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What is Auto Dealer Fraud?

Auto dealer fraud is a type of fraud practiced by some car dealers during the vehicle purchase process. Dealer fraud may be practiced either when advertising a vehicle, or when negotiating the car price, or when helping the buyer chose a financing option etc. Auto dealer fraud occurs mainly after the potential car buyer enters the dealership. It is very easy to press a person into buying a vehicle when he/she is already in the showroom. Most dealers know how to manipulate the situation to get the best car deal.

Car dealers use various strategies and tactics to make as much money as possible from auto deals. Following are some of the strategies used by fraudulent dealers.

  • “Bait and Switch” advertising practices

This is a common type of auto fraud. “Bait and Switch” scam is a vehicle advertising scam where the dealer uses online or paper advertisements to advertise a car at the certain price. Usually, the car price is surprisingly low. Thus, people get lured by the advertisement and they rush to the dealership to get the car. However, the dealer tells them the vehicle has already been sold. Then, the dealer switches the potential buyers onto other vehicles and tries to make them buy the cars. The cars offered to the buyers are always worth more money than the advertised one; this is a part of the plan. Unfortunately, many people fall for this trick.

  • Selling add-ons

There are certain accessories dealers try to sell. Usually, these are non-operative and unnecessary things. However, if the buyers fall for this, they will have to pay a lot of money, as the add-ons are often added to the vehicle purchase price.

  • Odometer fraud

Odometer fraud, also known as odometer rollback or odometer tampering is another example of auto dealer fraud. It involves selling vehicles that are equipped with rolled back odometers. Fraudulent people tamper with a car’s odometer so that it shows fewer mileage readings. Cars will little mileage readings are newer and they are sold at higher prices. Thus, odometer fraud is another form of auto fraud practiced to make extra profit on a car deal.

Dealer fraud includes, but is not limited to the above-mentioned types. There are hundreds of auto fraud scenarios we would like to tell you about. If you want to get more updates on auto dealer fraud, then bookmark this site.

If you think you have been cheated by your auto dealer, contact the Law Offices of Hovanes Margarian for a free case evaluation and legal help. Hovanes Margarian is an auto dealer fraud and lemon law lawyer who has successfully handled hundreds of dealer fraud and lemon law cases.

Good Luck!

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