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If a car dealer lied to you, hid something important, or made promises that turned out to be false, California consumer protection law may give you a claim. Misrepresentation covers everything from outright lies to silence on facts the dealer was legally required to disclose.
In California, dealer misrepresentation happens when a dealer makes a false statement, hides important information, or makes promises about a car that they knew or should have known were untrue.
Fraudulent misrepresentation is a false statement the dealer knew was false (or said not caring whether it was true), meant for you to rely on, that you did rely on, and that hurt you. Negligent misrepresentation is a false statement made under circumstances that should have made the dealer realize it wasn’t true. Both are actionable; the proof and remedies differ.
There are two patterns to most cases, and both are actionable in California.
The dealer said something specific that wasn’t true: never in an accident, different financing terms, falsely “Certified Pre-Owned.”
The dealer didn’t disclose a prior accident, salvage history, or a lemon law buyback brand they were required to reveal.
For negligent misrepresentation the bar is lower: the dealer only needs to have should-have-known the statement was false.
A false statement of material fact. About the car, its history, condition, or the deal.
Knowledge it was false. Or saying it not caring whether it was true.
Intent that you rely on it. When deciding to buy.
You did rely on it. And your reliance was reasonable.
You suffered harm. As a result of the reliance.
Focused exclusively on automotive law. Lemon law, dealer fraud, and automotive class actions are all we do. Our focus is evident in our results.
20 years against California dealers. Dealerships have strong legal teams, but we’ve been outmatching them for two decades, and they know it.
$400M+ recovered across 6,000+ cases. Dealers don’t write fair settlement checks without a fight, and we know how to make them.
In-house inspection capability. The Margarian Garage lets us physically inspect and document concealed damage, giving us evidence most firms simply don’t have.
Any false statement of material fact about the car, its history, condition, features, or the terms of the sale that you reasonably relied on. Hiding information the dealer was legally required to disclose can also be misrepresentation.
For fraudulent misrepresentation, yes. For negligent misrepresentation, no. You only need to show they should have known the statement was false, which is often a much lower bar.
Possibly. Verbal representations can be actionable, especially when they relate to material facts about the car. Written contract terms generally control, so the specific facts and statutes matter.
An “as is” disclosure doesn’t necessarily protect a dealer from misrepresentation claims. If the dealer concealed material defects, misstated the car’s history, or skipped required disclosures, the defense may not apply.
If you suspect the dealer wasn’t straight with you, our attorneys are here to help. A free case review is easy, and it could change everything. Call (818) 553-1000.
Past results do not guarantee future outcomes. Every case is evaluated on its individual merits. Outcomes vary based on the dealer, the conduct involved, the documentation available, and the case posture. Attorney fee recovery in California consumer protection cases depends on the specific statute violated and the outcome of the case.
