disclose collision damage revealed by the inspection. Unfortunately there are Auto Dealers who ignore the Law. Contact our firm if you believe that you have been the victim of non-disclosure in a vehicle sale or have purchased a vehicle with a history of prior collision damage. Our firm has litigated many of these cases successfully, recovering damages for our clients, while requiring the Auto Dealer to pay your legal fees.

What YOU need to know!

The price of new cars has climbed steadily over the past few years making used cars more attractive than ever. Buying a used car is a great way to stretch your dollar, but you will want to learn the facts about the car before you shop. With the recent surge in the used car market, the Better Business Bureau is warning consumers that there are scam artists out there who willing take advantage of unsuspecting buyers.

  Be aware of odometer tampering. The National Highway Traffic Safety Administration (NHTSA) (toll-free hotline 800.424.9393) estimates that consumers lose billions of dollars a year to odometer fraud. Odometer readings may be rolled back or documents can be forged. Making miles disappear helps increase the car's value to the seller, but can mean increased maintenance and repair costs to the buyer.

Before deciding on a used car, do the math. Industry standards claim the average vehicle accumulates about 12,000 miles per year. If the mileage seems excessively high or low in comparison, find out why. Ask the seller if you can see the maintenance records and compare them with the mileage on the odometer itself. Examine the car for telltale signs. Is wear on the car's pedals, tires and seats consistent with the miles displayed on the odometer? Obtain a detailed vehicle history report. If the seller cannot provide this information, you can use the vehicle's 17-digit vehicle identification number (VIN) to secure a history from either the state or a private vehicle history company. You can search the web to find companies providing this service by looking under the topic of "vehicle history."

  Watch out for damage disclosure, salvage and rebuilt titles. These titles are issued by states when the car has sustained damage as a result of one or more incidents. Salvage titles are issued by the state when an insurance company takes possession of a vehicle as a result of a claim. This usually occurs when a vehicle has been declared a total loss. A rebuilt title may be issued if a vehicle sustained damage and was rebuilt or reconstructed, then placed back on the road. Junk titles are issued when a vehicle is not road worthy and cannot be titled again in that state.

  Be careful of individuals selling used cars from a vacant lot or from the side of the curb. These vehicles may be sold by con men posing as private individual sellers. The car can come with hidden problems. Before buying any used car you should thoroughly research the car and the seller.