Auto dealer fraud can come in many forms—from adding unwanted accessories to hike up the price to failing to disclose the vehicle's crash history. As a buyer, it’s natural to feel exploited when on the receiving end of this type of deception. Luckily, there are steps you can take to rectify the issue, including taking legal action. Below are answers to common inquiries about fraudulent car sales. 

FAQ Concerning Auto Dealer Fraud

What background information are car dealers required to disclose?

There are a few issues car dealers must be upfront about before completing a sale—including whether the vehicle has suffered major damage in an auto accident or as the result of a flood. When the car has a salvage title, it means the damage cost is high enough that it surpasses the insurance value. In many states, dealers must also disclose whether a car has this type of title branding.  

What laws are in place concerning this type of fraud?

Whereas lemon laws specifically deal with legal recourse for the selling of broken vehicles, auto dealer fraud laws are in place to punish salespeople for using unfair, deceitful practices to take advantage of consumers during any leg of the buying process. Advertising lower prices than what’s stated on contracts and lying about buyers’ credit scores to get them to agree to steeper financing terms are examples of deceptive practices which these regulations are designed to prevent.

What can I do if this happens?

Start by sending a written statement to the dealership or independent seller asking to remedy the issue. If they refuse or don’t respond, state agencies might be able to assist. You will be advised to file an official complaint outlining the grievance. Keep the original document for your records and send a copy to the Department of Motor Vehicles’ Consumer Complaint Center. If the claim has merit, the dealer could lose their license for unethical practices. 

Should I contact a lawyer?

Apart from contacting the state agency, you could also reach out to a lawyer for help. An attorney who specializes in auto dealer fraud will file a lawsuit to sue for damages. The civil action could include statutory damages for the deceitful trade. A suit for actual damages would only be levied if you lost income due to the fraudulent transaction.

 

If you need advice regarding auto dealer fraud or insurance claims, the staff at Wreck Expert will help. With 20 years of experience serving car owners throughout Kansas and Missouri, you can trust the technicians to perform post-repair vehicle inspections, reviews of total loss offers, and additional services to ensure you aren’t taken for a ride. They will also help you understand available options after your car is totaled. To schedule a consultation with the Olathe-based team, call (913) 444-4636. Visit the collision advocates online to read what customers have to say about their services.