Be aware of Car Dealer Fraud California

Car Dealer fraud california

What is Car Dealer Fraud California?

Don’t be taken in by an unscrupulous car dealer. That’s easy to say but, exactly what does that mean? Car Dealer Fraud refers to deceptive and unlawful practices used by car dealers either in sales, financing, advertising or pricing negotiations. This type of behavior can happen at any point in the purchase process.

Several tactics used in car dealer fraud California:

Bait and Switch– Form of false advertising. This is pretty simple. The dealer advertises a vehicle at a great price, but when you go in to buy that vehicle, it is no longer available. Then the pressure is on to get you to purchase another vehicle. Most often it is the same vehicle but at a much higher price.

Add-On Concealment– The dealer adds on additional options to the price without consent.

Vehicle Trade-in Undervaluation– Dealer underpays you for trade-in.

Negative Equity Vehicle-A bit complicated, but it’s where you owe more on your car than it’s worth. The dealer misrepresents the value by elevating it to the amount you owe and add the difference to the new vehicle price.

New Dealer Return– When a “new” vehicle is actually a returned car due to a defect or persistent mechanical issue.

Certified Use Vehicle– Some dealers have a “Certified Use Vehicle Program”. These are supposed to guarantee the vehicle is good working condition. It also says  that the vehicle does not have any major structural damage. Some dealers label the “unqualified” vehicle as a “Certified” one.

Rewritten Contract/Backdating– When the customer doesn’t qualify for the terms of the original contract the dealer asks customer to return for a signature on a new contract and “backdates” the new contract with the date of the original contract.

Odometer Or Mileage Rollback– Actual mileage has been altered to hide the true mileage.

Failure To Disclose– When a dealer has a salvaged or flood damaged car and sells it to a customer without disclosing the damage. They do not inform the customer the vehicle has incurred significant damage. This is Title Fraud.

Packing– This is where the customer agrees to pay an inflated monthly payment and the dealer adds on additional accessories in order to get the quoted amount.

Not every dealer is like this. Diminished Value California just wants the general public know that this can and does happen. If you feel you have been the victim of car dealer fraud California, contact us today!


Car dealer fraud california