Auto Dealer Fraud Cases

Even the most experienced car purchasers are not insured from becoming the victims of shrewd car salespeople and can encounter auto dealer scams. Any deceptive or illegal act practiced at the auto dealerships during the vehicle purchase process can be considered as auto dealer fraud“.

Fraud cases may range from financial deception to contract violation, from advertising fraud practices to refusal of disclosing information on the vehicle. For example, the law states that a consumer should be informed about certain current or prior damages that the vehicle has sustained. From former accident to flood damage, anything that took place in the past and effectively reduces the value of the vehicle should be disclosed to the buyer in writing.

Here are some auto dealer fraud cases that a car purchaser may encounter:

Odometer rollback

Often referred to as ‘’Mileage rollback’’, odometer rollback is a dealer fraud type the conception of which is rolling back/altering the odometer of a used vehicle in order to lower the number of the vehicle’s total mileage. As a result, the consumer pays thousands of dollars more than the vehicle is really worth.

There are  several ways to discover odometer rollback cases, such as obtaining vehicle history reports or inspection of the original tires and brakes. Yet, if you have suspicions that you’ve been a victim of odometer fraud, you should contact an auto fraud lawyer to start a detailed investigation.

Bait-and-Switch technique

Bait-and-Switch technique is another form of dealer fraud which is based on deceptive advertising techniques. In this case, the car dealer advertises a vehicle at a low price  and when the consumer calls or visits the store he is told that the particular vehicle is no longer available and persuades him  to consider similar and usually a higher-priced vehicle. In the US bait-and-switch operations are subject to lawsuits for false advertising and a dealer fraud attorney can assist  you in dealing  with such cases.


Sometimes the dealer may suggest you to renegotiate and make some changes in the purchase contract. This way  the dealership may want to sell you products or services that you didn’t intend to purchase. Note that you should not agree to the additional terms of  the new contact and can stick with the original terms.

If you purchased a vehicle lately and feel you have been defrauded or mistreated, consult a dealer fraud attorney immediately. The attorneys at The Margarian Law Firm can evaluate, investigate, and take legal action if any fraudulent evidence is found. The firm members have an in-depth knowledge and long work experience in dealing with shady car salespeople.

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